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EquityMultiple Review (2022): Best Advice For Real Estate Investments?

By: Hope
By: Hope
EquityMultiple Review

Disclaimer:

This EquityMultiple review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

What I Liked

What I Didn't Like

Before we get into it... who am i?

Always good to put a name to a face, so firstly, my name is Hope!

Like you, I was stuck working 8-10 hour days building someone else’s dream.

I worked at one of those cool tech companies that has omelet stations for breakfast & craft beer on tap for after hours.

To a lot of people that’s a dream, but to me… something was missing.

All I really wanted, was to actually enjoy life – more vacations, less stress, buy myself nice things without worrying about the cost… but that was something my 9-5 couldn’t provide me.

That was until a few years ago when I discovered a way to make money online by actually helping real people. 

People in this case were local business owners across the US.

Me and My Puppy

The page above is an example of how I do it. That one-page site generates $1,500/mo and I haven’t even touched it since it was put up.

That’s an $18,000/year raise from just one page.

That’s why local lead generation is my #1 business recommendation for recurring, semi-passive income. If you want to learn about that business model, click here.

Important: I am not an affiliate

for EquityMultiple

Why Does That Matter?

A lot of course reviewers have no experience with any of the business models or programs they review, and so they’re just making stuff up.

They do that because they want you to click through their link to buy from the person that the review is about!

They have no clue what it’s actually like to run the type of business EquityMultiple is teaching you to do.
I have absolutely no relationship with EquityMultiple, so you can rest easy knowing that I’m going to give you my honest opinion
This review is written based on my own experiences with this business model.

All that being said, let’s jump into things.

There are now more options for locating and running properties if you want to invest in real estate. Thanks to services like EquityMultiple, investment crowdfunding is now easier.

This review will look at EquityMultiple to see if it truly is the best real estate investment source available today.

You’ll learn whether real estate investment is the right type of business for you.

And at the end, you’ll find answers to some of the most frequently asked questions regarding EquityMultiple and real estate investing in general.

EquityMultiple is a course that teaches you about real estate investing.

If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:

Wholesaling, buy-and-hold, and flipping.

While they each have their pros and cons, there is a ton of potential for success in investing in real estate.

Real estate has created some of the largest fortunes in world history.

That being said, you should take some time to seriously think about something:

Is now the best time for YOU to get into real estate investing?

Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.

That means if you:

  1. Have less than 3 hours per day, OR
  2. Aren’t sitting on $20K+ in disposable income

This may not be the best time for you to start investing in physical real estate.

Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.

But there’s good news!

All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.

My preferred method of getting there is by becoming a Digital Landlord

It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:

  • Small cash flow on properties
  • Having to take out debt
  • Dealing with repairs and upkeep
  • Dealing with tenants

The cool part is that the income is mostly recurring (AKA semi-passive).

You could make anywhere from $2,000-$10,000+ per month doing it.

You can build it as big (or small) as you feel like, without the annoyances I listed above.

If that sounds interesting, you might want to think about becoming a Digital Landlord.

Then, you can take the profits and start investing in physical real estate a year or two from now.

If you wanna see what EquityMultiple looks like on the inside, keep reading.

EquityMultiple Review 2022: Overview

EquityMultiple is an online commercial real estate crowdfunding platform that provides investors access to professionally managed commercial real estate.

  • Investment Types: Real Estate
  • Minimum Investment: $5,000
  • Sectors: Commercial Real Estate
  • Advertised Returns: 6-14%
  • Must be accredited

What Is Commercial Real Estate Crowdfunding?

Real Estate And Crowdfunding

Real estate crowdfunding is a relatively new means of raising funds for real estate ventures through crowdfunding.

EquityMultiple, like real estate crowdfunding platforms, attempts to deliver greater asset quality, due diligence standards, asset management, and investor services.

In the past, returns on the real estate market have exceeded those of the stock market in the United States.

Indirect benefits of real estate include portfolio diversification, inflation protection, and the steadiness of investing in a tangible asset.

Direct real estate investments, such as those offered by EquityMultiple and other investment marketplaces, have historically experienced less market volatility than public REITs and do not incur the high fees associated with private REITs.

