How We’re Different
EquityMultiple has been making real estate investing simple, transparent, and accessible for accredited individuals since 2015. We are not the only company that has sought to bring individual investors more access to alternative assets. In the years since The JOBS Act of 2012, the set of opportunities available to individual investors has increased dramatically.
Key Takeaways:
- EquityMultiple’s breadth of focus with respect to CRE investment types helps facilitate diversification.
- Unlike “marketplace” platforms, EquityMultiple manages investments and provides investor services throughout the lifetime of each investment.
- We strive to make real estate investing simple, accessible, and transparent for the accredited individual.
During this time the crowd investing space has matured, the early pretenders have fallen by the wayside, and the mature platforms of today have established a spectrum of models as far as what is offered to the investor. In this article we take a look at some of the unique facets of EquityMultiple’s operations and value to investors.
What’s Distinct About EQUITYMULTIPLE?
EquityMultiple uses technology — including bank-grade security protocols and encryption — to provide a seamless investing experience. Several aspects of EquityMultiple’s model and operational philosophy create unique value for investors:
Diversity of Investment Types
Some real estate platforms focus exclusively on single-family homes, some on debt investments, some on opaque funds, some exclusively on common equity. EquityMultiple’s investment offerings span the capital stack, geographic concentrations across the country, and property types. EquityMultiple also offers Tax-Deferred investments (Opportunity Zone and 1031 Exchange) as well as private Fund offerings. This diversity reflects the breadth of EquityMultiple’s partner network of quality real estate firms, and the in-house expertise to structure investments to offer a variety of risk/return profiles.
As a result, EquityMultiple investors are able to reliably find investment offerings that fit their risk tolerance and objectives. Over time, this diversity of investment types means that investors are able to not only tap into private commercial real estate, but can build truly diversified real estate portfolios.
This breadth of offerings is all the more relevant to investors following the outbreak of COVID-19. As the economy recovery takes shape, distressed opportunities will emerge heterogeneously across markets and sectors. If the economy is entering a prolonged downturn, recession-resistant assets like multifamily, self-storage, and ecommerce-ready industrial may help to insulate investors from volatility. EquityMultiple’s breadth of focus should serve investors well in both regards.
Start-to-Finish Investor Services
Some platforms operate as laissez-fair marketplaces: the platform posts investments from sponsors, and facilitate transactions directly between the sponsor and a network of individual investors. EquityMultiple’s belief is that investors are best served by more rigorous underwriting and more vigilant stewardship of capital.
- Underwriting: for each potential investment, EquityMultiple’s team of underwriters conducts exhaustive due diligence on not only the originating firm, but also the specific asset. EquityMultiple’s real estate leverages big data sets and proprietary methodologies to hone in on the investments that we believe offer the best potential risk-adjusted returns.
- Asset Management: EquityMultiple’s involvement in each asset extends beyond the initial transaction and throughout the lifetime of the investment. We work closely with partner sponsors to strive for the best outcomes possible on behalf of our investors. Our Asset Management Team also works to provide updates as appropriate, with a typical cadence of quarterly performance reporting.
- Investor Relations: We know from speaking with investors and from first-hand experience that a quality investing experience is built on trust, and trust is built through reliable communication. Our Investor Relations Team is dedicated to providing guidance and attentive service to our clients.
The Bottom Line
Fundamentally everything we do at EquityMultiple maps back to our mission: to make real estate investing simple, accessible, and transparent for accredited individuals.
Part and parcel of this effort is listening to our investors. Should you ever have any feedback or questions, please feel free to reach out to us at ir@equitymultiplestaging.com or via the chat window at the bottom right of your screen.
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