You are no longer confined to discovering and managing properties on your own if you want to invest in real estate.
Thanks to services like EquityMultiple, investment crowdsourcing is now simpler than ever.
This study will look at EquityMultiple to determine whether it is indeed the finest real estate investing source available.
But before that…
EquityMultiple is a real estate investing program.
Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this EquityMultiple review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Real Estate.
Digital Real Estate takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Real Estate allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is the perfect first step to build recurring income that you can then use to start investing in real estate down the line.
However, if you’d still like to know more about EquityMultiple, keep reading.
EquityMultiple Review 2021: Commercial Real Estate Investments
EquityMultiple is a commercial internet real estate platform that helps authorized investors participate in professionally managed commercial real estate.
The goal is to make real estate investment easy, approachable, and transparent.
With as little as $10,000, an accredited investor can invest passively in professionally managed real estate across the United States through EquityMultiple.
Individual investors gain access to private assets that may provide critical diversification and non-correlated returns compared to a traditional investment portfolio of stocks and bonds while also building a diverse portfolio of real estate across markets and property types.
EquityMultiple individual investors have participated in over $2.7 billion in real estate transactions since their inception in 2015.
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 a variety of risk/return profiles, as well as deal 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
As a real estate crowdfunding platform, EquityMultiple provides tough underwriting, a dedicated Investor Relations Team, and in-house Asset Management services to assist investors and investments throughout the whole lifespan.
While managing everything in-house, they target good returns, capital preservation, and comprehensive reporting.
They provide investments in basic CRE asset classes (multifamily, commercial, and industrial) as well as more specialized asset classes including self-storage, assisted living facilities, and car washes, which may offer a recession-resistant investment thesis.
Most other platforms do not 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 that are managed by experienced businesses and monitored by their in-house staff.
Types of properties include (but are not limited to):
- Car Wash
- Opportunity Zones
- Cannabis Facilities
- 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
- 12 percent of senior debt
- 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 is backed by a network of 62 lender and sponsor partners.
EquityMultiple fully discloses all costs related with each investment offering at the bottom of each offering page.
An annual asset management charge ranging from 0.5 percent to 1.5 percent is levied on equity investments.
EquityMultiple normally maintains 10% of earnings on realized equity investments after an authorized investor has received full capital.
This further aligns with their interests as they seek to maximize returns for investors.
Pre-Vetting And Due-Diligence Process
EquityMultiple sets itself apart by a thorough pre-vetting procedure. Each investment must go through many stages of due diligence.
When aiming to produce a very attractive investment proposition, their team conducts the following major steps
- 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 a thorough examination of 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 as well as 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
For stock and preferred equity investments, a special purpose entity – an LLC – must be established.
This entity, generally in the form of an LP, invests in each transaction (limited partner).
They do this to guarantee that if EquityMultiple ever stops operations (which they do not expect), those investment companies will be taken over by a third-party manager.
Preferred equity or equity investments provide the greatest degree of investor protection.
In the odd occasion that the sponsor acts in bad faith, they typically have some remedy.
This is a significant advantage of their model over investing directly with sponsors.
They have given over 120 investments around the nation in the previous four years, totalling 181 million dollars in investor capital. Thirty-one investments have been completely liquidated.
On their Track Record page, you can see the overall performance of your portfolio. Anyone may receive access after making an account (which is free).
It might be disconcerting to provide a company so much personal information, particularly when that information is sent online.
EquityMultiple, on the other hand, values your privacy and goes to great pains to safeguard any information you supply.
To safeguard your data during transmission and storage, EquityMultiple employs bank-grade standards.
Their systems have passed FDIC and retail banking compliance tests, and everything is encrypted using cutting-edge technology.
Getting Started With EquityMultiple
Among the several advantages of crowdfunding platforms is the simplicity and convenience of investing and maintaining your capital 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.
Prior to investing, confirm your accreditation and review current offerings to determine what asset class, location, return potentials, 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.
Is EquityMultiple A Scam?
So, is EquityMultiple a scam? Not technically. You can make money with this program, but it’s definitely not as easy as Gurus makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To EquityMultiple?
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:
What Is My Top Recommendation In Making Money Online In 2023?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Real Estate, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Real Estate, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like EquityMultiple which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.