DiversyFund’s Real Estate Investment Criteria
Although learning about crowdfunding investments in real estate is our main goal, we don’t choose every project. We have very specific criteria on how we pick our investment properties.
DiversyFund evaluates deals on a case-by-case basis. In addition, depending on the frequency of repeat business, terms are in most cases negotiable.
There are four initial factors that we address when reviewing purchase and refinance real estate investment projects:
Volume & Recency
Their track record of how much volume and how recent the investments they’ve managed helps to understand their deal flow and market knowledge.
Time & Quality Effectiveness
Turnaround time is imperative to return on investment. The longer the investment is held, the higher the holding costs. However, if there is too much of a rush to flip the project, quality suffers.
Prior financing history will determine Operator liquidity and ability to make payments.
Once the investment is ready for resale, prior history selling properties
play an important role in determining if the Operator has the ability to sell the property.
On each individual project all factors are addressed and based on the strength, term details including but not limited to Investment Amount-to-Value, After-Repair-Value, and/or Investment Term are negotiable.