Advantages, disadvantages and who should create an account

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Minimum account

$5,000 (minimums can also vary between $10,000 and $30,000)

Costs

Varied; typically 0.5% (EquityMultiple also charges an annual administration fee of $30-$70)

Types of investment

Institutional commercial real estate, equity, preferred stock and senior debt

Minimum account

$5,000 (minimums can also vary between $10,000 and $30,000)

Costs

Varied; typically 0.5% (EquityMultiple also charges an annual administration fee of $30-$70)

Types of investment

Institutional commercial real estate, equity, preferred stock and senior debt

Advantages
  • Low fees
  • Opportunity to invest in institutional commercial real estate, stocks, preferred stocks and senior debt
  • Several types of properties
  • Self-directed IRAs available
The inconvenients
  • Only accepts accredited investors
More information
  • Consider it if: You’re an accredited investor looking to invest at least $5,000 in commercial real estate.

Global mark

Is EquityMultiple right for you?

Founded in 2015, EquityMultiple is a commercial real estate platform that offers managed assets – including equities, preferred stocks, institutional commercial real estate and senior debt – to accredited investors (individuals with a minimum


net value

million dollars or earning $200,000 a year, or $300,000 for couples).

The platform also offers investors the opportunity to build wealth through IRAs, LLCs, trusts, LPs, and self-directed joint accounts. As of January 1, 2022, EquityMultiple has returned $176.2 million to investors.

EquityMultiple vs. RealtyMogul

Although EquityMultiple and RealtyMogul have the same minimum account requirements ($5,000), there are a few key differences between the platforms. The first is that EquityMultiple only serves accredited investors, while RealtyMogul serves both accredited and non-accredited investors.

Another thing to consider is investment types and fees. Both EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the best choice for accredited investors looking for professionally managed, institutional-grade real estate, and equity and debt investments. RealtyMogul offers multiple REITs, individual properties, and more.

EquityMultiple vs. CrowdStreet

EquityMultiple and CrowdStreet both offer real estate investments only to accredited investors. But platforms vary when it comes to account minimums, fees, and investment choices.

You’ll likely pay more to get started with CrowdStreet since its base minimum requirement (which can be $100,000 for some products) is $25,000. However, CrowdStreet does not charge investors a fee to buy a stake in its offerings and funds – but sponsors typically pay between 1-5%, and bespoke portfolios cost investors 2.5%.

EquityMultiple, on the other hand, is best suited for accredited investors who want to get started with lower minimum requirements and invest in institutional commercial real estate, stocks, and more. It has a base minimum requirement of $5,000, but minimums can also range from $10,000 to $30,000, depending on the offer.

Ways to invest with EquityMultiple

EquityMultiple offers are divided into three strategies:

  • Fund investment: This investment approach has the highest minimum requirement. Minimums start at $20,000 and extend up to $30,000. It is best suited for those seeking diversification across multiple asset types. EquityMultiple targets debt, equities, opportunity funds and CRE securities with this approach. Moreover, it has an investment term of 1.5 to 10+ years.
  • Direct investment: With minimums as low as $10,000, this approach appeals to investors who prefer to focus on individual properties. EquityMultiple’s target duration for this strategy ranges from six months to five years (or longer), and it leans toward debt, preferred stock, and common stock.
  • Savings alternative: This strategy is perfect for investors who want shorter durations. EquityMultiple mainly uses diversified short-term notes here, and the investment term varies from three to nine months. This approach also has the lowest minimum requirement, as you can start with as little as $5,000.

When it comes to returns, debt strategies generate 7-12% per year. Preferred share strategies have a current preferred yield of 6-12% and a total preferred rate of return of 10-18%. Common stock strategies have an internal rate of return of 10-24%, and returns vary for its funds.

Potential investors should also note that joining EquityMultiple does not give you access to publicly traded REITs. Regarding its fund strategies and diversification approach, it invests primarily in non-traded REITs and real estate funds (non-traded REITs cannot be publicly traded).

EquityMultiple: Is it trustworthy?

EquityMultiple currently has an NR (“No rating”) with the Better Business Bureau. BBB ratings typically range from A+ to F, but the bureau says it doesn’t have enough information to issue a rating on the real estate platform.

BBB ratings reflect the bureau’s opinion of how a business interacts with its customers and take into account factors such as type of business, time in business, history of customer complaints, licenses and government actions, publicity issues, etc.

However, it is still important that you do your research before creating an account. That’s because the bureau’s ratings don’t guarantee performance or reliability.

EquityMultiple’s record is free of major lawsuits or scandals. The platform’s BBB profile also shows that there are no complaints filed.

EquityMultiple: Frequently Asked Questions (FAQ)

What is EquityMultiple?

EquityMultiple allows you to invest in professionally managed commercial real estate. The platform’s investment choices include institutional commercial real estate, senior debt, equities, and preferred stocks. Additionally, you can invest through IRAs, LLCs, LPs, trusts, and self-directed joint accounts.

Is EquityMultiple only for qualified investors?

Yes. EquityMultiple only serves accredited investors at this time.

What does it take to be a qualified investor?

To qualify as an accredited investor, you must either have a net worth of at least $1 million or earn $200,000 per year ($300,000 for couples).

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