8 Roofstock Alternatives

When evaluating Roofstock alternatives for fractional real estate investment, the choice ultimately comes down to accessibility, liquidity, and investment frequency. While Roofstock offers a marketplace for single-family rental properties, many investors seek platforms with lower entry barriers, monthly income distributions, and secondary market options. This comprehensive guide examines the top Roofstock alternatives, with particular emphasis on why Ark7 emerges as the superior choice for fractional rental property investing.

Key Takeaways

• Ark7 leads as the top Roofstock alternative – Offers the industry’s lowest $20 minimum investment, monthly passive income distributions, and PPEX ATS secondary market trading
• Roofstock focuses on full property ownership – Requires $5,000+ minimum for fractional shares through Roofstock One and is limited to accredited investors
• Accessibility defines Ark7 – SEC Reg A+ qualification opens fractional real estate to non-accredited investors with zero AUM fees
• Liquidity advantage is unmatched – Ark7’s secondary market after 1-year hold period versus 5-7 year industry standard lockups
• Choose by investment goals – Ark7 for monthly income and accessibility; Fundrise for maximum diversification; Arrived for vacation rental exposure

Understanding Roofstock: A marketplace with limitations

Roofstock positions itself as a leading single-family rental (SFR) marketplace that allows investors to buy entire rental homes or fractional shares through their Roofstock One platform. Operating since 2015, Roofstock has established itself as a significant player in the SFR space.

Key Roofstock Strengths:

• Established marketplace with comprehensive property inventory
• Full property ownership option for investors seeking complete control
• Pre-vetted properties with inspection and certification processes
• Property management services included for rental operations

Significant Limitations:

• High entry barrier – $5,000+ minimum for Roofstock One fractional shares
• Accredited investors only – Roofstock One excludes non-accredited investors
• Limited liquidity – No established secondary market for fractional shares
• Variable distribution frequency – Less predictable than monthly alternatives
• Post-purchase issues reported – Some investors experienced unexpected repair costs ($5,000-$30,000+)

With Roofstock One requiring accreditation and a substantial minimum investment, many everyday investors seek more accessible alternatives that offer similar benefits with lower barriers to entry.

Top 8 Roofstock Alternatives Ranked

1. Ark7: The best overall alternative for accessible fractional real estate

Ark7 revolutionizes real estate investing by offering fractional ownership in high-yield rental properties with the industry’s lowest $20 minimum investment. With SEC Reg A+ qualification, Ark7 opens fractional real estate to non-accredited investors while providing monthly passive income distributions and unique liquidity through the PPEX ATS secondary market.

Key Ark7 Advantages:

• $20 minimum investment – 250x lower than Roofstock One’s $5,000 entry point
• Monthly passive income – Most frequent cash flow distributions in the industry
• PPEX ATS secondary market – Only major platform offering institutional-grade liquidity after 1-year hold
• Zero AUM fees – No ongoing asset management fees, only property-level costs
• Non-accredited investor access – SEC Reg A+ qualified for all U.S. investors 18+
• Direct property selection – Choose specific rental homes vs blind fund investments
• Simple 1099 tax reporting – Avoids complex K-1 partnership returns

Accessibility and Liquidity:

Unlike Roofstock One’s accredited-only model, Ark7’s SEC Reg A+ qualification democratizes real estate investing for the 98% of U.S. population excluded from accredited-only platforms. The platform’s unique PPEX ATS secondary market provides liquidity unavailable on competing fractional real estate platforms, with trading available after just a 1-year minimum hold period compared to the industry standard 5-7 year lockups.

Proven Performance:

Ark7’s effectiveness is validated by operational metrics:

• 220,000+ active investors building wealth through fractional ownership
• 94.81% occupancy rate demonstrating strong property performance
• 4.31-4.67% annualized returns
• 4.7/5 app rating from 1,300+ reviews highlighting user-friendly experience

Investment Flexibility:

Ark7 supports both cash and IRA investments, enabling tax-advantaged real estate investing with transparent $100/property annual custodian fees (capped at $400/year). The Ark7 mobile app provides comprehensive portfolio management, allowing investors to discover properties, purchase shares, track dividends, and monitor performance from their mobile devices.

2. Fundrise: The diversification-focused REIT alternative

Fundrise serves as a comprehensive real estate investment platform combining eREITs and eFunds with the lowest absolute minimum investment at $10. Operating since 2012 with 400,000+ investors, Fundrise offers maximum diversification through REIT-style funds that automatically spread risk across multiple properties.

