I haven't participated in the transfer write-on comp for CLR nor know the answers to the questions you ask, but from what I understand the packet is smaller and not meant to take as much time to complete as the one handed out at the end of the 1L year.
If the transfer write-on comp has the same three components (case note, bluebooking, diversity statement), nothing is preventing you from doing the diversity statement now. The CLR staff actually suggests this to the 1Ls during the orientation meeting. Your transfer PS will probably be a good start.
Also, if you have interest in any of the secondary journals, then keep those in mind as well. They're always welcoming of new members. Occasionally there's a chance to be an editor depending on how the journal is staffed or if someone drops a commitment to another journal after they find out that they wrote onto CLR.
Thanks for the advice. glad to hear that it isn't quite as time intensive as the normal write on. When you say diversity statement do you mean sort of a general personal statement as to why you want to be on clr or you only write it if you add a diversity element. Kind of like those asked on some law school applications. I am not very diverse so I wouldn't have much to write about if that is what they are asking for.
Also, the way I understand is there isn't a competition to be on something like the Business Law Review. Anybody can join. Is that correct?
Thanks for the help.