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If you’re an accredited investor, EquityMultiple can be a good way to invest in individual commercial real estate and reap high returns. Alongside a steady income, EquityMultiple gives you an opportunity to as much as 14.5% in returns when your investment matures. What’s more, this company’s investment timeframe ranges from 6 months to 5 years which is considered shorter. The major disadvantage of EquityMultiple is that it’s not very liquid. Once you invest, your investment stays until it matures. But if you’re willing to let your money sit for a few years, EquityMultiple could be the right platform. It will provide you with an opportunity to invest in high-quality commercial real estate projects without directly managing the project. With EquityMultiple, You’ll invest your money, monitor the progress and collect your earnings.

Pros

• Opportunity to invest in your preferred individual commercial real estate projects
• The minimum investment is as little as $5000 in many projects
• Invest in projects sponsored
• 24/7 customer service that allows you to contact them any time

Cons

• Not available for small investors- Accredited information required
• Only three investment opportunities are offered on the platform

Jump to: Full Review

Compare to Other Investment Apps

Acorns

Invest your spare change in a diversified portfolio built by experts

Expect up to 7.5% annually returns with plans starting from $3 a month

Earn bonus investments from 350+ Acorns Earn partners

Fundrise

Invest in real estate properties with a $10 minimum initial investment

Historical annual return varies from 8.8% to 12.4% (2019 – 9.47%)

Low annual fees: advisory – 0.15%; management fee – 0.85%

Public App

Invest in stocks and funds from $1 (no membership or commission fees)

Over 5000 stocks and ETFs to choose from (dividend stocks available)

Follow other investors, see their portfolios, and exchange ideas

What is EquityMultiple?

Based in New York City and launched in 2015, EquityMultiple is an online real estate investing platform that allows accredited investors to invest in professionally managed real estate. While many of its competitors invest in various projects, EquityMultiple’s primary focus is institutional, commercial real estate.

With a mission to provide a transparent and high-quality online marketplace, EquityMultiple offers debt, preferred equity, and equity in most projects. These include multifamily, condos, hotels, industrial offices, and mixed buildings.

So far, the company has returned over $78 million to investors and boasts $3 billion in assets. EquityMultiple has also provided total historical returns of 14.5%.   Unlike other crowdfunding websites, EquityMultiple was formed by industry experts, including leading professionals in private equity, real estate investment, finance, and law.

As the only platform developed by an existing real estate company(Mission Capital), EquityMultiple makes it easy for investors to diversify their portfolio with various asset classes, markets, and even project types.

How Does EquityMultiple Work?

To help you invest in professionally managed commercial real estate, EquityMultiple provides;

Exclusive deal flow: By sourcing potential investments from a nationwide network of experienced real estate firms, EquityMultiple provides you with exclusive deal flow.

360 degrees Execution: EquityMultiple has a team with decades of real estate transaction experience to help protect your money and maximize the returns.

Sustained growth: EquityMultiple allows you to build a diversified portfolio of cash flow.

Three investment approaches: EquityMultiple provides three investment approaches, including Fund Investing, Direct investing, and Savings Alternative.

Who is EquityMultiple Best For?

EquityMultiple is best for;

• Accredited investors looking to diversify their portfolio through real estate
• Those who invest $10,000 or more
• Those who are ready to cope with the risk
• High net worth investors who want to invest in commercial real estate

How Much You Can Earn with EquityMultiple?

While EquityMultiple’s IRR on existing investments has averaged 14.5% since it was launched, its target rates of returns depend on the type of investment and associated risk.

These include;

• Senior debt: 7% to 12% annual rate of return
• Prefered Equity: 7% to 12% current prefered returns and 10% to 14% total prefered return
• Common Equity: IRRS of 14% or higher

EquityMultiple Fees: How Much Does it Cost to Invest with EquityMultiple?

EquityMultiple fees vary slightly depending on the type of investment, and this means each of them has a different fee structure.

In addition, EquityMultiple charges annual administrative expense fees of between $30 to $70 that go towards the cost of creating taxes, management, and filing fees and payments.

EquityMultiple Features: What Does EquityMultiple Offer?

