Best Ark7 Competitors

Jeremy Biberdorf Image
Updated
Dec 09, 2024
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Quick Breakdown

Quick Breakdown


  • Best for diversified real estate portfolios with low minimum investments, accessible to non-accredited investors.

  • Ideal for accredited investors seeking investment in high-quality commercial real estate.

  • Suitable for investors looking for higher-end commercial real estate investments with a focus on direct investment strategies.
The real estate investment landscape has dramatically evolved with the advent of online platforms that allow fractional ownership, making property investment more accessible to a broader audience. Ark7 stands out as a pioneer in this sector, offering fractional real estate investment opportunities.

This article explores the intricacies of Ark7, evaluates its pros and cons, and compares it with its top competitors, providing insights into the best options available for real estate investors.

What is Ark7?

Ark7 is an innovative online platform that has revolutionized real estate investment by offering fractional ownership of rental properties. This approach allows investors to buy shares in rental properties, enabling them to earn a share of the rental income and potentially benefit from property value appreciation. With minimum investments as low as $20, Ark7 has made real estate investment more accessible to a broader range of investors.

Founded in the Bay Area by a team of tech and real estate professionals, including former Google engineer Yizhen Zhao, Ark7's mission is to democratize real estate investment. The platform boasts over 20,000 investors and a portfolio value exceeding $15 million, with properties spread across various U.S. markets. Ark7's user-friendly interface, IRA integration, and a secondary market for share trading are some of its distinguishing features.

Check out my detailed review of Ark7 to dive a lot deeper into the platform's features, benefits, and drawbacks.

Ark7 Pros & Cons

Pros

● Low minimum investment, making it accessible to many investors

● Diverse property portfolio across several U.S. states

● Monthly dividends from rental income

● Potential for share appreciation

● User-friendly interface and convenient online platform

Cons

● Finality of sales, lacking flexibility in investment exit

● High fees, including property management and IRA custodial fees

● Limited to accredited investors

● Restricted liquidity due to the nature of real estate investment

● Limited geographic diversity in property locations

Why Seek Alternatives to Ark7?

While Ark7 offers an innovative approach to real estate investing, certain aspects might prompt investors to consider alternatives. The platform's high fees can be a deterrent, and the finality of sales might not suit investors seeking more liquidity.

Additionally, the platform's focus on specific geographic locations might not align with investors' diversification strategies. Alternative platforms could offer more diverse property portfolios, lower fees, and different investment structures that cater to both accredited and non-accredited investors.

I also have an article that covers the best fractional real estate investing platforms – there you can find even more alternatives to choose from.

Learn More About Ark7

Top 3 Ark7 Competitors

Fundrise

4.6 stars
Fees 1%
Best For Diversified real estate funds
Benefits
Overview
Company
  • Low minimum investment starting at $500
  • Open to non-accredited investors
  • Regular dividend payouts and potential for property appreciation
  • Diversified portfolio including eREITs and eFunds
  • IRA investment options available
  • Transparent fee structure
  • User-friendly platform with educational resources
  • Strong track record in the real estate crowdfunding sector
Fundrise is a leading real estate investment platform that has democratized real estate investing by allowing individuals to invest in portfolios of real estate assets with as little as $500. Known for its eREITs and eFunds, Fundrise offers a variety of real estate investment opportunities, including commercial and residential properties across the United States.
Established in 2010 by brothers Ben and Dan Miller, Fundrise is headquartered in Washington D.C. The company was one of the first to offer eREITs, providing a novel way for average investors to access real estate investments traditionally reserved for the wealthy. With its innovative approach, Fundrise has garnered a large user base, making it a dominant player in the real estate crowdfunding space.

First National Realty Partners (FNRP)

4.9 stars
Fees 0.5% to 1.5% Asset Management Fee, determined on a per-deal basis. Other fees may apply.
Best For Commercial properties
Benefits
Overview
Company
  • Exclusively for accredited investors, offering access to high-quality commercial real estate
  • A focus on grocery-anchored commercial properties for steady cash flow
  • Transparent investment process with comprehensive due diligence
  • Strong emphasis on property value-add and capital appreciation
  • Quarterly distributions and detailed financial reporting
  • Direct investment in individual commercial properties
  • A high degree of professionalism and investor support
  • Robust portfolio diversification options within the commercial real estate sector
FNRP stands out as a premium platform for accredited investors interested in commercial real estate, particularly in grocery-anchored properties. The company focuses on value-add investment opportunities, aiming to enhance property value through strategic improvements and strong management.
Founded by Anthony Grosso and Christopher Palermo in 2015 and based in Red Bank, New Jersey, FNRP has rapidly grown to manage a substantial portfolio. The company's expertise lies in identifying under-valued assets and implementing strategies to maximize investor returns, making it a compelling choice for serious real estate investors.

EquityMultiple

4.5 stars
Fees Between 0% and 1.5%, depending on investment type
Best For Accredited investors
Benefits
Overview
Company
  • Access to high-quality commercial real estate investments
  • Diverse range of investment types including debt, equity, and preferred equity
  • Lower minimum investment compared to traditional real estate investment
  • High potential returns with detailed project information
  • Rigorous vetting process for each investment opportunity
  • User-friendly platform with a focus on investor education
  • Transparent fee structure and investment terms
  • Professional customer support and investor relations team
EquityMultiple offers accredited investors the opportunity to invest in a wide range of commercial real estate projects, from individual developments to larger funds. The platform prides itself on its stringent selection process and emphasis on investor education, providing detailed insights into each investment opportunity.
Co-founded by Charles Clinton and Marious Sjulsen in 2015, EquityMultiple operates from New York and has quickly established itself as a reliable platform for sophisticated real estate investments. The company's partnership with Mission Capital Advisors enhances its ability to source and vet high-quality real estate deals.

Final Thoughts

Ark7 presents a unique opportunity for investors interested in fractional real estate investment, particularly in rental properties. If Ark7 feels like the right match for you and your real estate investing goals, click here to learn more.

For those seeking alternatives, platforms like Fundrise, FNRP, and EquityMultiple offer a range of options catering to different investment preferences and goals.

If you are an investor looking for a low entry point and portfolio diversification, Fundrise is an excellent choice. FNRP is ideal for accredited investors with a focus on commercial real estate, offering a hands-on investment experience. EquityMultiple appeals to those seeking direct investment opportunities in commercial real estate with a higher-end focus.

Each platform has its strengths, and the choice ultimately depends on the investor's financial goals, risk tolerance, and investment strategy. Whether it's fractional ownership, commercial real estate, or diversified real estate portfolios, these platforms cater to a wide spectrum of investment needs, offering unique opportunities for both experienced and novice investors.

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.