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For decades, large financial institutions and high-net worth individuals have had access to a class of highly lucrative real estate investments that regular everyday people did not. But luckily, thanks to advancements in the fintech industry, things are finally starting to change. In fact, innovative companies like DiversyFund are using new crowdfunding platforms to open these previously exclusive investment opportunities to the masses. And what that means is that, for the first time ever, regular everyday people can diversify their portfolios into real estate like never before.
Of course, lowtech crowdfunding has been a part of the financial services industry for a long time. Mutual funds, hedge funds, pension funds, and exchange-traded funds, or ETFs—these are all basically crowdfunded investments. A bunch of regular people pool their money together into a single portfolio, which is directed by professional money managers. By doing this, small investors achieve far greater growth and stability than they would ever be able to achieve on their own. And that is great. The only problem with these old-fashioned crowdfunded investments is that, by law, they are only allowed to invest in publicly traded securities like stocks and bonds.
The good news is that, today, technological advancements are disrupting the financial services industry. Modern data science has led to the development of innovative online crowdfunding platforms that are opening up a world of new possibilities for regular investors. And the SEC has responded by loosening restrictions and opening up pooled fund real estate investing to everybody.
That’s where startups like DiversyFund come in.
DiversyFund is a simple online platform that makes it exponentially easier for regular people to invest in portfolios of diversified real estate assets. These assets are called Real Estate Investment Trusts, or REITs, and are professionally managed portfolios which all follow the same three-step strategy.
First, DiversyFund acquires multifamily apartment buildings that already generate revenue but are in need of improvements.
Second, DiversyFund renovates the buildings within the first year, increasing their value in a process called forced appreciation. The buildings then 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.
With DiversyFund, monthly dividends are automatically reinvested in the fund for the duration of your investment term. This term is generally about five years, but the exact length depends on the market.
Thanks to their 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.
DiversyFund is also incredibly accessible. There’s no net wealth requirement, and no credit score requirement. If you can afford the minimum investment of $500, you’re eligible.
So whether you’re a new investor just starting to plan for your future, or you're an old pro looking for innovative new ways to diversify your portfolio, you need to take a look at DiversyFund. There may be a lot of high tech investing options to choose from these days, but you won’t find many as simple and straightforward as this.