EquityMultiple is a commercial real estate investment and technology firm that provides accredited investors access to professionally managed, private real estate transactions across property types and risk profiles. EquityMultiple’s mission is to make real estate investing simple, accessible, and transparent. To date, EquityMultiple’s investors have participated in over $3.2 billion in commercial real estate transactions through its online investing platform. The firm pairs innovative technology with real estate experience and industry-leading investor services to offer an unparalleled investing experience.
We help self-directed investors build a more diversified portfolio, offering rigorously vetted, passive real estate investments for as little as $10,000.
How it Works: We offer robust in-house underwriting and a seamless investing process, which allow accredited investors to participate in direct real estate transactions and real estate funds alongside experienced sponsors and lenders. Our offerings span a variety of markets, asset types, and return profiles so you can meet your investment goals.
For more on the landscape of modern real estate investing, and where EquityMultiple fits in, please consult our learning series. More information regarding the historical performance of EquityMultiple investments can be found on our Track Record page.
We pride ourselves on our industry-leading customer service. You can reach support on any page of www.equitymultiple.com by clicking the blue circle in the lower right-hand corner of your screen. For general support you can also reach us by email at firstname.lastname@example.org or by phone at 646-844-9918. If you have any feedback on how to improve EquityMultiple, please let us know at email@example.com or schedule a call with Investor Relations here. No matter how you reach out to us, we’ll make sure that your question gets answered.
Our Investments Team has been involved in billions of dollars in real estate transactions. We work tirelessly to identify and underwrite investments that deliver compelling potential risk-adjusted returns. We structure investments to offer the maximum degree of investor protections, and our Asset Management Team works throughout the lifecycle of each investment to protect principal and maximize your returns.
After investing with us, we will continue to oversee your investment until exit. Our Asset Management Team and the rest of the EquityMultiple Team will continue to monitor the investments and send asset management reports periodically to communicate progress.
Of course, keeping your information secure is our top priority. We host and manage our platform’s physical infrastructure within Amazon’s secure data centers and use bank-grade protocols to transmit and store your data, and maintain a development policy which puts your privacy first.
We’re also committed to transparency and customer service – we’re always happy to field questions, and discuss any concerns over the phone.
Diverse offerings: We are one of the few platforms that offers equity, preferred equity, and senior debt investments, letting investors select the type(s) of assets that fit their investment goals. We generally focus on the mid-market, commercial real estate space, with investments reflecting a diverse array of multi-tenant properties. Investments on our platform are generally focused on strong cash flow and all payments and updates are centrally managed and administered by EquityMultiple.
Experienced team: We offer a unique approach and a management team with far-reaching industry experience.
Industry-leading customer service: We are committed to transparency, attentive customer service, and thorough asset management updates throughout the life of investments.
For more on how we’re different, please see this article.
Public REITs are publicly traded and thus offer some liquidity that EquityMultiple investments do not. The downside of this exposure to the public markets is that the value of REIT shares is less associated with the underlying real estate because it is subject to market sentiment fluctuations. This market correlation limits the effectiveness of public REITs as a hedge against other public market investments (i.e., stocks).
EquityMultiple partners with leading real estate investment management companies to offer access to non-traded REITs and other real estate funds. This can be a great choice for investors seeking the instant diversification and flexible redemption options REITs typically offer. For more on the topic, please review this article.
EquityMultiple also offers the opportunity to invest directly in distinct properties, each with its own investment thesis and return profile. With low minimums and diverse deal flow, this approach allows investors to pursue the passive diversification of a REIT while benefiting from the transparency and control of direct real estate investment.
EquityMultiple offers a diverse mix of direct, fund, and tax-deferred commercial real estate investments from different property types and locations. Our offerings span the full capital stack and a variety of risk/return profiles. All investments are managed by experienced companies and overseen by our in-house Asset Management Team.
Does EquityMultiple offer tax-deferred investments?
EquityMultiple constantly updates our offerings page with the latest investment opportunities, including tax-deferred investments. Tax-deferred offerings generally carry a higher minimum investment and may not always be available, though our Investments Team is privy to tax-deferred opportunities on a regular basis. If you are curious about tax-deferred opportunities, please reach out to firstname.lastname@example.org.
