DiversyFund vs RealtyMogul

RealtyMogul Overview

RealtyMogul is best suited for investors who want accredited and non-accredited investors seeking diversified commercial real estate exposure with low minimum investments and regular income distributions, balanced with illiquidity and moderate risk tolerance.. The platform, RealtyMogul has built a growing investor base.

With a minimum investment of $5K, RealtyMogul offers some investments open to non-accredited investors. The platform does not currently offer a secondary market and requires manual investment selection.

Key Strengths:

• Low minimum investment of $5,000 for REITs makes commercial real estate accessible to non-accredited investors
• Strong due diligence process; multiple reviewers noted RealtyMogul has 'best due diligence in the business'
• Non-accredited investor eligibility for REIT offerings with reasonable limitation (10% of income/net worth)
• Long track record with 234 realized investments as of October 2024 showing 18.1% realized IRR

Key Drawbacks:

• Completely illiquid investments with no secondary market for selling positions
• Mixed investor reviews with some reporting only 1 of 3 deals performing as projected
• Some investors reported deals had no returns or lost money completely

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DiversyFund Overview

DiversyFund is best suited for investors who want long-term accredited and non-accredited investors seeking real estate exposure with at least 5-7 years of capital they can commit, who understand illiquidity risks and want access to multifamily properties without being wealthy institutional investors. Founded in 2016 and headquartered in San Diego, California, DiversyFund manages $224 million in assets.

With a minimum investment of $500, DiversyFund offers some investments open to non-accredited investors. The platform does not currently offer a secondary market and requires manual investment selection.

Key Strengths:

• Low minimum investment of $500 makes real estate accessible to non-accredited investors
• Targets 10-20% IRR with focus on multifamily properties in solid markets
• SEC-regulated under Regulation A+ with mandatory disclosures and annual audits
• No management fees charged on some offerings (historically emphasized)

Key Drawbacks:

• Completely illiquid investments with 5-7 year lock-up periods with no secondary market
• Growth REIT I wind-down indicates commercial real estate challenges; investors awaiting payouts amid slow market conditions
• SEC administrative action against Growth REIT II for compliance failures (exemption suspended permanently)

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Head-to-Head Comparison

Fees & Costs

RealtyMogul carries a fee rating of 3.0/5, with fees structured as: Income REIT: 1% annual; Apartment Growth REIT: 1.25% annual. DiversyFund scores 2.0/5 on fees, charging: 2% annual; Performance: 35% of profits above 7% preferred return.

Edge: RealtyMogul. Lower cost structure gives investors more of their returns.

Minimum Investment

RealtyMogul requires $5K to get started, while DiversyFund requires $500. DiversyFund's lower minimum makes it more accessible for new investors.

Edge: DiversyFund. Lower barrier to entry.

Accreditation Requirements

RealtyMogul partially requires accreditation. DiversyFund partially requires accreditation.

Edge: Tie. Similar accreditation requirements.

Liquidity

RealtyMogul offers illiquid investments. DiversyFund provides illiquid investments.

Edge: Tie. Similar liquidity profiles.

Ease of Use

RealtyMogul scores 3.5/5 for ease of use. DiversyFund scores 3.0/5 and also has a mobile app.

Edge: RealtyMogul. Better overall user experience.

Transparency

RealtyMogul earns a 4.0/5 transparency rating. DiversyFund scores 2.5/5.

Edge: RealtyMogul. More transparent reporting and disclosures.

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Who Should Choose RealtyMogul?

RealtyMogul is the better choice if you:

• Are comfortable with a $5K minimum investment
• Meet accredited investor requirements and want premium deal flow
• Want exposure to diversified real estate portfolios
• Prefer to hand-pick your investments

Who Should Choose DiversyFund?

DiversyFund is the better choice if you:

• Want to start investing with a low minimum
• Meet accredited investor requirements and want institutional-quality deals
• Want exposure to specific real estate deals or projects
• Prefer to hand-pick your investments

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Verdict

Winner: RealtyMogul. With 3.7/5 overall rating versus DiversyFund's 2.3/5, RealtyMogul edges ahead with better fees. That said, DiversyFund may be the better fit if you specifically need long-term accredited and non-accredited investors seeking real estate exposure w.

For most investors exploring alternatives, we recommend starting with RealtyMogul — but consider your specific goals before committing.

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FAQ

Is RealtyMogul or DiversyFund better for beginners?

DiversyFund is generally more beginner-friendly with its $500 minimum investment compared to RealtyMogul's $5K.

Can I use both RealtyMogul and DiversyFund?

Yes. Many alternative investment portfolios benefit from diversification across platforms. RealtyMogul and DiversyFund overlap in some asset classes but may offer different deal structures, fee models, and investment approaches.

Which platform has better returns?

Historical returns vary by specific investment and time period. RealtyMogul has a higher overall rating, but past performance doesn't guarantee future results. Both platforms provide different risk-return profiles depending on the specific offerings you choose.

Are RealtyMogul and DiversyFund safe?

Both platforms are legitimate, regulated investment services. RealtyMogul is regulated by SEC. DiversyFund is regulated by SEC - Regulation A+ (Tier 2). As with all alternative investments, there is inherent risk — these are generally illiquid, long-term investments and not FDIC insured.