- Strategies: Debt, Equity, Opportunity Funds, CRE Securities
- Target Duration: 1.5 to 10+ years
- Minimum investment: as low as $20k
EquityMultiple provides three investing approaches, all supported by decades of real estate experience and in-house Underwriting, Asset Management, and Investor Relations. Choose the approach that aligns with your investment goals or diversify across all three.
EquityMultiple provides the tools and resources to help you make informed decisions and take an active role in your alternative asset portfolio allocation. While EquityMultiple streamlines the investing process for accredited individuals, you investors may still have questions regarding the platform, the types of real estate investments we offer, and commercial real estate investing in general.
Please have a look through our frequently asked questions, compiled from discussions with thousands of investors all across the U.S. As always, we welcome any further questions you may have.
EquityMultiple is committed to transparency. We maintain a real-time performance tracker that can be accessed by anyone who creates an account.
Once you have invested, you will receive performance updates regarding each individual asset in your portfolio on the My Activity feed within the platform.
There are several key differences:
While there are several established platforms for real estate investing, we offer a unique approach and a management team with far-reaching industry experience. We focus almost exclusively on institutional commercial real estate (whereas other platforms feature single-family and sub-institutional properties) and offer a range of opportunities across the country from experienced lenders and sponsors. We are also one of the few that offers equity, preferred equity, and senior debt investments, letting investors select the types of investments that fit their investment goals and build a diversified real estate portfolio all within the EquityMultiple platform. Recently, EquityMultiple has also added tax-advantaged real estate investments (Opportunity Zone and 1031 Exchange) and Fund products, providing an even greater set of diversification options for our investors.
Investments on our platform are generally focused on strong cash flow and all payments and updates are centrally managed and administered by EquityMultiple.
The minimum is usually $10,000-$20,000 but will vary from offering to offering.
Anticipated returns will depend on the risk profile of each transaction and the terms of the offering. For our Real Estate Team to consider an investment for the platform, the return potential must fall within our return matrix which vary by investment structure. All annual rates of return and preferred returns presented on the platform are net of all fees. Please review the complete offering material for specific investments.
Our mission is to make commercial real estate investing simple, accessible, and transparent for accredited individuals.
Our investor network is comprised of individuals all across the country, of all ages, reflecting a broad range of professions. For more background on members of our investor network, please refer to our Investor Case Study Series.
EquityMultiple presents all fees associated with each investment offering, in full transparency, within investor documents found at the bottom of each offering page.
Generally, EquityMultiple will take a small rate spread on preferred equity and debt investments and a small asset management fee for each common equity investment. For a detailed discussion of fees, please refer to this article.
We offer commercial real estate investments managed by experienced companies and overseen by our in-house team.
We offer a range of property types, including (but not limited to):
Along with these, we offer a range of investment structures, including debt, preferred equity, equity, fund investments, and tax-advantaged real estate investment offerings. Our core operating principal is to partner with quality real estate firms, then conduct extensive, rigorous diligence on each potential investment. This holds true across any property type or business plan that we may consider.
EquityMultiple conducts extensive due diligence on the sponsor or lender as part of our underwriting of each and every investment offering. We only partner with real estate firms that possess an extensive track record, particularly within the project type that is being considered. We typically will present background on the sponsor or lender's past projects and realized returns in the 'Sponsor' or 'Lender' section of the offering page and/or within the Documents section.
For information on the aggregate performance of the EquityMultiple portfolio, please refer to our Track Record.
Yes, the EquityMultiple platform allows for creating an IRA account to invest in our offerings. We are partnered with Millennium Trust and Alto to offer investments via self-directed IRAs. We are also able to work with certain other SDIRA custodians, as a growing set of self-directed IRA custodians continue to work towards making the process of accessing alternative investments smoother and more efficient. We will continue to partner with a growing set of IRA custodians.
After initial signup and qualification on our platform, you will have the opportunity to create an investment account by linking a bank account. Once your investment account is set up and linked you can decide to invest in any of the live offerings on the platform. Review current offerings and decide what type of asset class, location, potential return, and position in the capital stack before making your first investment. Once you decide which investment to move forward with, you can initiate the process by indicating your desired investment amount, reserve your spot by signing investor documents, and fund your investment to finalize. Our Investor Relations team will provide updates and timelines to ensure that you know when to fund in order to finalize your investment. For more, please refer to our article on investment statuses.
Please note that our Investor Relations Team is standing by to help, and is always available to discuss any investment offerings you may consider. It is important that you feel comfortable with any investment you make via EquityMultiple. You can reach us at email@example.com.
Preferred Equity is a class of ownership that has a higher claim on the assets and earnings of a property than common equity, but is subordinate to senior and junior debt. Preferred equity holders have a preferred right to payments over regular (common) equity holders. For preferred equity real estate investors, this capital structure provides the opportunity to capture a fixed rate return with priority of payment and some upside.
Common Equity is the riskiest and most profitable portion of the real estate capital stack. Typically the developer or sponsor will be required – by the lender and/or by other equity investors – to invest their own money as some portion of the equity to have “skin in the game”. Equity investments carry the greatest risk, because investment agreements entitle every other tranche of capital to be repaid before common equity holders. However, if the property does well equity investors usually have no cap on their potential returns. In real estate, equity is typically structured so that all investors earn a preferred return until they hit a certain annual return hurdle (i.e., 8%). For profits beyond this hurdle, the developer will earn a disproportionate share of the profits (i.e., 40% of all the remaining profit), while investors receive the rest of what’s left pro rata. Preferred returns are not guaranteed.
To learn more about the positions in the capital stack, refer to this article.
Yes, you can invest through a LLC, LP or Trust or with a joint beneficiary. 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 accredited in order to invest on EQUITYMULTIPLE.
Setting up a joint account can also be easily completed all online 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.
At EquityMultiple, we believe our extensive underwriting measures to be an essential pillar of our value to investors. While some platforms merely act as posting marketplaces, we perform substantial diligence on potential investment opportunities, and on the real estate companies that brought us the investment. And, for each potential offering, we also examine the sponsor or lender’s own underwriting of the offering, verifying that it was done conservatively, thoroughly, and expertly. All of this amounts to a rigorous gauntlet of due diligence that you can imagine as a funnel; only a select few investment opportunities make it through these multiple layers of diligence, and ultimately get featured on the EquityMultiple platform.
Below is an abbreviated list of key underwriting items in our multi-layer diligence process:
Analyzing all of this information can take several weeks. Fortunately, a number of our partner real estate companies – with whom we’ve worked on several projects – are able to quickly furnish much of this information, streamlining the process.