All securities offered on the EquityMultiple platform are offered through Growth Capital Services, a registered broker-dealer and member of FINRA and SIPC. Growth Capital Services reviews each offering posted to the EquityMultiple platform and provides compliance oversight of EquityMultiple. Certain employees of EquityMultiple are registered representatives of Growth Capital Services.
Setting up an account with EquityMultiple is fast and easy. To get started, click here to sign up and you will be able to access your investor portal in 5 minutes or less. Once your account has been qualified, you can immediately begin browsing current offerings or set up an investment account. You can review diligence information, ask questions and, if you decide to invest, complete your funding online.
Creating an account does not obligate you to any further action, and provides you exclusive access to EquityMultiple’s investment opportunities.
Yes, currently all EquityMultiple investors need to be accredited. For the full definition of an “accredited investor” please see this glossary article.
We are able to accept funding from several self-directed IRA custodians. To invest with an IRA, you can complete an IRA investment account from the “My Accounts” section of your investor portal. To see the list of IRA custodians we are able to accommodate, please refer to the IRA account sign up page.
Investing with an LLC, LP or Trust:
Once you sign up for EquityMultiple, you’ll be able to create an account for your entity or trust by providing us with appropriate information and documentation through the platform. Once you’ve completed account setup, you’ll have the option of investing through your entity or trust each time you make an investment. Like individual investors, an entity or trust must be an accredited investor in order to invest on EquityMultiple. Generally speaking, each owner of an entity, or each beneficiary of a trust, must themselves be an accredited investor, or else the entity must have total assets in excess of $5,000,000.
Investing with a joint account:
Setting up a joint account can also be easily completed through the platform. We’ll need to collect information about you as the primary account holder and certain additional information about the joint account holder. The joint account holder will need to electronically sign a limited power of attorney authorizing you to make all decisions regarding your EquityMultiple joint account. This can all be done online via the platform.
Any person or entity with a U.S. tax identification number (social security number or Employer Identification Number), and who meets the SEC’s definition of an “accredited investor” is eligible to participate in EquityMultiple’s investments. While most of our investors are U.S. citizens, some are legal residents of the United States or foreign nationals who own or partially own an investing entity incorporated in the United States.
We use aggregated investor preference information to help drive decisions about what types of offerings and platform features our investors want to see. We use your individual preference information to customize your EquityMultiple experience and make it easier to access investment opportunities that might interest you.
Keeping investor information secure is a top priority for EquityMultiple. EquityMultiple’s physical infrastructure is hosted and managed as a Heroku application within Amazon’s secure data centers and utilizes Amazon Web Service (AWS) technology. All sensitive data is encrypted and stored within databases to meet security requirements. Data encryption is deployed using industry standard encryption and the best practices for our technology stack. Here’s more on our security practices.
The minimum will start as low as $10,000 but will vary from offering to offering. The investment minimum typically ranges between $10,000 – $30,000. Additional shares are typically offered in increments of $5,000 above the minimum.
Common equity: For common equity investments, there is an annual monitoring and reporting fee on the amount of your investment. This fee is generally between 0.5% and 1.5% of invested capital. Typically, we also hold a profit participation, but only after you’ve received a full return of your invested principal and the IRR hurdle is achieved. This backend compensation helps align our interests with our investors.
Debt and preferred equity: For debt and preferred equity investments, we typically charge a Servicing Fee which is typically 1% but may be more or less. Please note that the Preferred Return displayed on the offering materials are generally net of the servicing fee.
Funds: Our fund offerings typically entail an Origination Fee as well, which is typically paid upfront, and is specified with each offering.
For all offerings, EquityMultiple is entitled to deduct an Administrative Expense to cover tax document creation, annual filings, and entity formation. This fee is split between all investors, and typically ranges from $30-$70 per investor annually.
Please refer to the Financials and Structure section of the Offering Summary page, and Investment Summary section of the Investor Packet for more comprehensive information on fees. For more on the topic, please refer to this article.
What value does EquityMultiple bring to justify its fees?
We vet lenders and sponsors, in addition to performing deal-specific diligence on each investment from select lenders and sponsors, thus providing investors multiple layers of diligence.
We then provide vigilant asset management services throughout the lifetime of each investment, including asset monitoring; delivery of distributions; preparation of tax documents; and the management of any workouts or asset restructurings that may become necessary in certain cases. In short, EquityMultiple works to protect your principal, maximize your returns, and simplify your real estate investing experience.
Our secure platform offers investors an easy, closed-loop investing process and asset monitoring throughout the lifetime of projects.
