What is Ark7?
Ark7 is a prominent online platform specializing in fractional real estate investment. Founded in the Bay Area by former Google engineer Yizhen Zhao and co-founders Jim Holt, Ling Yang, and Yujian Weng, Ark7 aims to democratize real estate investment by enabling individuals to purchase fractional shares of rental properties.
With a user base exceeding 20,000 investors and a portfolio value surpassing $15 million, Ark7 provides its users with both monthly dividends from rental income and the potential for share appreciation. Properties under Ark7’s umbrella span various U.S. markets, encompassing states like California, Texas, and Washington.
In addition to its primary investment model, Ark7 differentiates itself with features such as IRA integration, a diverse property portfolio, and a secondary market for share trading.
Ark7 Review 2023 | Is Ark7 Right for Me?
Ark7, like so many fintech companies, was founded in California’s Bay Area. Ex-Google engineer Yizhen Zhao started it along with fellow founders Jim Holt, Ling Yang, and Yujian Weng.
Ark7’s premise is simple, and it’s essentially the same as most other fractional real estate platforms: provide investors with easier access to rental real estate by selling fractional shares of properties.
Ark7 has grown quickly, with more than 20,000 investors holding shares valued at more than $15 million. Should you join with these other Ark7 investors? Keep reading to learn more about Ark7, including how it works and what its top features are.
External Ark7 Review & Ratings
|5 from 43 reviews
|5 from 30 votes
|5 from 14 reviews
|Apple App Store
|4.4 from 106 reviews
Here are some reviews from traders who have experienced the platform firsthand:
“I’ve made several investments on the Ark7 platform over the past two years. Navigating the app or through a browser works equally as well. Their platform is smartly thought out, very user friendly. Communication and processing orders has been top notch!”
“For a beginner, very quick, and easy!”
“I really enjoy the work the Ark7 team has done. The transparency of this platform is wonderful and the convenience of use, the great mobile application; all in, this is one of the better experiences in my opinion in real state investments out there. The fact that both Ark7 and the investors have skin in the game makes this more a partnership than a service found elsewhere. This is just the beginning, but I can’t wait to see more and diverse investment opportunities or classes added to my portfolio. Steady wins the race! I’m glad to be able to invest in real state with Ark7. Thank you to the entire Ark7 team!”
“I’ve been investing with Ark7 for the past year or so on 2 different multifamily deals. They’ve paid out the agreed upon dividends on time each month and the platform is easy to use. Looking forward to reviewing future multifamily deals on the platform!”
How Does Ark7 Work?
Ark7 purchases rental properties, either in cash deals or through financing. They then list that property on their platform online, offering the property in a given number of shares. Ark7 usually keeps between 1-10% of the shares themselves.
Like other fractional real estate investment platforms, Ark7 provides investors with both dividends (paid monthly) as well as the possibility for share appreciation.
Ark7 currently has homes in a dozen or so markets, including in states such as California, Texas, Washington, Arizona, and Georgia.
Signing up with Ark7 is a pretty straightforward process, meaning you can get invested quickly.
Ark7 offers various features, some of which help set them apart from other fractional real estate investment platforms. Here are a few of them:
- IRA option – A neat thing about Ark7, and something not offered by all fractional real estate platforms, is the ability to hold your shares in an IRA (Roth or traditional). This means that you won’t be taxed on the rental income you receive by holding your shares. There is, however, a fairly hefty custodial fee (unless your balance is over $100k).
- Income and appreciation – Investing through Ark7 provides you with both passive income (dividends from rental income) as well as the possibility of share appreciation.
- Diverse properties – Ark7 offers a diversified portfolio of properties, including different markets, multi-family, short-term rentals, and much more.
- Ark7 secondary market – The Ark7 secondary market allows you to sell your shares. In theory, this means they are more liquid than some other fractional real estate investment companies. That said, secondary markets may not always be so active, meaning that finding a buyer could potentially be complicated.
With any investment, it’s important to take into account fees. Ultimately, fees diminish your investment returns. Some of them are necessary, while others may be unnecessary and/or exorbitant.
Ark7’s fees run a bit on the high side, and there are three of them. Here’s a quick breakdown:
- Sourcing Fee – This is a one-time fee that is 3% of the property’s market value.
- Property Management Fee – This fee depends on the property, but generally runs between 8% and 15% of the monthly rental income.
- IRA Custodial Fee – If you hold your Ark7 properties in an IRA, there’s a $100 custodial fee per property per year, up to $400. IRAs with more than $100,000 have the fee waived.
Is Ark7 Worth It?
Ark7 is one of many fractional real estate investment platforms. Thanks to companies like these, it’s never been easier to invest in real estate. You don’t need thousands (or even hundreds) of dollars, nor the time or energy for scouting a property, buying it, finding tenants, managing it, etc.
But is Ark7 worth it? That will depend on your own unique needs and preferences. There are many strong competitors out there, such as Fundrise. In any case, Ark7 is a verified company on Trustpilot with a 4.4/5 rating, meaning that it’s by and large a trustworthy and reliable investment platform.
To check out Ark7 for yourself, click here to see how it aligns with what you’re looking for in a fractional real estate investment platform.