Real Estate Platform Comparison· Updated July 15, 2026

DiversyFund vs. Groundfloor 2026 Real Estate Investing Comparison

A side-by-side breakdown of returns, liquidity, fees, and trustworthiness to help you decide where to invest your money.

1.5

DiversyFund marketed a $500-minimum, non-accredited growth REIT that reinvested all cash flow instead of paying regular dividends. The product you may remember no longer exists for new investors: the SEC permanently suspended the second fund's Regulation A exemption in June 2023 (a settled order with no fines and no admission of wrongdoing), the original fund's SEC filings show mounting losses and minimal distributions ($11,822 paid to all investors in the first half of 2025), and a shareholder lawsuit continues with three surviving claims after a June 2025 ruling. The company now markets a separate accredited-only fund. Existing investors are effectively waiting on asset sales with no redemption option.

★ Our Pick Groundfloor logo

4.0

Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent, but you're a lender, not an owner, so upside is capped and default risk is real.

At a Glance

DiversyFund vs. Groundfloor, Key Stats

$500 (historical, closed)Minimum$10 per loan ($100 account minimum)

Indefinite: no redemption program, investors wait for asset salesHolding Period6–18 months (per loan term)

N/A: there has never been an early withdrawal optionEarly WithdrawalUnavailable, capital locked until loan repays

Minimal (SEC filings show $525,872 paid in all of 2024 and $11,822 in H1 2025 across the entire investor base)Rent PayoutN/A, interest paid per loan terms (often deferred to maturity)

N/A for new investors; REIT I reported a $7.9M net loss in 2024 and a $2.4M net loss in H1 2025 per SEC filingsAvg. Returns~10% historical average

Pros & Cons

What each platform does well and poorly

Real multifamily assets in the portfolio
DF Growth REIT's SEC filings show roughly $66.8 million in rental real estate (net of depreciation) and $97.9 million in total assets as of June 30, 2025. Unlike some failed platforms, there is a real, reported portfolio behind investor shares.
Current SEC reporting
DiversyFund's funds still file semiannual and annual reports with the SEC, so investors can track the portfolio, cash position, and litigation status through primary sources rather than marketing updates.
Low minimum brought new investors into real estate
The original $500 minimum with no accreditation requirement made private multifamily investing accessible to people who had never had access before, and helped prove demand for low-minimum real estate products.
SEC matter resolved without fines or fraud findings
The SEC's June 2023 order permanently suspended REIT II's Regulation A exemption, but the settlement imposed no fines or penalties, and in August 2023 the SEC closed its investigation without recommending enforcement action against the company, its funds, or its principals.
The original product is closed and there is no way in or out
REIT II's offering ended in 2022 and its Regulation A exemption was permanently suspended in June 2023. The original growth REITs never offered a redemption program, so existing investors cannot withdraw; they are waiting on property sales that have not yet returned meaningful capital.
Mounting losses and a thin cash position
Per the fund's own SEC filing for the first half of 2025, DF Growth REIT reported a $2.38 million net loss for the period (after a $7.9 million net loss in 2024), an accumulated deficit of $26.3 million, and cash of $305,385, down from $1.95 million at the end of 2024.
Ongoing shareholder litigation
A shareholder suit filed in December 2022 against the funds, DiversyFund, Inc., and its principals was largely dismissed in April 2024, but after an amended complaint, a June 2025 ruling allowed three claims to proceed. The company disputes the claims and says it will contest them; the parties were preparing for discovery as of the fund's most recent filing.
Pivot to a high-minimum accredited fund
While original investors wait, DiversyFund now markets a separate fund for accredited investors with dramatically higher minimums. The $500-minimum retail product that built the brand is not available to new investors.

