REIT II Fees
Complete details on all REIT II fees can be found in DF Growth REIT II, LLC’s Offering Circular and its amendments and supplements available at DiversyFund's offering circular.
Platform Costs and Fund Fees
When you invest in REIT II, certain fees are charged at the Fund level:
Offering and Organization Expense Reimbursement - Expenses charged to investors for the actual costs of marketing and fintech platform operations. These expenses are capped at 10% of equity dollars
Fund Asset Management Fee - a fee equal to 2% of an investor’s equity dollars per year
Real Estate Sponsor Fees
When the REIT II acquires a property for its investors, certain fees are paid to the REIT II’s real estate sponsor affiliates. These fees are charged at the property level:
Acquisition Fee - 1-4% of total cost of a real estate asset (also called the “Sponsor Fee” in the Offering Circular)
Finance Fee - 1% of any loan amount used to acquire a property
Disposition Fee - 1% of the total sales price of any property
Construction Management Fee - 7.5% of construction costs for property renovations
Guaranty Fees - 0.5% of any property loan amount payable to any affiliate required to guaranty the loan including certain “carve-out” guaranties
Other Fees - fees for services that REIT II affiliates might perform for the REIT as long as such fees are comparable to what a third party would charge. Currently, the only applicable fee is charged by our property-level asset management team and is 2% of each property’s collected rents to oversee the portfolio and supervise the performance of all property managers and construction managers.
How does DiversyFund make money?
DiversyFund makes money through the platform, fund and real estate fees mentioned above. Additionally, when we sell REIT assets that have increased in value, we will be paid a portion of any profits over the preferred rate of return of 7% to our investors.