Updated March 19, 2021

DiversyFund Review

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DiversyFund lets you invest in real estate with $500. But how does it work? Find out the pros and cons, and if it's better than Fundrise.

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Pros and Cons

  • Only $500 to start
  • No platform fees
  • No income requirements
  • No early withdrawals
  • 5 year investment
  • Cannot cash out dividends

Bottom Line

Good real estate investing platform if you don't mind a long investment

Traditional real estate investing means purchasing property. Then you need to rent it out or wait for it to increase in value. But that requires lots of upfront cash.

DiversyFund lets you pool money with other investors to buy properties, starting with just $500.

The real estate crowdfunding platform acquires and manages projects for you - with no management fees. There's no work involved for you.

Though still a new company, DiversyFund has seen excellent returns. Should you get in on it?

Read on to learn more about the fees and how the returns work.

What Is DiversyFund

A fairly new company, DiversyFund was founded in 2016 and is based in San Diego. It's a real estate crowdfunding platform that focuses on multi-unit properties like apartment complexes and condominiums. This is one of the safest types of real estate for stable growth.

The minimum investment is just $500—no accreditation needed. This low barrier to entry opens the world of real estate investing to just about anyone.

DiversyFund directly owns all its real estate projects. This allows them to charge no management fees to investors.

Its main offering is the Growth REIT. This is a public, non-traded REIT that owns and manages all its own properties.

What is a REIT?
A real estate investment trust (REIT) allows investors to pool their money toward real estate investments. Traditional REITs are traded on the public market, which means investors can sell any time the stock market is open. However, DiversyFund's Growth REIT is not publicly traded and thus requires a long-term investment.

How DiversyFund Works

DiversyFund has properties in Texas, California, North Carolina, Utah, and Florida. It buys mainly apartment buildings that are already making revenue through rent.

Then it renovates them so that they have a higher value and can be rented at higher prices. Finally, the properties are held for another five years to allow the value to further appreciate. This is a value-add strategy.

The money from rent is paid to investors in monthly dividends (and automatically re-invested). You'll also profit when the property is sold at the end of the investment period.

Investors are protected by a 7% preferred return. This means they get a return of 7% before DiversyFund gets any share of the profits.

How returns work:
  • The first 7% of returns are all paid to investors.
  • After returns hit 7%, the profits are split 35/65 between DiversyFund and the investors.
  • After returns hit 12%, the profits are split 50/50.

DiversyFund Pros & Cons


  • Completely passive investing of real estate
  • Only $500 minimum to start
  • No platform fees or commissions
  • Don't have to be an accredited investor
  • Historically high annualized returns
  • Investments in reliable sector of apartments
  • Invests in cash flow positive properties


  • Lack of diversity in location
  • At least a 5-year investment
  • Return on investment takes some time
  • No early withdrawals

Is DiversyFund safe? DiversyFund is qualified by the Securities and Exchange Commission (SEC). This requires them to disclose financial and management information, so you get the same transparency as required for public companies. Diversify files annual audits with the SEC conducted by a third-party CPA firm.

Pricing & Fees

There are no management fees and no fees to buy in or exit an investment.[1] You pay no additional amounts beyond your investment.

Is that really the case? How is this possible?

DiversyFund directly owns all its projects. It's the sponsor, manager, and developer. By acting as the only player, this allows it to offer its REIT for no management fees to investors.

However, DiversyFund still needs to make money. Instead of charging investors platform fees, DiversyFund takes up to 8% fees from the REIT for their operations.

How does DiversyFund make money?
DiversyFund profits alongside the investors when they liquidate (sell off) the REIT. They also take fees as the developer of the project.

DiversyFund Returns

DiversyFund is still fairly new, having just been established in 2016. It has already seen a strong performance of double-digit returns since its founding. The returns for the past years have been:

  • 18% average annualized returns in 2017
  • 17.3% average annualized returns in 2018[2]

These returns are very high compared to other investments, including stocks.

But remember that past results don't guarantee future success. It's important never to invest what you can't afford to lose.

How DiversyFund Chooses Projects

DiversyFund is very selective with its projects. It focuses on underperforming multi-unit housing projects with the potential to increase the value.

The main criteria include:

  • Location in high-growth metropolitan areas
  • Projects whose rent and value can be increased with renovations
  • Projects that can be sold within five years

DiversyFund has a team of real estate professionals who analyze the potential growth, trends, market comps, and more to choose the projects.

Because of the niche focus on multifamily buildings, DiversyFund claims that it can better leverage deals, make industry connections, and maintain high returns potential.

Have you ever invested in real estate?

Is DiversyFund a Good Investment?

The $500 minimum is low, so it's accessible to even investors with limited funds. You can invest in real estate without taking a huge risk.

A positive thing about DiversyFund is that it owns all their assets, which means they are more likely to be responsible and proactive. In addition, it invests in apartment complexes, which are historically one of the safest sectors of real estate.

