Ark7 vs Lofty

Choosing between traditional real estate structures and blockchain-based tokenization can determine your investment experience and returns. While Lofty offers innovative blockchain technology with daily rental income, Ark7 delivers accessible, transparent fractional ownership of U.S. rental properties with monthly passive income starting at just $20. Understanding these fundamental differences—between familiar real estate investing and cryptocurrency complexity—helps investors select the approach that matches their risk tolerance, technical comfort, and investment goals.

Key Takeaways

• Ark7 offers the lowest entry point for property-specific investing – Start building a real estate portfolio with just $20 per share, compared to Lofty’s $50 minimum and Arrived’s $100 requirement
• Traditional structure without blockchain complexity – Ark7 uses familiar Series LLC ownership with SEC Reg A+ qualification, avoiding the cryptocurrency learning curve required by Lofty’s Algorand blockchain platform
• Monthly passive income with transparent fees – Ark7 delivers consistent monthly cash distributions with clear 3% sourcing and 8-15% property management fees, compared to Lofty’s 3% trading fee on sell transactions
• Regulated secondary market access – After a 12-month holding period, Ark7 investors can sell shares through the PPEX ATS, an SEC-registered Alternative Trading System operated by North Capital
• IRA-friendly with simple tax reporting – Ark7 provides straightforward retirement account integration and simple 1099 tax forms instead of complex K-1s or cryptocurrency tax tracking

When investors seek to build wealth through real estate without becoming landlords, the choice between established fractional ownership platforms becomes critical. Two distinct approaches—Ark7 and Lofty—represent fundamentally different philosophies toward real estate investing. While Lofty operates as a blockchain-based platform using tokenization and cryptocurrency payments, Ark7 provides traditional fractional ownership of curated U.S. rental properties with professional management. This comparison reveals why Ark7’s accessible, transparent approach delivers superior value for everyday investors who want real estate exposure without technical complexity.

Understanding Each Platform’s Core Positioning

Lofty positions itself as a blockchain real estate investment platform, offering tokenized ownership of individual properties through the Algorand blockchain. Founded in 2021, Lofty has built its reputation on innovative technology with daily rental income distributions in USDC stablecoin. The platform serves investors comfortable with cryptocurrency wallets and blockchain transactions, offering immediate liquidity through its native marketplace.

Ark7 takes a radically different approach. Founded in 2018-2019 by Andy Zhao, a former Google engineer, Ark7 specializes in fractional ownership of high-yield U.S. rental properties through SEC-qualified Reg A+ offerings. Rather than requiring blockchain expertise, Ark7 delivers traditional real estate investing made accessible through technology. The platform has served over 220,000 active investors, funding $23 million+ in property value and distributing $3.5 million+ in cash dividends.

The fundamental difference lies in accessibility: Lofty requires cryptocurrency knowledge, while Ark7 offers familiar real estate investing with modern convenience.

Investment Structure and Property Selection

Lofty’s blockchain approach includes:

• Tokenized property ownership on Algorand blockchain
• Daily rental income distributions in USDC stablecoin
• Immediate trading capability on native marketplace
• $50 minimum investment per token
• DAO LLC legal structure

This innovative approach works for crypto-savvy investors but creates barriers for those unfamiliar with blockchain technology.

Ark7’s traditional fractional ownership focuses on tangible real estate assets:

• Direct fractional ownership in specific U.S. rental properties
• Monthly cash distributions paid directly to your account
• Curated selection of single-family homes and townhomes in high-growth markets
• Properties in Atlanta, Tampa, Dallas, and other Sunbelt regions
• Starting investment as low as $20 per share
• SEC Reg A+ qualified offerings allowing non-accredited investor participation

The property-level control matters significantly. While both platforms offer individual property selection, Ark7’s focus on high-yield rental homes in growing markets provides consistent income potential. For example, investors can choose specific properties like the Atlanta-T3 Property Shares, a newly built 3-bedroom townhome in a high-growth Sunbelt region, or the Tampa-S10 Property Shares, a 4-bedroom single-family home in a strong rental market near top employers and A-rated schools.

Pricing Models and Fee Structures

The fee structures reveal each platform’s value proposition and target investor.

