As a crowdfunding, commercial real estate platform, Equity Multiple sets itself apart and helps investors jump into real estate deals virtually! It covers all the major capital structures: debt, common equity, and preferred equity. These investments join with most commercial projects.
Equity Multiple also gives investors in commercial real estate deals a tax advantage with zone fund opportunities and exchange properties. Our Equity Multiple review covers the cost and trustworthiness of their platform. It takes a complete look at its potential advantages in the long and short term.
Equity Multiple Review: Overview
Equity Multiple gives accredited investors the chance to earn through a managed, commercial real estate firm. These high-net-worth companies and individuals with the right experience use EquityMultiple to gain even more through real estate investments in a diverse range of markets. Their success impresses many. They already return almost $40 million to those who engage the equity, preferred equity, and debt investments offered.
A good deal of Equity Multiple’s success comes from its focus on real estate investors accredited to handle more risk and earn more reward than the average investor. However, the community has some flexibility. Tailored to those with a joint or individual net worth of $1 million or more, they significantly open commercial real estate investment deals. Those with a $200,000 or higher individual annual income can also qualify with joint investors needing at least $300,000 in yearly salary. You can also have professional certificates and certain credentials to gain access to Equity Multiple’s investment deal platform.
Their achievement is further encouraged by investment minimums. These sometimes exceed what the common investor can manage. While they often change based on the real estate project, these standards usually start at $10,000. Like many investment deals, they maintain the assets they manage. An investment deal may require only $5,000 and grow in that increment. Other opportunities can require as much as a $20,000 minimum investment.
Diversity of Investments
Interested investors quickly notice the diversity of EquityMultiple’s specialized funds and exchanges. These include senior and mezzanine debt, common and preferred equity deals, 1031 exchanges, and opportunity zones. Between them, an investor can decide a risk level and payment priority to suit their preferences. For example, senior debt carries a low risk level with quick payouts. Mezzanine debt contains more volatility and a slower rate of return. By contrast, preferred return on equity has uncapped potential for cash flow earnings (without protection on defaulted real estate loans).
Equity Multiple’s able and experienced investors are free to choose, but their returns can be quite high because of the platform’s investor vetting and minimums. Generally speaking, they target the highest possible rates for their users. For example, their debt and equity investments usually aim for a 15% rate of return. While no platform, investment, or deal comes with a guaranteed, fixed promise, Equity Multiple only profits if its investors profit.
As a unique platform and opportunity for qualified investors, EquityMultiple offers a select number of offerings at a single time. That means that their deals can command more transparency, especially when a real estate investor can communicate directly with sponsors and partners. Everyone involved with Equity Multiple’s investments and real estate company projects can easily interact on a deal. Many lenders, sponsors, partners, investors, and even operators are starting to prefer the dedicated, specialized platform.
How Does Equity Multiple Work?
The first step toward becoming an EquityMultiple investor is meeting their conditions for accredited investors. To keep their momentum and target great returns, they welcome several kinds of highly qualified investors:
- Individual or joint investors must have a $1 million minimum in net worth.
- Solo investors must have an annual salary of $200,000 or more.
- Other joint investors need to earn $300,000 every year combined.
- Professional certificates and credentials also qualify some investors.
Once you’re a qualified investor for the EquityMultiple platform, you should be ready to invest in deals above their minimums. These start at $5,000 and vary on a project basis depending on whether you’re investing in senior debt, common equity offerings, or other funds staked in many different kinds of real estate projects.
After you qualify and accept the minimums, you’re free to browse their current offerings with a simple registration and accreditation process. At your own self-directed pace, find the real estate investment form or deal that interests you. Choose those that fit your portfolio goals and easily invest in deals when you’re ready. (Interestingly, each investment opportunity you see directly translates into buying an ownership interest because every offer is formed as an LLC. This works to give you a share of the profits of those businesses.)
Although, when some explore the platform’s investment deal offerings, the potential investors notice that the open projects appear limited. However, EquityMultiple tells us that they intentionally approve only 5% of proposals to increase your chances to profit. If they don’t have a good chance of passing on decent profits, they make as little themselves.
The final step is funding your real estate investment deal by connecting your bank account. You can then submit funds and receive your distributions, whether long or short term.
Is Equity Multiple Legit?
EquityMultiple centers itself on commitment and supports its investor pool. They manage assets across the lifetime of your investment while reporting transparently and offering dedicated customer support services. There is a serious focus on protecting principles and maximizing returns. EquityMultiple only pays themselves when they pay you.
The real estate crowdfunding platform from EquityMultiple increases the efficiency of the investment deal process, but also increases the security of investing with its technology. With a platform that’s able to open real estate investing and tailor itself to the individual needs of each investor, Equity Multiple makes getting returns much simpler than traditional options.
