EquityMultiple is an online real estate investment platform best suited for accredited investors who want to enhance their portfolio diversification with private market commercial real estate while generating passive income.
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.
Pros and Cons
EquityMultiple Pros
- Pre-vetted commercial real estate investments
- Comprehensive Learning Center for educational materials
- Short-term investment terms provide greater liquidity
EquityMultiple Cons
- Only available to accredited investors
- Doesn't offer publicly traded REITs
- Fee structures vary by investment
Open an Account
$5,000 (minimums can also range between $10,000 and $20,000)
Varies; typically 0.5% (EquityMultiple also charges annual administrative expense fee of $30-$70)
- Low fees
- Option to invest in institutional commercial real estate, equity, preferred equity, and senior debt
- Multiple property types
- Self-directed IRAs available
- Only accepts accredited investors
- Doesn't offer publicly traded REITs
EquityMultiple is one of the best real estate investing apps for accredited investors. It offers commercial real estate assets, senior debt, equity, and preferred equity.
- Consider it if: You're an accredited investor looking to invest at least $5,000 into commercial real estate.
Compare EquityMultiple
Overview
EquityMultiple simplifies the real estate investing process by pre-vetting private-market commercial real estate (CRE) properties for accredited investors who want cash flow, stability, or growth. The investment minimum is $5,000, but certain investments have minimums up to $20,000.
With EquityMultiple, you can diversify your portfolio beyond traditional stocks and bonds and invest directly in real estate transactions or funds. The platform provides dedicated support and asset management throughout the lifetime of your investments. Through its proprietary algorithms and underwriting methodologies, it sources experienced real estate firms.
Most of EquityMultiple's investments require investors to hold on to their assets for at least a few years (typically three to five), but short-term, high-yield opportunities are also available through the Alpine Note Series. Real estate investments are typically long-term, so EquityMultiple stands out for its short-term investment opportunities (three, six, and nine-month terms).
If you're new to real estate investing or want an easy way to keep up with current market trends and news, EquityMultiple has multiple educational resources on its site. EquityMultiple's Learning Center features detailed articles, market commentary, whitepapers, case studies, and an educational podcast called Multiple Perspectives.
Non-accredited investors can't use EquityMultiple and should consider a different real estate investment platform instead, like RealtyMogul or Fundrise.
EquityMultiple's customer support is available via phone, email, and online chat from 9 a.m. to 6 p.m. ET. Investors can also schedule a brief 15-minute call with the Investor Relations Team.
Ways to Invest
In addition to standard brokerage accounts, you can invest in EquityMultiple from several self-directed IRAs. However, you can't see which of the best IRA accounts EquityMultiple supports until you open an account.
Once you open an EquityMultiple account, you can choose from three investing pillars:
Grow
Starting at $10,000, EquityMultiple's growth-focused CRE investments are high-risk, high-return investment opportunities typically with a target hold of five years. Grow real estate properties primarily focuses on growth and upside-focused opportunities by investing in:
- Value-add real estate: A real estate investment strategy that aims to generate cash flow and appreciation by significantly improving an existing property.
- Opportunistic equity: This speculative strategy aims to identify and capitalize on emerging opportunities as market dynamics shift.
Earn
EquityMultiple's Earn investment strategy caters to investors who prefer to focus on short-term passive income from private real estate investments. The 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%.
Investments under the Earn pillar are less risky than those under Grow, as Earn real estate investments focus on shorter terms and fixed cash flow.
Keep (aka Alpine Note Series)
EquityMultiple's Alpine Note Series allows you to invest in short-term notes that accumulate interest and compound monthly, offering greater flexibility with high rates of return. Alpine Notes are also backed by first-loss protection, meaning EquityMultiple will cover a small portion of the first loss position.
Term lengths are three, six, and nine months, but you can redeem as early as 30 days after investing. You only need $5,000 to invest in EquityMultiple's Alpine Note Series.
The Ascent Income Fund
The Ascent Income Fund is the only investment not featured under one of EquityMultiple's investment pillars.
The 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. Target returns range from 11% to 13%, and distributions are paid quarterly. You can also choose to have your distributions automatically reinvested in the Fund.
You can start redeeming as quickly as one year after investing. If you're a first-time EquityMultiple investor, you can invest in the Ascent Income Fund starting at $5,000. Otherwise, the minimum for Ascent is $20,000.
