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EQUITYMULTIPLE Real Estate Platform Introduction

Date post: 16-Apr-2017
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AN INTRODUCTION
Transcript

AN INTRODUCTION

The JOBS Act was signed into law in 2012 to make it easier for small businesses to raise capital by easing certain securities regulations. The SEC has been slow to implement the changes but application is already broader than expected.

ABOUT REAL ESTATE CROWDFUNDING

THE TERM “CROWDFUNDING” Something of a misnomer when it comes to real estate, as deals are only open to accredited investors. This is not Kickstarter. We prefer “Real Estate Marketplace Finance.”

DISINTERMEDIATION Overall a great new paradigm for investors and sponsors, but also carries risk.

LET’S NOT GET CARRIED AWAY The need for sound diligence and reasonable return projections is crucial.

Equity Multiple, Inc. is an online marketplace that facilitates more transparent, efficient real estate investing and finance through innovative technology and superior industry leadership.

ABOUT

ACCESS We empower sophisticated individual and institutional investors by curating investment opportunities and providing essential tools for evaluating and investing in real estate.

EASE We offer real estate Sponsors a single solution for raising equity and debt capital, and investors a single access point to diligence and invest in a variety of deals, and monitor their performance.

EFFICIENCY Our vision is efficient, technology-driven real estate capital markets.

ABOUT

Charles Clinton CEO

Former real estate lawyer with Simpson, Thacher & Bartlett, primarily for Blackstone

& KKR. Graduated from Amherst 2005, Berkeley Law 2011.

Marious Sjulsen Head of Real Estate

10+ years in real estate private equity, primarily as VP of east coast acquisitions for Brickman. Graduated from the University of Chicago.

Founded in partnership with Mission Capital

FEB2015

Raised $1M in seed funding, led by Mission Capital principals

Platform goes live in “beta” with first offering: a value-add redevelopment in Bushwick, Brooklyn

AUG2015

Increased flow of new projects, including a cash-flowing multi-family property in Atlanta

OCT2015

MAR2015

EQUITYMULTIPLE taps into Mission Capital’s national network of 18,000+ investors and real estate companies

ABOUT

WHY

SURFACE & DISTRIBUTE BETTER INFORMATION

DRIVE ACCESS AND TRANSPARENCY

FACILITATE MORE EFFICIENT AND FULFILLING INVESTING

OUR MISSION

BENEFITS TO INVESTORSACCESS CURATED COMMERCIAL REAL ESTATE DIRECTLY Know exactly what you’re investing in and in what amount. All deals are diligenced to save you time in making investment decisions.

EXPERIENCED AND CONNECTED TEAM Our team has extensive experience across the real estate industry and our relationship with Mission Capital provides broad access to sponsors and deals

INVEST ALONGSIDE REAL ESTATE PROFESSIONALS Our user base includes a broad cross section of the real estate industry, as well as investors who have not historically had easy access to CRE investing.

BALANCED INFORMATION FOR INFORMED INVESTMENT We strive to provide both a clear & simple picture of the deal and offer transparent access to a deeper level of analysis and deal documentation.

ALIGNMENT OF INTERESTS We only make money when investors do so we’re incentivized to present good investment opportunities.

BENEFITS TO SPONSORS

EXPAND YOUR CAPITAL BASE Whether your alternatives are friends & family or institutional capital we provide access to a deep new investor base, on competitive economic and control terms, with fewer points of friction.

NO ORIGINATION COST Currently we’re charging no origination fees, we only look to cover our diligence and deal fees, rather than charge a % commission.

THE FULL CAPITAL STACK In partnership with Mission Capital, we can provide simultaneous access to both equity and debt financing.

ATTRACT LOYAL INVESTORS When your project starts returning capital to investors, you will encourage investor loyalty and attract new investors.

COMPANY ADVERTISING Even if you aren’t actively raising capital, you can create a company page and engage with the EM investor network

HOW IT WORKS

1

SOURCE DEALS Our deals are solicited through the site, through the team’s industry relationships, and through Mission

Capital’s nationwide network.

2

2

DILIGENCE

31

Our real estate team thoroughly vets each sponsor and deal.

Background Checks and Project Analysis

Market & Neighborhood Evaluation and Sales Comparables

Stress Test Sponsor Modeling Assumptions

STRUCTURING AND PREPARATION OF OFFERING

3 42

BROKER DEALER PARTNER REVIEW We are partnered with a broker dealer, Growth Capital Services, which reviews each deal and the offering documents before we post them on the platform.

4 53

PLEDGE PERIOD This period gives investors the chance to review the offering without time

pressure. Pledging investors get the first opportunity to finalize their investment.

5 64

6 75

LIVE INVESTMENT When you’re ready to invest, you can review and sign investment documents and provide all necessary info through our secure online checkout process. Funds are

submitted by wire or check and held back from the Sponsor until the minimum target raise has been met

REPORTING ON COMPLETED INVESTMENT

STEP76

STEP

Asset Monitoring Reporting Tax Documentation

NEXT STEPS

FEES

SPONSOR Zero origination fees, just expenses - this helps us find the better deals.

INVESTORS Our goal is to align our interests with investors:

• Servicing Fee - 0.5%

• Preferred Equity - Spread on Rate

• Equity - 10% of profits

WHY THIS STRUCTURE? • We only make money when deals perform

• We are incentivized to post good deals & monitor throughout life of deals

• Return projections are shown net of all fees

PROJECT UPDATES

BROOKLYN REDEVELOPMENT

LEASING PROGRESS Sponsor has negotiated additional rent with the anchor tenant and has a signed LOI for some of the remaining space for $50/SF, a substantial increase against the $38.50/sf that had initially been modeled for the space.

ENVIRONMENTAL REMEDIATION EFFORT COMPLETE The NY State Department of Environmental Conservation sent a letter confirming that no additional remediation efforts are required regarding oil spill contamination.

PROJECTED RETURNS INCREASED based on the good news, we have increased projected IRR to 15-19%

IN THE PIPELINE

ATLANTA MULTI-FAMILY PROJECT a cash-flowing property in the Atlanta suburbs. Remodeling and adding curb appeal to bring rents to market value

COMING SOON reviewing a variety of deals across the country

WE WANT TO SOURCE DEALS THAT FIT YOUR INVESTING STRATEGY please fill out your Investor Preferences within the platform and/or let us know directly

www.equitymultiple.com @EquityMultiple

QUESTIONS?

[email protected]


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