Introducing EquityMultiple’s Short Term Notes

September 14, 2021
By EQUITYMULTIPLE Staff
Short term note_EquityMultiple hero

We are pleased to announce the launch of EquityMultiple’s Short Term Notes⁠—a savings alternative that goes above and beyond. 

EquityMultiple’s mission has always been to strive to make real estate investing easy and accessible. Since 2015, we have helped thousands of investors increase their exposure to real estate across different property types, risk profiles, and geographies. We believe that it has never been more important for investors to diversify their portfolios, and are excited to now provide a more holistic wealth management platform. 

Short Term Notes are a natural extension of EquityMultiple’s existing offerings. Here are a few highlights: 

  • The Note is a savings alternative, EquityMultiple’s first such product. 
  • It provides the shortest hold periods yet, for maximum liquidity. 
  • The Note provides another means of diversification and short-term yield.

Continue reading to learn more.

What are Short Term Notes?

Short Term Notes are a new type of offering from EquityMultiple. We built the Note to offer our investors with immediately accessible and attractive rates of return. The Note is a short-term investment, functionally comparable to a corporate bond. Diversified Notes will be used to help pre-fund certain real estate investments on the EquityMultiple platform. In return, investors who participate will receive monthly interest payments. 

The first Short Term Note offering will feature a 180-day term, with investors receiving principal repayment at maturity. In the future, we also may offer other term lengths, with higher rates for longer holds (and vice versa).  

How is the Note different from EquityMultiple’s other offerings?

One of the main differentiators is the Note’s short duration. Real estate investments are typically illiquid assets, meaning investors’ money can be tied up for years, until the sale of the property or another capital event. Diversified Notes, however, allow investors to get their principal back quickly. While the Note is not as liquid as a typical savings account, it has a maturity date much shorter than the typical CD, while offering a rate that is significantly higher than the typical CD. In a persistently low-interest rate environment, many investors will rejoice at an opportunity for attractive current yield from a relatively liquid investment. 

EquityMultiple’s real estate investments are structured to offer the maximum degree of investor protections. Diversified Notes go even further to mitigate risk, since EquityMultiple takes the first-loss position in the case of default. Oh, and as an added bonus, there is no fee to invest. 

Are Short Term Notes right for me?

The Note can be a great opportunity for investors looking for a high-yield alternative to a traditional savings account or CD. If you are an accredited investor, you can invest in Diversified Notes for as little as $5,000. Both experienced and first-time EquityMultiple investors stand to benefit. In particular, investors newer to our platform may appreciate the following benefits:

  • Short-term holds: Free up capital for new investments faster. 
  • Monthly distributions: Receive regular payments. No waiting and wondering.
  • First-loss position: We put our money where our mouth is. EquityMultiple believes in the value of the Note, and is willing to take the first loss to help protect Note investors.
  • Simple structure: We understand that pro formas are often full of legalese. The Note offers a more investor-friendly thesis, with its primary focus on target rate and duration. 

If you have questions about Short Term Notes or any of EquityMultiple’s other investments, please feel free to schedule a call, or contact us at ir@equitymultiple.com

 

*Past performance does not guarantee future results

*APYs are based on Bankrate’s National Average survey data, as of August 2021

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