ARK7 vs Fundrise 2025: Which real estate platform is better?

ARK7 vs Fundrise Videos

ARK7

ARK7 stands out for providing specific property investment opportunities, primarily focusing on residential real estate. This setup enables investors to have a hands-on approach, allowing them to select properties they personally believe will yield good returns. Each property on ARK7 is treated as a separate entity, and investors have the opportunity to purchase shares in individual properties.

This approach aligns with investors who want to have a more direct relationship with their investments and make targeted decisions based on the specific properties they find attractive.

Fundrise

Fundrise, on the other hand, takes a more diversified app roach by offering a mix of residential and commercial real estate investments. The platform operates through eREITs (electronic Real Estate Investment Trusts), which pool the investments of many investors into a shared portfolio.

This setup allows for broader exposure to the real estate market and is particularly beneficial for those seeking diversification. Fundrise’s model caters to investors who prefer a passive income strategy and want to mitigate risks by spreading their investments across multiple properties.

ARK7

The Ark7 platform and app are free to use, but they do charge certain fees associated with the investments. A one-time sourcing fee of 3% of the Property Market Cap is charged by Ark7 for sourcing, acquiring the property, and listing it on the Ark7 platform in sellable shares. This fee covers the upfront costs related to making the property available for investment.

In addition, ARK7 charges a monthly asset management fee ranging from 8-15% of the rental income from the property. This fee is paid to ARK7 as the Asset Manager for maintaining the property and managing tenants, ensuring a seamless experience for investors.

Fundrise

Fundrise charges its clients a small annual advisory fee of 0.15%. This means that over a 12-month period, you will pay a $1.50 advisory fee for every $1,000 you’ve invested with Fundrise. The advisory fee covers services such as customized real-time client performance reporting, automated dividend distribution system, automated tax management processing, customer support and investor relations, and portfolio construction.

Additionally, Fundrise covers the expenses inherent to their real estate funds via an annual flat management fee. This ranges from 0.85% for the Flagship Fund, Income Real Estate Fund, and family of eREITs and eFunds, to 1.85% for the Fundrise Innovation Fund. The fees go towards the investment allocation and advisory oversight of the hundreds of real estate projects in clients’ portfolios.

ARK7

ARK7’s investment process is more hands-on, catering to investors who prefer to be directly involved in their investments. Investors can select individual properties they wish to invest in and monitor their investments closely.

ARK7’s user-friendly platform provides all necessary information about each property, including details about the location, expected rental income, and other key data. ARK7 also allows investors to easily manage their investments and keep track of their returns. This more personalized experience can be highly satisfying for those who wish to be actively involved in their investments.

Fundrise

Fundrise, on the other hand, offers a more passive investment experience. The platform provides diversified portfolios consisting of different types of properties. This simplifies the investment process for investors, who do not need to research individual properties but can rely on Fundrise’s expert team to construct and manage portfolios.

Fundrise’s user-friendly interface, transparency of property information, and automated investment management make it an excellent choice for those seeking a more hands-on, passive investment strategy. It is a highly user-friendly platform that offers a streamlined, efficient investment process.

Factor 4: External Customer Reviews & Ratings

External Ark7 Reviews & Ratings

External Fundrise Reviews & Ratings

Ark7 vs Fundrise: The Bottom Line

Ark7 and Fundrise both offer unique platforms for investing in real estate, providing retail investors with diverse options, resources, and tools to make informed investment decisions. However, your choice between the two will ultimately depend on your unique needs, investment strategies, and budget.

Ark7 distinguishes itself with its direct property investment approach, allowing investors to pick and choose individual properties to invest in. Its straightforward fee structure and detailed property information make the platform suitable for those who wish to take a more hands-on role in their investments.

If you find the idea of directly investing in specific properties appealing, and value Ark7’s user-friendly interface and transparent fee structure, you can learn more about it by clicking here.
Learn More About Ark7

Conversely, Fundrise stands out with its diverse portfolios of various types of properties and a passive investment strategy. With its relatively low annual advisory and management fees and its array of real estate investment options, Fundrise may be a better fit for those seeking a more passive investment experience.

If you prefer the diversified portfolios and automated management offered by Fundrise, you can learn more about it by clicking here.

Learn More About Fundrise

In terms of fees, Ark7 charges a one-time sourcing fee and a monthly asset management fee based on rental income, whereas Fundrise charges an annual advisory fee and a flat management fee.

Both platforms offer unique opportunities for investing in real estate. It is advisable to take a close look at what each platform offers and consider how well they align with your investment strategy, needs, and budget. Your personal preference, investment goals, and specific needs will ultimately determine the right choice for you.