RealtyMogul vs DiversyFund Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in individual commercial real estate properties or REITs

Invest in multifamily rental properties across the United States


Investments
$25,000

The minimum investment on RealtyMogul typically ranges from $25,000 to $35,000, depending on the specific investment offering.

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.


Moderate Risk
3/5

Investing through RealtyMogul entails risks like market volatility, economic shifts, and property-specific issues. Investments are illiquid and there's potential for loss of capital.

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.


Minimum Liquidity
1/5

Investments through RealtyMogul are illiquid, as they are private real estate transactions not traded on public exchanges, and therefore cannot be easily sold or traded. Investors should have a long-term commitment and not expect to resell quickly.

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.

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High Return
15.0 %

Investors on RealtyMogul can expect an overall realized IRR of 20.8% and an overall target IRR of 15.0%. Cash-on-cash returns, IRR, and equity multiples are key metrics provided for each deal.

Moderate Return
11-18 %

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


Long-term Investment
3-10 years

Investments on RealtyMogul generally have a hold period ranging from 3 to 10 years, depending on the individual property's business plan and associated financing.

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.


Who can invest
United States

RealtyMogul allows both accredited and non-accredited investors to use its platform. However, only accredited investors can participate in private placement offerings, while both categories of investors may invest in RealtyMogul's managed REITs, subject to certain legal limitations.

Who can invest
United States

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


Moderate Volatility
3/5

Commercial real estate assets on RealtyMogul can be volatile, with values affected by economic shifts, interest rates, and market trends. This can lead to fluctuations in investment value and potential financial losses.

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.


Regulation and audits
SEC Regulated

RealtyMogul is regulated by the SEC and must adhere to strict disclosure and filing requirements. The platform's offerings are subject to regular audits to ensure compliance with financial reporting and regulatory standards.

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.


Insurance
Yes

RealtyMogul's properties are insured against physical damage and loss, but insurance might not cover all risks, such as market volatility or economic downturns. Insurance is a risk mitigation tool, not a guarantee against all potential losses.

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.


Payouts
Dividends

Investors may receive quarterly distributions, which are not guaranteed in timing or amount and depend on the performance of the investment and terms set by the managing real estate company.

Payouts
No Recurring Payouts

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


Extra Fees
Yes

Investors indirectly pay fees for each investment, which vary by the offering and cover administrative, legal, and management costs. Fee details are disclosed for each opportunity on the platform.

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.


Taxes
Tax Form

RealtyMogul issues Schedule K-1 forms for individual deals and Form 1099s for REIT investments, made accessible via the investor's dashboard. Dividends from REITs historically have not been qualified for preferential tax rates.

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.

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