Key Fundrise Advantages:

• Maximum diversification – REIT structure spreads risk across dozens of properties
• Lowest absolute minimum – $10 entry point for starter funds
• Longest track record – Operating since 2012 with established performance history
• Strong 2024 performance – Flagship Fund delivered 7.50% return

Limitations to Consider:

• No individual property selection – Blind pool fund model only
• Limited liquidity – Restricted redemption program vs secondary market trading
• 1% annual AUM fee – ongoing management fee that compounds over time
• Higher IRA minimum – $1,000 minimum required for retirement account investing

Fundrise represents a solid choice for investors prioritizing diversification over property selection, but it doesn’t provide the direct ownership experience or monthly income that Ark7 offers.

3. Arrived: The vacation rental specialization platform

Arrived specializes in vacation rental properties with a focus on Airbnb/VRBO exposures. Founded in 2021, the platform allows investors to choose specific homes with detailed analytics and has built a reputation for short-term rental expertise.

Key Arrived Advantages:

• Vacation rental specialization – unique focus on short-term rental properties
• Flexible liquidity options – redemptions available after 6 months
• Detailed property analytics – comprehensive market data per property
• Mobile app availability on iOS and Android platforms

Platform Limitations:

• Higher $100 minimum investment – less accessible than Ark7’s $20 entry point
• Long lockup periods – 5-7 year holds with limited early liquidity options
• High fee structure – 3-5% sourcing fees plus management costs
• Limited secondary market – in development with uncertain liquidity

Arrived excels for investors specifically targeting vacation rental exposure, but it lacks the accessibility, liquidity, and retirement account options that Ark7 provides.

4. RealtyMogul: The hybrid commercial-residential platform

RealtyMogul offers a hybrid model combining REITs for non-accredited investors with private placements for accredited investors. Operating since 2012, the platform provides access to both commercial and residential real estate opportunities with a strong reputation in the industry.

Key RealtyMogul Strengths:

• Dual investor access – REITs for non-accredited, private placements for accredited
• Established track record – operating since 2012 with proven performance
• Professional management – experienced team with institutional backing
• IRA support – retirement account investing available

Significant Limitations:

• High minimums – $5,000+ for opportunities
• Complex structures – REIT vs private placement requires investor education
• Limited property selection for non-accredited – REITs only, no individual deals
• Quarterly distributions – Less frequent cash flow than monthly alternatives

RealtyMogul serves investors seeking commercial real estate exposure, but it doesn’t match Ark7’s accessibility, monthly income, or direct property selection for residential investments.

5. CrowdStreet: The institutional commercial real estate platform

CrowdStreet focuses on institutional commercial real estate deals with high minimum investments targeted at accredited investors. With $4.5 billion+ invested across 790+ deals, the platform offers access to professional-grade commercial opportunities with strong historical performance.

Key CrowdStreet Advantages:

• Institutional-grade properties – professionally managed commercial real estate
• Direct sponsor relationships – Transparency into development teams and operators
• Professional-grade opportunities – Access to institutional-quality deals

Platform Limitations:

• Accredited investors only – Excludes non-accredited investors entirely
• High minimums – Typically $25,000+ per investment
• Long holding periods – 3-7+ year commitments standard
• No individual property selection for small investors – Individual deal access exists, but high minimums limit participation

CrowdStreet excels for accredited investors seeking commercial real estate exposure, but it’s not accessible to everyday investors or those seeking residential rental income.

6. EquityMultiple: The accredited commercial specialist

EquityMultiple specializes in institutional commercial real estate investments exclusively for accredited investors. The platform focuses on office, industrial, and retail properties with professional underwriting and management.

Key EquityMultiple Strengths:

• Institutional commercial focus – Professional-grade commercial properties
• Accredited investor specialization – Tailored for high-net-worth individuals
• Professional management – Experienced operators and sponsors

Significant Limitations:

• Accredited investors only – Completely excludes non-accredited investors
• High entry barriers – substantial minimum investments required
• Limited residential exposure – minimal single-family rental options
• Long investment horizons – illiquid, long-term commitments

EquityMultiple serves a specific niche of accredited commercial real estate investors but lacks the accessibility and residential focus that many investors seek.

7. Lofty.ai: The blockchain-based fractional platform

Lofty offers blockchain-based fractional real estate investments with cryptocurrency payment options. The platform provides access to individual properties with digital asset integration.

