For a long time, when it came to building wealth through real estate investing, there were two different sets of rules. There was the set of rules that regular people had to play by. And then there was the set of rules that the one percent had to play by. However, thanks to new financial technologies and changing SEC regulations, things are finally starting to change. Today, cutting edge online investing platforms like DiversyFund are helping everyday investors diversify their portfolio with alternative assets that only billionaires had access to before. And it is changing the way people plan for their future.
Modern Portfolio Theory 2.0
For over 60 years, financial advisors have preached the gospel of Modern Portfolio Theory, which tells us that the best way to minimize risk and maximize long term gains is to build a portfolio that is 30 percent bonds and 70 percent stocks. And it is still true that, if you are only allowed to invest in publicly traded stocks and bonds, this is still good advice. However, there is actually a better model if you have access to alternative assets.
For the last 30 years, institutional investors and high net worth individuals, a.k.a. the one-percenters have been allocating roughly 30 percent of their assets to private market real estate. Why? Because the private real estate market has less volatility than the stock market. And because it consistently offers higher returns. And because they were allowed to.
You see, in the past, it was difficult or impossible to break huge real estate investments up into smaller pieces that regular investors could actually afford. Because SEC regulations were based on these limitations, only the rich had access to the most lucrative investment opportunities.
Luckily, 21st-century fintech has changed what’s possible, causing major disruptions to the financial services industry. Crowdfunding platforms and data science in particular have made it possible to break up large scale investments, and the SEC has updated their rules accordingly.
That’s where startups like DiversyFund come in.
DiversyFund: Closing The Wealth Gap with Real Estate Investing
DiversyFund was created to give regular people the same financial opportunities as the one percent and ultimately help close the wealth gap. In order to do that, the company’s founders created a simple online investing platform that lets anyone invest in a portfolio of diversified real estate assets.
Called Real Estate Investing Trusts, or REITs, these portfolios are managed by experts who follow a simple three-step strategy to make you money. First, DiversyFund acquires multifamily apartment buildings that already generate revenue but are in need of improvements. Second, DiversyFund renovates the buildings so that they generate increased revenues through increased rents, and continue to do so until market conditions are right for profitable liquidation. Third, when market conditions are right, DiversyFund sells its real estate assets, returns principles, and distributes the returns to investors.
Thanks to this tried-and-true strategy, DiversyFund has an excellent historical return rate of 17.5 percent. And because DiversyFund actually owns and operates the properties you invest in, which cuts out all the middlemen, there are absolutely no fees.
Democratizing The Wealth Building Process
When DiversyFund says their goal is to close the wealth gap, they really mean it.
Though SEC regulations have opened up a number of different alternative assets to regular people, a lot of investment platforms out there still have net worth or credit requirements that make their services inaccessible to many. But that is not the case with DiversyFund. As long as you can afford the minimum $500 investment, you are eligible. Period.
Whether you are just now starting to plan for your financial future, or you are an experienced investor looking for new opportunities, don't be content to play by the old rules. Sign up with DiversyFund today and start diversifying your portfolio like a billionaire.
Futurism fans: To create this content, a non-editorial team worked with an affiliate partner. We may collect a small commission on items purchased through this page. This post does not necessarily reflect the views or the endorsement of the Futurism.com editorial staff.