Pros, cons and who should set up an account

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General rating

Is EquityMultiple Right For You?

Founded in 2015, EquityMultiple is a commercial real estate platform that offers managed assets, including equities, preferred stock, institutional commercial real estate, and senior debt, to accredited investors (individuals who have a minimum

net worth

than $1 million or earn $200,000 a year, or $300,000 for couples).

The platform also offers investors the option to build wealth through self-directed IRA accounts, LLC, trusts, LP and joint accounts. As of January 1, 2022, EquityMultiple has returned $176.2 million to investors.

EquityMultiple vs. RealtyMogul

While EquityMultiple and RealtyMogul have the same minimum account requirements ($5,000), there are a few key differences between the platforms. The first is that EquityMultiple only caters to accredited investors, while RealtyMogul caters to both accredited and non-accredited investors.

Another thing to consider is investment types and fees. Both EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the best choice for accredited investors looking for real estate and professionally managed institutional debt and equity investments. RealtyMogul offers multiple REITs, individual properties, and more.

EquityMultiple vs. CrowdStreet

EquityMultiple and CrowdStreet only offer real estate investments for accredited investors. But platforms vary when it comes to account minimums, fees, and investment options.

You will likely pay more to get started with CrowdStreet, as their basic minimum requirement (which can be $100,000 for some products) is $25,000. However, CrowdStreet does not charge fees to investors for purchasing shares in its deals and funds. , but sponsors typically pay 1-5%, and custom portfolios cost investors 2.5%.

EquityMultiple, on the other hand, is better suited to accredited investors who want to start with lower minimum requirements and invest in institutional commercial real estate, stocks, and more. It has a base minimum requirement of $5,000, but minimums can also range from $10,000 to $30,000, depending on the offer.

Ways to invest with EquityMultiple

EquityMultiple offers are divided into three strategies:

• fund investment: This investment approach has the highest minimum requirement. The minimums start from $20,000 and extend up to $30,000. It is best suited to those seeking diversification across multiple asset classes. EquityMultiple targets debt securities, equities, Opportunity Funds, and CREs with this approach. In addition, it has an investment term of 1.5 to 10+ years.
• Direct Investment: With minimums as low as $10,000, this approach caters to investors who prefer to focus on individual properties. EquityMultiple’s target duration for this strategy ranges from six months to five (or more) years, leaning toward debt, preferred stock, and common stock.
• Savings Alternative: This strategy is perfect for investors who want shorter terms. EquityMultiple mainly uses short-term diversified notes here, and the investment term varies from three to nine months. This approach also has the lowest minimum requirement, as you can start with as little as $5,000.

In terms of returns, debt strategies generate 7-12% per year. Preferred Stock strategies have a current preferred return of 6-12% and a total preferred rate of return of 10-18%. Common stock strategies have an internal rate of return of 10-24%, and returns vary depending on your funds.

Potential investors should also note that joining EquityMultiple does not give you access to publicly traded REITs. In terms of its fund strategies and diversification approach, it invests primarily in unlisted REITs and real estate funds (unlisted REITs cannot be publicly traded).

EquityMultiple: Is it reliable?

EquityMultiple currently has an NR (“Not Rated”) with the Better Business Office. BBB ratings generally range from A+ to F, but the bureau says it doesn’t have enough information to issue a rating on the real estate platform.

BBB ratings reflect the bureau’s opinion of how well a business interacts with its customers and takes into account factors such as type of business, length of time in business, history of customer complaints, licenses and actions government, advertising problems and more.

However, it is still important that you do your research before setting up an account. This is because bureau ratings do not guarantee performance or reliability.

EquityMultiple’s track record is free of any major lawsuits or scandals. The platform’s BBB profile also shows that it has no complaints filed.

EquityMultiple: Frequently Asked Questions (FAQ)

What is EquityMultiple?

EquityMultiple allows you to invest in professionally managed commercial real estate. The platform’s investment options include institutional commercial real estate, senior debt, stocks, and preferred stocks. Additionally, you can invest through IRAs, LLCs, LPs, trusts, and self-directed joint accounts.

Is EquityMultiple only for accredited investors?

Yes. EquityMultiple only serves accredited investors at this time.

What does it take to be an accredited investor?

To qualify as an accredited investor, you must have a net worth of at least $1 million or earn $200,000 a year ($300,000 for couples).