Zero investor fees
Groundfloor charges investors nothing, no AUM, no transaction fees, no closing costs. Borrowers pay 2–4.5% origination plus closing fees, so the entire interest yield flows to investors.
$10 per-loan minimum
Investors can spread $100 across ten loans, making real diversification accessible. Groundfloor's account minimum is $100 and individual loans go down to $10.
Short hold periods (6–18 months)
Most Groundfloor loans mature in 6–18 months, dramatically shorter than the 5–7 year holds typical of equity-style platforms, making it a useful complement to longer-duration real estate.
Transparent, A–G grading
Every loan is graded A–G with corresponding interest rates and risk factors. Loan documents, project details, and borrower track records are published before funding.
Capped upside
You're a lender. If a property doubles in value, you still only earn the interest rate on the loan. None of the appreciation upside flows to investors.
Lump-sum and deferred payouts
Many loans are deferred-payment, meaning interest accrues but isn't paid until the loan is fully repaid. That hurts compounding versus monthly- or daily-payout platforms.
Default risk is real
Groundfloor's reported default rate has historically been higher than peer platforms. Recoveries through foreclosure can take time and erode returns. The collateral is the property itself.
No early withdrawal
Once you fund a loan, capital is locked until the loan repays. There's no secondary market for Groundfloor LROs.

Deep Dive

Detailed comparison

What You're Investing In

Nothing, at the original entry point. The $500-minimum growth REITs are closed. The current DiversyFund offering is accredited-only with a much higher minimum.

Three core products: Groundfloor Original (individual loans graded A–G), Stairs by Groundfloor (a savings-style product paying a steady rate), and Notes (short-duration debt instruments). All are real estate debt, no equity ownership.

Property Locations

Value-add multifamily properties in various U.S. markets, held directly and through joint ventures.

Groundfloor lends in 45+ U.S. states, giving investors broad geographic diversification across one platform.

Expected Returns

For existing growth REIT investors, returns depend on eventual asset sales. The funds reinvested cash flow by design, so there was never meaningful income along the way, and recent filings show losses: a $7.9 million net loss in 2024 and a $2.4 million net loss in the first half of 2025 for DF Growth REIT, with an accumulated deficit of $26.3 million. Past performance does not guarantee future results.

Groundfloor's historical average return is approximately 10% per year. A diversified portfolio across all available loans has historically produced around 10.7% annualized. Loans pay between roughly 5.5% (A grade) and 25%+ (G grade), and investors earn the same rate the borrower pays. Capital not deployed within 45 days returns to the investor with no interest.

Fees

The funds paid management and other fees to affiliates of the sponsor, detailed in offering circulars and annual reports. The SEC's 2023 order cited inaccurate statements about fees on the DiversyFund website relative to REIT II's offering documents.

Zero investor fees. Borrowers pay 2–4.5% origination plus other closing fees, all visible inside the offering documents but not charged to investors.

Liquidity

Indefinite. The growth REITs never had a redemption program, and the eventual liquidation has not yet returned meaningful capital to investors.

Holding period equals the loan term, typically 6–18 months. Investors can target shorter durations by buying into in-progress loans.

Who Can Invest

No one, for the original product: the growth REITs are closed to new investment. The company's current offering is limited to accredited investors at much higher minimums.

Open to non-accredited and accredited U.S. investors. International investors can participate but must email support to fund accounts and meet a $5,000 minimum transfer.

The Verdict

Which is better, DiversyFund or Groundfloor?

1.5

DiversyFund is not an option for new retail investors, and that is the most important fact about it: the $500-minimum product that made the brand famous is closed, and its successor fund is accredited-only. Existing growth REIT investors hold shares in funds whose own filings show mounting losses, minimal distributions, thin cash, and unresolved litigation, with no redemption mechanism while they wait. Investors drawn to low-minimum real estate should study the structural lesson here before choosing any platform: products that defer all returns to a sponsor-controlled liquidation leave you with no income and no exit if the plan slips. Platforms with investor-controlled liquidity and regular distributions, such as Lofty, Fundrise, or Arrived, put structurally more control in investors' hands, though each has its own trade-offs worth comparing.

Full DiversyFund review →

★ Our Pick

4.0

Groundfloor is one of the cleanest options in real estate crowdfunding. Zero investor fees, ~10% historical returns, short 6–18 month durations, and full transparency on every loan make it a strong fit for investors who want yield backed by real estate without picking properties or signing up for a 5+ year lock-up. The trade-off is real: you're a lender with capped upside and default exposure, not an owner with a stake in appreciation.

Full Groundfloor review →

Bottom Line

Groundfloor scores higher (4.0/5) and edges out DiversyFund on our investment quality criteria.

