Mar
17

Title III of the JOBS Act Creates Freedom for the Average Investor

There are many ways in which Title III of the JOBS Act creates freedom for investors. Through changes in the market, added liquidity, and behavioral transformations, the average investor has the opportunity to invest in any real estate investment. A firm’s involvement can also provide a new level of flexibility and liquidity. This will have a major impact in the market. Thus, creating an opportunity for an entirely new market of buying and selling partial ownership of real estate. Market Shift: Cause & Effect Crowdfunding has established itself and many argue it will further establish itself as the new standard. This is especially true for early startups and financing for businesses. Some estimates give Crowdfunding a potential valuation of $300 Billion of market capital. This capital influx could create major implications for the real estate industry. It will create a new investor class (unaccredited investors will begin to shift away from […]

Mar
10

DiversyFund’s Real Estate Investment Criteria

Although learning about crowdfunding investments in real estate is our main goal, we don’t choose every project. We have very specific criteria on how we pick our investment properties. DiversyFund evaluates deals on a case-by-case basis. In addition, depending on the frequency of repeat business, terms are in most cases negotiable. There are four initial factors that we address when reviewing purchase and refinance real estate investment projects: Volume & Recency Their track record of how much volume and how recent the investments they’ve managed helps to understand their deal flow and market knowledge. Time & Quality Effectiveness Turnaround time is imperative to return on investment. The longer the investment is held, the higher the holding costs. However, if there is too much of a rush to flip the project, quality suffers. Financing History Prior financing history will determine Operator liquidity and ability to make payments. Market Capacity Once the […]

Mar
03

Is Compliance Irrelevant if the Real Estate Deal Isn’t Good?

So, you’re wondering if compliance is totally irrelevant if the real estate deal is no good. Well, it long story short, not necessarily. For investment firms, this can only be true if there’s an assumption that regulatory paperwork, processing, and reporting is compliant. That being said, compliance is what makes a company sustainably viable as well as trust worthy. There is no discounting it. However, compliance can help protect the investor, to a certain degree, if a deal goes sour. How do you know if the Real Estate Deal is good? Product and Market Knowledge can, naturally, give you the confidence and understanding of where to look. Even more so, it can show you what key factors make a good investment from any real estate deal you vet. As long as you know where to look, you can make informed decisions based on whether the investment aligns with your portfolio and […]