Ark7 vs HoneyBricks

When comparing fractional real estate investment platforms, the choice between accessibility and exclusivity becomes critical. While HoneyBricks targets accredited investors with higher minimum investments and commercial real estate focus, Ark7 democratizes real estate investing with industry-leading accessibility, lower minimums, and consistent monthly income from residential properties. Understanding these fundamental differences—between platforms requiring accreditation versus those open to all investors—helps individuals select the approach that matches their financial situation, investment goals, and risk tolerance.

Key Takeaways

• Ark7 offers the lowest barrier to entry in fractional real estate – $20 minimum investments with no accreditation requirement, compared to HoneyBricks’ $5,000 typical minimum and accredited investor requirement
• Monthly income consistency defines Ark7’s advantage – Predictable monthly dividend distributions versus HoneyBricks’ deal-specific payout schedules
• Liquidity leadership through active secondary market – Ark7 provides access to a trading market with 23+ properties after a 12-month holding period, while HoneyBricks offers more limited secondary market access
• Simpler tax reporting with 1099 forms – Ark7 delivers straightforward tax documentation compared to potentially complex K-1s from other platforms
• 220,000+ active investors trust Ark7 – Substantial user base demonstrating broad market acceptance

Understanding Each Platform’s Core Positioning

HoneyBricks positions itself as a premium fractional real estate platform focused on institutional-quality commercial deals, primarily multifamily apartment buildings. Founded in 2022 and recently acquired by EquityMultiple, HoneyBricks targets accredited investors seeking higher return potential through blockchain-based security tokens. The platform requires investors to meet SEC accreditation requirements ($200K+ annual income or $1M+ net worth excluding primary residence) and typically demands minimum investments of $5,000 per deal.

Ark7 takes a radically different, more inclusive approach. Founded in 2018 and headquartered in San Francisco, Ark7 is committed to making real estate investment accessible to everyone through Regulation A+ qualified offerings. Rather than restricting access to accredited investors, Ark7 opens the door to all US investors 18+ with minimum investments as low as $20 per share. The platform focuses on curated high-yield residential properties—single-family homes and small multifamily units—across growing Sunbelt markets. With 220,000+ active investors and $23+ million in property value funded, Ark7 has established itself as a leader in democratizing real estate investing.

The fundamental difference lies in philosophy: HoneyBricks serves the few with higher capital requirements, while Ark7 empowers the many with unprecedented accessibility.

Investment Models Show Distinct Strategic Focuses

HoneyBricks’ investment approach includes:

• Accredited investor requirement for US investors
• Typical $5,000 minimum investment per deal
• Focus on commercial multifamily apartment buildings
• Target returns of 15%+ annually (including appreciation)
• Blockchain-based security tokens for enhanced transparency
• Regulation D and S offerings
• Deal-specific distribution schedules

This exclusive model works for high-net-worth accredited investors seeking institutional-quality commercial real estate exposure but creates significant barriers for the average investor.

Ark7’s investment model focuses on accessibility and transparency:

• No accreditation requirement for most properties (Regulation A+ qualified)
• Minimum investments from just $20 per share
• Focus on residential properties in high-growth Sunbelt markets
• Monthly cash distributions from rental income
• Average projected annual yield of 4.4-4.5%
• Full operational transparency with complete legal and financial disclosure
• Ability to invest through traditional or Roth IRAs

For example, while HoneyBricks might offer access to a $10M multifamily property requiring $5,000 minimum investment and accreditation verification, Ark7 allows investors to purchase shares in specific residential properties for just $20, with no accreditation check required. This accessibility advantage becomes crucial for first-time investors or those seeking to diversify across multiple properties with limited capital.

Accessibility and Minimum Investment Requirements

The accessibility gap between these platforms reveals their fundamentally different target markets.

HoneyBricks’ accessibility limitations:

• Accredited investor requirement for US investors
• $5,000 typical minimum investment per deal
• Limited to investors meeting SEC net worth or income thresholds
• Excludes the vast majority of US investors

Ark7’s inclusive approach:

• Open to all US investors 18+ (no accreditation required)
• Minimum investments from $20 per share
• Ability to diversify across multiple properties with small amounts
• Designed for first-time real estate investors

This distinction matters fundamentally. Most Americans cannot meet accredited investor requirements, yet they still deserve access to real estate investment opportunities. Ark7’s Regulation A+ qualification enables this inclusivity while maintaining full SEC compliance. With $20 minimums, investors can build a diversified portfolio across multiple properties and markets—something impossible on platforms requiring $5,000 minimums per deal.

