Are you still looking for more information about EquityMultiple and wondering whether or not this is truly a legitimate investment platform? Crowdfunding in commercial real estate assists people just like you start investing. EquityMultiple is a real estate crowdfunding platform backed by the real estate capital firm Mission Capital.
They offer the opportunity to invest in commercial real estate for as little as $5,000. Basically, this allows investors to invest in real estate from the comfort of their own home. When you invest in EquityMultiple, you lend money to sponsors. These sponsors utilize the funds to purchase commercial real estate. Once the deal funds, the sponsor buys the real estate and you start earning returns. EquityMultiple does not lend to just any sponsor. They conduct background checks on the sponsors and ensures that their previous projects had a positive outcome.
They then conduct an evaluation on the neighborhood to ensure that it's a solid investment. Once EquityMultiple decides an investment is worthwhile, it goes through an in-depth underwriting process. The investments are only offered to investors once they passes through each of these layers. You can see all their investments available and decide which one(s) are right for you, if any.
What Are The Advantages of Using The EquityMultiple Platform?
- They are transparent with their expected returns. Before you even invest in a potential deal, you will see the expected distribution scheduled on the offering page. Typically, debt and equity investments provide monthly or quarterly distributions along with the repayment of principal upon maturity. Each deal is different, though, so reading the fine print is crucial.
- EquityMultiple invests in the real estate too. If you want reassurance that a company have done their due diligence in researching an investment, you've got it with EquityMultiple. With their syndicated debt investments, the platform has so-called "skin in the game." In other words, you can rest assured that EquityMultiple has researched the opportunity well to ensure that they don't lose their money as well.
- Investors' debt investments have collateral. If the borrower defaults on the loan, EquityMultiple will foreclose on these properties and pay you with the sale proceeds before they pay equity investors...
- You get access to institutional-quality real estate deals. Not long ago, only the rich could afford to invest in commercial real estate. Now these deals are available to accredited investors. You get the advantage of investing in potentially highly profitable real estate investments with low default rates. You will not have to pony up the capital required for the full deal or handle property management work. But you can gain the rewards of the investment.
- They offer a wide variety of investment options. You can pick your investment based on your risk level. The riskiest type of investment is the equity investment, as these are the last investors to get paid. But they can also reap unlimited return if the deal goes well. Debt investors and preferred equity investors are usually the 1st to recoup their investment should the deal go south. You choose the investment based on what you can can risk to lose or how much you want your portfolio diversified.
- EquityMultiple accepts lower than 10% of the potential investment opportunities. If a crowdfunding platform readily accepts most investment opportunities that come their way, it can mean they do not do a lot of research and/or vetting of the opportunity. EquityMultiple does its due diligence and has such strict standards that only an estimated of 10% of opportunities make it through their requirements.
- You can diversify your portfolio in the real estate market. You can invest in a wide variety of real estate options, including multifamily, office, hotel, retail, mixed-use, self storage and more.
- The investments in real estate made by EquityMultiple are professionally managed. You don't have to worry about managing tenants or maintaining the properties yourself. EquityMultiple handles all business plan and property chores. All that you have to do is invest your money and collect your distributions as they come in.
- EquityMultiple does not get paid until investors receive their initial investment back. This is EquityMultiple's way of proving that they will put your interests before their own.
- You can see the investments for free. Once you register for an account, you can go through the available investments all that you want. You will only pay account fees once you begin investing in a deal...