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Frequently Asked Questions

What am I investing in?

When you invest into the DiversyFund Growth REIT, you become a co-owner of multiple multifamily cash flowing apartments throughout the U.S. The properties are renovated, increasing their value. You benefit two ways: from compounding interest by reinvesting the dividends monthly and overall growth from the appreciation of the properties.

What makes DiversyFund different?

DiversyFund has a unique business model. We are vertically integrated. This means we’ve cut out the middlemen – we purchase the real estate, develop it, manage it, collect the cash flow, and divide up the profits for our investors. Unlike other platforms, we also charge no platform fees because of our vertical integration.

What is DiversyFund?

DiversyFund is an investment platform that provides everyday investors the opportunity to build wealth like the 1%. We open up the opportunity to invest in alternative investments like commercial real estate, something that used to be exclusive to the uber-wealthy. We’re on a mission to democratize investing and help the everyday American build long term wealth.

Can I invest with my 401K or IRA account?

Absolutely! If you have a traditional IRA or an old employer-sponsored 401(k), you can roll it over into a self-directed IRA and start investing on your own terms. Get in touch with our investment team today! We’re happy to walk you through the process and connect you with one of the custodians we work with if you need to roll over into a self-directed IRA. Email us at invest@diversyfund.com

Can I invest with my LLC/Trust/Joint?

Of course! When going through the investment process on the website, the website will ask you for Form of Ownership, you can select Individual, Joint, Entity or Trust. If investing with your LLC, you can select Entity.

Can international investors invest?

Currently, our platform is only available to US Residents, those on a visa with a valid Social Security Number (SSN) or those with an Individual Taxpayer Identification Number (ITIN).

Valid US entities operated by non-US residents are also accepted.

Who can invest?

The Growth REIT is open to everyone! Any US resident over the age of 18 can invest.

Can I invest in a specific project?

The beauty of investing in a fund is that not only are you diversified into real estate, but you are also diversified across multiple assets in the fund to mitigate risk. That said, you are unable to invest in a specific project.

If you have no fees, how do you make money?

At DiversyFund, we profit 2 ways: we participate in the profits upon the liquidation of the REIT alongside our investors. We also cover our operations at the project level as the developer. Unlike other platforms that charge a platform fee, we’re able to limit our fees to the project level, not taking away from your investment.

What are your fees?

There are NO platform fees to invest with us. You might be wondering–how are we able to do that? Well, unlike others, we actually own all of the real estate assets that are being purchased as opposed to other platforms that simply raise funds for other 3rd party projects. Because of this, we are able to waive the fees on the platform and pass on those benefits to our investors.

How do I fund my investment?

The primary way to fund your investment is via an ACH transaction from your bank account. You can link your bank account either by directly entering your routing and account numbers OR by using your online banking credentials.

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 I liquidate my investment?

Like all real estate investments, your investment in the DiversyFund Growth REIT should be viewed as a long-term (approximately 5 years) investment. To protect the growth of all our investors’ wealth there are no premature withdrawals.

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.

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.

What happens during 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.

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.

Can I set up recurring investments?

It is very easy to set up the auto-invest feature on your dashboard. Click here to enable monthly transfers and grow your wealth on autopilot.

Can I add to my investment?

You can add to your investment at anytime in increments of $500. Just log into your account to add to your position.

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 tax document will I receive?

Our DiversyFund Growth REIT investors receive a 1099 form.

How is the investment taxed?

Dividends are generated monthly and automatically reinvested, this is taxed as ordinary income. Investors will receive a 1099-DIV to file with their taxes every year. The 1099 will reflect all the appropriate deductions from depreciation.

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.

Can I designate a beneficiary to my account? Can I invest for my children?

Of course! All you need to do is fill out a beneficiary designation form, sign it and send it back. Please email us at invest@diversyfund.com to do this.

When will I see my first Dividend?

You can see all updates in your dashboard. Your monthly reinvested dividends are posted by the 15th of every month. If you invest this month, you will see your first dividend the next month and will be prorated for the number of days you were invested

How are my dividends treated?

Dividends are generated monthly and automatically reinvested on your behalf. You can track your investment’s progress from your dashboard.
We’re utilizing the same strategies that the 1% use to build their wealth. The dividends are reinvested to take advantage of compounding interest. This is vital to the success of our growth strategy and ensures our investors have the best opportunity to maximize their returns.