DiversyFund vs Lofty Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in multifamily rental properties across the United States

Invest in rental properties through a fractional real estate marketplace


Investments
$500

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.

Investments
$50

The minimum investment with Lofty is $50.


Moderate Risk
3/5

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.

Moderate Risk
3/5

Investing with Lofty carries typical real estate investment risks, including market volatility, economic changes, and property management challenges. Additionally, the use of cryptocurrency and tokenization presents legal and regulatory uncertainties.


Minimum Liquidity
1/5

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.

Moderate Liquidity
2/5

Lofty provides liquidity by allowing investors to list their property tokens for sale on the marketplace at any time, with a 2.5% transaction fee. Orders are held in escrow and have a 30-day expiration.

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Moderate Return
11-18 %

DiversyFund has historically reported annual returns between 11% and 18%, but future returns can vary and are not guaranteed.

Low Return
5 %

Lofty offers a 5% cash on cash return, with token values updating monthly based on HouseCanary's Automated Valuation Model (AVM).


Long-term Investment
5-7 years

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.

Short-term Investment
1 year

Investment time horizon on Lofty is not fixed and is determined by property owners' collective decision on when to sell through the governance system.


Who can invest
United States

DiversyFund's Growth Offerings are accessible to all investors, while its Premier Offerings are restricted to accredited investors only.

Who can invest
International

Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.


Moderate Volatility
3/5

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.

Moderate Volatility
3/5

The value of assets on Lofty's platform can be volatile, influenced by economic trends, interest rates, and real estate market conditions, potentially leading to variable financial outcomes for investors.


Regulation and audits
SEC Regulated

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.

Regulation and audits
Audited

Lofty's marketplace transactions are executed using a smart contract on the Algorand blockchain, which has been audited by CertiK for security.


Insurance
Yes

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.

Insurance
No

Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.


Payouts
No Recurring Payouts

DiversyFund generally reinvests dividends into property renovations rather than distributing them, supporting a strategy aimed at long-term asset appreciation.

Payouts
Rental Income

Lofty provides daily rental income to investors, which can be withdrawn at any time through various methods including ACH, PayPal, and cryptocurrency options.


Extra Fees
Yes

DiversyFund collects asset management fees and transaction fees, and may also earn a promote interest from net profits after investors receive their returns.

Extra Fees
Yes

Lofty charges a 2.5% fee on both buy and sell orders on its marketplace.


Taxes
Tax Form

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.

Taxes
Tax Form

Lofty provides US residents with pre-filled 1099 tax forms for income and capital gains reporting. Non-US residents may reduce withholding taxes with forms W-8BEN or W-8BEN-E if they have a US SSN or ITIN.

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