Our dedicated Investor Relations Team is standing by to help simplify your real estate investing process. You can contact Investor Relations on any page of www.equitymultiple.com by clicking the blue circle in the lower right-hand corner of your screen. You can also email us at email@example.com, schedule a call, or reach us by phone at 646-844-9918.
While EquityMultiple provides rigorous diligence to screen all investment opportunities, investors should carefully review the details of each offering, all documentation associated with the offering, and perform any other due diligence they feel is necessary to understand the terms and risks associated with their investment. We provide an offering summary page and investor packet for each offering, and are always happy to answer or clarify any questions you have.
How do I know which investment opportunity is right for me?
We encourage investors to perform their own due diligence and consider their unique needs when selecting a real estate investment. Investors’ risk tolerances, time horizons, and income requirements may influence the type of investment that is best suited for them, across different positions in the capital stack, geographic markets, and project types.
How can I calculate my expected returns?
Common real estate return metrics include cash-on-cash return, equity multiple, and internal rate of return, or IRR. One or multiple of these return metrics may be useful as you make investment decisions. Please see this article for more information about each metric, and how to calculate them.
Investor Packet – Offering Summary Page – Pro Forma
Anticipated returns will depend on the risk profile of each transaction and the terms of the offering. In order to consider an investment for the platform, the forecasted returns must fall within our target ranges, which vary by investment structure. These targets are:
- Debt: 7-12% annual rate of return;
- Preferred equity: 6-12% current preferred return, 10-18% total preferred return;
- Common equity: IRRs (internal rate of return) of 10% – 24%+
- Funds: Depends on the fund strategy (core, core-plus, value-add, optimistic, distressed). We typically seek to source fund investments that offer predictable, near-term cash flow.
All annual rates of return and preferred returns presented on the platform are net of all fees. While we model returns conservatively, and do extensive underwriting on each offering before putting it on the platform, it’s important to note that all investments carry risk. Be sure to review the specific set of risk factors for each offering you consider.
Investor Packet – Offering Summary Page – Pro Forma
Disclosure: Actual returns will vary and there can be no assurance that an investment’s actual performance will lead to the targeted results or perform in any predictable manner. Past performance is no guarantee of future results, and any target may not reflect actual performance.
What is the difference between a current return and accrued return?
Preferred equity investments often feature both a current and accrued return. While current returns are expected to be paid monthly from the onset of the investment, accrued returns accumulate over time and are paid at exit. Please see this glossary article for further information about accrued interest.
I don’t see any return projections. Where can I find out more?
The details of each offering’s structure can be found on the offering page for that deal, as well as in the Offering Listing Summary, which is at the beginning of the Investor Packet, found via the “Documents” button at the top of each offering page. In the case of a common equity investment, details of how profits are split between investors, the project Sponsor, and EquityMultiple can also be found in this documentation.
The total indicated interest in each of our offerings is displayed via the status bar on the “Invest” page. Once indicated interest exceeds our total allocation, the offering goes from “Active” to “Waitlist” mode. Investors who indicate interest while a deal is “Active” reserve their place in the investment and may fund their investment up until the funding deadline. Investors who indicate interest in a waitlisted investment will be invited to participate in the deal on a first-come, first-served basis, should an allocation become available. For more information on investment statuses, please review this article.
Direct investment offerings on EquityMultiple are tied to an underlying real estate investment. The underlying investment will be structured in one of three ways – common equity, preferred equity or debt. As an investor, you’ll participate in these investments in one of three ways:
- By purchasing an interest in an EquityMultiple managed LLC that in turn invests in the underlying property-owning entity (or an affiliate); or
- By purchasing a project payment dependent note, the proceeds of which are invested in the project.
- Directly to a sponsor controlled special purpose vehicle.
In any case, payment is wholly dependent upon the issuer (i.e., the LLC or issuer of the notes) receiving distributions on the corresponding project investment – in other words, the EquityMultiple investment entity (the issuer) must receive payment from the underlying investment in order to pay investors. Debt investments are typically secured by first lien on the underlying property but in some cases may be in a second or later lien position, or do not have any lien. This information will always be included on the offering page or in the investment materials. In the case of debt and preferred equity offerings, EquityMultiple investors are in a position senior to all project equity.
The structure of Fund investments will vary by fund depending on the preexisting structure of the fund and/or EquityMultiple’s participation in the fund.
