Pros and cons and who should create an account

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Account minimum

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

cost

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

Investment Types

Institutional Commercial Real Estate, Equity, Preferred Stock and Senior Debt

Account minimum

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

cost

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

Investment Types

Institutional Commercial Real Estate, Equity, Preferred Stock and Senior Debt

Pros

  • Low costs
  • Option to invest in institutional commercial real estate, equities, preferred stock and senior debt
  • Multiple types of real estate
  • Self-directed IRAs available

cons

  • Only accepts accredited investors

More information

  • Consider it if: You are an accredited investor looking to invest at least $5,000 in commercial real estate.

Overall rating

Is EquityMultiple Right For You?

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


net value

of $1 million or $200,000 a year, or $300,000 for couples).

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

EquityMultiple vs. RealtyMogul

While EquityMultiple and RealtyMogul share the same minimum account requirements ($5,000), there are some 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 are the types of investments and fees. Both EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the better choice for accredited investors seeking professionally managed institutional-level real estate and equity and debt investments. RealtyMogul offers multiple REITs, individual properties, and more.

EquityMultiple vs CrowdStreet

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

You’ll probably pay more to get started with CrowdStreet, since the basic minimum requirement (which can be $100,000 for some products) is $25,000. However, CrowdStreet does not charge investors to buy a share of the deals and funds, sponsors typically pay between 1-5%, and custom 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 want to invest in institutional commercial real estate, stocks, and more. It has a basic 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’s offering is divided into three strategies:

  • Investing Fund: This investment approach has the highest minimum requirement. Minimum starts at $20,000 and goes up to $30,000. It is best suited for those looking to diversify across different asset types. EquityMultiple focuses on debt, equity, Opportunity Funds and CRE securities with this approach. Moreover, it has an investment term of 1.5 to 10+ years.
  • Direct investing: With minimums as low as $10,000, this approach is suitable for investors who prefer to focus on individual properties. EquityMultiple’s target duration for this strategy ranges from six months to five (or more) years and tends towards debt, preferred stock and common stock.
  • Saving alternative: This strategy is perfect for investors who want shorter maturities. EquityMultiple mainly uses short-term diversified bonds here and the investment term ranges from three to nine months. This approach also has the lowest minimum requirement, as you can get started with as little as $5,000.

In terms of returns, debt strategies generate 7-12% per annum. Preferred stock strategies have a current desired return of 6-12% and a total desired return of 10-18%. Common equity strategies have an internal rate of return of 10-24% and returns vary across the funds.

Prospective investors should also note that participating in EquityMultiple does not give you access to publicly traded REITs. When it comes to its fund strategies and diversification approach, it invests primarily in untraded REITs and real estate funds (untraded REITs cannot be publicly traded in the market).

EquityMultiple: is it reliable?

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

BBB ratings reflect the agency’s opinion of how well a company treats its customers, taking into account factors such as the type of business, time in the business, history of customer complaints, licensing and government actions, advertising issues, and more.

However, it is still important that you do your research before creating an account. This is because the agency’s ratings do not guarantee performance or reliability.

EquityMultiple’s track record is free from major lawsuits or scandals. The platform’s BBB profile also shows that no complaints have been 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, equity, and preferred equity. In addition, you can invest through self-directed IRAs, LLCs, LPs, trusts, and joint accounts.

Is EquityMultiple only for accredited investors?

Yes. EquityMultiple currently only serves accredited investors.

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 make $200,000 per year ($300,000 for couples).

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