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EquityMultiple Review - Learn How This Real Estate Crowdfunding Platform Works - YouTube
Channel: REtipster
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hey guys what's going on this is Seth
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from the re tipster blog and I wanted to
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put together this little video for you
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guys just let you know about this real
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estate crowdfunding website I learned
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about not long ago called equity
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multiple the whole concept behind real
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estate crowdfunding and the reason why I
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think it might be worth your
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consideration just in case you weren't
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already aware is on my blog I talked a
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lot about real estate investing buying
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and selling land around properties and
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these things are like you know running a
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full-blown legitimate business and
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there's a lot of stuff you have to do
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when you're running a business like this
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you have to find deals you have to
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evaluate deals sometimes you have to
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find the funding for it you know
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sometimes you might have to do
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improvements to the property deal with
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tenants just a lot of stuff that goes
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into running a legitimate profitable
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real estate investing business and a lot
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of us you know we want to get involved
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with real estate investing but we don't
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want to deal with all of that stuff like
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it's just a lot of hats to wear it's a
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lot of things to manage and for some
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people I mean they already have the
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money or they're to have the net worth
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and they want to get started but they
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don't wanna you know dive into a whole
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new business measure they just want to
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put the money in real estate and watch
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it appreciate or produce cash flow of
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some kind and for those kind of people
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who just kind of want to take the
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laid-back approach where they don't have
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to do all the hands-on work something
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like equity multiple could be a really
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good fit because essentially how this
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works is equity multiple you know fines
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and vets deals and then they present
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them to their investors and the
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investors can invest their money in an
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actual property and sometimes that
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investment is in the form of syndicated
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depth where basically those funds are
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being used as a loan to a sponsor who is
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then you know renovating the property or
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improving it in some way so basically
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your money is essentially being used as
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a lending tool and you can earn interest
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income from that and sometimes your
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money can be used as actual equity into
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the property so you're sort of like a
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part owner in that property by the
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nature of your investment through equity
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multiple if you've been following my
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YouTube channel for any length of time
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you may know that I mean I've talked
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about other real estate crowdfunding
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platforms in the past and a lot of them
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I mean they're kind of similar from a
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high-level perspective but most of them
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vary in the way that they function some
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of them use what's called an ER EIT
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where they take all the money and pull
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it together and then put that money into
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a pool of properties so you're not
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necessarily investing in any one
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specific property and then others will
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actually require you to be an accredited
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investor so essentially you have to have
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a certain minimum level of income per
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year or you have to have a certain
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minimum of net worth and then once
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you're in accredited investor you can
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invest your money usually in increments
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of $5,000 or $10,000 or higher into a
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specific property and that's how echoed
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in multiple words and equity multiple is
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actually one of the newer players in the
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market that has been around a long time
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I confited their first deal back in like
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September of 2015 and to date at the
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time of this recording I believe they've
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funded a couple dozen deals they almost
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always have one available for their
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investors to put the money into the
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properties are reviewed very much in the
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same way that a bank would review deals
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before they extend money in a commercial
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loan it's just that it allows you as the
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investor to get in out and invest your
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money and make the income from that
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investment so you know as you can see
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this is the website if you want to get
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started and sign up as an investor all
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you gotta do is obviously go here to get
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started and then you're going to see
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this is like an exclusive invitation
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from Ari tips your blog so this is an
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affiliate link I've actually already got
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an account so I'm just going to go ahead
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and sign in and poke around and show you
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what this websites all about so once you
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sign into your account it's going to
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look something like this and I have not
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invested anything yet so that's why you
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don't see a whole lot of information
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here but I just wanted to sort of poke
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around and show you some of the
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different information investments you
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can get involved with if that's
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something you want to do you can go over
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here to invest if you want to look at
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some of the DEA's that are on the market
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right now in this one right here it's a
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luxury condo conversion in West
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Hollywood I was actually just looking at
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this last week and it looks like it's
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closed out right now because they've got
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more than enough money to fund the whole
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project but let's just take a quick look
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at this
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see what information is available and as
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you can see it's a really beautiful
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website it's very informative there's
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lots of pictures give you a lot of data
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and just a lot of information about what
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the project entails the projected
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internal rate of return projected annual
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return really good investment summary
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and more pictures their investment
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timeline this just kind of shows how
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long the deal is going to last and when
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investors can expect to get their money
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back some of the highlights here just
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shows some of the notable things about
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the project and the location and just
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the rental income that it's expected to
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generate and somewhat comps out there
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sponsor overview this is the entity
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that's actually doing the project so you
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can kind of get more of the story behind
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the person who is getting this money in
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doing the project with it financials
