EquityMultiple: A Platform for Investors In Opportunity Zones

September 19, 2019 | FinTech, Real Estate
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The EquityMultiple platform facilitates real estate investments in Opportunity Zones that come with tax breaks.

The EquityMultiple platform could be a solution for investors fed up with the measly returns in the current environment.

Especially those looking for real estate investments in Opportunity Zones.

Opportunity Zones were introduced by the Tax Cuts and Jobs Act of 2017. Real estate investments in the zones qualify for a break on capital gains taxes. Moreover, these tax incentives can add up to provide higher returns on investors’ money. Qualified Opportunity Zones (QOZ) bring capital to low-income areas while rewarding investors via tax breaks. The investments can, therefore, trigger economic development in these areas leading to higher employment.

The platform for QOZ real estate

EquityMultiple is a crowdfunding real estate platform for accredited investors with a minimum investment of $ 50,000. The platform offers pre-scrutinised deals in opportunity zones with extensive diligence. The evaluation, therefore, ensures that the investment qualifies for all the investor tax benefits.

Out of the hundreds of potential QOZ opportunities, EquityMultiple has only selected five, and all are equity investments.

The platform has already raised over $ 11 million through three QOZ offerings. The platform structures its investments using Reg D.

EquityMultiple for 2.5X returns

The holding period on these investments is ideally 10-year+. Moreover, this tenure ensures tax break optimization.

Normally, investors can expect IRRs in the midteens in these kinds of offerings.

“We believe a more important metric when considering this type of duration is your multiple on invested equity, which we are targeting approximately 2.5X area,” said Soren Godbersen, a Vice President at EquityMultiple, while speaking to CrowdFund Insider.

Additionally, tax benefits are the icing on the cake.

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