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EquityMultipleUNVERIFIED PLATFORM
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Snapshot
Open to Accredited Investors
Real Estate
+113.40%
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
47+ Employees
EquityMultiple employees come from real estate, law, and private equity
How You Earn
Growth + Income
Invest From
$5K
Invest in
Real Estate
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
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.
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.
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Press Coverage
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.
Recent Activity
Who’s Investing In Real Estate?
EquityMultiple
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
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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
FAQs
EquityMultiple is a real estate investing platform which allows investors to access dealflow from every portion of the real estate lifecycle—senior debt, mezzanine debt, preferred equity, joint venture equity, and private credit. This offers a large variety of investment options to accredited U.S. investors.
EquityMultiple has raised over $430 million in over 200+ deals sourced and offered on their platform. To date, the company has paid out over $240 million in distributions. Furthermore, the company’s team has expertise with real estate, private equity, and business law—and its expertise has allowed it to raise more than $5 million in venture funding.
EquityMultiple sources properties from trusted sponsors and developers who use the platform to raise capital. It handles the underwriting and analysis of these deals before publishing the offerings on its platform for accredited investors to consider. Once the projects have raised the money necessary, investors will get a return based on the terms of the deal.