Over-reserved Offering Overview
Each offer will be time stamped as soon as an investor completes the accreditation verification process, and DiversyFund will accept investment offers in the order received.
If an offering becomes over-reserved, investors who have not completed their accreditation verification process, or who have made an offer after will not have the opportunity to fund. Offers made by investors who have completed accreditation will be moved to the fund.
Ultimately not all investors who submit offers will be able to invest in an offering that is over-reserved. Investments will be finalized on a first come, first served basis from among the offers with the earliest time stamp.
What does it mean when an offering is over-reserved?
An offering becomes over-reserved once the total amount of offers submitted exceeds the equity allocation.
Why does DiversyFund over-reserve offerings?
Investing in our real estate assets requires a high level of certainty that committed capital will convert to invested capital and absolute certainty that 100% of required equity funds are available for investment by the time of closing. For this reason, DiversyFund may preapprove offers up to approximately 120% of the total equity allocation. We do this to allow for investor attrition and to ensure equity is 100% funded. Once this number is reached, the offering is closed to investment and no more offers may be submitted.
Is it possible that one investor's large offer might displace the smaller offers of many other investors?
No, DiversyFund has adopted a policy to ensure that we are able to deliver on our commitment to democratize access to real estate investing. We use time stamping to ensure investments are processed fairly in the order received and do not place preference on larger investment offers.
How can I maximize my chance of participating in an offering that is likely to become over-reserved?
Offers should be submitted as close to the investment window opening (Check the date and time on each offering page) as possible. When you submit your offer, you will receive multiple communications by email and within the website and app inviting you to complete your accreditation verification through Parallel Markets. DiversyFund offers access to fund our offerings in the order in which they complete their accreditation (as opposed to the order in which they click the “Invest” button). We recommend completing the accreditation verification process as quickly as possible to better ensure your participation in the offering.