For beginners seeking to start their real estate investment journey, Ark7’s approach aligns with the principle that everyone should have the freedom to build wealth through real estate. The platform’s commitment to accessibility reflects its mission to side with the many rather than the few.

Returns and Income Distribution Models

Both platforms offer income-generating real estate investments, but their return profiles and distribution models differ significantly.

HoneyBricks’ return profile:

• 15%+ targeted annual returns (including appreciation)
• 5%+ cash-on-cash return targets
• Deal-specific distribution schedules
• Higher return potential comes with higher risk profile
• Returns include both cash flow and projected appreciation

Ark7’s income model:

• 4.4-4.5% average projected annual yield
• Consistent monthly distributions (paid on the 3rd of each month)
• Income derived from actual rental payments after expenses
• Conservative, steady income focus rather than maximum returns
• Transparent reporting of actual vs. projected returns

The income consistency advantage proves critical for investors seeking reliable passive income. While HoneyBricks’ 15%+ targets are appealing, they include projected appreciation rather than guaranteed cash flow. Ark7’s 4.5% yield represents actual monthly rental income, providing predictable cash flow for budgeting and reinvestment.

For investors prioritizing steady income over maximum returns, Ark7’s monthly distribution model offers superior cash flow predictability. The platform’s focus on residential rental properties in stable markets provides a conservative foundation for long-term wealth building, particularly when compared to the higher-risk/higher-reward commercial deals offered by HoneyBricks.

Liquidity and Secondary Market Access

Liquidity represents another critical differentiator between these platforms.

HoneyBricks’ liquidity profile:

• Limited secondary market access
• “Slower and less predictable” exit opportunities
• Typical fractional real estate illiquidity challenges
• Platform transition following EquityMultiple acquisition

Ark7’s liquidity advantages:

• Active secondary trading market with 23+ properties currently listed
• Ability to sell shares after 12-month holding period
• 1-3 day fulfillment possible if buyer demand exists
• Transparent pricing and trading information

The liquidity difference proves significant for investors who may need to access their capital. While both platforms involve inherently illiquid real estate investments, Ark7’s active secondary market provides a meaningful liquidity advantage over platforms with limited or no secondary trading options.

This liquidity leadership becomes particularly valuable for investors building emergency funds or those who may need to rebalance their portfolios. The ability to sell shares after a 12-month holding period—while not guaranteeing immediate liquidity—provides more flexibility than typical 5-7 year lockups common in real estate investing.

Technology and User Experience

Both platforms offer modern technology, but their user experiences cater to different investor profiles.

HoneyBricks’ technology approach:

• Blockchain-based security tokens
• iOS and Android mobile apps (via EquityMultiple)
• Focus on institutional-grade deal presentation
• Complex investment structures requiring sophistication

Ark7’s user experience:

• Intuitive mobile app available on iOS and Android
• Simple, straightforward investment process
• Transparent property details and financial information
• Educational resources for first-time investors
• 4.7/5 Apple App Store rating

Ark7’s technology philosophy emphasizes simplicity and accessibility. The platform’s mobile app allows investors to discover properties, manage shares, track dividends, and access the secondary market from their phones. This user-friendly approach aligns with Ark7’s mission to make real estate investing as easy as stock investment.

For investors new to fractional real estate, Ark7’s straightforward interface and transparent information reduce the learning curve significantly compared to platforms offering more complex commercial real estate deals with blockchain tokenization.

Fees and Total Cost of Ownership

Both platforms maintain transparent fee structures, though their models differ based on their investment approaches.

HoneyBricks’ fee structure:

• No platform fees to investors
• Deal-level sponsor fees embedded in offerings
• IRA custodial fees vary by provider
• Higher minimum investments limit diversification

Ark7’s fee transparency:

• No platform fees to investors
• 3% one-time sourcing fee
• 8-15% property management fee (deducted from rental income)
• IRA custodial fee of $100 per property (capped at $400/year)
• No hidden fees, no surprises ever

When calculating total cost of ownership, Ark7’s lower minimums enable better diversification for smaller investors. A $1,000 investment could purchase shares across 10+ different Ark7 properties, while the same amount wouldn’t meet HoneyBricks’ typical minimum requirements for even a single deal.

The fee transparency advantage extends to tax reporting as well. Ark7 provides simple 1099 forms rather than the complex K-1s often associated with real estate partnerships, making tax preparation easier for investors with smaller portfolios.

Geographic Focus and Property Selection

The platforms’ property selection strategies reflect their different target markets.