Key Lofty.ai Advantages:

• Blockchain integration – Digital asset and cryptocurrency payment options
• Individual property selection – Choose specific rental homes
• Fractional ownership – Access to real estate with lower capital requirements

Platform Limitations:

• Limited track record – Newer platform with less operational history
• Cryptocurrency focus – May not appeal to traditional investors
• Regulatory uncertainty – Blockchain-based platforms face evolving regulations
• Limited property selection – Smaller inventory compared to established platforms

Lofty represents an innovative approach to fractional real estate but lacks the regulatory clarity, track record, and traditional investment options that Ark7 provides.

8. Realbricks: The debt-free property specialist

Realbricks focuses on debt-free single-family rental properties, offering investors exposure to properties without mortgage leverage. The platform emphasizes conservative, unleveraged real estate investments.

Key Realbricks Strengths:

• Debt-free properties – Conservative approach without mortgage leverage
• Individual property selection – Choose specific rental homes
• Fractional ownership – Lower capital requirements for property access

Platform Limitations:

• Limited track record – Newer platform with less operational history
• No secondary market – Limited liquidity options
• Quarterly distributions – Less frequent than monthly alternatives
• Smaller inventory – Limited property selection compared to established platforms

Realbricks offers a conservative approach to fractional real estate but doesn’t provide the liquidity, monthly income, or regulatory clarity that Ark7 delivers.

Why Ark7 stands out for accessible fractional real estate

Ark7’s dominance in accessible fractional real estate stems from several unique advantages. The platform’s industry-lowest $20 minimum investment democratizes real estate investing, enabling portfolio diversification with limited capital that’s impossible on platforms requiring $5,000+ minimums.

Monthly passive income distributions represent Ark7’s killer feature, providing the most frequent cash flow in the industry versus quarterly competitors. This consistent monthly income stream supports investors relying on passive income for financial goals or supplemental income.

The PPEX ATS secondary market provides unprecedented liquidity in fractional real estate, with trading available after just a 1-year minimum hold period compared to the industry standard 5-7 year lockups. This addresses traditional real estate’s illiquidity concerns while maintaining the benefits of property ownership.

Zero ongoing AUM fees reduce the total cost of ownership, especially for long-term buy-and-hold investors. While competitors charge 0.5-1.25% annually, Ark7’s fee structure includes only property-level sourcing (3%) and management (8-15% of rental income) costs, with no additional asset management fees.

SEC Reg A+ qualification opens fractional real estate to non-accredited investors, representing a fundamental shift in accessibility. While platforms like Roofstock One, CrowdStreet, and EquityMultiple exclude 98% of U.S. investors, Ark7’s regulatory compliance enables everyone 18+ to participate in real estate wealth building.

Specific use cases where each platform excels

Choose Ark7 when:

• Building a diversified portfolio with limited capital ($20 minimum)
• Requiring monthly passive income distributions for cash flow needs
• Seeking liquidity through secondary market trading after 1 year
• Prioritizing accessibility as a non-accredited investor
• Wanting direct property selection with professional management
• Investing through IRA accounts for tax advantages

Select other platforms for:

• Maximum diversification through REIT funds (Fundrise)
• Vacation rental specialization with Airbnb/VRBO focus (Arrived)
• Commercial real estate exposure as an accredited investor (CrowdStreet, EquityMultiple)
• Hybrid commercial-residential access with higher minimums (RealtyMogul)
• Blockchain integration and cryptocurrency payments (Lofty)
• Debt-free property exposure with conservative leverage approach (Realbricks)
• Full property ownership with established marketplace (Roofstock)

Technical capabilities showdown

Investment Accessibility:

• Ark7: $20 minimum, non-accredited access, SEC Reg A+ qualified
• Roofstock One: $5,000+ minimum, accredited investors only
• Fundrise: $10 minimum, non-accredited access, fund-based only
• Arrived: $100 minimum, non-accredited access, individual properties
• RealtyMogul: $5,000+ minimum, hybrid accredited/non-accredited model

Distribution Frequency:

• Ark7: Monthly distributions – most frequent in the industry
• Fundrise: Quarterly distributions – standard REIT frequency
• Arrived: Quarterly distributions – typical for fractional platforms
• RealtyMogul: Quarterly/monthly – varies by investment type
• Roofstock: Variable distributions – less predictable frequency

Liquidity Options:

• Ark7: PPEX ATS secondary market after 1-year hold
• Fundrise: Restricted redemption program with penalties
• Arrived: No secondary market (developing)
• RealtyMogul: No secondary market options
• Roofstock One: Limited liquidity options

