CEO, Craig Cecilio, gets interviewed by Carol Massar and Cory Johnson at Bloomberg Markets. Massar and Johnson ask Craig what is different about DiversyFund. They go over the pillars that make DiversyFund a platform that is different than the rest. Now offering new ways to invest in Real Estate for Accredited and Non-Accredited Investors.
Listen to and audio recording of this interview, above, and the following is a full-recap as well.
Carol Massar (CM)
Cory Johnson (CJ)
Craig Cecilio (CC)
Announcer: You are listening to Bloomberg Markets with Carol Massar and Cory Johnson on Bloomberg Radio.
CM: Yes, indeed, everybody! Bloomberg Markets on this Wednesday Afternoon. Crowdfunding for Real Estate investing and how about we throw something else into it with the social impact. Craig Cecilio is CEO and Founder of DiversyFund based in San Diego. In our New York studio here on this Wednesday. Nice to have you here. We’ve been talking back and forth, because he said, “Wait a minute, we do something different,” but we’ve talked to a few people who do crowdfunding in real estate. What is different about it, because you tend to know all the players in this world. What is different about what you guys are doing? And welcome.
CC: Thank you for having me on the show. We are a 100% vertically integrated platform. So that means that we are not only the developer in management of the asset but our constituents, our investors, own part of the asset as well. So that is a major difference.
CM: So, you own the projects?
CC: We own the projects. We own the property.
CJ: So, you are also managing the property, you are also managing the tenants and all that heavy lifting?
CM: Why? Why do you think that…?
CM: Exactly! There is a lot of risk in that.
CJ: There is a reason why people don’t want to manage that.
CC: I would say there is more transparency. There is better quality control. When you are using other people’s money to fund projects you would like to be able to have as much quality control as possible.
CM: So, you’ll never sell that project? Will you ever sell that property?
CC: In some cases we will for returns, we’ll sell some properties. Some properties we’ll want to hang onto. The income producing properties. We have a mixture of both types of properties in our portfolio.
CJ: So, we had these guys, last week and they talk about a similar notion of allowing some investors who aren’t so flush into these real estate deals and I wonder if there was something. If the fact that you guys are getting into this track, they are getting into it, I wonder if there was some kind of tax law changes or investments in the JOBS ACT and a law that allows these kinds of vehicles to be available to accredited investors.
CC: We got active with the vertically integrated platform in November 2016. It was the first time we took money across our platform or our website. We’ve been in the process right now of opening up to non-accredited investors which is a 9-12-month process. So, since we just started in November of 2016, we’ll probably be activated right around April of 2018. A pretty good period of time. That would open it up to non-accredited investors for as little as $500 dollars.