EquityMultiple Review 2020

EquityMultiple has been created by expert real estate afficionados to give excellent estate investing opportunities to accredited investors.

EquityMultiple review
Overall
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Introduction

This cloud based application platform gives its users the opportunity to take part in real estate transactions through crowdfunding. It brings security and allows users to invest in property crowdfunding without the stress or hassles of working independantly. You will never need to fix a leaky tap! The EquityMultiple technology is advanced and focuses on data storage, workflow, integration, scaling, and security. The product employs ultimate protection, so its users can rest assured. External threats are also protected against with some of the most cutting edge technology. As it is all based in the cloud it gives the ability to deploy security updates without any service interruption to the user.

This is a great option for those users that maybe have some background experience in nvesting.  The level of customer support is great but if you are an absolute newbie then perhaps better going elsewhere.

The team who work for EquityMultiple are in principle property investors and experts. It is this expertise and knowledge that helps create this excellent product. The question that now comes to mind is, is EquityMultiple the right product for you? This article will help you decie exactly that.

Overall Rating

Commissions & Fees
4.5
Ease of Use
4
Customer Service
4.5
Diversification
4
Investment performance
4
Products
4

Pros

  • The platform is intuitive and gives a smooth exeprience

    While the team behind this company are real estate veterns, they have teamed up with some amazing developers to offer a smooth and intuitive experience through the platform.

  • The opportunities have all been carefully vetted

    The company take very few of the opportunities on board that they have under consideration. These are products they wouldhappily invest in themselves as experts.

Cons

  • Customer support is not available 24/7

    It is unlikely that you will need customer support in the first place but if you do they work during office hours and are available by phone, email and live chat.

  • Perhaps tricky to absolute newbies

    First of all you do need to be an accredited investor to use this particular product and this might be more suited to those with experience in real estate investing.

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Where EquityMultiple Stands Above Competition

This product stands head and shoulders above the competition for the mere fact that the opportunities you will find here are pre-vetted by the investment experts at EquityMultiple. A lot of the competition as you will discover is based purely on solid technology, whereas this product is based on investing opportunities and that’s a real win for the people that us this website.

Where EquityMultiple Falls Short

It’s hard to find negative things to say about this product. The team are professional, the product has undergone extreme vetting and the fees are very competitive. The only downside perhaps is the fact that you must be an accredited investor to get started with EquityMultiple.

Fees & Features

Fees are 0.5%-1.5% each year and there is 10% profit performance fee upon expiry.

In order to invest you will need a minimum capital of $10,000. However EquityMultiple registration is entirely free. There is no cost to investors for initiating an investment. Fees are charged throughout the deal and are primarily dependent on the success of the venture. Prices are structured this way to align interests with investors better – EquityMultiple is incentivized not only to pick excellent investment opportunities but also to monitor them for the life of the project.

Fees vary depending on the structure of the underlying investment. Once an equity investment has been made, EquityMultiple can charge around 0.5% of the total invested amount. This covers costs associated with the investments. They also receive about 10% of the total investor profits after the investor will receive all of their initial investment back. For equity & debt investments, EquityMultiple takes a fee for service as a spread which is between the interest rate paid by the sponsor, originating lender, and that is paid to investors.

 
Minimum Investment
Account Fees
Accredited Investor
Return potential
Private REIT
Property Types
Self-Directed IRA
 
EquityMultiple
$10,000
1%
7-15%
Hotels, Industrial Buildings, Office Units, Data Centers, Townhouses
RealtyMogul
$1,000
0.3%-0.5% annually
N/A
N/A
PeerStreet
$1,000
0.25%-1%
6%-9%
Residential, Corporate
Rich Uncles
$5
No broker/dealer fees. 3% funds fee
6%-7%
Student housing, offices, retail and industrial
Fundrise
$500
0.85% annual asset management fee
8.7% to 12.4%
Commercial and residential
LendingHome
$5,000
1.15%-2.6% on monthly interest
5%-10%
Residential and Commercial

How Does EquityMultiple Work?