Lofty’s blockchain pricing structure:

• 3% trading fee on sell transactions
• Property management costs built into operations
• 2.9-3.9% + $0.30 deposit/withdrawal fees
• No explicit sourcing/acquisition fees (built into token price)

Ark7’s transparent fee structure:

• 3% sourcing/acquisition fee of total offering amount
• 8-15% property management fee of rental income
• No platform/advisory fees (built into operations)
• Secondary market costs minimal after 12-month holding period

When calculating total cost of ownership, the comparison becomes nuanced. Lofty’s 3% trading fee applies only to sell transactions, not purchases. Ark7’s one-time 3% sourcing fee provides permanent ownership with only ongoing management fees based on actual rental income received.

For a $1,000 investment with 10% annual yield ($100 rental income), Ark7’s total Year 1 costs would be approximately $38-45, while Lofty’s 3% sell fee on a $1,000 sale would be $30, plus 2.9-3.9% deposit/withdrawal fees.

Liquidity and Secondary Market Access

Both platforms address the traditional illiquidity of real estate, but with different approaches.

Lofty’s liquidity model:

• Immediate trading capability with no lockup period
• Native marketplace on Algorand blockchain
• 3% trading fees on sell transactions
• Liquidity dependent on finding buyers (not guaranteed)

Ark7’s regulated liquidity approach:

• 12-month minimum holding period before selling
• SEC-registered PPEX ATS for share resales
• Broker-dealer oversight through Dalmore Group LLC
• Regulated alternative trading system operated by North Capital

While Lofty advertises immediate liquidity, the reality is that trading depends on finding willing buyers—a challenge for less popular properties. Ark7’s 12-month holding period balances investor protection with liquidity needs, while the PPEX ATS provides a regulated venue with broker-dealer oversight.

For investors seeking retirement accounts, Ark7 offers clear IRA integration with Millennium Trust, charging $100 per property (capped at $400 annually), while Lofty’s IRA options are not prominently featured.

Technology and User Experience

Lofty’s blockchain technology requires:

• Cryptocurrency wallet setup and management
• Understanding of USDC stablecoin and Algorand blockchain
• Comfort with on-chain transactions and verification
• Mobile app for iOS/Android with blockchain functionality

Ark7’s accessible technology includes:

• Traditional bank transfers and credit/debit card payments
• Intuitive mobile app for property discovery and management
• Simple account setup without cryptocurrency knowledge
• 24/7 access to complete legal and financial disclosure
• Monthly dividend tracking and portfolio insights

The technology difference proves critical for mainstream adoption. While blockchain offers transparency through on-chain verification, it creates significant barriers for the average investor. Ark7’s approach eliminates technical complexity while maintaining full operational transparency, with complete legal and financial disclosure accessible 24/7.

Regulatory Compliance and Investor Protection

Lofty’s regulatory approach:

• DAO LLC structure with limited regulatory oversight
• Blockchain-based ownership with evolving regulatory landscape
• Global accessibility for international investors
• Self-custody of digital assets

Ark7’s regulatory compliance:

• SEC Reg A+ qualified offerings with full regulatory oversight
• Series LLC structure with clear legal ownership
• FINRA/SIPC registered broker-dealer (Dalmore Group LLC)
• Accredited business with 4.1/5 Trustpilot rating
• Electronic securities with clear investor protections

For U.S. investors prioritizing regulatory clarity, Ark7’s SEC-qualified offerings provide significant advantages. The platform’s compliance with securities regulations ensures investor protections that blockchain platforms may lack.

Returns and Income Generation

Both platforms generate returns through rental income and potential property appreciation, but with different distribution frequencies.

Lofty’s income model:

• Daily rental income distributions in USDC
• 0-12% guidance range for annual cash flow
• Property appreciation potential included in token value
• Cryptocurrency tax reporting requirements

Ark7’s income approach:

• Monthly cash distributions in USD
• 3.2-7% recent payout range for annual cash flow
• Long-term appreciation potential through property ownership
• Simple 1099 tax reporting instead of complex K-1s

While Lofty’s daily distributions sound appealing, the practical reality involves cryptocurrency conversion and tax complexity. Ark7’s monthly USD distributions provide predictable, taxable income with straightforward reporting.

