How does the new fee structure impact my returns?
The new fee structure was designed to have no negative impact on overall fees charged to the REIT. It simply breaks up fees into different buckets to allow for greater flexibility for our management team and enhance the real estate team’s effectiveness.
How does the new fee structure work?
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
How does DiversyFund make money?
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.
Why was the fee structure changed?
The new fee structure provides greater flexibility for our real estate team in selecting assets and provides a better opportunity to partner with other investment firms to maximize potential returns for our customers.