EquityMultiple is a real estate crowdfunding platform that allows accredited investors access to professionally-managed commercial real estate through three capital structures.
(Click here to learn more at EquityMultiple)
See our best bank bonuses updated daily to earn up to $1,000 in free money. Find popular checking offers such as Chase Bank, HSBC Bank, TD Bank, Huntington Bank, BBVA, Discover Bank, and CIT Bank. See our best rates for Savings and CD too. |
|
Chase Business Complete BankingSM $300 Bonus | HSBC Premier Checking Up To $600 |
HSBC Premier Checking $450 Bonus | TD Bank Convenience Checking $150 Bonus |
TD Bank Beyond Checking $300 Bonus | Huntington Business Checking 100 $200 Bonus |
Huntington 25 Checking $300 Bonus | Huntington Unlimited Plus Business Checking $750 Bonus |
Huntington Unlimited Business Checking $400 Bonus | Aspiration Spend & Save Account $100 Bonus |
Ally Invest Up To $3,000 Bonus | Discover Bank $360 Cashback Debit |
Axos Basic Business Checking $100 Bonus | BlockFi Up To $250 BTC Bonus |
WeBull 2 Free Stocks | BBVA Free Checking & Savings $250 Bonus |
Table of Contents
EquityMultiple
EquityMultiple is an online real estate crowdfunding company that allows members to invest in professionally-managed commercial real estate with equity, preferred equity, and syndicated debt investments.
It also allows you to lend money to “sponsors” – other investors looking to borrow money – to purchase real estate. Once enough investors support a deal, the sponsor will receive their loan and purchase the property. As the sponsor makes payments on their loan, the investors will receive their return.
For extra measure, EquityMultiple goes through extensive research before the offer goes online. They perform background checks and due diligence on the sponsor’s previous projects, do a neighborhood evaluation of the investment property, and take the deal to their partner, Growth Capital Services, to help decide the level of risk involved in the project.
(Click here to learn more at EquityMultiple)
Investor Eligibility
EquityMultiple is only open to accredited investors. This can be defined as:
- An individual with a net worth (or joint net worth with a spouse) of more than $1 million, excluding primary residence value, or
- An individual with an annual income of over $200,000 (or $300,000 with a spouse) in each of the past two years, with the expectation of maintaining that income in the future.
Investment Minimum
The investment minimum varies by project, but it is typically $10,000. There have been some that were as low as $5,000. For investments made through a self-directed IRA, the minimum is $20,000.
Investment Returns
The targeted rate of return will depend on the type of investment:
- 6% to 12% for equity investments
- 7% to 12% for preferred equity investments
- 7% to 12% for syndicated debt investments
Actual returns will vary and there is no guarantee that you will earn any return.
Distributions are typically paid monthly or quarterly, but this will depend on each investment.
Investment Time Frames
Depending on the type of investment, the target hold period will vary:
- 2 to 5 years for equity investments
- 1 to 3 years for preferred equity investments
- 9 to 24 months for syndicated debt investments
Remember, these assets are not liquid, meaning they cannot be converted into cash easily. If you think you might need the money before the time frame is up, consider other investment options.
EquityMultiple Fees
Getting set up with EquityMultiple and initiating an investment is free, but fees will start incurring over the course of the deal. This all depends on the success of the investment. Here is how it might go:
- Once an equity investment has been made, EquityMultiple charges a small annual fee (typically 0.5% of the aggregate amount invested) which is paid periodically to cover ongoing investor reporting, tax preparation and communications relating to the investment.
- EquityMultiple also receives 10% of investor profits, after investors have received all of their initial investment back.
- For preferred equity and debt investments, EquityMultiple typically charges a service fee in the form of a “spread” between the interest rate being paid by the loan sponsor and that being paid to investors (typically 1% of the invested capital).
Bottom Line
EquityMultiple is a great platform for commercial real estate crowdfunding. They are well-financed and are backed by Mission Capital. They ensure their projects are good options, and the fees are fairly reasonable.
Find the best investment promotions here.
(Click here to learn more at EquityMultiple)
PROMOTIONAL LINK | OFFER | REVIEW |
Chase Business Complete BankingSM | $300 Cash | Review |
HSBC Premier Checking Member FDIC | $450 Cash | Review |
HSBC Premier Checking Member FDIC | Up To $600 | Review |
BBVA Free Checking & Savings | $250 Cash | Review |
Huntington 25 Checking | $300 Cash | Review |
TD Bank Beyond Checking | $300 Cash | Review |
TD Bank Convenience CheckingSM | $150 Cash | Review |
Huntington Bank Unlimited Plus Business Checking | $750 Cash | Review |
Huntington Bank Unlimited Business Checking | $400 Cash | Review |
Huntington Bank Business Checking 100 | $200 Cash | Review |
Axos Bank Basic Business Checking | $100 Cash | Review |
Aspiration Spend & Save Account | $100 Cash | Review |
Ally Invest | Up to $3,000 Cash | Review |
BlockFi | Up To $250 BTC | Review |
American Express High Yield Savings | 0.40% APY | Review |
Discover Cashback Debit Account | $360 Cash | Review |
Leave a Reply