DiversifyFund: looking for opinions on this company?

2 Replies

After a little research on crowd funded RE, I think DiversifyFund looks pretty good. 

They have options for unaccredited investors.

They have no fees and they manage their own properties. 

They say they buy properties that need a little improvement to get some built in equity.

Just some differences I noticed from other companies. 

Wondering if anyone has invested with them and your thoughts? Thanks.

They may be a wonderful site to invest in and maybe they will do great for you and all their investors.

As a conservative investor, I feel there are so many investments and sponsors to choose from, and I have no desire or reason to invest in any that have even a suggestion of a possible ethical or fraud related issue.

The sponsor of DivesyFund, under his given name of Charles Craig Cecilio, was charged by regulators at the state of California Bureau of Real Estate for: "secret profit or undisclosed compensation, use of false or Fictitious Business Names, failing to submit independent audit report, failing to file with the BRE the Quarterly Threshold Reports, failing to supervise the real estate activities of the company, inaccurate and incomplete trust fund records, inaccurate and incomplete recording of separate record for each beneficiary or transaction, and failing to maintain the monthly reconciliation of all the separate records or transactions to the balance of the record of all trust funds received and disbursed."

Ultimately he settled and was charged with "failure to supervise", had his license suspended.

Then he and his partner closed out that legal entity and created a brand-new company with a different name (but kept the same website). And later he changed his legal name to: Craig Xander Cecilio. I did a Google search on the name and now nothing negative comes up at all.

According to his blog post, the reason for the change has nothing to do with scrubbing his past record, but simply because he fell in love with the name Xander while coming up with names for their new baby. Maybe that is true, even if I personally find the story extremely dubious.

And maybe I am being overly caution and someone could argue that where there is smoke there is not always fire. Maybe everything is on the up and up with them and they will do great for investors.  I hope they do.

From my personal point of view, I see little reason to invest with them when there are many others with perfectly squeaky clean records.