EQUITYMULTIPLE Investor Intro

© 2016 EquityMultiple, Inc. All rights reserved.

What?

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EQUITYMULTIPLE is an online marketplace that helps you diversify and grow your portfolio through easy access to pre-vetted real

estate investment opportunities.

Like E-Trade did for stocks and Betterment is doing for wealth management, EQUITYMULTIPLE makes it easy for individual

investors to create and manage their own portfolio of pre-vetted commercial real estate.

Manage Wealth

Trade Stocks

Build a Diversified Real Estate Portfolio


Why?

7% Natural Resources

Fixed Income 4% 22%

Real Estate Cash/Savings Bonds Stocks Real Estate

2.99% 3.91% 4.07% 8.72%

Average Returns 2000-2014

$400 billion+ U.S. CRE transactions annually

Real estate provides strong returns, less volatility and low correlation to the public markets

yet investors remain dramatically under allocated

Average Real Estate Allocation

Institutional Investors! 10%!Yale Endowment! 20%!HNW Individuals! >3%!

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The Problem – A Difficult to Access Asset Class

Lack of Transparency Ø  Blind pool investing Ø  Insufficient or outdated reporting

Barriers to Entry Ø  High investment minimums Ø  “Country club” connections Ø  Time & expertise intensive

High Fees & Costs Ø  Private equity: 2% & 20% Ø  Private non-traded REIT’s: 10%+

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Who?

Charles Clinton, Founder, CEO Previously a real estate attorney with Simpson, Thacher & Bartlett, where he worked on over $10 billion in major transactions for private equity clients, primarily Blackstone and KKR. Received his JD and Business Law Certificate from Berkeley Law and BA cum laude from Amherst College. He has FINRA Series 7 and 66 registrations.

Marious Sjulsen, Founder, CIO Joined EM from a New York private development firm where he was in charge of building out its commercial real estate platform. Prior, he worked for eight years at Brickman, a national private equity firm where he was a VP in charge of acquisitions for the east coast. Received his BS from the University of Chicago.

Peter Shankar, CTO Previously head of technology at Mission Capital, where he led the full build out of an online loan auction platform which has transacted over $65 billion in business. Prior to Mission, Peter was a founding partner at Think Tech Labs, a tech consulting firm and held financial services consulting positions at Accenture and Sungard.

David Tobin, Advisor, BoD David advises on the strategic direction of EM and helping grow the business through strategic partnerships. Co-founded Mission Capital in 2002 and brings broad transactional experience in loan sale advisory, investment banking and commercial real estate debt and equity raising.

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How?

1)  Experienced Companies in our network source CRE Investment opportunities

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Select from a curated set of investment opportunities, from experienced lenders and sponsors, that have passed multiple layers

of diligence

3) We diligence specific projects, stress test underwriting assumptions, and select <5% of submissions

2) We Vet Company and Market, seeking attractive risk-adjusted returns for investors

4) You invest, from a curated set of deals that have passed multiple layers of diligence


Our Approach – Tiered Diligence

Source - Companies & Deals

Offer - Optimal Deal Set

Deal Type Selection

Determine deal types for platform based on: •  Market cycle & conditions •  Investor feedback •  Process efficiency

Originator Diligence

For each deal, an experienced lender or sponsor: •  Sources transaction •  Diligences transaction •  Funds & keeps skin in the game

EM Re-Underwriting

Deals

Source - Companies & Deals 250+

Capital Requests

>5% Acceptance rate

11 Deals launched

EM diligences the diligence •  Review sponsor or lender track record •  Request and review sponsor/lender

diligence materials •  Determine funding target and investment

terms on behalf of Investors

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Our Target Deal Profile:

Source - Companies & Deals

Offer - Optimal Deal Set

Senior Debt •  Target Annual Cash Return: 6-12% •  Typical Term: 6-24 Months •  Secured by First Lien &/or Deed of Trust

Equity •  Target Annual Cash Return: 5-10% •  Target Annual Total Return: - Preferred Equity: 10-16% - Common Equity: 14%+ •  Typical Term: 3-7 Years

Source - Companies & Deals Other Attributes •  Mix of current and future cash flows •  Broad spectrum of primary, secondary, and tertiary markets across the U.S. •  Typically $5k minimum investment

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What About Other Platforms?

Equity

Single-Family Commercial

Debt Mission Capital Partnership: •  Extensive experience: over $65bn in

closed loan transactions •  Deep industry relationships:

established relationships with hundreds of lenders and sponsors across the country

Syndication Approach is Unique: •  Only 1 company, Peerstreet, syndicates

debt and they target fix-and-flip loans (rather than commercial)

Fee Structure Aligns Interest: •  We charge relatively small platform

fees to deal originators •  We charge relatively small asset

management fees to investors, instead making money only when our deals succeed

Why We’re Different

$2.5B globally in 2015; 3.6B 2016 (proj)

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What is Debt Syndication?

Debt syndication is the process of offering a portion of a loan that was originated and funded by a third party lender to investors

Lenders •  Originates loan •  Fully funds •  Retains risk: keeps

20%+ skin in the game

•  Diligences lender process & track record

•  Major item diligence on each asset •  Selects which loans to present to

investors

HNW Investors

Institutional investors

RIAs, brokers & Self directed IRAs

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