DiversyFund Review 2025 – Will Your $500 Investment Be Worth It?

Are you thinking of investing in real estate? It can be time-consuming and challenging but don’t worry. In this DiversyFund review, there are information and tools that can help you decide and start investing. 

DiversyFund is not your common crowdfunding platform, as it provides more but charges less. Who wouldn’t want that? Other companies ask for a higher amount to begin an investment, but with DiversyFund, you can invest with as low as $500. 

Are you hooked? Read on and find out why DiversyFund may be the better tool to help you with your finances.

What Is DiversyFund?

DiversyFund is an online real estate crowdfunding platform that offers private commercial real estate investments. It provides a non-traded DiversyFund Growth REIT (Real Estate Investment Trust) and is also open to accredited and nonaccredited investors. 

DiversyFund invests in large amounts, like low-risk multifamily housing opportunities of 100+ units in the US markets. It aims at those properties that can make IRRs (Internal Rate Returns) of 10% to 20% over a 5-year investment cycle. That means putting money where there’s a higher return on the potential investment.

Purchasing and managing properties can be a hassle. That’s why crowdfunding real estate is a great alternative, where you buy a part of the property and outsource the management. And unlike any other platform that lets you trade on your own, DiversyFund is entirely automated. 

Here’s more good news! DiversyFund REIT has the lowest direct investor fees in the industry, and it does not have management or broker fees.

Is DiversyFund For You?

• People who have at least $500 to invest
• Fans of real estate investing who want to know more about owning property
• Investors who are into adding real estate to their portfolios, particularly those interested in owning multifamily property investments
• Individuals who wish to invest in real estate without direct ownership, take less risk and get the same benefits as regular real estate investors

How Does DiversyFund Work?

DiversyFund works like other investment platforms. They use the REIT model for investment and strictly follow the regulations set by the IRS (Internal Revenue Service). 

DiversyFund must pay out 90% of its taxable income to investors yearly. To ensure that, they abide by a 5-step procedure for all of their properties.

1. Raising Capital

As a first step, DiversyFund raises funds required for a particular property. 

Pooling investments from clients who have lesser cash outlays, DiversityFund then selects a particular property for them. Clients with bigger investments have the option to choose the property they will invest in. 

2. Acquiring the Property 

DiversyFund’s team determines the property that can turn into a profit. 

Investment properties are checked with particular criteria in mind—for example, property location or type of property with the most potential for increased value.

3. Renovating the Property

DiversyFund takes into account the upgrades and repairs to further property development. One of their objectives is to boost the cost of rent for each of the units.

4. Increasing the Property Value

Even after renovations, returns on real estate investment usually take time. But with DiversyFund, investors have the opportunity to earn dividends monthly. 

Until the end of the 5-year investment period, this dividend will be automatically reinvested into the property, making its market value appreciate. 

5. Turning A Profit

DiversyFund then sells the property with the profits shared back to the original investors. It’s your choice whether to withdraw your funds or to stay with DiversyFund to further invest in another property.

What Makes DiversyFund Your Best Bet

Before you take your first investment baby steps, here are some DiversyFund features that would make you a fan of this platform. 

It’s All About Your Goals

The DiversyFund website lays it out for you via a questionnaire that recommends the best investment options. These choices are tailored within your means and with your objectives in mind.

Before going into trading, DiversyFund will ask you about your investment goals. Here are some of the reasons for investing that most people would give when they sign up:

• Desire to invest in real estate
• Saving for retirement
• Wanting to diversify their portfolio

After this, fill in the email address box, create a password, and you’re finished registering your DiversyFund account.

(Financial) Knowledge is Power

If you invest with DiversyFund, you aren’t just earning extra profits: you also get a chance to learn different investment strategies.

DiversyFund has an info-packed blog microsite with lessons ranging from basic investment procedures for beginners to more advanced financial topics.

What You See is What You Get

DiversyFund offers transparency to everyone. When you want to invest in a REIT, make sure it is registered with the US Securities and Exchange Commission (SEC). 

Since DiversyFund is SEC-regulated, you can check the annual audits and DiversyFund’s files with the SEC anytime. That’s how open and transparent they are!

How Much Can You Earn With DiversyFund?

When it comes to investment, you have to be patient. It will take some time and more effort before you see your earnings. With DiversyFund, you will earn money if the properties you have invested in appreciate and can be sold at a profit.

With the 5-year cycle, you will not get your ROI (Return on Investment) until the end of the term. Your money is currently invested in a real estate property. So, like a plant, you can’t pull it out for 5 years since you are basically growing your cash and waiting for harvest time.

DiversyFund has been transparent to its investors, specifying its goal to generate returns between 10% and 20% on its property investments. The S&P 500, an index of the 500 most prominent financial companies in the US stock market, earns between 9% to 10% average annual ROI or 7% corrected for inflation. 

So DiversyFund’s target is more than a fair percentage of return on your investment.

The Downsides

DiversyFund’s Fees

DiversyFund claims that they don’t charge fees at the fund level. While factual, it is far from representing the impact fee in an investment in the REITs Funds. 

A review of disclosures in the Securities and Exchange Commission’s (SEC) filings for DiversyFund Growth REIT shows that, in general, as the sponsor and developer, DiversyFund charges the REIT several fees.

Here are the different fees that DiversyFund charges the REIT:

• Disposition of property: 1% of the total sale price
• Developer fee: 6% to 8% of both hard fees like real estate, construction, renovation, etc., and soft fees like professional labor costs
• Construction management: There is no cost range mentioned, but with the confirmation by the sponsor, the fee should be within the standards set forth by the construction industry.