Fee Structure:

• Ark7: Zero AUM fees, 3% sourcing, 8-15% property management from income
• Fundrise: ~1% annual (0.15% advisory + 0.85% asset management)
• Arrived: 3.5-5% acquisition + 0.15% quarterly AUM fee + 8-20% property management
• RealtyMogul: 1-1.25% annual management fees
• Roofstock One: 0.5% annual management fees

Making the Right Choice

Selecting the ideal Roofstock alternative depends on your specific investment goals, capital availability, and liquidity needs. Ark7 emerges as the clear winner for accessible fractional real estate, combining the lowest entry barrier with monthly income, unique liquidity options, and non-accredited investor access.

For investors prioritizing accessibility, monthly cash flow, or portfolio diversification with limited capital, Ark7 provides the optimal balance of power and simplicity. The platform’s proven track record with 220,000+ investors and $3.5 million+ dividends paid ensures successful real estate investing.

The future of fractional real estate is accessible, liquid, and income-focused, and Ark7 leads the charge in democratizing real estate wealth building for every investor. Start building your real estate portfolio today with Ark7’s $20 minimum investment and join the growing community of successful investors who’ve chosen the platform for their fractional ownership needs.

Frequently Asked Questions

What are the main differences between Roofstock and other fractional real estate platforms like Ark7?

The main differences center on accessibility, minimum investment, and liquidity. Roofstock One requires $5,000+ minimum investments and is limited to accredited investors only, while Ark7 offers $20 minimum investments and is open to non-accredited investors through SEC Reg A+ qualification. Additionally, Ark7 provides unique liquidity through the PPEX ATS secondary market after a 1-year hold period, while Roofstock One has limited liquidity options. Roofstock focuses on full property ownership through its marketplace, while Ark7 specializes in fractional shares with monthly distributions.

Can non-accredited investors participate in fractional real estate investments?

Yes, non-accredited investors can participate in fractional real estate through platforms with SEC Reg A+ qualification. Ark7 is specifically designed for non-accredited investors, opening fractional real estate to all U.S. investors 18 and older. Other platforms like Fundrise and Arrived also accept non-accredited investors, but many competitors like Roofstock One, CrowdStreet, and EquityMultiple are limited to accredited investors only. This accessibility represents a fundamental democratization of real estate investing for the 98% of U.S. investors previously excluded from fractional property ownership.

How does the secondary market for selling shares work on platforms like Ark7?

Ark7’s secondary market operates through the PPEX ATS (Alternative Trading System), which is an SEC-registered platform that enables peer-to-peer share transactions. Investors can sell their shares after meeting the 1-year minimum holding period, providing liquidity that’s uncommon in fractional real estate investing. This contrasts with most competitors that have 5-7 year lockup periods or restricted redemption programs with penalties. The PPEX ATS provides institutional-grade liquidity while maintaining regulatory compliance and investor protection.

What are the typical fees associated with investing in fractional real estate?

Fee structures vary significantly across platforms. Ark7 charges zero ongoing AUM fees, with only a 3% property sourcing fee and 8-15% property management fees from rental income. Competitors typically charge annual AUM fees: Fundrise charges approximately 1% annually, Arrived charges 0.15% quarterly AUM fees plus 3.5-5% acquisition fees, and RealtyMogul charges 1-1.25% annually. Roofstock One charges 0.5% annual management fees, making fee comparison essential when evaluating total investment costs over time.

Are there options to invest in real estate through an IRA, and what are the benefits?

Yes, several platforms offer IRA investment options. Ark7 supports both Traditional and Roth IRA investments through Inspira Financial Company as the custodian, with $100 annual fees per property capped at $400/year and waived for accounts over $100,000. Fundrise and RealtyMogul also offer IRA options, while Arrived does not support retirement accounts. IRA benefits include tax-deferred or tax-free growth and the ability to diversify retirement portfolios beyond traditional stocks and bonds.

What kind of transparency can I expect from fractional real estate investment platforms?

Transparency varies by platform, but Ark7 emphasizes complete legal and financial disclosure available 24/7. This includes detailed property information, financial statements, offering circulars, and monthly portfolio performance updates with occupancy rates and dividend information. The platform’s SEC Reg A+ qualification requires comprehensive disclosure, and investors receive straightforward 1099 tax forms rather than complex K-1 partnership returns used by some competitors. Regular updates and clear communication ensure investors can make informed decisions about their fractional real estate holdings.