CrowdStreet vs Equity Multiple 2023
If you’re looking to get into real estate investing, benefit from a high rate of return, and find the best real estate investments, then it’s important to pick the right real estate investing platform.
Different real estate companies have different real estate deals, so your potential annual returns can vary quite drastically. Additionally, the management fees, cash distributions, and required initial investments also vary.
Today, we’ll be comparing CrowdStreet vs Equity Multiple to see what each platform brings to the table. Is there a specific advantage to one platform? Could you be missing out on investment opportunities by choosing one over the other? Keep reading to find out!
|CrowdStreet is Better for:||Equity Multiple is Better for:|
|Long-term investing||Short-term investing|
|Individual properties||Multiple types of investment offerings|
|High-wealth individuals||Low minimum investment|
On the surface, each real estate investing platform seems nearly identical to one another. However, just like with the stock market, even two seemingly-similar assets can yield significantly different results over time. Here’s a quick overview of the main takeaways of each platform.
|Accreditation Required||Accredited investors||Accredited investors|
|Best Use||Taking advantage of exclusive real estate deals||Enjoying the various investment types offered (pooled, individual, notes)|
|Modest Money Overall Rating|
Factor 1: Investor Requirements
We’ll begin our comparison by seeing what requirements real estate investors will need to meet if they want to take advantage of the available real estate deals.
Both real estate investment platforms double as a real estate crowdfunding platform, and both require investors to be accredited. However, the minimum investment requirements vary significantly, which may be the first major difference between the platforms.
Equity Multiple Has a Lower minimum investment Requirement
- Equity Multiple’s minimum investment varies by investment type
- CrowdStreet has a standard minimum investment
- Equity Multiple & CrowdStreet only accept accredited investors
In addition to being accredited, individual investors will want to have high risk tolerances if they decide to join CrowdStreet. Although passive income via dividends is likely, cash distributions are never guaranteed.
Exact minimums vary between the individual deals, but generally, you’ll need to be prepared to invest your money in a deal for at least three years. The absolute minimum investment is $25k, but you’ll also be responsible for applicable management fees.
We recommend consulting with your financial advisor before making this type of long-term commitment.
Equity Multiple has various real estate projects and real estate investments available, so the minimum investment requirement varies between each one. Depending on which type of investment you choose, the investment minimum could be as low as $5k or as high as $20k.
Your annual income from the investments should be enough to offset the asset management fees, but these are still something to consider as well.
Factor 2: Investment Opportunities
Now that we’ve gone over the requirements for these real estate platforms, let’s take a look at the specific real estate opportunities they offer. Diversification—both in assets and in the types of real estate investments you have—is essential to building a profitable real estate portfolio.
Equity Multiple Offers A Wider Variety of Investments
- Equity Multiple offers notes, direct investments, and pools
- CrowdStreet offers primarily individual deals
- Equity Multiple investment minimum requirements vary
This platform hosts all of its individual deals in its online marketplace. Using the marketplace, you’ll be able to browse through their current deals throughout the real estate market. Property types include (but are not limited to): multifamily properties, retail properties, land, industrial properties, and office buildings.
CrowdStreet also offers the C-REIT, which uses the same commercial properties offered in the marketplace to create diversified funds for your investment portfolio.
Equity Multiple offers three different investment opportunities. Each one is structured as either a preferred equity, a debt, or a common equity. These opportunities are notes, direct investments, and pool investing.
Notes are short-term investments that run from 3-9 months. Direct investments run slightly longer, from as little as six months to as long as five years. Pool (Fund) investments are the longest option, lasting up to 10 years.
Factor 3: Liquidity
Neither one of these platforms offers genuine liquidity. Most real estate professionals will be prepared to hold onto their investments for the long term, but less-experienced investors may want to consult with investment advisors to ensure their risk tolerance is sufficient for the investment.
- Equity Multiple’s notes last 3-9 months
- CrowdStreet investments last 3 years or more
- Equity Multiple’s direct investments run 0.5-5 years
This platform offers zero liquidity, making it essential for investors to consult with their investment advisors before tying up their funds for years. As with any other type of investment, the potential returns are never guaranteed, making it all the more important to have diversified funds in your portfolio.
Learn More About CrowdStreet
Like CrowdStreet, Equity Multiple’s real estate investing options aren’t liquid. However, with notes, investors will benefit from a consistent—albeit small—cash flow. As these notes last no more than nine months, they are arguably more “liquid” than an investment through CrowdStreet.
Learn More Equity Multiple
CrowdStreet vs Equity Multiple: Final Thoughts
Offering similar rates of return and similar services, which platform you opt to invest in ultimately comes down to your preferred time frame. If you’re planning on investing for the long term, CrowdStreet is an excellent option. Alternatively, Equity Multiple is great if you want to mix short and long-term investments, as well as experiment with different forms of real estate investing.