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there's a lot of really good information
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here you can see some nice charts and
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explanations that show where your money
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is going and how that fits into the
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overall project is a projected
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distribution schedule which just
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explains approximately when the returns
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are going to come back to the investors
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and keep in mind that none of this stuff
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is guaranteed as with any investment
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there's always risk that things may not
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pan out exactly as planned so you should
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totally bear that in mind if you ever
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decide to use anything like this there's
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just no way of knowing for sure how it's
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all going to turn out but that's part of
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the reason for this data is to help
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support the assumptions that are made at
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the top of this page so there's a
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property location and location overview
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and then property overview and then unit
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breakdown so you can really understand
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what this property is all about what's
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going on there you can get a better look
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at the overall market and what's
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happening there and then comparables in
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the area so it's really just a very
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informative platform that gives a lot of
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detailed helpful information you can
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take a look at some of these past deals
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down here that are closed and funded and
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just kind of get a better look at how
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those have worked in the past really
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provides a lot of these same standard
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information for all these deals that
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just detail the total amount that
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they're seeking for equity multiple the
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funds and also the total size of the
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project altogether
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so really equity multiple is just one
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piece of the overall pie and then
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explains the length of the term you
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projected annual return a number of
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units and the portfolio investment
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summary pictures highlights spa
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to overview you also find throughout
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this entire thing if you ever want to
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learn more you can click on this and see
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even more information about the actual
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financials and what the pro forma looks
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like and some of the assumptions down
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here and I can just tell you from my
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nearly ten years I spent in the banking
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business being an underwriter I can tell
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you this really is what banks look at in
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order to make informed decisions on
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whether or not to move forward with
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projects so pretty evident to me that
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these guys have their stuff together and
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they know what they're doing and that's
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why I just wanted to put this video
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together to let you know if you're
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someone who has money and you know you
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want to invest in real estate but you
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don't necessarily want to do all of that
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hands-on drudgery yourself this could
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totally be a worthwhile option to look
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at just because they provide the
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platform and then make it very easy to
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get involved and make an informed
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decision all you have to do is come to
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the table with your chunk of money and
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invest into the project something else
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worth noting is that you can also use
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equity multiple to raise capital so say
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if you are a real estate investor or
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developer and you're looking at some
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huge commercial project you can go over
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here to the raise capital section of the
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website and entering your information
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and you know explore the possibility of
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getting funding for your deal as well
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personally that's not something I'm ever
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really interested in doing myself I'm
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more looking at the investing side of
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putting money into the deal but if
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you're coming from a different
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perspective just keep that in mind this
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option is available as well in terms of
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the timeline horizon if you ever did
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invest money in one of these projects I
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can say that for debt deals timeline is
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generally somewhere in the range of 6 to
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12 months until the principal is repaid
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along with the loans repayment and
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preferred equity deals it typically
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takes about 1 to 3 years to get you my
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back and then with the common equity
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deals there's a bit more variety
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depending on the sponsors business plan
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and how the project is supposed to look
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for ground up development all principal
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and profits would be paid upon the sale
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which usually takes about two to four
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years and they don't have too many
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ground-up projects because the lack of
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cash flow that comes with those makes
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him a little bit less appealing but a
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lot of deals have project plans that
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involve are refinanced projected so it's
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going to return most or all the
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investors capital and most of them
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involve some cash flow throughout the
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term of the deal in terms of when you
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get paid as an investor throughout this
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process for debt and preferred equity
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deals the payments are typically monthly
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and most of the equity deals do involve
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some kind of cash flow throughout most
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or all of the term paid quarterly and
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again it kind of depends on the
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specifics of the project but they do
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favor stabilized cash flowing assets so
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that's something they definitely shoot
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for in the days that they present to you
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the average investor invests somewhere
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in the range of like 25 grand per deal
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but usually you can invest as little as
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five thousand or sometimes ten thousand
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depending on the project but anyway that
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kind of sums it up for just all the
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basics of equity multiple again I just
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wanted to throw this out there for
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anybody who is looking to invest money
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in real estate the easy way without
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doing all the hard hands-on labor this
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can totally be a viable way to do that
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and again you can check out the link
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beneath this video if you want to learn
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more I'm also going to have a more
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detailed write-up including a lot more
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information about you know what their
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underwriters look at when they're
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evaluating deals and just some other
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helpful stuff that you might find
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interesting if you want to learn more
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about these guys that's it I just wanted
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to run that past you if you hadn't heard
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of these guys be sure to check them out
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and thanks for watching and hopefully
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I'll see you again the next video
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