EquityMultiple is an online investment platform that connects people with exclusive, pre-screened commercial real estate projects.
These projects are managed by professionals. This means if you are an investor, you won’t have to be involved in day-to-day decisions as the project moves along. This makes EquityMultiple a solid avenue for passive investing. Its group of investors are people from all across the country, of all ages, working in a broad range of careers.
EquityMultiple is a solid example of crowdfunded real estate. Back in the day, investors were the rich and famous with deep pockets. They typically threw tons of money into the pot to invest in real estate.
Flash forward to current times, when platforms harness the power of crowdfunding. This brings many investors into a project at lower dollar amounts, making it possible for people without those mega-bank accounts to get in on a good deal.
Here's how this platform works for a complete beginner.
Founders of EquityMultiple set out to fulfill their goal of making commercial real estate investing accessible, simple and transparent for people looking to grow their wealth now and into the future. And who doesn’t want that?
Company researchers look for projects that carry an expectation of a strong cash flow. All payments and updates are centrally managed and administered by EquityMultiple.
The platform has seen enormous success, with 14.5% total historical returns, more than $3.06 billion in asset value, and a whopping $55.7 million returned to investors.
The minimum investment is usually around $10,000-$20,000 but will vary from project to project. Right now, it is limited to accredited investors only.
Right now, there are several well-established platforms out there for people who want to try their hand at real estate investing, such as:
However, EquityMultiple focuses almost exclusively on institutional commercial real estate, which is different from other platforms that feature single-family and non-institutional properties.
They are also one of the handful that offers equity, preferred equity, and senior debt investments. This lets people choose the types of investments that fit their unique investment goals and build a diversified real estate portfolio.
EquityMultiple provides three investing approaches, all supported by decades of real estate experience and in-house underwriters, asset managers, and investor relations specialists.
You can choose the approach that aligns with your investment goals, or diversify across all three.
Multiple assets with built-in diversification.
Best for investors looking for immediate diversification.
Targeted investments into distinct properties.
Best for investors building their real estate portfolio one property at a time.
Equity investments offering tax benefits.
Best for investors with substantial recent or potential capital gains.
The platform offers a range of property types, including (but not limited to):
EquityMultiple will take a small rate spread on preferred equity and debt investments and an asset management fee of 0.5% for each common equity investment.
EquityMultiple presents all fees associated with each investment offering, in full transparency, within project documents found at the bottom of each offering page.
EquityMultiple is a well-organized real estate investing platform specializing in commercial projects. Its pre-screening process allows you to rest easy. It is a great example of passive investing because you don’t have to lift a finger or make any decisions about the properties themselves.
You will see income quarterly, but this isn’t by any means a get-rich-quick venture. While some investment terms start at 1 year, you may not have the chance to cash out of many deals for at least five years.
Then there’s the requirement that you must be an accredited investor, which rules out a large pool of people. But you can add EquityMultiple to your real estate investing wish list for the future!