As with any investment opportunity, EquityMultiple investments entail risk. EquityMultiple’s underwriting, diligence, and asset management protocols are designed to mitigate risk. Still, be sure to carefully read each offering and its investor docs to understand the investment’s specific risk factors. Investors are not liable for losses above their invested principal.
Please refer to the Risk Disclosure section of the offering summary page, and the Risk section of the investor packet.
Can I resell my securities:
Investors participating in offerings on EquityMultiple purchase restricted securities, which are highly illiquid. You should expect to hold the securities you purchase until they mature or there is a liquidation event.
Our fundamental business is providing investors access to quality, highly vetted real estate investments alongside quality sponsorship. In certain cases, EquityMultiple, or one of its principals, owners, employees or affiliates, may also invest in an investment offering.
- What kinds of Sponsors, Lenders, and Fund Operators are accepted to raise capital on EquityMultiple (and hence present investments to our investor network)?
We work with experienced, reputable real estate operating companies whose principals have a strong track record of success and who have raised institutional capital for multiple private real estate offerings. EquityMultiple sponsors typically have an existing network of repeat accredited investors and institutional investors. We also employ a third party background check company to issue a report on each Sponsor. For more information, please review this article on our diligence measures.
Once you determine you are investing in a particular offering you will be guided through a secure online process to complete your investment. Funding can be completed entirely online via secure ACH by linking to an existing bank account – bank accounts must be verified by confirming two micro-deposits, which will appear in your bank account 1-3 business days after you begin the linking process. If you prefer to fund offline, you can transfer funds by check or wire. Funds are held in a segregated account at a FDIC insured national bank up to the applicable limit.
Debt: Most debt investment offerings on EquityMultiple will be secured by the underlying real estate or by an interest in the property owning entity. In the event of a senior loan investment, foreclosure may be available as a remedy in the event of failure to pay.
Preferred equity: Preferred equity investments are not secured but do offer priority of payment. In other words, investors will typically be entitled to receive a preferred return and return principal before the common equity investors or Sponsor. Preferred equity investors typically hold some rights in the unlikely event of default. For more, please review this article.
Common equity: Common equity investments offer the potential for uncapped upside, but a higher risk of principal loss because debt holders and preferred equity holders (if any) are generally entitled to be paid before common equity holders receive payment.
With all investments on our platform, we pursue opportunities that we believe offer compelling potential risk-adjusted returns. However, it’s important to note that all investments carry risk and that interest, preferred returns and common equity distributions are not guaranteed and are dependent on overall business results.
What rights will I have? EquityMultiple will control the investment vehicle through which investors commit funds. Investors will have limited voting rights with respect to the EquityMultiple investment vehicle, but no voting rights in the property management company.
What happens if the sponsor defaults? The remedies available in the event of a Sponsor default will vary according to the investment structure (i.e., common equity vs senior debt) and the negotiated remedies of that particular investment. In general EquityMultiple or its affiliate will have limited cure rights and may be able to replace the manager in certain limited circumstances. EquityMultiple or its affiliate will, in its sole discretion, exercise the available remedies as it deems necessary to protect the best interests of investors.
EquityMultiple’s senior leadership is focused on responsible growth, capital expenditure, and fiscal management. We have no intention or expectation of ceasing operations at any point in the future.
Most EquityMultiple investments are structured for bankruptcy remoteness through a special purpose vehicle (SPV). Should EquityMultiple cease operations, a third-party manager would be selected to continue management of EquityMultiple investments on behalf of investors.
Generally, you will receive a K-1 for your equity investments and either a 1099 or K-1 for your debt or preferred equity investments. We work with sponsors and lenders to deliver your tax documents as soon as possible to help ensure timely filing.
The tax implications of your investment will vary by offering type and you are strongly encouraged to consult your own tax advisors regarding the tax treatment of your investments. In general, you may have to file state taxes for each state where you earned investment income via an EquityMultiple investment, subject to the tax laws of that state. Again, this will depend on the state, the investment, and the particulars of your tax situation – we encourage you to seek the guidance of an income tax professional on these matters.
Certain debt investments and other investments will entail a note, and hence generate a 1099, which EquityMultiple seeks to deliver well in advance of any IRS deadlines.
We are continually working with all sponsors and our accounting firm, BDO, to facilitate the tax preparation process for our investors and deliver your K-1s as soon as possible. Unfortunately, given the number of parties involved, there will almost certainly be some delays in K-1 delivery.