Accredited Investors

EquityMultiple only allows those who are accredited to invest with them. To be an accredited investor, you must have a network of more than $1 million or an annual income of $200,000 in the past two years with an expectation to maintain the same. You may also qualify as an accredited investor if you have credentials or personal certificates.

Exclusive Deal Flow

EquityMultiple has partnered with several experienced real estate firms to provide you with exclusive deals. While its deals flow might be a bit slower, it partners with Mission Capital to provide access and ensure that you get high-quality sponsors.

Data-Driven Due Diligence Process

EquityMultiple offers a two-step verification process conducted by experienced professionals in the industry. All EquityMultiple prospective listings undergo deep analysis of the property, market, specific location, and potential returns.

High Investment Minimum

While the minimum investment varies by the project, EquityMultiple investments start at $5000.EquityMultiple also offers additional shares in the increment of $5000 above the minimum.

Team of Experts Monitoring the Company

EquityMultiple has an asset management team that constantly reviews the listings to ensure the original parameters are met. To regularly update you, the company provides transparent reports.

Diversified Portfolio

Alongside its diversified fund opportunities, EquityMultiple provides diverse listings in every part of the deal. From target time frame to investment strategy, each listing is unique.

Only Accredited Investors Allowed

To invest with EquityMultiple, you must be an accredited investor. As an accredited investor, you understand the risk associated with certain investments and have substantial enough assets.

Easy to Use Platform

EquityMultiple is a simple and easy to use platform, and it also has a straightforward sign process that does not require an initial deposit.

Specialized Investments

EquityMultiple provides senior debt, common equity, mezzanine debt, funds, preferred equity, and opportunity zones. If you’re looking for specialized investments, these are the right suitable options.

While debt and preferred equity investment offers a fixed quarterly or monthly rate, Common equity investment cash flows are not fixed hence their frequency and amount will vary depending on the performance of the investment.

EquityMultiple Requirements

To join EquityMultiple, you must be;

• Be least 18 years, a US resident or foreign national who owns an investing entity incorporated in the US
• Have US tax identification number
• Be an accredited investor
• Have a minimum of $5000

How Does EquityMultiple Protect Your Money?

All EquityMultiple securities are handled by Growth Capital Services, a member of FINRA and is protected by the  Securities Investor Protection Corporation. If you were to lose money, Growth Capital Services will compensate you.

EquityMultiple Payout Terms and Options?

Depending on the type of investment you’ve funded, you’ll receive payments on a monthly or quarterly basis. But if you’ve invested in common or preferred equity, any subsequent gains will only be realized if the project is sold.

Since EquityMultiple offers various investment options, the timeframes for maturity depend on your specific investment and your chosen path.

For instance;

• Fund Investing has a target duration of 1.5 to 10 years
• Direct Investments  are targeted at between 6 months and 5+ years
• Tax-deferred Investments have a span of 5 to 10+ years.

Once you are paid, EquityMultiple will transfer the money straight to your bank account. Typically your investments with EquityMultiple are liquid until the project matures.

EquityMultiple Reviews: Is EquityMultiple Legit?

EquityMultiple is an online real estate company that has transacted billions of dollars and has a reputable track record. Having participated in over $3.2 billion commercial real estate transactions, this company can be considered legitimate. To date, EquityMultiple has distributed over $78 million back to investors.

Though it is not BBB accredited, EquityMultiple has a rating of A+ on Better Business Bureau. The fact that the platform makes it possible for individual and institutional investors to invest in high-quality real estate projects made most investors happy. Other users were also pleased with its 24/7 customer service and the level of transparency in each deal.

Unfortunately, some reviewers didn’t like that it’s only open to accredited investors and requires a high investment minimum. Overall the company has supported more than $3 billion worth of commercial real estate projects.

What are the EquityMultiple Pros & Cons?

EquityMultiple Pros

• Opportunity to invest in your preferred individual commercial real estate projects
• The minimum investment is as little as $5000 in many projects
• Invest in projects sponsored 
• 24/7 customer service that allows you to contact them any time

EquityMultiple Cons

• Not available for small investors- Accredited information required
• Only three investment opportunities are offered on the platform

How Good Is EquityMultiple Support and Knowledge Base?

