EquityMultiple review: Commercial real estate investing for accredited investors with at least $5,000
EquityMultiple offers equities, debt, and other commercial real estate investments to accredited investors for as little as $5,000.
EquityMultiple; Rachel Mendelson/Insider
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.
Overall rating
| Feature | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 5.00 |
| Access | 4.25 |
| Ethics | 5.00 |
| Customer service | 4.75 |
| Overall score | 4.60 |
Is EquityMultiple right for you?
Founded in 2015,
The platform also gives investors the option to build wealth through self-directed IRAs, LLCs, trusts, LPs, and joint accounts. As of January 1, 2022, EquityMultiple has returned $176.2 million to investors.
EquityMultiple vs. RealtyMogul
EquityMultiple | RealtyMogul |
Min. Investment $5,000 (minimums can also range between $10,000 and $30,000) | Min. Investment $5,000 |
Fees Varies; typically 0.5% (EquityMultiple also charges annual administrative expense fee of $30-$70) | Fees 1% to 1.25% |
Investment choices Institutional commercial real estate, equity, preferred equity, and senior debt | Investment choices REITs, single properties, 1031 private placement investments |
While EquityMultiple and RealtyMogul have the same account minimum requirements ($5,000), there are a couple of key differences between the platforms. The first is that EquityMultiple only serves accredited investors, while RealtyMogul serves both accredited and non-accredited investors.
Another thing to consider is investment types and fees. Both EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the better choice for accredited investors in search of professionally managed, institutional-level real estate and equity and debt investments. RealtyMogul offers multiple REITs, individual properties, and more.
EquityMultiple vs. CrowdStreet
EquityMultiple | Crowdstreet |
Min. Investment $5,000 (minimums can also range between $10,000 and $30,000) | Min. Investment $25,000 (up to $100,000 for some offerings) |
Fees Varies; typically 0.5% (EquityMultiple also charges annual administrative expense fee of $30-$70) | Fees 0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios |
Investment choices Institutional commercial real estate, equity, preferred equity, and senior debt | Investment choices Single-sponsor funds, CrowdStreet funds, individual deals, tailored portfolios |
EquityMultiple and CrowdStreet both only offer real estate investing for accredited investors. But the platforms vary when it comes to account minimums, fees, and investment choices.
You'll likely pay more to get started with CrowdStreet since its base minimum requirement (which can be $100,000 for some products) is $25,000. However, CrowdStreet doesn't charge investors fees to buy stake in its deals and funds — but sponsors typically pay between 1-5%, and tailored portfolios cost investors 2.5%.
EquityMultiple, on the other hand, best suits accredited investors who want to get started with lower minimum requirements and invest in institutional commercial real estate, equity, and more. It has a base minimum requirement of $5,000, but minimums can also range from $10,000 to $30,000, depending on the offering.
Ways to invest with EquityMultiple
- Fund Investing: This investment approach has the highest minimum requirement. Minimums start as low as $20,000 and span up to $30,000. It best suits those in search of diversification across several asset types. EquityMultiple targets debt, equity, Opportunity Funds, and CRE securities with this approach. Plus, it has an investment term of 1.5 to 10+ years.
- Direct Investing: With minimums as low as $10,000, this approach caters to investors who prefer to focus on individual properties. EquityMultiple's target duration for this strategy ranges from six months to five (or more) years, and it leans toward debt, preferred equity, and common equity.
- Savings Alternative: This strategy is perfect for investors who want shorter terms. EquityMultiple primarily uses diversified, short-term notes here, and the investment term ranges from three to nine months. This approach also has the lowest minimum requirement, as you can get started with as little as $5,000.
As for returns, debt strategies generate 7-12% per year. Preferred equity strategies have a current preferred return of 6-12% and a total preferred return rate of 10-18%. Common equity strategies have an internal rate of return of 10-24%, and returns vary for its funds.
Prospective investors should also note that joining
EquityMultiple: Is it trustworthy?
BBB ratings reflect the bureau's opinion of how well a company interacts with its customers, and takes into account factors like type of business, time in business, customer complaint history, licensing and government actions, advertising issues, and more.
However, it's still important that you do your research before setting up an account. This is because the bureau's ratings don't guarantee performance or reliability.
EquityMultiple's record is clear of any major lawsuits or scandals. The platform's BBB profile also shows that it has zero complaints filed.
EquityMultiple: Frequently asked questions (FAQ)
What is EquityMultiple?
Is EquityMultiple only for accredited investors?
Yes. EquityMultiple only serves accredited investors at this time.
What does it take to be an accredited investor?
In order to qualify as an accredited investor, you need to either have a net worth of at least $1 million, or make $200,000 annually ($300,000 for couples).