Distribution schedules vary by deal and are typically either monthly or quarterly. Debt investments typically offer a fixed monthly rate of return throughout the loan’s term and a return of principal at maturity of the loan. Similarly, preferred equity investments offer a fixed quarterly or monthly rate of return throughout the term of the investment and may provide for an additional accrued return when the investment is paid off and principal is returned. Common equity investment cash flows are generally not fixed and their frequency and amount will vary based on the performance of the underlying investment.
The timing of distributions from Fund investments will vary by offering, but most often be quarterly.
The sponsor of each offering is required to submit ongoing updates and financial reporting to EquityMultiple. We will present all of this information to you on your Portfolio Page shortly after we receive it, typically on a quarterly basis. You will also receive project updates and notification of distributions on your Activity Page, which can be filtered by investment.
Returns will be distributed according to the unique schedule of each particular offering. For cash-flowing investments, distributions will typically occur on a monthly or quarterly basis. Most debt and preferred equity offerings will pay monthly distributions. For investors who funded online via secure ACH, payments will be direct-deposited into the payment account. Investors who paid offline will have the option of linking an account to receive direct deposits. Alternatively, investors can opt to receive checks quarterly subject to certain minimum dollar thresholds.
When will I receive my first distribution?
Typically, equity investments in cash-flowing properties will begin distributions within 60 days of the effective date, and debt and preferred equity investments within 45 days of the effective date. In your “My Portfolio” page, you will see the next expected payment date, and we will send a closing announcement for all deals, including an expected first payment date for debt and preferred equity investments.
With respect to equity and preferred equity investments, the Sponsor will manage the overall direction of the project, though they may retain a third-party property management company. Details of project management will be made available on the Offering Page for any equity or preferred equity investment on EquityMultiple. For debt investments, the Lender will be responsible for collecting interest from the borrower and making regular distributions to EquityMultiple. In all cases, EquityMultiple’s dedicated Asset Management Team will manage the relationship with the Lender or Sponsor, provide project updates within the platform, and manage the flow of distributions to our investors. In the event of unforeseen challenges, our Asset Management Team will work collaboratively with the sponsor or lender to achieve the best outcome on behalf of EquityMultiple investors.
EquityMultiple’s Asset Management Team actively tracks the performance of each investment, and works with our sponsors to pursue the best risk-adjusted returns. Asset Management provides frequent (at least quarterly) updates on the status of your investments. Please check your Activity Page for Asset Management updates for each of your investments. Your Portfolio Page provides up to date return information, including the cumulative annualized returns for each of your investments. You will also receive project updates and notification of distributions on your Activity Page, which can be filtered by investment.
Our dedicated Investor Relations team is standing by to assist. You can contact Investor Relations on any page of www.equitymultiple.com by clicking the blue circle in the lower right-hand corner of your screen. You can also email us at firstname.lastname@example.org, schedule a call, or reach us by phone at 646-844-9918.
Investors purchase restricted securities, which are highly illiquid due to the current lack of secondary market. You should expect to hold the securities you purchase until they mature or there is a liquidation event.
However, you may resell your securities in private transactions subject to certain restrictions specific to each offering and under the Securities Act of 1933. We may be able to arrange the sale of a position between two of our investors, however, this would entail both parties agreeing to transfer of ownership in the amount of the original investment, and should not be counted on as an available source of liquidity.
In the event that a transfer is needed for estate planning purposes we will work with you to see if such transfer is possible.
You will never be obligated to make an additional capital contribution on your investment. In some cases, the Sponsor may have the legal right to request additional capital from EquityMultiple investors. In this case there is no obligation to participate in the capital call, though declining to do so may be dilutive to your investment. In many cases, capital calls are prohibited per the terms of our agreement with the Sponsor. Capital calls are extremely rare in our operating history to date (< 2.5%).
Sponsors & Lenders
We would recommend reviewing these FAQs and our Raise Capital page. If you believe that your project is a good fit, please create an account with us and submit a request to raise capital. We’ll be in touch shortly. If you would prefer to talk to a member of our real estate team first, feel free to contact us at email@example.com or by engaging our team via the chat utility at equitymultiple.com.