Over the last four years, EquityMultiple has made more than 120 investments nationwide.

They’ve had 31 go through the full cycle, with the majority performing as expected.

They have a Track Record utility that displays the portfolio’s overall performance. After creating an account, anyone can access it for free.

Most of their 31 accomplished investments are in the form of debt or preferred equity.

Investors are entitled to a predetermined flat rate of return (and a target share of upside in preferred equity investment cases).

At this point, their aggregate returns reflect an annualized return range in the low-to-mid-teens. To date, their investors have invested $185 million.

EquityMultiple Review: Commercial Real Estate Investments

Commercial Real Estate Investments

EquityMultiple is an online commercial real estate firm that makes it easier for qualified investors to invest in expertly managed commercial real estate.

The goal is to make real estate investing transparent, accessible, and easy.

An accredited investor can use EquityMultiple to invest passively in professionally managed real estate throughout the United States for as low as $10,000.

In addition to building a diverse portfolio of real estate across markets and property types, individual investors gain access to private assets that may offer crucial diversification and non-correlated returns compared to a standard investing portfolio of stocks and bonds.

Since its founding in 2015, EquityMultiple has attracted individual investors to more than $2.7 billion in real estate deals.

To help protect investors’ interests, they follow a rigorous multi-step due diligence and investment structuring process, accepting only about 5% of the investments they evaluate.

EquityMultiple provides senior debt, preferred equity, and equity investments for various risk/return profiles and deals flow across all property types and markets in the United States.

EquityMultiple’s investment origination practice focuses on the following areas:

  • Commercial properties with current cash flow in thriving markets.
  • Short-term loans and preferred equity investments provide investors with a high APR or current select return.
  • Value-added projects with construction components and more aggressive business plans focus on investments with a clear path to stabilization and cash flow for investors.

When Compared To Other Real Estate Crowdfunding Platforms, EquityMultiple Stands Out

Real estate crowdfunding platform EquityMultiple offers rigorous underwriting, a dedicated Investor Relations Team, and in-house Asset Management services.

They manage everything internally and prioritize solid returns, capital preservation, and honest reporting.

They provide investments in core CRE asset classes (multifamily, office, and industrial) and more niche asset classes such as self-storage, assisted living facilities, and car washes, which may provide a recession-resistant investment thesis.

Most other platforms don’t provide this range of investment offerings or in-house support. They also recently introduced some Private Fund products.

Giving their investors even more diversification options. The following is an EquityMultiple analysis of their valuation proposition.

What Kinds Of Properties Should I Look For On EquityMultiple?

They provide commercial real estate investments managed by seasoned firms and overseen by their in-house team.

Property types, including (but not limited to):

  • Multifamily
  • Industrial
  • Office 
  • Storage
  • Car Wash
  • Opportunity Zones
  • Cannabis Facilities
  • Retail
  • Mixed-use
  • Student Housing
  • Senior Living Facilities 
  • Data Centers

They provide a variety of investment structures, such as debt investments, preferred equity, equity, fund investments, and tax-advantaged real estate investment offerings.

EquityMultiple Review 2021: Portfolio Makeup

  • Senior Debt: 12%
  • Preferred Equity: 45%
  • Mezzanine Debt: 9%
  • Common/JV Equity: 34%

This diverse portfolio of assets is concentrated in 51 geographic areas throughout the United States. It’s backed by a network of 62 lender and sponsor partners.

Breakdown Of Target Return Ranges:

  • Senior Debt: Investors earn a net return of between 6% and 11% on their investment.
  • Preferred Equity: Net current preferred returns of 6-12% and total net preferred returns of 11-17%, including an accrued return component.
  • Common Equity: 14% plus net IRR (target IRRs can vary substantially based on risk factors).

Investments in Opportunity Zone Funds, 1031 Exchanges, and Mezzanine or Subordinate Debt Investments are also available through EquityMultiple. As a result, this list of structures and target return ranges is not exhaustive.

EquityMultiple Fees

EquityMultiple fully and transparently discloses all costs related to each investment offering at the bottom of each offering page.

An annual asset management fee of 0.5% to 1.5% is applied to equity assets.

