If you’re thinking about investing in real estate, you have an overwhelming amount of options to choose from. The age of real estate investing is here and companies have taken notice.
But there is one platform we especially like–EquityMultiple. In this EquityMultiple review, we’ll take a deep dive into EquityMultiple’s offerings, features, fees and user experience.
EquityMultiple Summarized
EquityMultiple is a real estate crowdfunding platform that connects investors with high-quality commercial real estate opportunites. The platform’s mission is simple: to build investor wealth through streamlined access to diverse real estate investment products.
Founded in 2015 by Charles Clinton and Marious Sjulsen, EquityMultiple has quickly established itself as one of the top platforms in the industry. It strives to bring you exclusive investment opportunities by combining industry-leading asset management, innovative technology and personalized support.
EquityMultiple Review: What’s the Rundown?
As stated, we’re primarily focused on EquityMultiple’s offerings, features, fees and user experience. We will break these down below to give you an in-depth analysis.
Investment Offerings
EquityMultiple focuses on high-quality commercial real estate investments, with an emphasis on institutional quality assets. The platform offers a variety of investment types, including the following:
- Equity investments – Providing investors with an ownership stake in the property, equity investments allow them to participate in potential appreciation and cash flow.
- Preferred equity investments – This offers a higher priority in the event of liquidation.
- Mezzanine debt investments – Conversely, mezzanine debt investments offer a higher return with a lower priority in the event of liquidation.
- Senior debt investments – With investors acting as lenders to the property owners, senior debt investments provide the lowest risk and return.
All of the investments on EquityMultiple are secured by the underlying real estate, which provides an added layer of security for investors.
The platform carefully screens all investments and only offers those that meet their high standards for quality and potential returns. The minimum investment on EquityMultiple is typically $10,000, although it can vary depending on the investment.
User Experience
It really doesn’t matter how great the platform is if it is difficult to navigate. Luckily, EquityMultiple has you covered.
It has an easy-to-use platform that’s designed to make investing in real estate as simple as possible. The site features a clean, modern design, with intuitive navigation and clear explanations of each investment opportunity.
EquityMultiple also provides investors with detailed information on each investment, including the property’s location, type and financials. Investors can also review the offering memorandum and other relevant documents before deciding whether to invest.
Additionally, the site offers a dashboard that allows investors to track their investments and view performance data. Investors can see metrics such as projected returns, actual returns and cash flow distributions.
The platform also provides regular reporting on each investment, including updates on property operations, leasing and other relevant data points.
Fees and Costs
EquityMultiple charges a variety of fees for its services. This is to be expected from any platform that provides a service–whether a real estate crowdfunding platform or not.
These fees vary depending on the investment but typically include an annual management fee, a fund expenses fee and a performance fee. The platform’s management fees typically range from 1% to 2% annually, while fund expenses fees can range from 0.35% to 1% annually.
Performance fees are typically charged when an investment meets or exceeds a certain return threshold. These fees typically range from 10% to 20% of the investment performance above the threshold.
One unique aspect of EquityMultiple’s fee structure is that the platform typically invests alongside its investors, aligning their interests with those of the investors. This helps ensure that the platform is incentivized to make smart investment decisions that maximize returns for everyone involved.
Support and Resources
EquityMultiple provides excellent support and resources for its investors. It has a dedicated team of customer support agents who can answer any questions or issues investors may have.
Additionally, the platform provides a range of educational resources for investors, including articles, videos and webinars. These resources cover a variety of topics, such as real estate investing strategies, property types and market trends.
EquityMultiple also provides a variety of tools and calculators that can help investors make informed decisions about their investments. These tools include a return calculator, a cash flow analyzer and a diversification analyzer.
Are There Any Cons?
For the sake of transparency, it should be noted that EquityMultiple does come with a few disadvantages. But emphasis should be placed on a few.
First, the higher cost for pooled investments can be quite the turnoff. Additionally, EquityMultiple currently only accepts accredited investors.
The Bottom Line
EquityMultiple is an excellent platform for investors looking to invest in high-quality commercial real estate opportunities.
The platform offers a range of investment types, with a focus on institutional-quality assets that provide strong potential returns. The user experience is top-notch, with a modern, easy-to-use platform and a wealth of helpful resources and tools.
While the fees can be on the high side, the platform’s commitment to investing alongside its investors helps ensure that everyone’s interests are aligned for success.
If you are accredited–and can get past the high fees–click here to get started with EquityMultiple.
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