EquityMultiple offers several channels to get into contact with its customer base. While the easiest way to speak to their support team is a live chat, you can call EquityMultiple at +1 (646) 844-9918. or email them at help@equitymultiple.com. Since its customer team works seven days per week and responds to all queries, it can be considered helpful.

EquityMultiple Review Verdict: Is EquityMultiple Worth it?

If you’re an accredited investor, EquityMultiple can be a good way to invest in individual commercial real estate and reap high returns. Alongside a steady income, EquityMultiple gives you an opportunity to as much as 14.5% in returns when your investment matures. 

What’s more, this company’s investment timeframe ranges from 6 months to 5 years which is considered shorter.

The major disadvantage of EquityMultiple is that it’s not very liquid. Once you invest, your investment stays until it matures. But if you’re willing to let your money sit for a few years, EquityMultiple could be the right platform. 

It will provide you with an opportunity to invest in high-quality commercial real estate projects without directly managing the project. With EquityMultiple, You’ll invest your money, monitor the progress and collect your earnings.

How to Sign Up with EquityMultiple?

To sign up;

• Go to the website and click register
• Provide your email and password
• Enter your personal and employment information
• Confirm you are an accredited investor
• Reconfirm your status and agree to the terms of service

Sites Like EquityMultiple

EquityMultiple vs. Fundrise

Fundrise Summary

• Low minimum starting investment of $10
• High historical returns of 8.8% to 12.4%
• 0.15% advisory 0.85% management fees
• Diverse portfolios of up to 16 investments

While Fundrise is an online real estate investment platform like EquityMultiple, EquityMultiple only allows accredited investors to use its platform. Fundrise is also far more acceptable to average investors and beginners who are not yet exposed to private real estate listings. 

Additionally, Fundrise has a low minimum of $500 and no requirement to be an accredited investor which is much lower than EquityMultiple’s minimum of $10,000.If you are a new investor, Fundrise is a better option.

EquityMultiple vs. Crowdstreet

CrowdStreet is a crowdfunding platform that allows accredited investors to invest in private deals. As a very close competitor of EquityMultiple, CrowdStreet offers many deals compared to EquityMultiple.

To access these deals, you must have a minimum investment of $25,000 less than EquityMultiple’s $10,000.

In terms of fees, crowdStreet charges 0.50% to 2.5% annually, while EquityMultiple’s charges range from 0.50% to 1.50% based on the type of investment you’ve chosen. Overall, these platforms allow you to get into commercial real estate through different investment avenues.

EquityMultiple vs. RealtyMogul

RealtyMogul is one of the most popular real estate crowdfunding platforms that provide you with access to the private real estate market. Like EquityMultiple, RealtyMogul requires investors to qualify as accredited investors before investing in individual listings.

However, RealityMogul provides private REITs to non-accredited investors having a minimum of $5000. Realtymogul also collects 0.30% to 0.50% depending on your investment and is best for hands-off real estate investors. 

Otherwise, both platforms offer solid options for getting into large-scale real estate deals. Although we do not lean towards RealtyMogul, its minimum investment is comparatively lower, thus making it easy to get started.

EquityMultiple FAQ

How does EquityMultiple make money?

EquityMultiple makes money by charging fees. While these fees vary depending on the project, they typically range from 0.5% to 1.5%

Is EquityMultiple better than fundrise?

While Fundrise is good at packaging private REITs of different levels, EquityMultiple focuses on bringing high-quality real estate properties. Both platforms are safe but vary when it comes to their offerings.

What are some of the risks associated with investing in EquityMultiple?

• You have very low control over your investments
• EquityMultiple investments are liquid; hence you must hold them until the end of the term
• EquityMultiple also comes with the risks of startup companies.

When can you sell EquityMultiple investments?

While EquityMultiple does not have a secondary market for your investments, you may be able to transfer ownership to another investor.

How do you know that EquityMultiple is the right real estate crowdfunding investment for you?

To determine this, evaluate your existing investment portfolio, goals, and timeframe, then consider its opportunities and drawbacks.

EquityMultiple relationship with Mission Capital, an experienced and well-connected real estate advisory firm, gives it a powerful and well-financed partner.