Why do you need my Social Security number and date of birth?
As an investor, the Securities and Exchange Commission (SEC) requires that we collect this information, so we can properly report your earnings. Additionally, you will receive forms at the end of each year, which should be filed with your annual tax return.
Can international investors invest?
No matter where you live in the world, you can start investing with DiversyFund. However, you will be required to provide completed United States tax forms, such as a W-9. Moreover, you will need to file a United States tax return with the Schedule K-1 we disperse annually.
What types of accounts does DiversyFund support?
We currently support personal investment accounts, joint accounts, trusts, and certain entity accounts.
Can I invest through my IRA or 401k?
You will need to set up a “Self-Directed” IRA first if you don’t already have one. If you already have a Self-Directed IRA set up, then please send us your IRA Custodian’s investment authorization form at IRAinvesting@diversyfund.com so that we can fill it out for you to sign.
What is the minimum investment amount?
Currently, the minimum investment requirement for DiversyFund’s Growth REIT is $500.
Who can invest?
DiversyFund is qualified by the SEC to offer investment opportunities to everyone. Any US resident, unaccredited or accredited, over the age of 18 can currently invest.
How do I get started as an investor in DiversyFund?
You can get started as an investor with DiversyFund here. The entire account creation and investment process is completed online via our platform. You will be prompted to provide any required information, as well as make the necessary acknowledgments online.
Can you explain the Growth REIT’s 5-year term?
We aim to invest in projects that can be liquidated (i.e., sold) within approximately five years. We maintain several cash-flowing properties in the portfolio, generating revenue from rents. When market conditions are suitable to an advantageous liquidation event, we sell the assets at which point investors will receive their principal and returns back. We also provide a prorated adjustment on the return based on how long someone was in the Fund to compensate those who have been in the longest.
What is the term?
The DiversyFund Growth REIT is designed to be a long-term investment and is inherently illiquid in nature. It has a 5-year projected term.
Are you publicly traded?
We are a private Real Estate Investment Trust and are not publicly traded on the stock market. We are utilizing the new Regulatory Crowdfunding laws, which allows us to pass along significant cost savings to our investors compared to a public REIT. This allows us to pass on these savings to you so that our investors can achieve better overall returns.
What documents do I receive as an investor?
After completing your investments, you can track updates on your dashboard. Within the dashboard, you will be able to see your current investments, periodic asset updates, and tax documents.
As long as you are an investor, we intend to furnish you with a Form 1099.
What Is the Growth REIT?
The DiversyFund Growth REIT is a diversified portfolio of value-add multifamily real estate properties that allow everyday investors to build wealth like the 1%. Our investors are co-owners and investment partners with us and own a percentage of the REIT’s commercial real estate portfolio.
What are the fees?
DiversyFund is the only no-fee platform.
How do you source your deals?
Our Growth REIT focuses on targeting markets across the US that have economic indicators that show strong population and job growth and other dynamics that favor multifamily assets.
What is the Growth REIT’s investment strategy?
The current focus of the DiversyFund Growth REIT is on multifamily value-add properties. DiversyFund carefully qualifies each investment opportunity to ensure that specific criteria are met. By ensuring the market is right, as well as a number of other factors, our team of experts can hand-select the opportunities that show the best potential return on investment for you.
Am I able to access my funds in the case of an emergency?
An investment into the Growth REIT is an illiquid investment that was created for long-term growth investors. In the case of an emergency, we recommend looking to your other, more liquid investments.
One rule of thumb some investors follow is to never invest more than 10% of your net worth into a single deal, including ours. We recommend only investing an amount you are comfortable not accessing for up to 5 years.
What tax document do I receive?
Our DiversyFund Growth REIT investors receive a 1099 form
Are investors able to write off depreciation on real estate investments?
Yes, you are able to write off depreciation with our Growth REIT. We will also do cash distributions to cover the additional taxes owed at the end of the year so you won’t face any out of pocket expenses.
What is the 7% preferred equity?
Our investors are protected by a 7% preferred return to investors before the Sponsor receives any profit split. After the 7% preferred return, there is a 35/65 profit share between DF and the investors. Once the investors have made 12% per year, then the profit split hits 50/50.
What risk is involved?
We mitigate risk by :
- Focusing on multifamily value-add plays with existing cash flowing assets.
- Avoiding development and single family residential plays
- Using data and marketing to source off-market multifamily deals to get better pricing on acquisitions
- Diversification over several properties in the Fund
How do I earn returns on my investment?
DiversyFund buys underperforming Multi-family Assets, renovates them and stabilizes the asset. Once the property is stabilized the cash flows are collected and disbursed to the Fund. The cash flow is then divided up amongst the investors on a per rata basis. At the end of a 5 year period, the properties are sold, disbursed to the fund and then divided up amongst the investors. Investors can choose to reinvest into DiversyFund’s next fund or take a full payout.