Is Equity Multiple Real Estate Legit?


Jeremy BiberdorfBy: Jeremy Biberdorf

October 19, 2022October 19, 2022

Equity Multiple is a real estate crowdfunding platform that allows real estate investors to benefit from passive rental income without all the hassles of individual property ownership.

Equity Multiple gives you the ability to invest in commercial real estate (CRE) around the U.S. for a minimum investment of $5,000 per project.

But, with so many investing platforms out there how do we know if Equity Multiple is legit?

Well, let’s take a closer look into what Equity Multiple is and if you can trust them.

Is Equity Multiple Real Estate Legit?

Yes, Equity Mulitple is the only online investing platform backed by an established real estate company Mission Capital.

Equity Mulitple is a legitimate real estate investing platform that has been involved in billions of dollars of real estate transactions and has a respectable track record.

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Equity Mulitple allows you to invest in professionally managed, high-yield properties with as little as $5K.

Here are a few highlights from their past year of real estate deals:

  • Distribution growth: Equity Multiple returned over $79M to investors in 2021. That’s more than double their volume in 2020.
  • Positive exits: Generated a weighted average of 18.7% net IRR to investors via exited investments in 2021.
  • Origination volume: Equity Multiple closed nearly $116M in new investments in 2021 and is continually in growing in 2022.
  • Growth in new investor matriculation: Brought in more investors to their real estate platform than in any prior year.

It’s received high praise from individual investors who have participated in a total value of $4.3 billion of real estate projects with a current total historical return rate of 15.64%.

Just in case you’re still not convinced Equity Mulitple is legit, Growth Capital Services handles the investments on the platform. They are a registered broker-dealer, member of FINRA and SIPC, and BBB-accredited business.

You can read a full review of Equity Mulitple review here.

The Three Investment Approaches Offered By Equity Multiple

With decades of real estate experience and in-house Underwriting, Asset Management, and Investor Relations, Equity Multiple provides three investing approaches.

Fund Investing

Multiple assets and Built-in diversification. This is best for investors looking for immediate diversification.

  • Strategies: Debt, Equity, Opportunity Funds, CRE Securities
  • Target Duration: 1.5 to 10+ years
  • Minimum investment: $20,000

Direct Investing

Targeted investments into distinct project types. This is best for investors building their real estate portfolio one property at a time with individual deals.

  • Strategies: Debt, Preferred Equity, Common Equity
  • Target Duration: 6 months to 5+ years
  • Minimum investment: $10,000

Savings Alternative

Short-term, diversified Notes with zero fees. This is best for investors looking for a short-term alternative to their savings.

  • Strategies: Diversified notes
  • Target Duration: 3 to 9 months
  • Minimum investment: $5,000

What Are The Expected Returns With Equity Multiple?

Returns will vary depending on the investment type, the risk profile of the transaction, and the terms of the offering.

The return targets are as follows:

  • Debt Investors: 7-12% annual rate of return
  • Preferred Equity: 6-12% current preferred return, 10-18% total preferred return
  • Common Equity: IRRs (internal rate of return) of 10% – 24%+
  • Funds: Depends on the fund strategy (core, core-plus, value-add, optimistic, distressed). They typically seek to find fund investments that offer predictable, near-term cash flow.

Equity Multiple states that its total historical performance is a 15.64% average return. However, this is not based on an annual return, but a total return since the investment platform’s inception dating back to 2015.

Equity Multiple Fee Structure

Equity Multiple makes money by charging fees on your investments. The fees vary depending on the types of investments you invest in and typically range from 0.5% to 1.5%. They also charge a small administrative fee each year.

How Equity Multiple Works

The Equity Multiple platform offers a variety of investment opportunities from experienced lenders and sponsors across the country.

When it comes to debt investment deals, management works only with experienced lenders (rather than acting as a lender itself). In equity deals, Equity Multiple receives a 10% share of project profits, which is paid only after investors have received their initial investment back.

Currently, Equity Multiple targets deals around $500,000, but has done deals as large as $6 million. By focusing on fixed-rate offerings with returns in the 8%–14% range and employing a dedicated underwriting team, the platform accepts only a small percentage of deals.

Final Thoughts

Equity Multiple is legit and very beginner friendly! The platform simplifies commercial real estate investment, creates a diversified portfolio, and leverages real estate crowdfunding.

They are very return focused so if you’re looking for liquidity then perhaps consider another option.

By investing as little as $35,000 with Equity Multiple, you can diversify your investment across three separate real estate opportunities. With an easy to use platform and great return projections, Equity Mulitple provides a great investing experience for potential real estate investors.

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. He has been blogging at ModestMoney since 2012. Also check out his contributions to Equities.com and Benzinga.

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