Many users enjoy the experience of EquityMultiple’s intuitive structure since each investor can access the platform at any time and aren’t limited in how they can track their investment. The real estate crowdfunding design of Equity Multiple affords a unique simplicity within private real estate investment markets compared to the traditional broker dealer.
Their dedication to real estate market investors and sponsors, openness and security, as well as simplicity and structure definitely supports the positive impression EquityMultiple has made in reviews and on its investors. The platform itself was designed with experts in investment deals. That’s why individuals with many levels of net worth and companies of all sizes trust them with their investment.
Behind the scenes, EquityMultiple uses an impressive technology stack. Real estate crowdfunding platforms such as this constantly work on data storage, workflow, and security standards to give investors the best experience and sense of safety. Even though investment deals necessarily come with risk, EquityMultiple makes sure that you can place trust in their platform right down to the physical security of its data centers—an important detail other investment platforms casually omit.
Equity Multiple Cancellation Policy
To end your connection with EquityMultiple, you only need to contact their customer service team at email@example.com. They will then guide you through the necessary disclosures and conditions of canceling services with them.
How Much Does Equity Multiple Cost?
EquityMultiple asks for certain fees according to the types of investments, asset classes, features of the offered opportunities. For example, they may charge a flat 1% fee on senior debt and preferred equity investment deals. Common equity investors can get assessed a repeat asset management fee for EquityMultiple’s service in monitoring investments, distributing returns, reporting taxes, and other support.
EquityMultiple’s fees often range from a fraction of a percent up to 1.5% of the amount you choose to invest, and they are usually assessed on an annual basis. EquityMultiple takes them out of the cash flows paid to you from each deal. In some cases, there are additional exit fees which some user reviews report as a 10% carry on their profits once their principals are returned.
In short, fees vary by each offer and investment approach from EquityMultiple. Also, you’re free to choose or not choose investments.
Fund investing allows you to use multiple assets and diversify your portfolio with EquityMultiple. Investors seeking quick and effective investment diversity choose this strategy. Through debt investments, equity deals, opportunity funds, and CRE securities, they aim to maximize returns over 1.5 to over 10 years with a $20,000 minimum investment.
Direct investing through EquityMultiple concerns targeting your investment in specific real estate categories. Ranging from six months to more than five years, these Equity Multiple investors use debt, preferred equity, and common equity investments with a starting minimum of $10,000.
To secure tax benefits with EquityMultiple through preferred equity investments, some accredited investors choose strategic opportunity zone and 1031 exchange funds. This helps them to benefit for up to 10 years through a $40,000 minimum investment.
Equity Multiple Review: Pros & Cons
EquityMultiple successfully mixes a modern real estate crowdfunding platform with savvy real estate investing. Through technology and expertise, they offer attractive benefits to the accredited investor. The high returns averaging almost 15% according to their website. This is in part due to the platform’s exclusivity. However, some view this and a few other features as unfortunate downsides.
Equity Multiple Pros
The benefit of EquityMultiple is an enhanced ability to access real estate investments and commercial property types that have been traditionally limited. Through an intuitive platform for identifying offers, diversifying portfolios, and maximizing returns, Equity Multiple manages to open up the profitability of an accredited investor and their accounts while maintaining tightly closed security.
Equity Multiple Cons
Still, many believe the seeming exclusivity of EquityMultiple’s platform a potential problem. This is because it only accepts accredited investors under strict criteria and conditions. Additionally, EquityMultiple’s investment minimums are higher than average. A variable and sometimes complex fee structure are somewhat of an issue.
Is Investing with Equity Multiple Right for Me?
If you qualify and want a simple strategy for diversifying your portfolio with real estate investments, EquityMultiple is a strong option. Because of their real estate investor conditions and minimum requirements, EquityMultiple is not for everybody. However, those who have the net worth and real estate investing potential will find their illiquid investment opportunities highly attractive, especially after returns.
Equity Multiple Reviews by Investors
Equity Multiple’s users say getting investment opportunities and straightforward commercial real estate transactions is quite rare and very appreciated. Commercial real estate investments are tailored to each portfolio and account. Users report they can diversify without difficulty generating great returns. Other individual investors enjoy the level of monitoring, management, distribution, and growth capital services that EquityMultiple offers to make their financial lives simpler.
Final Review: Is Equity Multiple Worth It?
We think EquityMultiple leads a very special niche in the world of real estate investing. The ease of a platform that isn’t bogged down by archaic systems and unnecessary complications. It makes sense for the modern investor who wants to invest, diversify, and profit with simplicity.
Not everyone can access EquityMultiple’s smart platform to invest in commercial real estate with several investment offerings. Nevertheless, the few investors and opportunities it approves are tightly exclusive, highly vetted, and likely to generate better returns than crowdfunding platforms with lower standards.
In our EquityMultiple review, we believe their track record is as solid as their technology is seamless. All kinds of new and expert backers agree with this fresh approach. As valuable parts of new projects around the country, we should always be able to invest and gain returns anytime, anywhere.