EquityMultiple normally keeps 10% of earnings on realized equity investments after an accredited investor has received all principal.

This further aligns with their interests as they seek to maximize returns for investors.

Pre-Vetting And Due-Diligence Process

EquityMultiple distinguishes itself through a rigorous pre-vetting process. Each investment must go through a multi-stage due diligence process.

These are the primary steps their team takes when attempting to deliver a highly compelling investment offering:

  • Sponsor Vetting. To guarantee that they get the best return on their investment, they only do business with sponsors and lenders they know and trust. Sponsors must have prior experience in the same asset class, market, and strategy as the investment presented to EquityMultiple.
  • Investment-Level Diligence. They analyze hundreds of attributes, stress test the sponsor’s assumptions, and conduct their own return modeling and risk assessment based on thoroughly examining market comps and other data sets.
  • Investment Structuring. Their team has decades of experience in real estate law and finance. They collaborate closely with their sponsor partners to structure investments to provide investors with compelling potential risk-adjusted returns. In most cases, this includes a preferred return and near-term or immediate cash flow.
  • Ongoing Asset Management. They keep track of the investments’ progress from inception to exit. Investors will benefit from frequent, transparent performance reporting. Working with sponsor partners continuously to find solutions to any unforeseen challenges.

All investments must be approved unanimously by the Investment Committee. They have accepted less than 5% of the investments that have been presented to them.

EquityMultiple Investment Structures: Equity And Preferred Equity

An LLC is required to establish a particular purpose vehicle for equity and preferred equity investments.

This entity, usually as an LP, invests in each transaction (limited partner).

They do this to ensure that a third-party manager will take over those investment entities if EquityMultiple ever ceases operations (which they do not anticipate).

Preferred equity or equity investments structure the highest level of investor protection possible.

They frequently have some recourse in the unlikely event that the sponsor acts in bad faith.

This is a significant advantage of their model over investing directly with sponsors.

EquityMultiple Performance

They have given more than 120 investments across the country in the past four years, totaling 181 million dollars in investor capital. 31 investments have completed their exits.

On their Track Record page, you can see how your portfolio as a whole has performed. Anyone can have free access to this after creating an account.

EquityMultiple Security

Giving a company so much personal information can be unsettling, especially when that information is transmitted online.

EquityMultiple, on the other hand, takes your security seriously and goes to great lengths to protect any data you provide.

EquityMultiple uses bank-grade protocols to protect your data during transmission and storage.

Their systems have passed FDIC and retail banking compliance tests, and everything is encrypted using cutting-edge technology.

EquityMultiple Customer Service

Your screen may have a live chat prompt appear as you go through the installation and investment process.

If you have any inquiries and want to speak with a live person, you can use this screen.

In addition, each investor on their platform is assigned a dedicated Investor Relations representative. Investors can schedule calls and speak with their team directly.

Recap – EquityMultiple Highlights

  • Accredited investors looking to diversify their portfolios through real estate.
  • Those with the means to invest $10,000 (minimum investment) or more.
  • Individuals who are seeking commercial real estate access.

Accredited Investors Only:

Anyone with a net worth of more than $1 million (excluding the value of their home) or a yearly income of more than $200,000 ($300,000 with a spouse) in every two years, with the expectation of sustaining that income in the future, are considered accredited investors.

Accredited investors may also have certain professional certifications or credentials.

High Investment Minimum:

A $10,000 minimum is required, and additional shares are typically offered in $5,000 increments above the minimum. The minimum investment amount in a self-directed IRA is $20,000. EquityMultiple does occasionally offer investments with a $5,000 minimum.

Personally, I don’t like investment minimums like this. Especially when you’re likely not going to see that money again for a VERY LONG time.

I’d much rather invest my money in something like this that can give me a full ROI in just a few months…

Specialized Investments: :

Senior debt, mezzanine debt, preferred equity, opportunity zones, common equity, 1031 exchanges, and private fund offerings are available through EquityMultiple.

Their main distinctions are primarily related to risk level and payment priority order. Senior debt carries the lowest level of risk.

It’s paid out first, followed by mezzanine debt, preferred equity, and common equity — which provides no recourse if a borrower defaults but has uncapped potential returns if the investment performs well.

