Due diligence is the defining factor that could make or break your credibility as an investment firm; and yet it’s one of the hardest aspects of real estate investing. “Out of 100 deals that come in the door, the underwriting team approves less than 5%,” states Craig Cecilio, Founder of DiversyFund.  “Although our jobs as asset managers is to ensure investors yield compounded returns by getting their money working all the time, our number one priority is to conduct a rigorous process and in some ways marry the deal to really understand it’s true purpose.” The Catch 22 For investors, the due diligence process is incredibly timely; so much so, that there’s a chance that they can miss a potentially great deal all together. In most cases, investors who need about a week to do their own due diligence will not be able to invest by the close date. For those looking […]

DiversyFund announced that on December 18th, 2014 their new sleek website will be live. The company is a real estate crowdfunding platform that connects accredited investors to high-quality pre-vetted real estate investment opportunities. “Thanks to our current users’ feedback, we have launched a yearlong plan through a series of initiatives to optimize the development of the backend user profiles,” said Craig Cecilio, Founder and CEO of DiversyFund. New Investor Portal Features Even more so, the new changes will feature: Personalized portfolio management. Virtual documentation for all invested in offerings which will include closing packages, monthly servicing statements, etc. Live chat to get real time answers for your questions on each offering. Online wiring options to 3rd party escrow accounts. Virtual document signing throughout the life of the each and every investment. Currently, the DiversyFund team is in the final stages of tying up loose ends. Additionally, the website is set to […]

Over the past year we have seen real estate crowdfunding unfold into its own animal at an  unprecedented rate. With the SEC Regulation lifting the General Solicitation Ban, private companies can now publicly advertise their investment offerings. Additionally, open fundraising is the catalyst for this past year’s whirlwind of changes. Not only should all companies understand how this affects their business and their competitors, but investors should understand the importance in the development of the Title II of the JOBs Act when vetting investments. The Scope of Public Advertising What has been known over the past 80 years as illegal by the SEC under Rule 506 of Regulation D and Rule 144A of the Securities Act of 1933, is now amended. Under the amendment, companies will be allowed to fundraise investment offerings to a larger audience of people who may or may not be Accredited Investors. General solicitation has created impactful progress […]

Here at DiversyFund we are all about helping our investors grasp a better understanding of diversification in the 21st century. This is why we have explained, below, the pros and cons of investing in only one asset versus diversifying. Understand the Importance of Diversification Let’s start by saying that putting all of your investment eggs in one basket goes far beyond the boundaries of the Modern Portfolio Theory (MPT). One of MPT’s key insights is that while investors need to be compensated for bearing risk, not all risks are rewarded. The market does not reward risks that can be “diversified away” by holding a bundle of investments, instead of a single investment. By recognizing that not all risks are rewarded, MPT helps to establish the idea that a diversified portfolio can help investors. Additionally, it can help investors earn a higher return for the same amount of risk. Understand the […]

As you delve deeper into real estate investing, you begin to weigh the pros and cons for your investments. You hear terminologies such as debt, mezzanine, and equity in conversations, but do you know what they mean? If you do not already know what these entail, you are not alone. This blog post will break down each investment type and their differences in basic terms. That way you can decide which investment fits your criteria when you are ready to invest.  Debt Investing This is simply when you provide a loan to an operator backed by an asset such as real estate. As an investor, you will receive either fixed or amortized payments. That is, you either receive interest only or interest plus a portion of your principal for your scheduled monthly payments, also known as a mortgage that you may have taken out on your own residence. You will have […]

Real Estate Investing can take many forms, all of which continue to cross over into one another as real estate investing continues to evolve. If you are looking for a basic distinction, we can begin by discussing the difference between an active passive investor. Use this quick and useful summary to determine which type of investor you are. Active Investors. The primary purpose of active investing is to outperform the market. In order to do this the investor must continuously monitor his or her investments to exploit market inefficiencies. This type of investing is very involved, but consistent success is rare, especially for an individual investor. The benefit of active investing is the potential to make higher than average returns. The risk is mainly the difficulty and rarity in achieving this, especially on your own. Essential Daily Demands: Active listing research online, studying the markets and/or zip codes you would like […]

Still on the fence about investing in real estate? We get it. Hearing that real estate investing is the hottest investment in the market right now might not be enough for you to simply jump in and invest. If not now, when? By the time new investors in real estate jump into the market, the margin for returns begin to plateau. You research, research and research, and by the time you are ready to invest, the market has already peaked. Hey, we aren’t saying that you should sell your stocks and bonds when you are ready to invest in real estate. We promote diversification. So much so that we put together 3 essential tips that will help you do exactly that: DIVERSIFY. 1. Start Small and Test the Waters We hear time and time again that people take all of their investment capital, place it into one asset in hopes […]

It’s very likely that you have heard of the crowdfunding model and how it’s being incorporated across multiple industries in the U.S. By visiting DiversyFund or any other real estate crowdfunding platform, chances are you are doing a bit of research on how the concept is taking the real estate industry by storm. In essence, crowdfunding is merely a new term to describe real estate syndication, which is a 20th-century model. Hence, the model was used to support investors and firms that work side-by-side to diversify their portfolio across different asset classes. During last month’s “Silicon Valley Meets Crowdfunding” conference, hosted by CrowdFundBeat, an interesting panel discussion took place. This panel featured 3 founders/CEOs: David Manshoory of Asset Avenue, Carlo Tabibi of Patch of Land, and Jillienne Helman of RealtyMogul. Moreover, the panel offered an interesting and informative discussion around the crowdfunding model, perceptions around it, and the projections on […]

Ever since we came up with the idea of launching DiversyFund, we knew that it would represent more than just another “crowdfunding” platform. You see, there are other real estate crowdfunding sites. While some are doing an amazing job of bridging the gap between real estate investments and technology, others are merely hoping to figure out the “why” after they’ve dove in to the pool. For us, it was a natural progression to launch this website. Since we had already “paid our dues” so to speak through our existing real estate investment firm. A decade of hard work, relationships with investors, developers, and other stakeholders and over $500 Million in placements, gave birth to the idea of putting our expertise to good use. This is why we are launching this site. Furthermore, why we are providing a new gateway for our existing and future investors to diversify their portfolios through multiple projects […]

Let’s identify the most common traits among uber-successful CEOs and top executives. The following are the key characteristics: Visionary: ability to move forward regardless of setbacks and staying true to their vision. Fearlessness: in dealing with challenges and conflict head on. Students of the “game”: whatever the game (industry) is. The successful CEO aims to stay ahead of the curve through a commitment to lifelong learning. Connector: Whether it’s connecting an idea to a plan, bringing the right people to support that plan, or simply connecting the product to the end consumer. Passionate: this one goes without saying, as it’s certainly one of the most common traits of any successful executive Health and Fitness Of course, this is a short list, and there are other key factors that play a role into the rise of any over-achieving professional. The one trait we haven’t touched on is perhaps as important as […]