We do our best to head off potential questions before they’re asked by preparing a comprehensive online offering page. We also may ask each Sponsor or Lender to participate in a brief Q&A, which we record so that investors can hear about the project directly from you. When unforeseen questions crop up, we’re able to answer many of them based on our preliminary diligence. Any questions we’re unable to answer we compile and get answers from you. We pass these answers along to investors so you don’t have to worry about any direct investor communication. Similarly, we handle all preparation of investor offering documents.
EQUITYMULTIPLE was founded in early 2015 by Charles Clinton and Marious Sjulsen. Our first deal opened to investors in September 2015.
EquityMultiple handles all investor communications, customer service, and the technical components of the investing experience for all registered users of our platform. We ask that you be available to assist with any questions that we cannot answer on our own.
You will be responsible for providing quarterly asset management updates that we will then relay to all of our investors in the deal. Additionally, you will be responsible for delivering the necessary tax documentation in a timely fashion so that we can prepare final tax documents for our investors.
Typically the more materials that you can provide at the outset the better. We initially require background information on the Sponsor or Lender including a track record of deals you have done in the past, a copy of the offering memorandum (“OM”) (or other investment summary) and a pro-forma. For projects that make it to the next stage of review, we provide a more comprehensive due diligence list, including key items like loan documents, third party reports and rent roll. In all circumstances, your information is treated as confidential and is only shared with your approval.
Our deals are structured as 506(b) offerings under Regulation D of the Securities Act of 1933, meaning they can only be presented to accredited investors with whom we have established a substantive relationship. Please visit our accredited investor requirement page for more information on investor qualifications. Our primary focus is on presenting each deal to our existing investor base. All investors are first required to create an account on our platform and provide detailed personal and suitability information, which we hold strictly confidential. We are cognizant of confidentiality concerns regarding the project itself and have built several options into our platform to protect confidential information. We can work with you to ensure confidentiality of your project and key details thereof.
We focus on primary and secondary markets characterized by strong demand and underlying market fundamentals. In certain instances, we will consider opportunities in tertiary markets with stable demand drivers and/or promising demographic trends. Returns must be reflective of market risk. Although we consider a broad range of assets, our focus is typically on value-add or cash-flowing, stabilized projects (rather than ground up or entitlement plays). For more information on typical deal parameters click here.
For debt deals, we target a net Annual Percentage Rate to investors of 7-12%. For preferred equity, we target a net current preferred return to investors of 7-12%, and net total preferred return (including any backend accrual) in the low to mid teens. For equity deals, we target a net cash-on-cash return of 6-12% to investors (though will accept lower in certain major markets), and net IRR to investors in the mid-teens. In all cases, we must determine that deals offer attractive risk-adjusted returns to our investors in order to accept a deal, considering factors including (but not limited to) market fundamentals, quality of the underlying asset, and track record of the originating real estate firm.
Investors invest into a deal specific EQUITYMULTIPLE investment vehicle, which in turn invests into the property owning entity (or an affiliate thereof). As the Sponsor or Lender, that investment vehicle will be the only EQUITYMULTIPLE investor. You provide distributions, reporting and tax document to us directly for that entity and we are responsible for passing it along to individual investors as well as reporting to and managing all of said investors during the asset management process.
You are not required to interact with our investors at any point. However, most prospective investors will have questions regarding project details. While we work with you to create a fully detailed and compelling offering page, some investors appreciate hearing about the deal from you, the Sponsor or Lender. To that end, we’ll typically conduct recorded Q&A sessions in order to further communicate the merits of the deal.
Our initial investor base came from the combined network of the EQUITYMULTIPLE team and our partner, Mission Capital. That initial group has grown dramatically since our launch in September of 2015. Investors have discovered EQUITYMULTIPLE through the positive press we’ve received, referrals from existing investors, search engines, advertisements, and online investor forums and communities, where we are increasingly reviewed favorably relative to other platforms operating in the space. All investors must self-certify as accredited prior to participating in any of our offerings.
The EQUITYMULTIPLE team possesses an extensive nationwide network of contacts in real estate development and investing. This is driven in part by our partnership with Mission Capital, which has built one of largest networks of Sponsors and Lenders in the country since inception in 2002 and more than $70 billion in closed transactions. Many of our prospective deals come from this combined network, while others are submitted by Sponsors and Lenders who have found us organically. In all cases, prospective deals undergo our thorough underwriting process before being presented to investors.