Frequently Asked Questions

DiversyFund vs. Groundfloor FAQ

Which is better, DiversyFund or Groundfloor?

Based on our scoring criteria, returns, fees, liquidity, transparency, minimums, and track record, Groundfloor (4.0/5) scores higher than DiversyFund (1.5/5). Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent, but you're a lender, not an owner, so upside is capped and default risk is real.

What is the minimum investment for DiversyFund vs. Groundfloor?

DiversyFund's minimum investment is $500 (historical, closed). Groundfloor's minimum investment is $10 per loan ($100 account minimum).

How do DiversyFund and Groundfloor compare on liquidity?

DiversyFund: Indefinite. The growth REITs never had a redemption program, and the eventual liquidation has not yet returned meaningful capital to investors. Groundfloor: Holding period equals the loan term, typically 6–18 months. Investors can target shorter durations by buying into in-progress loans.

What returns can investors expect from DiversyFund vs. Groundfloor?

DiversyFund reports average yearly returns of N/A for new investors; REIT I reported a $7.9M net loss in 2024 and a $2.4M net loss in H1 2025 per SEC filings. Groundfloor reports average yearly returns of ~10% historical average. Past performance does not guarantee future results.

One of the most flexible ways to invest in real estate

Start building generational wealth with Lofty

$50 minimums · Daily rent payouts · No lock-up periods · 24/7 exchange

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Real Estate Platform Comparison· Updated July 15, 2026

DiversyFund vs. Groundfloor 2026 Real Estate Investing Comparison

A side-by-side breakdown of returns, liquidity, fees, and trustworthiness to help you decide where to invest your money.

1.5

★ Our Pick Groundfloor logo

4.0

At a Glance

DiversyFund vs. Groundfloor, Key Stats

$500 (historical, closed)Minimum$10 per loan ($100 account minimum)

Indefinite: no redemption program, investors wait for asset salesHolding Period6–18 months (per loan term)

N/A: there has never been an early withdrawal optionEarly WithdrawalUnavailable, capital locked until loan repays

Minimal (SEC filings show $525,872 paid in all of 2024 and $11,822 in H1 2025 across the entire investor base)Rent PayoutN/A, interest paid per loan terms (often deferred to maturity)

N/A for new investors; REIT I reported a $7.9M net loss in 2024 and a $2.4M net loss in H1 2025 per SEC filingsAvg. Returns~10% historical average

Pros & Cons

What each platform does well and poorly

Real multifamily assets in the portfolio
DF Growth REIT's SEC filings show roughly $66.8 million in rental real estate (net of depreciation) and $97.9 million in total assets as of June 30, 2025. Unlike some failed platforms, there is a real, reported portfolio behind investor shares.
Current SEC reporting
DiversyFund's funds still file semiannual and annual reports with the SEC, so investors can track the portfolio, cash position, and litigation status through primary sources rather than marketing updates.
Low minimum brought new investors into real estate
The original $500 minimum with no accreditation requirement made private multifamily investing accessible to people who had never had access before, and helped prove demand for low-minimum real estate products.
SEC matter resolved without fines or fraud findings
The SEC's June 2023 order permanently suspended REIT II's Regulation A exemption, but the settlement imposed no fines or penalties, and in August 2023 the SEC closed its investigation without recommending enforcement action against the company, its funds, or its principals.
The original product is closed and there is no way in or out
REIT II's offering ended in 2022 and its Regulation A exemption was permanently suspended in June 2023. The original growth REITs never offered a redemption program, so existing investors cannot withdraw; they are waiting on property sales that have not yet returned meaningful capital.
Mounting losses and a thin cash position
Per the fund's own SEC filing for the first half of 2025, DF Growth REIT reported a $2.38 million net loss for the period (after a $7.9 million net loss in 2024), an accumulated deficit of $26.3 million, and cash of $305,385, down from $1.95 million at the end of 2024.
Ongoing shareholder litigation
A shareholder suit filed in December 2022 against the funds, DiversyFund, Inc., and its principals was largely dismissed in April 2024, but after an amended complaint, a June 2025 ruling allowed three claims to proceed. The company disputes the claims and says it will contest them; the parties were preparing for discovery as of the fund's most recent filing.
Pivot to a high-minimum accredited fund
While original investors wait, DiversyFund now markets a separate fund for accredited investors with dramatically higher minimums. The $500-minimum retail product that built the brand is not available to new investors.

