Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in multifamily rental properties
Invest in trading cards
DiversyFund's minimum investment amounts differ by investment type. It's $500 for Growth REITs targeting multifamily properties. For accredited investors, Premier Direct SPVs require a $50,000 minimum, while the Premier Opportunity Fund has a $25,000 minimum.
Investing in DiversyFund carries risks such as market changes, economic factors, and specific property risks, and there's always the potential for loss, including the initial investment.
Investing in trading cards on Alt involves market risk, liquidity risk, uncertainties in authentication and grading, regulatory changes, operational risks including cybersecurity threats, and risks related to the physical storage and insurance of assets.
DiversyFund investments are illiquid, with capital committed for approximately 5 to 7 years. There is no secondary market or immediate option for investors to sell their shares prior to the end of the investment term.
Alt enhances the liquidity of trading cards through the Alt Exchange and Alt Liquid Auctions, enabling quick and efficient buying and selling of authenticated, graded cards stored in the Alt Vault. Bi-weekly auctions provide regular opportunities for transactions, while Alt Lending allows users to access cash without selling their assets.
DiversyFund has historically reported annual returns between 11% and 18%, but future returns can vary and are not guaranteed.
Returns on trading card investments via Alt are influenced by the rarity, condition, and market demand for specific cards, making them highly variable. While some cards may see substantial appreciation, others might not perform as well, reflecting the speculative nature of alternative investments. Investors should adopt a long-term view and be prepared for fluctuations, as significant returns are possible but not guaranteed.
DiversyFund's REIT I has an investment term of 5-7 years, and the company is using the full term to maximize property values before sale and subsequent investor disbursements.
The investment time horizon for trading cards on Alt is typically long-term.
DiversyFund's Growth Offerings are accessible to all investors, while its Premier Offerings are restricted to accredited investors only.
To invest on Alt, individuals must be at least 18 years old, provide a current address, a Social Security number for U.S. residents, and a valid government-issued photo ID for both U.S. and international users. Alt is inclusive of international investors, accepting payments from 76 additional countries.
Real estate assets on DiversyFund can experience volatility due to market conditions, interest rates, and local economic trends, potentially impacting property values and investment performance.
Trading cards on Alt are subject to volatility due to factors like changing market demand, the rarity and condition of the cards, and broader economic trends. This niche market's limited buyer and seller base can lead to significant price fluctuations, making the value of these assets potentially change rapidly and unpredictably.
DiversyFund is subject to SEC regulations and conducts regular audits to ensure financial transparency. These audits and disclosures are available for investor review as part of the company's compliance with regulatory standards.
Alt adheres to regulatory requirements by verifying the identity of all users, a step that aligns with legal standards for financial technology platforms. Although specific audit details aren't provided, such platforms typically undergo periodic audits to ensure compliance with financial regulations and cybersecurity standards.
DiversyFund's properties are generally insured against physical damage, but this insurance does not cover market-related losses or economic downturns, and it may not fully cover the properties' market value.
Alt offers insurance for trading cards stored in its vault, safeguarding investors' assets against theft, damage, and loss.
DiversyFund generally reinvests dividends into property renovations rather than distributing them, supporting a strategy aimed at long-term asset appreciation.
Trading cards on Alt do not offer dividends. Instead, the potential financial benefit for investors lies in the appreciation of the asset's value over time, with returns realized through capital gains upon sale.
Investors in DiversyFund can receive their money back after the properties are sold, typically at the end of a 5 to 7-year investment term, without an early withdrawal option.
To get their money back, investors on Alt can sell their trading cards through the Alt Exchange or Alt Liquid Auctions. Once a sale is processed, the funds are credited to the seller's account, from which they can be withdrawn. The time and price at which cards sell may vary based on market demand and card rarity.
DiversyFund collects asset management fees and transaction fees, and may also earn a promote interest from net profits after investors receive their returns.
Alt charges no fees for vaulting services for cards graded by supported companies, while charging $5 for each unsupported graded and ungraded card. Sales transactions on Alt's marketplace incur a tiered selling fee based on the card's final sale price: 10% for sales up to $7,499, 8% for sales between $7,500 and $9,999, and 5% for sales of $10,000 or more.
DiversyFund provides Form 1099-DIV and/or Form K-1 for tax reporting, accessible online, with dividends taxed as ordinary income and end-of-term distributions potentially as capital gains.
Alt supports tax reporting for investors by issuing 1099-K forms to those who meet specific criteria: being a verified Alt customer, filing taxes in the US, and receiving payments over $600 in a calendar year. This ensures compliance with tax obligations by reporting to the IRS and relevant state tax authorities.