Many or all of the products featured on this page are from our sponsors who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here is how we make money.
The information provided on this page is for educational purposes only. The Modest Wallet is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.
There are multiple reasons why you should have at least a portion of your portfolio in real estate investments. One reason is that real estate typically has a low correlation to equity markets. Another reason is that this asset class has generated attractive historical risk-adjusted returns for decades. Not to mention, real estate properties can also serve as a hedge against inflation (generally speaking).
Within this environment, crowdfunding platforms support investors in allocating their capital across various investment options. Whereas some platforms focus on REITs and portfolios, others target funds and single property deals. For investors preferring the latter, EquityMultiple has a diverse offering.
In this EquityMultiple review, we’ll have a deeper look into its features, pros, and cons. We also check out other aspects such as fees, security measurements, and who should invest.
Bottom Line: EquityMultiple is a commercial real estate investment platform offering accredited investors access to private real estate investments across property types and risk profiles.
|Features and tools
|Ease of use
What Is EquityMultiple?
The crowdfunding platform sources private real estate in different markets across the United States. It offers different property types and risk profiles. The firm uses technology to provide a streamlined and straightforward investing process for its debt, equity, and CRE security deals.
The company states that it has offered real estate transactions valued at over $4 billion through its online investing platform, and investors have invested more than $241 million in their offerings so far.
How Does EquityMultiple Work?
On its real estate platform, accredited investors can invest in professionally managed commercial real estate. The process starts with EquityMultiple sourcing potential investments from a network of lenders and sponsors across the country.
From there, only 5% of the evaluated assets withstand the company’s rigorous in-house due diligence and underwriting process and are accepted for investors.
Then, the company creates a separate LLC for every investment, and accredited investors can participate if they meet the minimum investment criteria. EquityMultiple offers a variety of markets, investment types, and return profiles to fit every investor’s strategy.
Ultimately, they aim to protect your money, maximize your returns, and support you in building a growing diversified portfolio.
EquityMultiple advertises its lowest deposit at $5,000, but you may need to invest a higher amount depending on the investment category you’re most interested in using. In fact, most deals in the EquityMultiple marketplace have a $10,000 – $30,000 minimum investment.
Requirements To Open an Account
There are two major requirements to open an account on EquityMultiple. First, you must be a US resident; second, you must prove you’re an accredited investor.
While EquityMultiple says it works with some US citizens living in other nations, you’ll need to provide details like a social security number when setting up an account.
Also, since EquityMultiple only works with accredited investors, you must share relevant data, such as an IRS form or tax details, to prove you meet this qualification.
How to Open an EquityMultiple Account
To open an account with EquityMultiple, click the Sign-Up button on the company’s website. The overall process is straightforward and takes less than five minutes of your time.
First, however, you have to be an accredited investor and pre-qualify your account to invest in real estate through EquityMultiple. To qualify as an accredited investor, you must meet one of two criteria:
- $200,000 in annual income per year for the last two years ($300,000 with a spouse)
- $1 million in net worth, excluding your primary residence
After registering on the crowdfunding platform, you can start browsing the listed offerings or set up an investment account without any obligations to invest. You can review investment details, link your bank account, and immediately fund the investments of your choice.
Types of Accounts
Once you create an investor account for EquityMultiple, you can choose the account type you want to invest with. The platform allows multiple types of accounts:
- Individual taxable accounts
- Joint taxable accounts
- Trusts or entities
- Self-directed IRAs (from several custodians)
However, keep in mind that only accredited investors are allowed. This is also valid for trusts and entities and will be checked for every investment you want to undertake.
The crowdfunding platform focuses on “leveling the playing field for individual investors” and only offers features that fit that requirement. As a result, investors have multiple investment options and can benefit from typical real estate investment returns.
|0.5% to 1.5% per year (Common Equity), 1% (Debt and Preferred Equity), varies (Funds), and $30 to $70 per year (Admin Fee)
|3 months (Savings Alternative) to 10+ years (Funds)
|Debt, Equity, and Preferred Equity
|Commercial Real Estate (CRE)
|16.8% (Average returns)
|Varies by Project
|Phone: +1 646-941-8107 and Email: [email protected]
EquityMultiple offers three different investment approaches with different strategies and backs various types of real estate investments. As of this writing, the company provides:
- Debt investments: Such as senior and mezzanine debt
- Common equity: Where investors act as property shareholders
- Preferred equity: Where private lenders have a higher priority for repayments
- CRE securities: Representing commercial real estate investments
- Opportunity funds: Tax-advantaged investment vehicles supporting private-sector investments in targeted communities across the country
- Diversified notes: Perfect short-term solutions with zero fees
Investors interested in the most flexible and liquid options are often most attracted to EquityMultiple’s “Keep” portfolio — particularly the Alpine Note.