Zero investor fees
Groundfloor charges investors nothing, no AUM, no transaction fees, no closing costs. Borrowers pay 2–4.5% origination plus closing fees, so the entire interest yield flows to investors.
$10 per-loan minimum
Investors can spread $100 across ten loans, making real diversification accessible. Groundfloor's account minimum is $100 and individual loans go down to $10.
Short hold periods (6–18 months)
Most Groundfloor loans mature in 6–18 months, dramatically shorter than the 5–7 year holds typical of equity-style platforms, making it a useful complement to longer-duration real estate.
Transparent, A–G grading
Every loan is graded A–G with corresponding interest rates and risk factors. Loan documents, project details, and borrower track records are published before funding.
Capped upside
You're a lender. If a property doubles in value, you still only earn the interest rate on the loan. None of the appreciation upside flows to investors.
Lump-sum and deferred payouts
Many loans are deferred-payment, meaning interest accrues but isn't paid until the loan is fully repaid. That hurts compounding versus monthly- or daily-payout platforms.
Default risk is real
Groundfloor's reported default rate has historically been higher than peer platforms. Recoveries through foreclosure can take time and erode returns. The collateral is the property itself.
No early withdrawal
Once you fund a loan, capital is locked until the loan repays. There's no secondary market for Groundfloor LROs.

Deep Dive

Detailed comparison

What You're Investing In

Nothing, at the original entry point. The $500-minimum growth REITs are closed. The current DiversyFund offering is accredited-only with a much higher minimum.

Property Locations

Value-add multifamily properties in various U.S. markets, held directly and through joint ventures.

Groundfloor lends in 45+ U.S. states, giving investors broad geographic diversification across one platform.

Expected Returns

Fees

Zero investor fees. Borrowers pay 2–4.5% origination plus other closing fees, all visible inside the offering documents but not charged to investors.

Liquidity

Indefinite. The growth REITs never had a redemption program, and the eventual liquidation has not yet returned meaningful capital to investors.

Holding period equals the loan term, typically 6–18 months. Investors can target shorter durations by buying into in-progress loans.

Who Can Invest

No one, for the original product: the growth REITs are closed to new investment. The company's current offering is limited to accredited investors at much higher minimums.

Open to non-accredited and accredited U.S. investors. International investors can participate but must email support to fund accounts and meet a $5,000 minimum transfer.

The Verdict

Which is better, DiversyFund or Groundfloor?

1.5

Full DiversyFund review →

★ Our Pick

4.0

Full Groundfloor review →

Bottom Line

Groundfloor scores higher (4.0/5) and edges out DiversyFund on our investment quality criteria.

Frequently Asked Questions

DiversyFund vs. Groundfloor FAQ

Which is better, DiversyFund or Groundfloor?

What is the minimum investment for DiversyFund vs. Groundfloor?

DiversyFund's minimum investment is $500 (historical, closed). Groundfloor's minimum investment is $10 per loan ($100 account minimum).

How do DiversyFund and Groundfloor compare on liquidity?

What returns can investors expect from DiversyFund vs. Groundfloor?

One of the most flexible ways to invest in real estate

Start building generational wealth with Lofty

$50 minimums · Daily rent payouts · No lock-up periods · 24/7 exchange

View Properties

About Lofty

DiversyFund vs. Groundfloor 2026 Real Estate Investing Comparison

DiversyFund vs. Groundfloor, Key Stats

What each platform does well and poorly

Detailed comparison

Which is better, DiversyFund or Groundfloor?

DiversyFund vs. Groundfloor FAQ

Start building generational wealth with Lofty

DiversyFund vs. Groundfloor 2026 Real Estate Investing Comparison

DiversyFund vs. Groundfloor, Key Stats

What each platform does well and poorly

Detailed comparison

Which is better, DiversyFund or Groundfloor?

DiversyFund vs. Groundfloor FAQ

Start building generational wealth with Lofty