Quite simply start by browsing the available opportunities and look into the developers track records and stats of returns. Choose which opportunities to invest in and as you make returns get paid directly by ACH. The fact that these selections have passed multiple layers of due dilligence by the company means they are selected for their hopeful return rates. EquityMultiple are experts in the field and you can trust that the opportunities they bring are really strong ones, although of course nothing is guaranteed in life.

Investing with EquityMultiple:

EquityMultiple focuses on identifying the right real estate partners, strategies, and properties. There are a number of steps you will need to go through and once you have you can start getting your payouts by ACH. So here are the steps you will work through after filling out the form to register:

  1. They identify both sponsors and lenders with good, solid histories of achievements.
  2. They hone in on some of the best opportunities from their own expansive knowledge and experience.
  3. They conduct due diligence on the Specific Project, and choose less than 10% of Submissions
  4. You start investing and work on diversifying your portfolio

Portfolio Details

EquityMultiple diversifies the portfolio of real estate investments across a variety of different markets and project types. Of course diversity is the key to a solid portfolio and this is very much the case with the projects on offer through this website.

EquityMultiple real estate portfolio plan addresses:

  • data back up and recovery;
  • mission-critical systems
  • financial and operational assessments;
  • alternative communications with customers, employees, and regulators;
  • the alternate physical location of employees;
  • contractor, bank,  critical supplier and counter-party impact; and regulatory reporting

Products

Please note that you will need to be an accredited investor in order to use the offering of EquityMultiple. The product was created by real estate market experts rather than technology buffs. That means this site is excellent for really carefully handpicked opportunities. The product is easy to use.

The products main focus is on institutional commercial real estate, which is why we suggest that perhaps it is not so suited for beginners. It really a good selection of investing options from really experienced lenders and sponsors. In terms of debt deals, the company works with experienced third party lenders, it does not provide debt itself.

The average minimum deal amount is around $500,000, although some much larger deals have been conducted in the millions. The product gives fixed-rate options that deliver returns around 8-14% and they usually accept just 5% of all the deals they are considering.

Deposits & Withdrawals

You can deposit through your bank and make wire transfers directly. All returns are paid by ACH.

Customer Support

EquityMultiple offers traders with a wide range of contact in case of technical problems and general inquiries. There is always a live chat button available for traders.

The email address is available through the company's contact page; emails are always replied within 24 hours according to the company's website. The problem associated with this website is that customer support is only available from 9 am - 6 pm. Usually, traders have to wait for the next working day before getting a reply.

The phone numbers of the offices are also available on their website. The Company's FAQ page is a great way to assess routine questions.

The live chat is always available from Monday to Friday with well equipped, seasoned company representatives who are friendly and open to take care of traders' concerns and technical issues.

Security & Reliability

In addition to penetration detection and vulnerability protection, firewalls are put in place to restrict access to systems from external networks and between systems internally. EQUITYMULTIPLE’s physical infrastructure is managed as a Heroku application within Amazon’s secure data centers and it uses the Amazon Web Service (AWS) technology. Amazon is constantly managing risk and receiving regular assessments to check compliance with industry leading standards.

Commitment to Trust:

Trust is an essential core feature of EquityMultiple. It's this commitment to user privacy and inspiring trust that directs the decisions they make.

The Platform:

EquityMultiple is specially designed for stability as the founders have enabled to leading security methods including DDOS protection. The platform is highly usable and intuitive.

Privacy:

EquityMultiple is committed to user privacy and transparency as you would expect with such a delicate amount of data and of course money flowing through the company.Conscious steps are taken to protect users data and privacy which is stored within the platform.

What EquityMultiple Is Best For

  • Passive investors who would like to use the system for crowdfunding. You make a deposit and then the product works on your behalf.
  • Investors looking for diversification. The products available through EquityMultiple are highly diversifed by different markets, estate classes and types.
  • Accredited investors who have been working in the real estate market for a while.
  • More advanced investors who will need at least $10,000 to start investing. Some deal go up to $6million.

Suggested For You

RealtyMogul
PeerStreet
Rich Uncles
Fundrise
LendingHome

About the author

Kate Leaman

Kate Leaman

Kate Leaman is the Chief Analyst and author at InvestorGreg. She won the Sky News Fiona McDiarmad award and subsequently became a journalist for Sky News. Read more