Are Real Estate Investment Funds A Smart Option For You?

Real estate investment funds have been around for a few years now, yet they are becoming a great alternative for investors. Hence, to answer this question, we would like to go over a full review about investment funds, what they are, how they work, and how you may benefit from them. What Is an Investment Fund? An investment fund is a source of capital that belongs to multiple investors. It gets used to buy securities together while each investor holds proprietorship and control of their own shares. An investment fund delivers a bigger range of investment prospects, expert supervision, and fewer investment fees, or none in some cases. Different types of investment funds include, but are not limited to: mutual funds, exchange-traded funds, money market funds, and hedge funds. Having such a vehicle that allows you to bring together related and unrelated investors, allows you to raise capital in a […]


Investment Project Update: Felspar, San Diego, CA – March 2017

This month’s investment project update: Felspar is off and running! To all of our Felspar investors, the progress we are seeing at this property is amazing. Let’s go over the details for this month’s investment project update.   Getting the ground ready The pool was demolished, filled in, and dirt compacted. The field is ready. Moreover, we received authorized inspections, and now we have a suitable area to build the new extensions for this house. Demolition Moreover, we mobilized the demolition. We began on the two existing structures and we will move onto underground utilities and foundation work before the end of the first quarter this year. One house. 2 Owners Concurrently with construction, we are processing a condominium lot split to legally entitle the new dwelling units for separate ownership. What is next? Finally, we completed the topographic survey. We will submit the new Map for completeness review by the end […]


5 Crowdfunding Investment Advantages

Although there are many ways to invest for your future, let us go over the many advantages in crowdfunding investments. Everyone agrees that you need to have investment options in order to make sure your retirement will be solvent. Even if you have a great salary you need to not only put away part of it, but also invest it in order to make enough money to retire. Crowdfunding continues to gain strength in a world full of investment choices. It is used for different types of investments, and these have many advantages. Nonetheless, let’s go over the real estate crowdfunding investment advantages. Being that one of the safest investments is real estate, crowdfunding investments include a few advantages like no other. Typically, the value of a property increases over time. However, the cost of a property is a barrier to entering this field for many potential investors. Thus, real […]


Investors: To Diversify or Not to Diversify?

Why is the option to diversify in Real Estate so attractive? Since the passing of JOBS (Jumpstart our Business Startups) Act in 2013, Real Estate Crowdfunding has shook-up the real estate industry. Nowadays, anyone can invest in real estate and has the ability to do so online. After we learned some of the most disrupting factors in the way people invest in real estate, a big change had to happen. Transparent ways of investing are now available to everyone. The option to diversify is becoming more attractive to all investors since it lowers the risks and increases chances of success. What is new? In an industry previously transacted entirely offline, it is expected that many investors refuse to change their ways. As the saying goes, “If it ain’t broke, don’t fix it.” Although it may not be necessarily “broken,” something needed to change. The accessibility to investments, the ability to streamline […]


Pros/Cons of Investing in One Asset Versus Diversifying

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 […]


Real Estate Debt, Mezzanine, and Equity Investing. What does it mean?

As you dive deeper into real estate investing, you weigh the pros and cons for your investments. You hear terms such as debt, mezzanine, and equity in conversations, but do you know what they mean? If you do not already know what these mean, 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 needs 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 the option to fund […]


Are you an Active or Passive Investor?

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 or 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 […]


3 Tips to Begin Investing in Real Estate

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 begins 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 […]


Why It’s Smart to Invest in a Real Estate Fund

So, you have decided to invest in real estate, but you are not certain where to start. There is certainly a wide array of options available. While real estate can provide numerous advantages, purchasing an investment property may not be the right choice for your situation. One option that can help you to take advantage of the benefits of real estate without the need to become a landlord is a real estate fund. What is a real estate investment fund? A Real Estate Investment Fund makes it possible for you to acquire a diversified portfolio of real estate assets while still taking advantage of tax-saving benefits. One of the great benefits available from investing in a real estate fund is that you are not alone. In most cases, when investors purchase an investment property, they are completely on their own. Benefits of a Real Estate Fund With a real estate […]

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