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Every DiversyFund project releases a memorandum outlining the fees and costs. Typically, DiversyFund charges a 2% annual management fee during the project.
If DiversyFund buys pieces of real estate, it could also charge another 1% to 4% fee from the investor pool to offset these costs. DiversyFund might also deduct additional fees for financing, construction, selling the property and project guarantee fees.
You do not receive any money while the project is ongoing. At the end of the project, DiversyFund will sell the property. It will then distribute this money to the shareholders evenly based on how much everyone paid in.
If the project turns a profit, DiversyFund will pay all profits out to investors until they earn at least a 7% annual return. Once investors have received at least 7% a year, DiversyFund will collect a share of the remaining profits.
For example, it might take up a third of the profits until investors reach an annual return of 12% and 50% of all remaining profits. Each project memorandum lays out how the fee split works.
You don’t pay any fees out-of-pocket to open your account, make the investments or to make withdrawals. The fees and costs are deducted from the investor cash pool and the final profit distribution.
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This article was originally published by a www.forbes.com . Read the Original article here. .