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.
Fees
EquityMultiple requires at least $5,000 to get started, but some investments have minimums of $20,000 or more.
Common equity investments charge an annual monitoring and reporting fee generally between 0.5% to 1.5% of invested capital.
Debt and preferred equity investments charge a servicing fee of around 1%.
Short-term notes are fee-free.
Investors are charged an annual administrative expense of $30 to $70, which covers tax documents, annual filings, and entity formation.
Fees for funds vary by usually feature an upfront origination fee.
Trustworthiness and Security
EquityMultiple protects users' accounts and personal information with bank-grade security and encryption technology. The platform also performs independent annual risk assessments alongside third-party assessments. Additional security measures include a firewall protection, vulnerability scans, and website monitoring.
EquityMultiple has an F rating with the Better Business Bureau. BBB ratings usually range from A+ to F, with F being the lowest possible rating. The reason for the rating is that EquityMultiple failed to respond to multiple complaints filed against it.
Alternatives
Here are alternative real estate platforms to EquityMultiple.
RealtyMogul
$5,000
Varies by investment
- Offers real estate investment trusts (REITs), single properties, or 1031 private placement investments
- You can use a self-directed IRA (SDIRA) to invest in commercial real estate
- RealtyMogul performs due diligence on each investment properties
- Fairly high account minimum
- Non-accredited investors can't access individual properties
- Highly illiquid investments
RealtyMogul is one of the best real estate investing apps for buying and selling commercial real estate. It's ideal for investors interested in earning regular returns from public, non-traded REITs.
RealtyMogul- Consider it if: You want access to a larger range of real estate investment options.
- App store rating: 4.38 out of 5
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.
EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the better choice for accredited investors seeking institutional-level real estate, equity, and senior debt investments.
RealtyMogul offers assets such as publicly traded REITs and individual properties, making it a better fit for less experienced and non-accredited real estate investors.
CrowdStreet
$25,000
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
- Offers a wide range of commercial real estate options for accredited investors.
- Charges investors no fees (sponsors may charge fees)
- Doesn't charge investors fees
- Risk-assessed investment options
- Not available to non-accredited investors (those who have a net worth lower than $1 million)
- Account minimums are on the higher side
- Not for those in search of shorter investment terms and more liquid investments
- Only available to accredited investors
CrowdStreet is one of the best real estate investing apps for accredited investors who want access to commercial real estate-backed equity and debt investment opportunties.
CrowdStreet- Consider it if: You're an accredited investor with at least $25,000 to set aside for multiple years.
- Awards: Listed on Forbes' Best Startup Employers list for 2021
EquityMultiple and CrowdStreet offer similar investment opportunities, strategies, and term lengths. Both real estate investment platforms are exclusive to accredited investors. However, the platforms vary regarding account minimums, fees, and investment choices.
Fee-conscious investors can appreciate CrowdStreet's fee-free investment products. The C-REIT does have a 1.5% AUM fee.
You pay more to get started with CrowdStreet since its base minimum requirement is $25,000, but it doesn't charge investors fees on most of its offerings, making it a stand-out option for fee-conscious investors. Also, if trustworthiness is a priority, CrowdStreet is best since it has the highest possible rating from the Better Business Bureau, while EquityMultiple has the lowest possible rating.
EquityMultiple best suits accredited investors who want to get started with lower minimum requirements or want greater liquidity and flexibility from the platform's Ascent Income Fund.
Why You Should Trust Us
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 1 and 5.
Business Insider's Overall EquityMultiple Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 4.00 |
| Access | 4.00 |
| Liquidity | 4.00 |
| Ethics | 2.00 |
| Customer service | 3.50 |
| Overall score | 3.62 |
FAQs
Is EquityMultiple legit?
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. However, only accredited investors can use this platform.
What are the fees on EquityMultiple?
EquityMultiple fees generally range from 0.5% to 1.5%, with funds charging an initial origination fee. Short-term notes are free. EquityMultiple also charges an annual $30 to $70 administrative fee on all offerings.
Can I invest in EquityMultiple if I'm not an accredited investor?
Only accredited investors can invest in EquityMultiple. If you're not an accredited investor, you should consider a different real estate investing platform. Accredited investors are those with a net worth exceeding $1 million.
