Investing your money can be as daunting an idea as it is an exciting one. Investing your money into property can often feel like an exclusive sport played only by those rich enough: the ones who know the rules.
Like every investment, it’s risky, and the risk can sometimes outweigh the prospect of a reward, leaving a lot of people excluded from the financial stability that can be from solid, manageable investments. We’re here to take you through some DiversyFund reviews to demystify the property investment process.
SEC qualified company DiversyFund is designed to make the transition into property investment affordable, straightforward and profitable. If you want to get into the business of property investment but don’t have the capital to buy, renovate, and rent by yourself, DiversyFund is a great opportunity to get you started.
With a minimum investment requirement of $500 and over 10,000 investors, DiversyFund is immediately more inclusive than a range of investment opportunities that require unfeasible initial costs for the average earner. You don’t even have to be accredited – just currently living in the US, over the age of 18, and able to invest $500 or more.
How does it work?
Alongside an annual 2% asset management fee, your investment is pooled together in a fund with other investors that DiversyFund then uses to purchase multi-family commercial property. You make a return on your investment with DiversyFund if the properties you invest in appreciate in value and are sold for profit (dividends before sale are reinvested back into the properties).
DiversyFund does the market research for you and invests in properties with high profitability potential; if you’re concerned about being clued up about the property market enough to invest in it, you can put these worries at ease. As a helping hand, DiversyFund has a learning centre to educate you in real estate investing if this is a new venture for you.
It’s worth noting that by investing with DiversyFund, you are committing to a five-year period in which your investment cannot be withdrawn; to get any return on your investment, you must wait until the end of your fund’s term. You are unable to specify what properties you wish your money to go to, but DiversyFund directly manages all the properties they own and aims to only use your money on properties that can be sold at a profit within five years to ensure your investment is successful.
Properties bought by DiversyFund are renovated after purchase to ensure an increase in value, and the company projects that their investors make a 10-20% return on their investment. This is a great opportunity for someone interested in property development who may not want to be involved in the logistics and added costs of refurbishment. Once sold, investors receive a 7% preferred return before DiversyFund claims a profit.
A larger investment = a larger return on profits, with the average investment at DiversyFund sitting at $2000 more than the $500 minimum. However, if you’re at the beginning of your investment journey, are just beginning to diversify your portfolio into an industry less familiar to you, and you’re not concerned with seeing an immediate return, DiversyFund is a great way to get started with an affordable, trustworthy investment opportunity.