Date recorded: March 15, 2023

In this episode, I sat down with EquityMultiple CEO, Charles Clinton, to learn about his journey starting the online crowdfunding platform, and the products, advantages and value EquityMultiple offers.  I left the interview impressed and I'm sure you will too.

Like a number of other platforms, EquityMultiple provides investors access to CRE investments at as little as $5,000, but what makes them stand out is:
- Industry-leading asset management, which is reflected in the 17% average annual return they've earned their investors across 84 deals they have exited so far.
- Diverse product offering, from equity to debt, short-term to long-term - catering to a wide range of investor needs.

Charles started his career as a lawyer, but didn't get exposure to real estate until he joined Simpson Thacher & Bartlett LLP in the Real Estate Group where he primarily served clients like Blackstone and KKR. After realizing how difficult it was for individuals to purchase CRE properties, and with the passage of the Jobs Act, he decided to start EquityMultiple.

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What you can expect in today’s episode

• Charles' journey starting EquityMultiple
• The Jobs Act and its role of opening up online investing
• EquityMultiple’s platform (products, due diligence process, investor profile, advantages, approach to changes in the market, realized returns, and more)
• Future outlook for EquityMultiple and the real estate market
• Going from corporate to startup
• Charles' investing tips he would give to his younger self

Company Overview:

• Focus primarily on multifamily and industrial CRE properties
• Focus on middle-market (below $50M)
• Types of Investments
  • Keep - For stable income
  • Earn - For short-term fixed returns through debt investments
  • Grow - For higher potential returns through value-add properties
• Minimum Investment: $5,000 to $25,000
• Lock-Up Period: 3 months to 7 years
• Deals: 84 exited (~180 total)
• Returns: 17% average annual return
• Platform Users
  • 40,000 total users (10% active)
  • On average, active investors invested 5 times
  • Average investment size: $25k
  • High-income earning professionals
• Only open to accredited investors

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