EquityMultiple Review: A Deep Dive into Commercial Real Estate Investing

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EquityMultiple is a modern real estate investing platform for investing in commercial real estate and other high-yield, income-generating assets. EquityMultiple is only available for accredited investors with a $5,000 minimum investment. 

Business Insider’s personal finance team compared EquityMultiple to the best real estate investing apps. We found it to be an industry leader for accredited investors.

EquityMultiple

Insider’s Rating

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3.7/5

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Perks

EquityMultiple offers managed assets — including equity, preferred equity, institutional commercial real estate, and senior debt


Account Minimum

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


Fees

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

Pros

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    Low fees

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    Option to invest in institutional commercial real estate, equity, preferred equity, and senior debt

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    Multiple property types

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    Self-directed IRAs available

Cons

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    Only accepts accredited investors

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    Doesn’t offer publicly traded REITs


Product Details

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

Introduction to EquityMultiple

EquityMultiple‘s commercial real estate investment strategy generates passive income over the long and short term, helping you reach your goals. Although it doesn’t offer REITs, accredited investors can invest in senior debt, equity, preferred equity, and commercial real estate-backed assets.

Investors can build wealth through self-directed IRAs, entities, trusts, or joint brokerage accounts. EquityMultiple sources experienced real estate firms through its proprietary algorithms and underwriting methodologies to help you diversify your portfolio through various brokerage accounts, including self-directed IRAs and trusts. 

The platform offers short-term and long-term investment options, but real estate investments are typically more profitable over a longer period.

Most of EquityMultiple’s investments require investors to hold on to their assets for at least a few years (typically three to five). That said, EquityMultiple also offers short-term, high-yield opportunities through Alpine Note. This offers increased liquidity and a high APY. The longer you invest in Alpine (three, six, or nine months), the higher the APY. 

EquityMultiple: Overall Rating

How EquityMultiple Works

Once you open an EquityMultiple account, you can choose from three investing strategies:

  • Grow: Growth-focused portfolio with the highest minimum requirement. Minimums start as low as $10,000. It best suits those in search of diversification across several asset types. EquityMultiple targets growth-focused, diversified private funds and opportunistic equity asserts with an investment term of around three years.
  • Earn: This strategy caters to investors who prefer to focus on short-term passive income from private real estate investments. EquityMultiple’s target duration for this strategy is around a year to 36 months, and it leans toward senior debt, preferred equity, and yield-focused funds with a target return between 8% and 12%. 
  • Keep (aka Alpine Note): This high-yield strategy offers a unique, short-term investment option with increased liquidity. EquityMultiple primarily uses diversified, short-term notes with terms of three, six, and nine months. It has the lowest minimum requirement, as you can start with as little as $5,000

EquityMultiple primarily offers commercial real estate-backed assets on primary and secondary markets, focusing on cash flow, stability, and adding value to your portfolio. Generally, investors receive their distributions within 45 to 60 days after investing. 

Compared to other real-estate investing apps that offer publically traded REITs, EquityMultiple lacks liquidity since its investment options include non-traded REITs and other real estate funds that aim to provide investors with immediate portfolio diversification and redemption flexibility. 

EquityMultiple states on its website that you can invest in EquityMultiple from several self-directed IRAs. Unfortunately, you can’t see which IRAs EquityMultiple supports until you open an account.

The Ascent Income Fund

EquityMultiple’s Ascent Income Fund is a yield-focused fund for income-focused investors. It primarily invests in first-mortgage loans that target a max LTV of 75% on a whole-loan basis. The fund’s target return falls between 11% and 13% with a historic distribution yield of 12.1% and recurring quarterly distributions.

Risk is mitigated in the Ascent Income Fund with senior mortgage positions. Investments are also through a non-traded REIT, so investors have the potential to avoid income tax. 

If you’re a first-time EquityMultiple investor, you can invest in Ascent Income Fund starting at $5,000. Otherwise, the minimum for Ascent is $20,000. 

EquityMultiple Fees

EquityMultiple requires at least $5,000 to get started, but you may need up to $30,000 depending on which investment strategy you choose. EquityMultiple’s fees vary but are often around 1% annually (or a flat annual service fee of $250). 

Pros and Cons of EquityMultiple

EquityMultiple Trustworthiness

EquityMultiple currently has an F rating with the Better Business Bureau. BBB ratings usually range from A+ to F. The reason for the rating is the business failed to respond to multiple complaints against filed against it. 

BBB ratings reflect the bureau’s opinion of how well a company interacts with its customers and consider factors like type of business, time in business, customer complaint history, licensing and government actions, and advertising issues.

EquityMultiple’s record is clear of any major lawsuits or scandals. 

EquityMultiple vs. Other Real Estate Investing Apps

EquityMultiple vs. RealtyMogul

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

They also differ in investment types and fees. Both EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the better choice for accredited investors in search of institutional-level real estate, equity, and senior debt investments. RealtyMogul offers assets such as publically traded REITs and individual properties. 

The best platform for you depends on your accreditation status and the kind of assets you’re looking to invest in. 

RealtyMogul review

EquityMultiple vs. CrowdStreet

EquityMultiple and CrowdStreet both only offer real estate investing for accredited investors. However, the platforms vary regarding account minimums, fees, and investment choices.

You’ll likely pay more to get started with CrowdStreet since its base minimum requirement is $25,000, and it can go up to $100,000 for some products. CrowdStreet doesn’t charge investors fees to buy stake in its deals and funds — but sponsors typically pay between 1% to 5%, and tailored portfolios cost investors 2.5%.

EquityMultiple, on the other hand, best suits accredited investors who want to get started with lower minimum requirements and invest in institutional, commercial real estate, equity, and more. Its base minimum requirement is $5,000, but minimums can also range from $10,000 to $30,000, depending on the offering.

CrowdStreet review

EquityMultiple FAQs

EquityMultiple is a legit real-estate investing platform for accredited investors to invest in professionally managed commercial real estate-backed assets like debt and preferred equity. It offers competitively low rates with a history of high returns. However, only accredited investors can use this platform. 

EquityMultiple is transparent about its fee structure. The fees you’ll be charged depend on the investments you purchase. Some potential fees include front-end, asset management, and performance fees. Make sure you understand EquityMultiple’s fee structure before investing. 

Only accredited investors can invest in EquityMultiple. You should consider a different real estate investing platform if you’re not an accredited investor. Accredited investors are those with a net worth exceeding $1 million.

Methodology: How We Reviewed EquityMultiple

We examined EquityMultiple real-estate investing app using Business Insider’s rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience. Platforms are given a rating between 0 and 5. 

Real estate investing platforms offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced or active investors, while others may better suit beginner and passive investors. EquityMultiple was evaluated with a focus on how it performed in each category.