Geographic Focus and Market Strategy

Lofty’s market presence:

• Approximately 150+ properties across 40 markets
• Global accessibility for non-U.S. investors
• Broader property selection with less yield-focused curation

Ark7’s strategic focus:

• Curated high-yield rental properties in growing U.S. markets
• Focus on Sunbelt regions with strong job and population growth
• Properties in Atlanta, Tampa, Dallas, and other high-demand areas
• Professional underwriting and property selection

Ark7’s focused strategy delivers better risk-adjusted returns through careful property selection in markets with strong fundamentals. For example, the Dallas-S9 Property Shares features a 4-bedroom home in NE Dallas, an area with 23 Fortune 500 companies, 30% median sale price appreciation, and 41.4% rental rate growth over five years.

Why Ark7 Delivers Superior Value for Everyday Investors

Mainstream investors seeking real estate exposure without landlord responsibilities benefit more from Ark7’s accessible, transparent approach than Lofty’s blockchain complexity.

Key advantages of Ark7’s approach:

• Accessibility: $20 minimum investment makes real estate portfolio building possible for students, young professionals, and micro-investors who want property control
• Simplicity: Traditional LLC structure avoids cryptocurrency learning curves, making real estate investing as easy as stock investing
• Transparency: Clear 3% sourcing + 8-15% management fee structure with no hidden costs, plus 24/7 access to complete legal and financial disclosure
• Regulatory clarity: SEC Reg A+ qualification provides investor protections and regulatory oversight that blockchain platforms may lack
• Tax simplicity: 1099 forms instead of complex K-1s or cryptocurrency tax tracking reduces filing complexity and costs

For everyday investors seeking to build wealth through real estate without technical complexity, Ark7 represents the superior approach to fractional ownership. The combination of accessible minimums, transparent operations, regulatory compliance, and professional property management creates compelling value that blockchain platforms cannot match for mainstream investors.

Frequently Asked Questions

What is the minimum investment required to start with Ark7?

Ark7 allows investors to start building a real estate portfolio with just $20 per share, making it the lowest minimum for property-specific investing among major platforms. This compares to Lofty’s $50 minimum and Arrived’s $100 requirement. The low barrier to entry enables micro-investors, students, and young professionals to begin real estate wealth building immediately with properties like the Atlanta-T3 Property Shares or other curated high-yield rental homes.

How does Ark7 ensure transparency for its investors?

Ark7 provides full operational transparency through 24/7 access to complete legal and financial disclosure for each property. Investors can review detailed property information, financial projections, and offering documents before investing. The platform maintains a clear fee structure with 3% sourcing and 8-15% property management fees disclosed upfront, with no hidden costs. Additionally, Ark7’s SEC Reg A+ qualification ensures regulatory oversight and investor protections, while the accredited business status and 4.1/5 Trustpilot rating demonstrate commitment to transparency and customer satisfaction.

Can I invest retirement funds (IRA) in real estate through Ark7?

Yes, Ark7 offers straightforward IRA integration through partnership with Millennium Trust, allowing both Traditional and Roth IRA investments in real estate. The platform charges $100 per property annually (capped at $400), which is waived for accounts with average balances over $100,000. This IRA option provides tax-advantaged real estate accumulation with simple setup and clear fee structure. The integration makes retirement investing accessible for those seeking diversification beyond traditional stocks and bonds.

How liquid are investments on Ark7, and can I sell my shares easily?

Ark7 provides regulated liquidity through the PPEX ATS (Public Private Execution Network Alternative Trading System), an SEC-registered alternative trading system operated by North Capital. Investors must hold shares for a minimum of 12 months before selling on the secondary market. While this holding period is longer than Lofty’s immediate trading capability, it provides investor protection and platform stability. The PPEX ATS offers broker-dealer oversight through Dalmore Group LLC, ensuring regulatory compliance and investor protections that peer-to-peer blockchain trading may lack.

What kind of properties does Ark7 offer for investment?

Ark7 focuses on curated high-yield rental properties in growing U.S. markets, particularly Sunbelt regions with strong job and population growth. The portfolio includes single-family homes and townhomes in metropolitan areas like Atlanta, Tampa, and Dallas. Properties are professionally sourced, acquired, and managed, with features like modern design, low maintenance requirements, and proximity to major employers. Examples include the Tampa-S10 Property Shares, a 4-bedroom home in Land O Lakes, FL, near top employers and A-rated schools, and the Dallas-S8 Property Shares, a 3-bedroom home in NE Dallas with recent dividend yields of 6.51%.