What are your fees?
The REIT has a 7% Preferred return and targets double digit IRR once the REIT has gone full cycle. DiversyFund makes money through the platform and asset fees and 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.
We have an internal real estate team responsible for finding and acquiring our assets. We own all of the real estate assets that are being purchased as opposed to other platforms that simply raise funds for other third-party projects, and therefore have to pay third-party fees. We are fully invested in our projects and oversee everything from start to finish. We profit from the success of the projects and upon liquidation of the REIT, alongside our investors.
We are always looking for ways to improve how we create wealth for our customers. The new fee structure has several components that help us be more competitive in acquiring multifamily properties so that we can build better portfolios:
Offering and Organization Expense Reimbursement: Expenses charged to investors for the actual costs of marketing and fintech platform operations - expenses are capped at 10% of equity dollars
Asset Management Fee: platform fee equal to 2% of equity dollars per year
Real Estate Fees
Acquisition Fees: 1-4% of total cost of asset
Finance Fee: 1% of any loan amount