Is DiversyFund Safe?
• DiversyFund offers private REITs (not traded on an exchange) with minimum investments as low as $500.
• The company has faced numerous complaints and at least one lawsuit.
• DiversyFund investments are not protected by FDIC or SIPC.
If you’re thinking about investing through DiversyFund, check out our findings first.
History of DiversyFund
DiversyFund began in 2016. Since then, it has launched multiple REITs (Real Estate Investment Trusts) for both accredited and non-accredited investors. While these REITs are registered with the SEC, they do not trade on public markets, making them higher-risk than publicly listed funds.
The company’s CEO is Craig Cecilio. In 2017, California’s Department of Real Estate suspended his real-estate license for 60 days.
In 2025, some of DiversyFund’s investors filed a lawsuit against the firm in a California court, citing fraud and misrepresentation tied to two REIT offerings.
Oversight of DiversyFund
DiversyFund is neither a broker-dealer nor an investment advisor. As a result, it isn’t subject to regular supervision by U.S. securities regulators. In our view, this increases risk beyond the issues that have already surfaced.
Investing with DiversyFund
Despite its legal troubles and limited regulatory oversight, DiversyFund’s main offering—its REIT—is registered with the SEC. This is a public REIT but not listed on an exchange. It undergoes an annual audit, which helps, and DiversyFund also offers investments in DF Independent Partners LLC, another SEC-registered property developer.
DiversyFund doesn’t operate as a real-estate broker. Instead, it directly owns and manages properties. It does not pay out dividends on a set schedule like a traded REIT might.
Nonetheless, nonaccredited investors can participate. One approach requires monthly contributions of $500, while another needs a lump sum of $100,000.
While the name DiversyFund may suggest broad diversification, the company invests in only five states (California, Texas, Florida, and the two Carolinas), and it focuses solely on multi-family properties.
If you do put your money into a DiversyFund investment, it will be locked up until a property is sold. This applies to principal as well as any payout you’d normally expect from a REIT. This is yet another risk factor to consider.
DiversyFund specializes in buying and renovating apartment complexes. This kind of endeavor inherently carries substantial risk. The company itself warns:
Investment opportunities on the DiversyFund Site are speculative, involve substantial risk and may result in partial or total loss. Payment of any distributions or dividends, or even a return of capital, is not guaranteed. You should not invest unless you can sustain the risk of total loss of capital.
That’s a pretty serious red flag that most nonaccredited investors may want to steer clear of.
is DiversyFund Insured?
DiversyFund is not covered by FDIC or SIPC. This is another hazard for its clients.
DiversyFund Reviews
Unfortunately, DiversyFund gets more negative marks from its customer reviews. The Better Business Bureau (BBB) has given the business an F rating, the lowest possible. The BBB cites the high number of complaints, unresolved grievances, lack of responses, and long response times as key reasons.
Complaints often revolve around difficulty closing an account or withdrawing money. Some investors claim they’ve been stuck for years without getting their principal back, let alone profits.
On Trustpilot, DiversyFund’s rating is 1.8 out of 5. Despite claiming its profile, the company hasn’t responded to many negative reviews, which is another troubling sign. Investors often mention poor returns, lack of communication, and trouble withdrawing funds.
Is DiversyFund Safe Judgment
Considering everything presented here (and more information available online), we believe DiversyFund is a high-risk choice. Even though nonaccredited investors can join, the nature of these private offerings seems more suitable for experienced, accredited investors. Anyone looking for a less risky way to invest in real estate would likely be better off with publicly listed REITs that offer SIPC coverage and clearer safeguards.
Updated on 3/24/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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