SAN DIEGO/APRIL 16, 2018 (STLRealEstate.News) — DiversyFund, a crowdfunding platform that is revolutionizing real estate investing, has launched its Commercial and Multifamily Real Estate Growth Fund. Investors in this fund will own shares of a variety of real estate investments, with 80% of the fund dedicated to commercial and multifamily properties.
Projected returns are between 15% and 20% per year. The minimum investment is $5,000.
The Growth Fund is DiversyFund’s second fund offering, following its Income Fund, which has enjoyed a five-year track record with double-digit returns to investors.
“We believe the way we invest in real estate has to change. Up until now, it has been next to impossible for the average investor to get involved in commercial and multifamily real estate projects. But through our platform, investors now have access to top-line real estate asset classes previously limited to a select few,” says DiversyFund CEO Craig Cecilio.
The Commercial and Multifamily Real Estate Growth Fund is intended for investors willing to build wealth through real estate for a period of at least five years. During the first years of the fund, DiversyFund will use its capital to invest in a series of projects. After five years, DiversyFund will then start to sell its assets and make final distributions to its investors. Investors will have the option for early redemption after two years.
The first assets in the fund include a 58-unit multifamily housing project with 5,000 square feet of commercial space in San Diego’s trendy Hillcrest neighborhood and a 3-unit student rental property located near the University of San Diego.
Multifamily housing has traditionally outperformed its peers in both strong and weak markets. DiversyFund’s multifamily strategy will include “ground-up” asset classes that may appreciate over time while renters provide cash flow. In addition, DiversyFund will also look to purchase existing multifamily properties that can increase in value as improvements are made and rents are increased.
In addition, a well-known housing shortage in California also provides DiversyFund’s investors with previously unattainable opportunities.
“We continue to search for the best and most unique multifamily and commercial real estate opportunities for our investors using our combined expertise. California is among the best areas in the world for real estate appreciation. We know the California marketplace. Now, through our platform, anyone around the world can invest in real estate in this area,” Cecilio says.
Cecilio has over 20 years of experience in Southern California. He has underwritten and financed over $500 million in real estate assets and has managed or developed $100 million in real estate properties. Chief Investment Officer Alan Lewis has also developed and managed over $200 million in real estate assets and previously worked as a corporate attorney specializing in real estate transactions.
Unlike its competitors, DiversyFund does not charge its users any platform fees. This is because DiversyFund is the only vertically-integrated real estate crowdfunding platform, meaning that it develops its projects in-house.
“Our structure doesn’t just give us an advantage when finding the best properties to invest in. It also allows us the opportunity to charge our investors with zero platform fees. DiversyFund was started with the intention of changing real estate investing, and we are well on our way with this exciting, new fund,” Cecilio says.