How does the investment work?
DiversyFund Growth REIT
The DiversyFund Growth REIT is a public non-traded REIT designed to build wealth by investing in multifamily real estate. The DiversyFund Growth REIT is designed to build wealth over an approximate 5-year timeline. The investment strategy for this fund is a growth strategy, which will be executed through a series of stages.
- Acquisition Stage: The REIT uses the capital raised to acquire multifamily properties with approximately 150+ apartments
- Renovation Stage: We do what is called a value-add play. We add value to the properties via renovations. We renovate the individual units, common areas, etc. We utilize cash flow from the properties to fund the renovations over a period of time.
- Stabilize & Hold Stage: As we finalize the renovation process, the forced appreciation means we can increase rents and stabilize the property. We’ll then hold on to the assets for several years allowing the property to naturally appreciate in value.
- Liquidation/Disposition Stage: This is the final stage. By now, the properties have appreciated naturally and through forced appreciation via the renovations. This is the ideal time to sell the properties. We’ll sell the assets and liquidate our investors.
Our real estate team performs a strict vetting process. We only acquire properties in areas with strong job growth and population growth, and with vacancy rates below the national average.
The investment term is approximately five years after the fund closes, allowing us to renovate and add value to the properties. Real estate also naturally appreciates over time. All of these things combined allow us to target a higher return.