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EquityMultiple

4.5

(2 Reviews)

Real Estate

Invest in professionally managed commercial real estate from $5k.
Join 40,000+ Users

Snapshot

Open to Accredited Investors

Real Estate

+131.40%

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47+ Employees

EquityMultiple employees come from real estate, law, and private equity

10%-25%

Target Return

The company’s historical net IRR is 18.7%.

Medium

Liquidity

Shares can be sold in private transactions

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47+ Employees

EquityMultiple employees come from real estate, law, and private equity

How You Earn

Growth + Income

Invest From

$5K

Invest in

Real Estate

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47+ Employees

EquityMultiple employees come from real estate, law, and private equity

Open to Accredited Investors

Top Perks of Investing in Commercial Real Estate

Real Estate Investment Trusts (REITs) have outperformed stock indexes over the last 20-50 years.

The market capitalization of publicly-traded REITs on U.S. markets is over $1 trillion.

According to NAREIT, REIT volatility is only 30-40% of the entire stock market, making them relatively low risk.

REITs generally pay higher dividends—4% to 8%—compared to normal stocks.

Can I trust EquityMultiple?

EquityMultiple is backed by Hudson Valley Startup Fund and Kenneth Pasternak, co-founder of Knight Trading Group.

40,000

# of Investors

$5M

Amount Raised

200+

Offerings

# of Investors

40,000

Amount Raised

$5M

Offerings

200+

40,000

# of Investors

$5M

Amount Raised

200+

Offerings

Overview

Real estate is a huge business—the value of the world’s real estate is estimated to be worth $280.6 trillion, which is equivalent to America’s 2021 GDP 12 times over. As a result, there’s a lot of money in residential, commercial, and agricultural real estate, and a large variety of ways to finance and fund real estate projects.
 

EquityMultiple is one of the platforms empowering investors to unlock the Commercial Real Estate (CRE) market. The company offers opportunities at every level of the CRE capital stack—senior debt, mezzanine debt, preferred equity, JV equity, and even private credit funds.
 

With a minimal entry of only $5k, EquityMultiple users can benefit from high potential returns, income, or both. What’s more, EquityMultiple also has a dedicated Asset Management Team working on behalf of investors to protect capital and maximize returns.

High Growth

11.91% avg. returns over the past 10 years

Low Correlation

0.25 correlation to the S&P 500

Equity

Ownership of equity or debt in real estate projects

EquityMultiple Pros & Cons

The Good
  • Access opportunities at every level of commercial real estate—equity, debt, and private credit.

  • EquityMultiple handles underwriting and investment structuring to protect investors.

  • Pick deals from top sponsors and developers which use EquityMultiple to raise capital.

  • Fees are lower and more transparent than competing real estate platforms—between 0.5% and 1.5%.

  • Invest from as low as $5,000.

The Not-So-Good
  • Investors need to be U.S-based, accredited investors.

  • No mobile app—EquityMultiple’s platform is entirely web-based at the moment.

  • EquityMultiple offerings are considered illiquid—you’ll only get money from dividends, when a property is sold or through private transactions (subject to certain restrictions).

EquityMultiple Track Record

$430M

AUM

Across 40k users

18.7%

Total Historical Return

As of June 2022

$240M

In Distributed

Paid out to investors

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Real Estate Returns Calculator

Calculate how much you can earn by investing in Real Estate. Results vary based on the investment amount, term, and other conditions.

$
%
years
$
Frequency
Monthly

Invested

$11,000

Projected Fees

$551.62

Projected return

$4,463.15

Value after fees

$15,463.15

How it Works

Here’s how EquityMultiple helps investors buy into commercial real estate deals.

Here’s how EquityMultiple helps investors buy into commercial real estate deals.

1

EquityMultiple sources real estate deals

The company sources commercial real estate opportunities for accredited and institutional investors. EquityMultiple only works with experienced real estate sponsors, who have passed third-party background checks, have a successful track record, and have successfully raised institutional capital in the past.

2

The company offers up deals to investors

EquityMultiple handles underwriting and structuring of investing to ensure investor protections. Then, the company offers up the deals on its web portal, with special terms for each deal.

3

Investors select deals or funds

EquityMultiple users can take their choice of deals ranging in term, risk, and yield. These deals could include safer investments like short-term debt and riskier investments like investing in properties. Investors can also chat live with EquityMultiple’s Investor Relations Team if they have any questions.

4

Receive regular distributions

Investors receive monthly or quarterly distributions (depending on the deal) direct to their bank account. Some deals will simply include a return on the investment at the sale of property. In the meantime, investors can also monitor portfolio performance through EquityMultiple’s online dashboard.

See inside MoneyMade’s 6-figure multi-asset portfolio

6-Figures

12+ Assets

50+ Platforms

4yr+ Returns

How You
Make Money

EquityMultiple’s real estate offerings are structured on a deal-by-deal basis. Because of this, the way that you make a return might vary depending on factors such as the length of investment, risk level, or form of financing.

The most common way that investors make their money back is investment maturity, which means the sale of a property or the full repayment of a debt. In some cases, a sponsor will pay an agreed-upon dividend for the period of the deal. Always read the deal terms to understand how you might receive a return on your investment.

Investment Maturity

Sale of property or full repayment of debt

Dividends

The sponsor pays out a monthly or quarterly dividend

How EquityMultiple
Makes Money

EquityMultiple allows sponsors and developers to use their platform to raise capital. The capital raised on platform then incurs an annual asset management fee between 0.5% and 1.5% of deal’s value, which is deducted from quarterly distributions.

In the case of an investment that doesn’t pay regular distributions, fees typically accrue and are paid out when the property is sold.

0.5-1.5%

Fee Per Year

EquityMultiple takes a fee on invested capital

How You’re Taxed

EquityMultiple’s Real Estate investments are largely subject to income tax. However, investors are not expected to trigger a taxable event until one of their properties generates income.

The exact tax rate of this investment depends on the type of income generated as well as the taxpayer's country of residence, personal income tax bracket and whether the investment is held in a tax-advantaged account.

In the event that EquityMultiple sells one of its properties, the returns would also be subject to capital gains tax.

Federal, state and local taxes also affect the total tax burden associated with the investment. For more clarity, consult with an advisor before making an investment.

0-31.8%

Capital Gains

Investments held for >1 year benefit from long-term cap gains tax

10-37%

Income Tax

Dividends from Real Estate Investment Trusts (REITs) are typically taxed at ordinary income tax rates

Meet the Team

EquityMultiple is a 47-person team with a track record of success in software, finance, privacy equity and law, and startups. Not to mention, the founding team has participated in billions of dollars worth of commercial real estate deals. Charles Clinton, the company’s founder and CEO, formerly worked as a law associate at Simpson Thacher & Bartlett LLP, where he advised clients such as Blackstone and KKR.

EquityMultiple

4.5

(2 Reviews)

Real Estate

Here's what you'll need to invest on EquityMultiple

US residents
Accredited investors
Over 18 years of age
US residents
Accredited investors
Over 18 years of age

Reviews

4.5
  • 5

    1

  • 4

    1

  • 3

    0

  • 2

    0

  • 1

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YieldT

EquityMultiple stands out among real estate crowdfunding investment platforms because they’re primarily funded by a major commercial real estate investment firm (Mission Capital) rather than VCs. They offer fewer investments than some other platforms, but that’s a deliberate choice to ensure sufficient due diligence.

The best

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