EquityMultiple is a platform that lets people invest in professionally managed commercial real estate. Its headquarters are located in New York City.
It is a very successful company. In the fourth quarter of 2020, EquityMultiple’s investor network had funded 125 real estate projects across the United States.
These deals totaled more than $2.9 billion in total capital. But there’s even more good news! The company has returned over $30 million in distributions to its investors.
However, before you join the party, you might be wondering if this is a safe and legitimate platform to invest with? Here is our opinion!
All of the securities offered on the EquityMultiple platform are purchased through Growth Capital Services, which is a member of FINRA and covered by the Securities Investor Protection Corporation (SIPC).
Your investments are covered by the SIPC up to $500,000 per legal account. This can protect against the loss of your stocks, bonds, and cash in the event that EquityMultiple has unforeseen financial troubles.
SIPC coverage provides:
In the unlikely event EquityMultiple financially fails and goes into bankruptcy, federal laws require them to transfer all your money to another brokerage with SIPC coverage.
If they don’t do this, and your assets are missing or at risk, the SIPC will step in to reimburse you up to $500,000.
The amount of your claim will be the value of the cash and securities in your account on the date the SIPC files the court application for liquidation.
Keep in mind that SIPC coverage does not protect against market fluctuations in your account.
Markets can be quite volatile, and the investment choices you’ve made can drop in price at any given time. When the value of your portfolio goes down, the SIPC will not bail you out for that loss!
The Financial Industry Regulatory Authority offers a broker check tool that shows you employment history, certifications, licenses, and any violations for brokers and investment advisors.
For brokerage firms, broker check provides:
As a member of FINRA, EquityMultiple has provided all this information for potential investors to review.
This platform offers commercial real estate investments managed by experienced companies and overseen by its in-house team of experts.
They offer a range of property types, including:
The minimum investment is usually $10,000-$20,000 but will vary depending on the project.
What about the fees? Generally, EquityMultiple will take a small asset management fee for each common equity investment.
However, you must be an accredited investor to buy into EquityMultiple projects.
The criteria for this status includes:
EquityMultiple is a popular platform for people looking to invest in commercial real estate. The money you invest is covered by the SIPC for up to $250,000. You can also research EquityMultiple on the FINRA broker check to be certain you’re making the right decision with your money.
Currently, EquityMultiple projects are only available to accredited investors, but this could change over time.