Invest in pre-vetted projects from experienced real estate companies
|Minimum Investment||Varies by investment, but can be as low as $5,000|
|Accredited Investor Only?||Yes|
|Can Invest Through |
|Deal Types||Syndicated Debt, Equity, Preferred Equity|
|Typical Term||Syndicated Debt: 6-24 months, |
Equity: 2-5 years, Preferred Equity: 1-3 years
Team Experience: While similar platforms are generally backed by venture capital companies, with no particular focus on commercial real estate, EquityMultiple is backed by a real estate company – Mission Capital, which is a nationally recognized leader in commercial real estate debt & equity finance. According to their website, EquityMultiple’s team has closed over $75 billion in real estate transactions.
Deal Focus: Looking at EquityMultiple’s investment thesis, they seek out deals with the following characteristics:
- Commercial properties in thriving markets with current cash flow
- Short term loans and preferred equity investments
- Value-add projects with construction components and more aggressive business plans
How It Works:
- EquityMultiple identifies national and regional lenders with significant experience and real estate companies with strong track records who operate in key markets. Among these companies are long-time clients of EquityMultiple’s real estate team, or their strategic partner – Mission Capital.
- After vetting the project Sponsor, EquityMultiple evaluates the market and key metrics, leveraging their decades of in-house experience and data. Each deal must pass their proprietary due diligence process and match the elements of their investing thesis listed above, before moving forward.
- For projects that pass the first round of due diligence, EquityMultiple takes a deeper look under the hood, stress testing underwriting assumptions, reviewing key legal documents and third party reports and considering the transaction structure. Fewer than 10% of submissions end up on their platform.
- EquityMultiple only works with accredited investors, so if you meet this criterion, you can sign up and go through the online verification process to view their current deals.