HoneyBricks’ property focus:

• Commercial multifamily apartment buildings
• Institutional-quality properties typically requiring $1M+ capital
• Professional asset management included
• Limited geographic diversification per deal

Ark7’s property strategy:

• Residential properties in high-growth Sunbelt markets
• Single-family homes and small multifamily units
• Curated selection based on rental demand and appreciation potential
• Examples include properties like Tampa-S10
• 10+ markets with national expansion plans

Ark7’s focus on residential properties in growing Sunbelt markets provides exposure to strong demographic trends, including population growth, job creation, and housing demand. The platform’s property selection process combines AI-driven analysis with local market expertise to identify high-yield opportunities.

For investors seeking exposure to residential real estate fundamentals—rental income from actual tenants in actual homes—Ark7’s property selection offers more direct and transparent exposure than commercial multifamily deals.

Why Ark7 Delivers Superior Value for Most Investors

Most investors benefit more from Ark7’s accessible, transparent approach than from HoneyBricks’ exclusive, high-minimum model. The average American investor doesn’t meet accredited investor requirements, yet still deserves access to real estate investment opportunities.

Key advantages of Ark7’s approach:

• Unprecedented accessibility: $20 minimums with no accreditation requirement enable true portfolio diversification for small investors—something impossible on platforms requiring $5,000 minimums per deal.

• Consistent monthly income: Predictable dividend distributions provide reliable passive income for budgeting and reinvestment, unlike deal-specific payout schedules that create cash flow uncertainty.

• Active secondary market: Real liquidity through trading after 12 months provides emergency access and portfolio flexibility that most fractional real estate platforms cannot match.

• Simpler tax reporting: 1099 forms instead of complex K-1s make tax preparation easier for investors with smaller portfolios.

• Residential real estate focus: Direct exposure to rental income from actual homes provides more transparent and understandable investment fundamentals than commercial multifamily deals.

For investors seeking to build wealth through real estate without the barriers of high minimums or accreditation requirements, Ark7 represents the superior choice. The platform’s combination of accessibility, transparency, monthly income, and active secondary market creates compelling value that exclusive platforms cannot match for the average investor.

Frequently Asked Questions

What is fractional real estate investing and how does Ark7 facilitate it?

Fractional real estate investing allows multiple investors to collectively own shares of individual rental properties, making real estate investment accessible with minimal capital. Ark7 facilitates this through Regulation A+ qualified offerings that let investors purchase shares in specific residential properties for as little as $20. Each property operates as a separate series LLC, with investors receiving proportional rental income distributions and potential appreciation benefits. Ark7 handles all property management, tenant relations, and maintenance, enabling truly passive income from real estate ownership.

How does investing through Ark7 differ from platforms like HoneyBricks?

Ark7 differs from HoneyBricks primarily in accessibility and investment focus. Ark7 requires no accreditation and accepts minimum investments from $20, while HoneyBricks requires accredited investor status and typically $5,000 minimum investments. Ark7 focuses on residential properties with monthly income distributions, while HoneyBricks targets commercial multifamily deals with higher return potential but less frequent distributions. Ark7 also offers an active secondary market for share trading after 12 months, providing superior liquidity compared to HoneyBricks’ more limited secondary access.

Can I invest in Ark7 properties using my IRA, and what are the associated fees?

Yes, you can invest in Ark7 properties using a self-directed IRA through Ark7’s IRA program. The platform supports both Traditional and Roth IRAs with no opening fee from Ark7. However, the IRA custodian (Inspira Financial Company) charges an annual fee of $100 per property, capped at $400 per year, which is waived if your account balance exceeds $100,000. This allows you to use retirement funds to build real estate wealth while maintaining the tax advantages of IRA investing.

What kind of returns can I expect from Ark7 properties, and how are distributions made?

Ark7 properties project an average annual yield of 4.4-4.5%, with returns varying by specific property and market conditions. Distributions are made monthly on the 3rd of each month, derived from actual rental income after expenses. These consistent monthly payments provide predictable passive income, unlike platforms that offer quarterly or annual distributions. Returns include both cash flow from rental payments and potential long-term appreciation when properties are eventually sold.

What measures does Ark7 take for transparency and investor security?

Ark7 maintains full operational transparency with complete legal and financial disclosure accessible 24/7 through the platform. All offerings are SEC Regulation A+ qualified, with Dalmore Group LLC serving as the FINRA/SIPC registered broker-dealer of record. The platform provides detailed property information, financial projections, and risk disclosures for each investment opportunity. Additionally, Ark7 holds minority ownership (1%-20%) in each property, aligning its interests with investor success through shared profit and loss participation.