EquityMultiple describes its Alpine Notes as a “yield-focused cash management” tool designed to offer investors attractive interest rates for short-term commitments. According to EquityMultiple’s latest details, people who put their money to work in Alpine Notes lock funds for three-, six-, or nine-month terms for average yields of 6.00%, 7.05%, and 7.4%, respectively.
EquityMultiple uses the capital in these short-term notes primarily to fund its real estate investments, and it allows investors the option either to rollover funds into new notes or pull out to invest in another asset after a 30-day holding period. Keep products typically have the lowest minimum required deposits of $5,000 per note.
Products in EquityMultiple’s Earn category focus on short-to-mid-term investment opportunities in commercial real estate (CRE), particularly debt investment vehicles. For instance, the Ascent Income Fund focuses on first mortgage loans, allowing investors to liquidate after one year of holding.
Although rates for Earn products vary, Equity Multiple estimates the average rate of return anywhere from 8 – 12%, and it offers compounding features just like the Keep portfolio. Average minimum deposits for Earn deals are at least $20,000.
EquityMultiple’s Grow portfolio is the right fit for investors with a long time horizon searching for the most alpha. In these high-return CRE deals, EquityMultiple prioritizes investments with the highest potential for returns, with target IRR rates above 18%.
While the yields tend to be the highest with EquityMultiple’s Grow deals, they have the least liquidity and require investors to lock up funds for multiple years. While the investment size ranges for Grow properties, EquityMultiple estimates the average minimum is at least $10,000.
Even if you’re not an investor on EquityMultiple, you could take advantage of the many educational articles on this site’s blog for insight into the real estate market, investment strategies, and market trends.
The EquityMultiple blog has guides on various aspects of real estate investing, ranging from beginner-friendly posts to more advanced topics. On this education hub, readers also have access to info on EquityMultiple’s team and strategies, as well as tutorials to make the most of this investment platform.
Anyone curious about how EquityMultiple works, or real estate investing in general will find plenty of valuable information on this blog.
The average rate of return on EquityMultiple largely depends on which investment vehicle people put their money into. Generally, the rates of return are the lowest for Keep notes, higher for Earn products, and the highest for Grow CRE investments.
While EquityMultiple has the following target rates and averages for each of these offerings, there’s no guarantee any of these investments will meet these ranges:
- Keep Alpine Note: 7.4% annualized yield
- Earn Ascent Note: 13.1% historical distributed yield
- Grow CRE investments: Above 18% IRR
EquityMultiple Pricing and Fees
Depending on the investment you choose, you will face different fees.
For common equity investments, investors have to pay an annual reporting fee between 0.5% and 1.5% for the amount invested. The crowdfunding platform also gets a share of your profits (about 10%) once you get your initial investment back and have reached the targeted IRR threshold.
For debt and preferred equity investments, EquityMultiple charges around 1% in Servicing Fees. In addition, if you invest in funds, you will have to pay an Origination Fee upfront. This fee varies from offering to offering and will be displayed transparently.
EquityMultiple can also collect an annual Administrative Expense for document creation, filings, and entity information. The fee will be split among all investors and typically ranges between $30 to $70 per investor. Therefore, always read the Financials and Structure section, as well as the Investment Summary, to know exactly how much you pay in fees.
Looking at minimum investments, you will find that the lowest investment amount on the platform is $5,000. However, the amount varies from offering to offering, while the average investment minimum sits between $10,000 and $30,000.
EquityMultiple has various security measurements in place to ensure that your personal data is safe. Its physical infrastructure uses the Amazon Web Service technology. They also use third-party security firms to test their system’s vulnerability from time to time.
For their network security, the platform applies firewalls, DDoS Mitigation, and port scanning. Besides, stored data is encrypted to meet data security requirements, and browser connections happen over HTTPS and SSL. This ensures that sensitive data is protected during transmission.
EquityMultiple Customer Service
There are multiple ways you can get in touch with the company. You can reach them via phone or email during business hours (9 am and 6 pm EST).
You can access a chat on their website and send your questions regarding real estate investing through EquityMultiple. The team will usually get back to you within a few hours.
