EquityMultiple Review

Donny Gamble
April 7, 2022
4.0
Personalincome rating

With an excellent amount of commercial real estate at-the-ready, EquityMultiple gives you the flexibility to invest in multiple projects at the same time with a relatively low fee structure.

You’ll only pay up to 1.5% in fees, and the rate of return on these professionally maintained and managed pieces of commercial real estate is often quite nice.

EquityMultiple logo
on EquityMultiple's website
EquityMultiple
FEES
.5% to 1.5%
annual fee
Investment Minimum
$5,000
PROMOTION

No current promotions

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The information provided on this page does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.

Key Takeaways

  • Earnings: EquityMultiple boasts an excellent YoY return rate with a high average. Historically, they’ve done exceptionally well at helping their investors make money since their inception in early 2015.
  • Founded by Real Estate Professionals: If you were ever curious about who’s running it, it’s not just some startup with a complete disconnect to the actual product. Real estate pros have been here since the beginning.
  • No Private REITs: This one is a bit of a bummer, but since they’re still years younger than other popular platforms like Fundrise, this may change. As of right now, there is no selection of private REITs available.

Pros & Cons

Pros
  • Professionally managed real estate
  • Industry-leading underwriting process
  • Access to 1031 exchanges, funds, opportunity zones, and much more.
Cons

Real estate investments can be tricky. While the introduction of crowdfunding has been amazing for real estate, it also poses its own risks.

EquityMultiple allows you to invest in professionally managed real estate so that you not only have a hands-free approach, but also so that you know that someone is caring for the property to ensure it doesn’t decrease in value.

Or at least, that’s the hope.  But what is EquityMultiple really offering you if you trust your money in their investment platform? Let’s find out.

About EquityMultiple

Founded to help accredited investors earn more through real estate investing, EquityMultiple has expanded its operations to contest some of the biggest names in real estate crowdfunding.

The impressive part is that they’ve only been around since early 2015, and their numbers rival or exceed those of their competitors at the same stages in their development.

Their goal is simple: help your money make more money without costing you ridiculous fees.

Services

  • 1031 Exchanges: Defer taxes and swap property. It’s all in the collective pool, anyway. This helps you hold onto your money.
  • Opportunity Zones: This relatively new investment type allows for lower income areas in a city or town to have tax advantages. This can benefit the investor as well.
  • Senior Debt: Greater security in the pyramid of the capital in the pool. This helps secure your spot and essentially turns you into “old money” in the crowdfund.

EquityMultiple also offers other services such as mezzanine debt, preferred equity and common equity, as well as funds. As a relatively new company, all things considered, they’re likely to increase their different offerings as time marches on.

Fees

Thank heavens for crowdfunding platforms that take a linear approach to their fees! EquityMultiple charges between 0.5% and 1.5%, and typically this will land square on the 1% mark (though it depends on your portfolio and initial investment).

It’s as simple and beautiful as that.  However there is something you need to know. While you can fund as low as $5,000, that’s to get you in the door.

EquityMultiple traditionally deals in around $500K per deal, rarely any less.  Some deals range in the millions as well, so the piece of the pie you’re allowed to claim is all up to the listing and the sponsor’s requirements. 

The EquityMultiple team receives a lot of properties and allegedly only approves less than 10% of them, limiting your options (but also keeping your investment money safe).

It’s something to keep in mind.

Who is EquityMultiple Best for?

Accredited investors. This sounds like an odd blanket statement, but there are actually requirements to become accredited, and it usually comes down to net worth or current income.

If you’re not accredited, you can’t trade on the platform to begin with.  EquityMultiple is not designed for individuals who want to slowly build up their wealth with scraps of money at a time.

Because of the account minimum, you want to contribute small four-figure amounts each month to really take advantage of this crowdfunding platform.

Typically, you’ll want to invest six figures to actually have access to a lot of what EquityMultiple offers.

Compare to Other Platforms

Fundrise logo
ANNUAL FEES
.15%
INVESTMENT MINIMUM
$1,000
PROMOTION
Invest and get $10 in shares
Realty Mogul Logo
MANAGEMENT FEES
1% to 1.25%
INVESTMENT MINIMUM
$5,000
PROMOTION
No current promotions
CrowdStreet logo
PROJECT FEES
0.50% to 2.5%
INVESTMENT MINIMUM
$25,000
PROMOTION
No current promotions

EquityMultiple FAQ's

Is EquityMultiple legit and safe?

Yes, EquityMultiple is a safe company that has legitimate practices where individual investors have earned money through.

There are 1031 exchange options, funds, and other investment sections, so while it is a safe company, the majority of negative reviews online come from investors getting in over their heads and not realizing what they were doing.

Is EquityMultiple good for beginners?

If you’re serious about real estate investing, and you’re willing to put up the $5,000 minimum with some prior knowledge on how real estate investing works, then it would be good for.

Beginners who are looking at this as their first possible investment with no prior experience in investing whatsoever will not have a user-friendly and engaging time on the platform.

You should have some level of experience before signing up with EquityMultiple.

How does EquityMultiple make money?

EquityMultiple has a complicated fee structure. Where other platforms such as Fundrise and CrowdStreet have made it simple, EquityMultiple has definitely created a slightly more aggravating way for the investor to place their money.

Fees are unique to each listing, and there’s the general 0.5% to 1.5% fee that affects all users depending on how much money you’re investing.

Can you lose money with EquityMultiple?

Absolutely. With any investment platform, regardless of the medium (real estate, stocks, etc.), you can lose money. While these platforms make it easier to become a real estate investor or put your money to work, they don’t do it for you.

You still have to choose how it’s invested, and that decision will determine where your gains or losses will be. You stand to lose with any investment, and it’s important to remember that along the journey.

EquityMultiple

EquityMultiple makes real estate investing simple, accessible, & transparent for accredited investors.

  • EquityMultiple
  • Rating: 4
  • Reviewed by:
  • On April 7, 2022
  • Last modified:May 13, 2022

Review Summary:

EquityMultiple makes real estate investing simple, accessible, & transparent for accredited investors.

Review of: EquityMultiple

Reviewed by:
Rating:
4
On April 7, 2022
Last modified:May 13, 2022

Summary:

EquityMultiple makes real estate investing simple, accessible, & transparent for accredited investors.

About the author 

Donny Gamble

I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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