As of June, 2018, we’ve closed 50 deals for projects totalling over $800m in total capitalization. Our typical raise is $1-3M per deal and we can act as the sole equity partner or can be part of a larger group of investors. Our maximum raise size is deal-specific. If your equity needs are more than what we can provide please let us know and we can discuss potential solutions.
No, EQUITYMULTIPLE is able to help provide financing across the capital stack. For Sponsors, we raise both equity and preferred equity from our network of accredited investors. We can also help to arrange institutional equity and debt, either ourselves or through our partnership with Mission Capital.
For Lenders, we syndicate portions of senior and mezzanine loans. These loans are typically short term (6-18 months) and high yield (7-12% net to investors).
The only fee we charge to the Sponsor is 3% of the total raise upon successful close of funding. This fee can be included as part of the total uses of funds in the capital stack of the deal itself. No additional asset management fees will be charged to the Sponsor during the life of the deal.
Unlike many of our competitor platforms, EQUITYMULTIPLE doesn’t act as a direct lender. Instead, we work with established bridge and hard money lenders to syndicate a portion of their loans to our investor base.
Lenders are able to keep the majority of their loan origination points and earn a spread on the rate, increasing their return on dollars lent and freeing up capital for future loans.
We only work with Lenders with strong track records and reputations. If you’re interested in working together, please contact us by phone (646-844-9918) or email at firstname.lastname@example.org. Once we’ve determined it’s the right fit, we’ll move ahead with diligence of a particular loan or loans. Over a period of 1-2 weeks you’ll submit diligence materials and we’ll work together to finalize the structure of the investment and prepare the offering materials. Once the deal goes live on our platform, we present your deal to our investor base and work to raise the funds as quickly as possible, typically in 30 days or less.
We only present opportunities to our investors that offer the potential for strong risk-adjusted returns. This means we thoroughly vet each project before deciding to move forward. Additionally, through continuous direct feedback from our investors, we have a strong sense of what the investors’ appetite will be a for a specific offering. We will only list a deal on our platform if we feel strongly that there will be ample investor demand to fill the deal in a timely manner. In order to make this review process as efficient as possible on both sides, we ask that you submit some initial information about you and your project. Start by creating an account. Once you register, you can submit a project at any time by hitting the “Raise Capital” button in the top navigation. Here you’ll provide basic background about your company and your project, including an offering memorandum and pro forma. Our investment team will perform an initial review and get back to you within 1-2 business days with initial feedback.
If the project is a good fit, we’ll schedule a call to discuss next steps. Over the next 1-2 weeks you’ll submit diligence materials and we’ll work together to finalize the structure of the investment and prepare the offering materials.
Once the deal goes live on our platform, we present your deal to our investor base and work to raise the capital allocation funds as quickly as possible, typically in 30 days or less. For more information on the capital raising process click here, and for information on typical deal parameters click here.
Because our offerings are structured using the 506(b) exemption, only registered users who have self-certified as accredited, and with whom we have established a substantive relationship, will be able to see details. We typically announce each new offering to that group of qualified registered users via email. If you require a greater level of confidentiality, we are happy to work with you on a case-by-case basis.
In certain cases, if the investment makes for a compelling story, we may ask your belling in seeking press attention post-closing. We would seek to present both your company and ours favorably, and positive coverage of the investment. In this case, we would work with you to ensure that no confidential details are divulged.
EQUITYMULTIPLE will control the investment vehicle which invests in the real estate and into which investors commit funds. These investors will generally be passive and not have voting rights.
- If I finance part of a transaction through EQUITYMULTIPLE, do I have to use Mission Capital to secure senior debt?
No, the ability to simultaneously raise additional institutional capital through Mission Capital is a benefit of working with EQUITYMULTIPLE, not a requirement.
Most offerings on EQUITYMULTIPLE are tied to an underlying common equity, preferred equity or mezzanine debt project investment. The investor will participate in these investments in one of two ways: 1) by purchasing an interest in a special purpose LLC that in turn invests in the project; or 2) by purchasing a project payment dependent note from an EQUITYMULTIPLE directed LLC, which in turn invests the proceeds in the project. In either case, returns to an investor are tied to and dependent upon the EQUITYMULTIPLE investment vehicle receiving distributions on the corresponding project investment.
You will receive an email shortly that provides information outlining timing and next steps. You can expect a preliminary indication of interest or request for more information within two business days.
This Deal Submission and Funding Process flowchart outlines the entire process.