Opportunity zones are plots of land designated for economic development by the state and federal governments. An opportunity fund is a tax-advantaged investment that allows you to invest in opportunity zones.

1031 exchanges enable real estate investors to postpone paying capital gains taxes by reinvesting the returns from the sale value of a real estate investment in a property “of like kind.”

Investment Time Frames:

The investment time frame varies depending on the asset. EquityMultiple provides several different investment structures. The following are the typical hold periods for each:

  • Senior debt (at a fixed rate of return): 9 to 24 months.
  • Preferred equity (fixed rate of return): 12 to 26 months
  • Common Equity: 3 to 7 years.
  • Funds: vary.
  • Opportunity Zones: 10 years or more (to reap maximum possible tax benefits).

Easy-To-Use Platform:

To get started, accredited investors must first open an online brokerage account.

Register (This includes self-certifying that you are, in fact, accredited — though the documentary proof is not required.) and begin reviewing the investment offerings as soon as you receive an email confirmation.

Making an account doesn’t necessitate making a deposit. Still, you can link your funding source online if you decide to invest.

Getting Started With EquityMultiple

Getting Started With EquityMultiple

Crowdfunding platforms’ significant benefits include the ease and convenience of investing and managing your investments online.

The entire process takes place on the EquityMultiple online platform.

It works as follows:

  • Sign up for the platform and confirm your accreditation.
  • Examine the current offerings.
  • Examine investment details and select a deal that meets your investment goals.
  • Complete your account setup by linking your bank account to fund investment options and receive distributions.
  • Complete the “checkout” process for your investment: Sign documents electronically and fund your investment.

Before investing, confirm your accreditation and review current offerings to determine what asset class, location, and return potential, as well as where in the capital stack your money should be placed.

After you’ve made an investment, you can:

  • On the “My Portfolio” page, you can keep track of your investment performance.
  • Through the “My Activity” feed, you will receive regular asset management on all of your investments.
  • Earnings and profits are deposited directly into your bank account using ACH.
  • View quarterly investor performance updates.

If you have any further questions, their Investor Relations Team is always available to help. Create an account on the EquityMultiple platform today to learn more and dig deeper into the track record.

Are There Alternatives To EquityMultiple?

Other Business Models To Choose From

Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:

Is EquityMultiple A Scam?

Is It A Scam

So, time for the $1,000,000 question – is EquityMultiple a scam?

No, not technically. You can 100% make money with this program, though it’s not nearly as simple as EquityMultiple makes it seem.

As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.

Not to mention the profit margins are typically pretty small.

Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.

But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.

I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).

And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).

Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.

All you need is an internet connection.

Some of my friends are Digital Landlords that run their 6-figure businesses from:

  • Camping trips at national parks
  • Beachfront in Hawaii
  • On the road in a camper van (with a pet pig!)

They focus on living an enjoyable life first, and focus on income second. All thanks to this program

They can take weeks or months off, and money keeps rolling in.

Living happily is the top priority.

If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!

What Is My #1 Recommendation For Making Money Online In 2022?

My Top Recommendation For Making Money Online

I’ve personally tried all of the major online business models:

  • I’ve sold fidget spinners through Amazon FBA
  • I’ve drop-shipped a toilet bowl putting green on Shopify
  • I’ve sold women’s health supplements via Clickbank affiliate marketing

And I made money with all of them, so trust me when I say: there is no “perfect” business model.

It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.

That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.

Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.

Why?

Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.

And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.

That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.

But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.

Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.

Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.

If you miss a single payment, the property can be taken from you.

Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.

Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.

Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.

Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort to create the next property decreases.

Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.

It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…

If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you , that’s a lot harder than a few clicks & a phone call.

Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:

Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.

You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.

Having this type of impact on the world is what will help you sleep soundly at night.

So, the rest is up to you. You could keep looking at other opportunities like Equity Multiple, which might make you money.

You could keep researching and researching for the next few months (or few years), never making a concrete decision.

OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.

Making a fortune while actually helping real people that need it.

If this sounds like you, click here to see how it all works.

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Hi, I'm Hope!

I make over $20,000/mo thanks to this platform… check it out below!

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