You can also leave feedback via phone (+1 646-941-8107) or email ([email protected]), which is something not many platforms openly communicate.
EquityMultiple Ease of Use
EquityMultiple has an intuitive desktop interface that’s attractive and easy to navigate. However, for those who love using their phone to manage their portfolios, EquityMultiple doesn’t offer a mobile app.
Also, there aren’t as many reviews for EquityMultiple compared to competing crowdfunding real estate sites. For instance, there are only seven reviews for EquityMultiple on Trustpilot, with an average rating of 2.3 stars.
Reviewers on Trustpilot frequently point out issues with EquityMultiple’s customer service, poor portfolio performance, and problems with withdrawals. EquityMultiple isn’t an accredited business by the Better Business Bureau (BBB), and it has a C+ rating, with one complaint over the past three years alleging EquityMultiple doesn’t have transparent financials.
EquityMultiple Pros Explained
- Access to institutional-level real estate: A key selling point for using EquityMultiple is it opens the door for more individual investors to get involved with unique real estate opportunities. As long as users are US residents and meet accredited investor status, they’re free to invest in any of EquityMultiple’s real estate offerings.
- Many different types of investments are available: EquityMultiple offers qualifying investors three categories to put their money to work, each with unique time horizons, risk profiles, and interest expectations. These different investment categories give clients more flexibility when allocating funds to their portfolios.
- Opening an account and browsing investments is free: Although each investment product on EquityMultiple has a different minimum requirement, investors don’t need to deposit funds once they set up an account. EquityMultiple investors can browse the latest offerings and wait until they find a deal that fits their criteria.
- Strong track record and high historical returns: EquityMultiple has been in business since 2015, and it has built a solid real estate portfolio and attracted investments from prominent firms. The target and historical interest rates for EquityMultiple’s products are attractive for both income and growth-oriented investors.
- Low investment minimums for standalone deals: Each investment deal on EquityMultiple has a different minimum requirement, but there are options for $5,000 deposits. While not the lowest in the crowdfunding real estate market, these $5,000 minimum options give more accredited investors opportunities to allocate as much as they feel comfortable with onto EquityMultiple’s platform.
- Fees are in line with industry standards: The fee structure on EquityMultiple varies depending on the products you’re investing in, but most of these deals come with 0.5% – 1.5% of invested capital. Some products, like Alpine Notes, don’t even charge fees. While EquityMultiple doesn’t have a simple flat fee model, these rates tend to be competitive when compared to competing crowdfunding platforms.
- The EquityMultiple team has decades of real estate experience: EquityMultiple is transparent about its leadership and boasts decades of combined experience in the real estate market. EquityMultiple’s team worked with prominent companies, including LaSalle Bank and Simpson, and Thacher & Bartlett, and many have direct experience working in the New York real estate market.
- Various security measures are in place to protect your data: From encryption and constant website monitoring to vulnerability scans and firewalls, EquityMultiple has many tools to ensure its platform is safe. For enhanced security, EquityMultiple also guarantees to invest time and funds into cybersecurity training and awareness campaigns.
EquityMultiple Cons Explained
- Real estate investments are highly illiquid: Although EquityMultiple offers opportunities to liquidate certain products like its short-term Ascent Income Funds, real estate investments are inherently illiquid. Investors must prepare for long withdrawal periods and plan to hold assets outside of the “Earn” category for multiple years.
- Only open to accredited investors: You need to meet high annual income or net worth standards to become a part of the EquityMultiple community. Even if you live in the USA, you can’t invest on this platform if you don’t have proof of accredited status, which makes this platform one of the least accessible in crowdfunding real estate.
- A complex fee structure that varies with every investment: Since each deal on EquityMultiple has slightly different fees, you have to spend extra time reviewing additional charges before committing to each offer. If investors aren’t comfortable with carefully screening investment categories and reading the fine print, they may end up paying more for their real estate properties than they anticipated.
While EquityMultiple has multiple investment options and a solid track record, you might want to know which other platforms are out there.
EquityMultiple vs. Fundrise
One of these real estate alternatives is Fundrise, which also allows non-accredited investors to invest. Besides, the crowdfunding platform has a much lower minimum investment, with Fundrise, you can start investing in real estate with as little as $10 compared to the $5,000 at EquityMultiple.
On Fundrise, investors can invest in commercial and residential real estate portfolios, similar to EquityMultiple’s Funds option. However, there are no standalone deals available. Instead, Fundrise offers four other account levels that unlock different features such as IRA investing, a customized portfolio strategy, or access to private REITs.
