Become a Real Estate Investor With DiversyFund & Minimum Investment $500

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Investing in real estate is a popular choice for wealthy investors, who claim it serves as a hedge against inflation and is a strategy to diversify against stocks and bonds. However, real estate investing can often be cost-prohibitive for many would-be investors. Because of this barrier to entry, many are excluded from real estate as an asset class, but DiversyFund provides a way to own real estate with an initial investment of $500.

Summary

• DiversyFund is a real estate investing platform that allows investors to purchase real estate investments starting at $500.
• The fund is a real estate investment trust (REIT) that invests in multi-family apartment buildings, which is a category of commercial real estate.
• DiversyFund claims to choose potential properties based on population growth, job growth, local trends, new construction, market comps and other factors.

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What Is DiversyFund?

DiversyFund is a real estate investing platform that allows investors to purchase real estate investments starting at $500.

The platform allows investors to view the fund's collection of real estate investments and track their portfolio online. Not only can you diversify away from stocks and bonds, but DiversyFund says your investment is diversified among multiple real estate properties.

DiversyFund is Securities and Exchange Commission (SEC) qualified, so it is required to disclose financial and management information to the public. Its financials are audited annually by a third-party CPA firm and filed with the SEC.

DiversyFund believes investing in real estate provides several benefits to investors, such as:

• Reducing overall volatility
• Increasing total portfolio investment returns
• Reducing taxable income through depreciation

Furthermore, DiversyFund asserts that these features are possible through its service.

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Minimum Investment

There is no charge to open an account with DiversyFund. Its Growth REIT is a real estate investment trust that the firm claims is designed for income and diversification through DiversyFund's portfolio of properties.

A minimum investment of $500 is required, but according to DiversyFund, the average investment is $2,500.

Before you invest, know that this is a long-term investment. There are no premature withdrawals.

DiversyFund Return on Investment

DiversyFund affirms that income will vary depending upon the REIT's investment performance. Its terms and conditions state that you'll receive a monthly distribution relative to the amount of money that you've invested.

DiversyFund says it seeks to exit each property within five years, and that the proceeds from each sale are disbursed to the fund and divided among the shareholders. Investors are given the option to reinvest their share or take a full payout.

Fees

There are no monthly fees or annual management fees or broker's fees with DiversyFund. DiversyFund contends that it limits its fees to the project level for the acquisition and development of each real estate investment.

Tax Implications

Each year, you'll receive a Form 1099-DIV for the annual total of your monthly dividends. This is taxed as ordinary income. The 1099 will reflect all appropriate deductions from depreciation. DiversyFund provides cash distributions each year to cover additional taxes owed, so you won't face any out-of-pocket expenses.

Additionally, you are able to write off the depreciation on these real estate investments. Applicable tax laws allow for depreciation to reduce the amount of your taxable income.

How to Open a DiversyFund Account?

You can open a DiversyFund account online. You'll start by providing your basic personal information when creating your account:

• Full name
• Phone number
• Mailing address
• Social Security number
• Birthdate
• Email address and password

You'll be given the option choose from three investment choices:

1. Starter Investor: a one-time investment of $500 to $5,000
2. High Growth Investor: an investment of $15,000 or more
3. Auto Investor: an initial investment of $500, plus monthly automatic investments afterwards

Choose from your type of ownership:

• Individual
• Joint
• Trust
• Entity

Select your initial investment amount and frequency of future investments:

• Minimum of investment of $500
• Recurring investment minimum of $500 (if applicable)
• Frequency of weekly or monthly investments with your choice of dates

Finally, you'll link your funding source by logging into your bank account through Plaid and manually entering bank account details.