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EquityMultiple is one of the best real estate investing apps for accredited investors who want to put money into a wide variety of assets based on real estate.Jennifer Streaks, Senior Personal Finance Reporter & Spokesperson
About EquityMultiple
EquityMultiple is a commercial real estate platform that offers managed assets — including equity, preferred equity, institutional commercial real estate, and senior debt — to accredited investors (individuals who have a minimum net worth of $1 million or make $200,000 annually or $300,000 for couples).
The platform combines crowdfunding with traditional real estate investing. EquityMultiple doesn't offer REITs.It also gives investors the option to build wealth through self-directed IRAs, entities, trusts, and joint accounts. As of 2023, EquityMultiple has returned $298 million to investors with a total net return rate of 17%.
Who Is EquityMultiple For?
EquityMultiple is best for experienced, hands-on, accredited investors who have at least $5,000 to invest in commercial real estate investments like equity (via non-traded REITs and real estate funds) and senior debt investments. The platform offers both short-term and long-term investment options, but typically real estate investments tend to be more profitable over a longer period of time.
Equity and debt are also fairly illiquid. So only folks who are prepared to hold on to their assets for a couple of years (usually at least five) should use EquityMultiple. If you're wanting to invest in more liquid assets, such as publicly-traded REITs and individual properties, you should consider a different real estate investment platform.
EquityMultiple: 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 |
EquityMultiple Pros and Cons
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Is EquityMultiple Trustworthy?
EquityMultiple currently has a C+ rating with the Better Business Bureau. BBB ratings usually range from A+ to F. The BBB states that the reason for EquityMultiple's rating is its failure to respond to one complaint, so you may want to take the C+ grade with a grain of salt.
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, because the bureau's ratings don't guarantee performance or reliability. Talk with friends or family who have used EquityMultiple and/or read customer reviews for a better idea if the platform is a good fit.
EquityMultiple's record is clear of any major lawsuits or scandals.
Ways to Invest with EquityMultiple
Once you open an EquityMultiple account you can establish an entity account, trust account, or joint account. You can choose from three investing strategies:
- Grow: A growth-investing 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 around five years.
- Earn: 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 is around 36 months, and it leans toward senior debt, preferred equity, and yield-focused funds. The average annual return is 15%.
- Keep: This strategy is perfect for investors who want shorter terms. EquityMultiple primarily uses diversified, short-term notes here, and the investment term is around six months. This approach also has the lowest minimum requirement, as you can get started with as little as $5,000. The annualized yield is around 6.9%.
Prospective investors should note that joining EquityMultiple doesn't give you access to publicly traded REITs. When it comes to its fund strategies and diversification approach, it mainly invests in non-traded REITs and real estate funds (non-traded REITs can't be publicly traded on the market).
EquityMultiple states on its website that you can invest in EquityMultiple from several self-directed IRAs. Unfortunately, you can't see which IRAs EquityMultipel supports until you open an account.
Investment Options
EquityMultiple offers instructional commercial real estate, equity, preferred equity, and senior debt.
The platform does not offer REITs or other standard asset classes like stocks, bonds, ETFs, or mutual funds.
EquityMultiple Fees
EquityMultiple requires at least $5,000 to get started, but you may need up to $30,000 depending on which investment strategy you choose.
EquityMultiple's fees can vary but are often around 0.5% annually. The platform also charges between $30 to $70 annual administration expense fees depending on the assets in your account.
The cost of individual investments greatly varies based on the asset.
EquityMultiple: Frequently asked questions (FAQs)
EquityMultiple lets you invest in professionally managed commercial real estate. The platform's investment choices include institutional commercial real estate, senior debt, equity, and preferred equity. Plus, you can invest through self-directed IRAs, entities, trusts, and joint accounts.
Yes. EquityMultiple only serves accredited investors at this time.
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).
Compare EquityMultiple
EquityMultiple vs. RealtyMogul
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.
They also differ in investment types and fees. Both EquityMultiple and RealtyMogul offer commercial real estate, but EquityMultiple is the better choice for accredited investors in search of institutional-level real estate, equity, and senior debt investments. RealtyMogul offers assets such as REITs and individual properties. It's available to both accredited and nonaccredited investors.
Between the two platforms, the best one for you depends on your accreditation status and the kind of assets you're looking to invest in.
EquityMultiple vs. CrowdStreet
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 is $25,000, and it can go up to $100,000 for some products. CrowdStreet doesn't charge investors fees to buy stake in its deals and funds — but sponsors typically pay between 1% to 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.
Why You Should Trust Us: How We Reviewed EquityMultiple
We examined EquityMultiple real-estate investing app using Personal Finance Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience. Platforms are given a rating between 0 to 5.
Real-estate investing platforms generally offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. EquityMultiple was evaluated with a focus on how it performed in each category