While both platforms offer different investment options, they have similar fee percentages. Fundrise charges about 1% in fees, which is in line with what EquityMultiple charges investors.
EquityMultiple vs. CrowdStreet
CrowdStreet is similar to EquityMultiple as the platform also only allows accredited investors to invest in real estate offerings. Like EquityMultiple, investors can invest in diversified funds and individual deals, but also in a professionally managed investment portfolio if you meet CrowdStreet’s criteria.
The minimum investment on CrowdStreet is $25,000, which is similar to the average investment minimums at EquityMultiple. However, Equity Multiple has minimums as low as $5,000. Still, if you invest on CrowdStreet, you don’t need to pay any account or management fees like on other platforms.
|0.5% to 1.5% per year (Common Equity), 1% (Debt and Preferred Equity), varies (Funds), and $30 to $70 per year (Admin Fee)
|0.50% to 2.5% (Funds); Project fees vary
|1.0% per year
|Advisory fee waived (*12 months)
|Invest in institutional grade commercial real estate
|Access to commercial real estate investment opportunities
|Access to private real estate deals
|Long term accredited investors
|High net-worth individuals
|Long term investors
Who Is EquityMultiple Best For?
The crowdfunding platform is suitable for accredited investors who want to add or diversify their portfolios with real estate investments. This asset class has historically generated high returns, which is highlighted by EquityMultiple’s past performance. If you are interested in vetted commercial real estate deals instead of REITs, this platform might be right for you.
Moreover, if you can comfortably invest $5,000 (better between $10,000 and $30,000) and lock up your capital for more than five years, the platform might be an excellent place for you to invest in real estate offerings. The reason is that these investments are relatively illiquid and involve risks investors have to understand.
EquityMultiple Review FAQ
In case you have some general questions about EquityMultipple, we have compiled the most frequently asked questions and provided answers to them below.
Is EquityMultiple Safe to Invest With?
EquityMultiple creates a separate LLC for every investment the company offers on its platform. This structure ensures bankruptcy protection in case EquityMultiple goes out of business. That way, the investment will remain intact and leave you only with the risk real estate investing has in general.
Although bankruptcy would delay processes, this scenario doesn’t seem realistic looking at the company’s current favorable situation.
Is EquityMultiple legit?
The company is legitimate and was developed in partnership with Mission Capital, an existing real estate company.
Moreover, the leadership team has decades of experience in real estate investing and has been involved in many commercial real estate transactions. They manage more than $4 billion in asset value and have returned over $115 million to investors.
Does EquityMultiple Offer a Mobile App?
Currently, the company doesn’t offer a mobile app. However, their entire webpage is mobile-friendly. This makes it convenient to use your phone or tablet to browse investment options or confirm your accredited investor status.
Can You Sell EquityMultiple Investments?
There is no secondary market for the restricted securities investor purchase, meaning that you should expect to hold your investments until they mature or will be liquidated.
Having said this, you may sell your securities in private transactions under certain restrictions. Still, EquityMultiple would be willing to arrange the sale between two of their investors.
How Does EquityMultiple Make Money?
The company makes money by charging investors fees for the investments they make. While these fees vary between 0.5% and 1.5% depending on the offering, they are the primary source of income for EquityMultiple. Moreover, they charge an administrative fee each year.
In A Nutshell
- Account Minimum: $5,000
- Fees: 0.5% to 1.5% per year (Common Equity), 1% (Debt and Preferred Equity), varies (Funds), and $30 to $70 per year (Admin Fee)
- Promotion: None
on EquityMultiple’s website
EquityMultiple focuses on providing institutional-quality commercial real estate investments. Their solid track record shows that they are doing the right thing. That said, you won’t find REITs in their offerings. This speaks to seasoned accredited investors who want to invest specifically and handle a greater range of risks and returns.
Still, you won’t find a high deal flow as on other crowdfunding platforms. This is because EquityMultiple has a thorough vetting process and only about 5% of the submitted deals end up on the platform. Nonetheless, the company provides investors with enough opportunities to diversify their portfolios.
If you’re an accredited investor who wants to benefit from the sound returns and knows the risks that come with real estate investing, EquityMultiple should be on your shortlist.
Get our free Stock Market Playbook to learn how to invest your first $500 in the stock market.
Plus our best money tips delivered straight to your inbox.
Carsten is a Freelance Copywriter with a personal interest in money management and investing. Besides taking care of his investments, he loves traveling, reading books, and working out (calisthenics & yoga).