In general, it's smart to diversify your portfolio to include some real estate investments. This way, you have some assets that are not correlated to the stock or bond markets. That provides some protection against the volatility in those markets. Historically, real estate investment returns have outperformed the stock market.

As an investment in an area of real estate that is considered lower risk, DiversyFund's Growth REIT seems to provide some principal protection as well as reliable earnings.

DiversyFund Downsides

Lack of diversity in location
DiversyFund is expanding its locations, but so far is still not well diversified. So far, DiversyFund has several apartment complexes in California, Texas, North Carolina, Florida, and Utah.[3]

Having more diversity lowers your risk, so you're not so heavily invested in one area. For example, if the Texas market fails, your portfolio could be in jeopardy.

At least 5 year investment
DiversyFund holds properties for five years and then disperses profits once the assets have been sold. You can't withdraw your funds before five years.[4]

Unlike some platforms (like Fundrise), DiversyFund does not have a secondary market where you can sell your shares early.

No dividend payouts
You do receive monthly dividends from rental income, but they're automatically reinvested to take advantage of compounding interest.

This is fine if you don't mind holding the investment with no returns for 5 years. But if you're also hoping for some monthly dividend payouts, you don't get the choice of opting out of dividend re-investment.

How to Invest with DiversyFund

The DiversyFund Growth REIT is available to any U.S resident over the age of 18. There is no income or accreditation requirement.

Signing up is easy and is done entirely through the company's online platform.

  1. Create an account by providing a few details like your name, phone number, email, and zip code. Or you can sign up using Facebook or LinkedIn.

    You will need to provide your Social Security number for tax reporting reasons.

  2. Fund your account by linking it to your bank account. The minimum investment is $500.

That's it. Your account will be funded in about 1-2 business days. You can add additional funds at any time, in increments of $500.

Your dividends are automatically reinvested. At the end of the investment period, the projects are sold and profits disbursed. You can take a full payout or reinvest into the next fund.


If you're not sure if DiversyFund is right for you, there are a lot of other real estate crowdfunding platforms. Each one is a little different.

Here are some other popular ones for non-accredited investors.

Fundrise has a more diversified portfolio of projects across the U.S. It acquires all types of projects—from new construction to stabilized apartments to renovations. Your portfolio can include up to 80 different projects.

Fundrise has a few portfolio options, so you can choose the one that best fits your goal. For example, the Supplemental Income Portfolio focuses on rent generation, while the Growth Portfolio focuses more on properties expected to increase in value over time.

Fundrise's minimum investment is $10 for the Starter portfolio and it has no income requirements. It also has a 90-day money-back guarantee. If you're not happy with it, Fundrise will buy your investment back for the amount you paid.

Rich Uncles
Rich Uncles focuses more on collecting rent and paying monthly dividends. This could be the better option if you'd like to earn some monthly income during your investment period.

Rich Uncles' minimum investment is also $500 for its National REIT. However, you'll also need an income of $70,000 AND a net worth of $70,000, so that may not be accessible to many investors.

However, the platform also offers a Student Housing REIT with no income or net worth requirements. You can start investing with just $5. While this offering may appeal to beginning investors without a lot of capital, the investments are more limited.

The Bottom Line

DiversyFund has a lot to offer investors, but some downsides to consider as well. If you want to add diversity to your portfolio, DiversyFund is worth considering, especially with only a $500 minimum investment.

DiversyFund allows you to passively invest in real estate without being a full property owner yourself. Adding real estate investments can also offer some protection from volatile market trends.


  1. ^ DiversyFund, What are your fees?, Retrieved 12/15/2020
  2. ^ DiversyFund, What returns can I expect?, Retrieved 12/15/2020
  3. ^ DiversyFund Real Estate Portfolio, Retrieved 3/16/2021
  4. ^ DiversyFund, Can I cash out before the end of the investment term?, Retrieved 12/15/2020

Earn Passive Income with Real Estate

  • Only $500 to start investing in real estate
  • No platform fees
  • No income requirements

Invest in Real Estate with $10+

Become real estate investor with as little as $10

Ally Invest Coupon Codes

Get Up to $3,000

Expires 6/30/2022

The minimum qualifying deposit to receive a cash bonus is $10,000. Accounts will be reviewed 60 days after account opening to determine the total qualifying deposit. Corresponding cash bonus will be credited to the account within 10 business days. Once the bonus is credited to the account, the bonus and qualifying deposit (minus any trading losses) is not available for withdrawal for 300 days. If the qualifying deposit is withdrawn, the bonus may be revoked.

Deposit or TransferCash Bonus
$10,000 - $24,999$100
$25,000 - $99,999$250
$100,000 - $249,999$300
$250,000 - $499,999$600
$500,000 - $999,999$1,200
$1,000,000 - $1,999,999$2,000


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Have you ever invested in real estate?
41% Never!
37% Not yet but I want to
23% Yes
Source: CreditDonkey. Totals may not add to 100% due to rounding.
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