The 5-Year DiversyFund Lock

Like any other investment, most real estate investments are illiquid, meaning they are not easily converted into cash. 

While DiversyFund investments have the most attractive aspects of private real estate, they aren’t as financially buoyant compared to other investments such as stocks. 

The downside of DiversyFund is its 5-year lock-in investment cycle. Many other non-traded REITs have a compensation schedule or share a buyback policy that provides some limited possibilities to sell. DiversyFund does not offer any liquidity whatsoever. 

On top of that, the DiversyFund Growth REIT doesn’t send cash dividends to investors. The REIT reinvests all the dividends into more shares, holding onto the cash flows then reinvesting into new real estate deals until the fund’s term ends.

In a Nutshell: DiversyFund’s Pros And Cons

In summary, to help you decide whether this platform suits you, let’s weigh the benefits and limitations of DiversyFund. Should you invest in DiversyFund?

Pros

• Low minimum investment: With DiversyFund, you can invest for as little as $500 to start.
• No need to be an accredited investor: DiversyFund’s Growth REIT is not limited to accredited investors but is also open to nonaccredited ones.
• DiversyFund owns and manages the properties.
• Allows for hands-off investment in commercial-grade real estate

Cons

• No income: While most REITs generate passive income by letting you trade on your own, with DiversyFund Growth REIT, it is different. It requires automatic reinvestment of the profits until the end of the 5-year term.
• Concentrated assets risk: The DiversyFund Growth REIT owns just a small collection of residential real estate properties. Meaning it is a more concentrated risk.
• Limited track record: The Growth REIT has reported minimal results, making it hard to measure management’s capability to deliver.
• High developer fees: DiversyFund claims they have no investor fees at the fund level. However, the fees it charges the REIT itself as the developer are very high. 
• No liquidity: There is no redemption policy, unlike with other crowdfunded REITs, and there’s no guarantee that the DiversyFund will agree to repurchase your investment.

DiversyFund intends to hold properties for five years before liquidation. Don’t use any cash that you may need later if you invest.

Having said all that, should you decide on investing in DiversyFund, the next section will take you through the steps.

Creating An Account

Getting started with DiversyFund is easy and simple. DiversyFund does all the work on your behalf automatically. Their team of experts created this process to make your life easier.

How To Get Started In 4 Steps:

1. Creating an account in DiversyFund can be done online in minutes by going to the DiversyFund platform.
2. After you are done signing up, you can get exclusive access to the current investment funds of your choosing. These include their Growth REIT, which anyone can invest with at a minimum of $500.
3. You can quickly do your transactions online when you have decided to invest. If you have any questions or issues, you can reach them via DiversyFund Live Chat, their Investor Relations Team, or a scheduled call.
4. With DiversyFund monitoring your investments, you can see and monitor the performance of your asset via their dashboard. You can review your portfolio and check out the dividends you earn every month.

Frequently Asked Questions About DiversyFund

Now that you know how DiversyFund works, you may still have some questions before deciding to invest in the platform.

Is DiversyFund Legit?

Yes, DiversyFund is a legit company. It has multiple real estate holdings in different organizations, including DiversyFund Growth REIT, but some people are concerned about how it does business.

As you start saving and investing, the next thing you do is look for more ways to grow your wealth because DiversyFund holds on to your return on investments to reinvest back to a new property.

Although some online platforms allow you to invest in real estate, none of them are focused on commercial real estate and nonaccredited investors like DiversyFund.

Is DiversyFund A Good Investment?

Yes, since DiversyFund is SEC-qualified and -compliant, it has to share its financial information. 

Aside from that, DiversyFund provides many opportunities to invest in commercial real estate that can help you diversify your portfolio. 

Another way for you to check whether DiversyFund is a good investment or not is to review its previous performance and check if they deliver on the 10% to 20% returns its funds are targeting. If it continuously reaches this rate of return, then it might be a good investment even though it requires you to lock in your money for 5 years.

Does DiversyFund Pay Dividends?

Dividends are generated monthly with DiversyFund. Even so, they will be automatically reinvested on your behalf.

Which is Better, DiversyFund or Fundrise?

Both DiversyFund and Fundrise are real estate platforms with their perks and downsides. DiversyFund does not charge platform fees, while Fundrise charges an investment advisory fee.

Although Fundrise provides a wide array of selection of investments, they also offer an option to redeem shares early, but DiversyFund does not. You may read our detailed Fundrise review for more details.

Open An Account At Fundrise

The bottom line is both of them show strengths and weaknesses, and if you are looking for the better one, it will be based on your financial goals and needs.

If you want more flexibility but with added platform fees, then Fundrise could be the best choice. Still, it could be for you if you like DiversyFund’s representation of investing, renovating, and re-selling properties.

To help you decide, you can compare these two real estate platforms by features, investment goals, tools, and pros and cons. Whichever one you choose, invest wisely.

Conclusion – DiversyFund Review 

DiversyFund is an online real estate platform that helps you invest easily by doing the work on your behalf. In contrast to the other real estate crowdfunding platforms, they provide a low minimum investment amount of $500.

Investing in REITs for as low as $500 is one thing, but with DiversyFund, even nonaccredited investors can also invest with no stricter requirements to get started.

Overall, DiversyFund is worth trying to help you get started in real estate investment. Apart from that, if you are looking for hassle-free investments, this is how to do it.

Keep in mind that investing in DiversyFund is more of a long-term investment compared to day trading stocks or even investing in exchange-traded funds (ETFs). 

So, is Diversyfund for you?

You need to assess what you will be more comfortable doing. What’s important is that you take the necessary steps to help achieve your dreams.