When using the EquityMultiple platform, you are lending money to sponsors to purchase commercial real estate. After the sponsor purchases the real estate, you start earning returns. EquityMultiple offers three different investment approaches which are Fund Investing, Direct Investing, and Tax-Deferred Investing.

EquityMultiple makes money from different fees. For Equity Deals, fees include a 2% Placement Fee (EM Commission) which is paid by the sponsor. There is also a 0.5–1.0% Annual Asset Management Fee which is paid by Investors Annually. For Preferred Equity Deals, there is a 2% Placement Fee (EM Commission) which is paid by the sponsor. There is also a 1% spread off total preferred return which is paid (or Accrued) by Investors Monthly. For debt deals there is a a 2% Placement Fee (EM Commission) which is paid by the sponsor. Additionally, there is a 1% spread off interest rate which is paid (or Accrued) by Investors Monthly. (https://medium.com/@EquityMultiple/fees-carries-distributions-b26ec676fabf)

With all investments, there is always a potential for loss. With a real estate investment, there is less risk that you will lose all of you initial investment because it is still backed by real property (unless you have invested in an investment that is unsecured). Investors in Real Estate can lose money from from vacancies, incomplete rehabs, poor selling markets, inability to refinance, and more. Real estate investments are not liquid. Once invested, you cannot get your money back until there is a sale or refinancing. ‚ÄãLastly, with any online platform, there are risks such as fraud or lack of due diligence. Investors need to do their own research to ensure that the platform is reputable. (https://thecollegeinvestor.com/18609/crowdfunded-investments-guide/)