Ark7 vs CrowdStreet

Choosing between fractional residential real estate and commercial real estate crowdfunding platforms can determine your investment trajectory. While Ark7 offers accessible, low-minimum investments in cash-flowing rental properties with monthly dividends, CrowdStreet focuses on institutional-grade commercial deals requiring accredited investor status and significantly higher capital commitments. Understanding these fundamental differences—between democratized real estate investing and exclusive commercial opportunities—helps investors select the approach that matches their financial situation, accreditation status, and investment goals.

Key Takeaways

• Ark7 offers unmatched accessibility with a $20 minimum investment versus CrowdStreet’s $25,000 requirement, making real estate investing available to everyday investors rather than just the wealthy
• Zero annual AUM fees with Ark7 compared to potential 1-2% annual fees on CrowdStreet funds, preserving more of your returns over time
• Liquidity advantage through Ark7’s secondary market on PPEX ATS after 12 months versus CrowdStreet’s typical 3-5+ year illiquid holds with no exit option
• Mobile-first experience with Ark7 featuring full-featured iOS (4.7/5) and Android (4.2/5) apps versus CrowdStreet’s primarily web-based interface
• Predictable monthly income with Ark7 through consistent dividends paid on the 3rd of each month versus deal-dependent distributions on CrowdStreet

Understanding Real Estate Crowdfunding Platforms

Real estate crowdfunding platforms have transformed how individuals access property investments, but they serve distinctly different investor segments. Ark7 and CrowdStreet represent two fundamentally different approaches to real estate investing.

Ark7 specializes in fractional ownership of single-family and multifamily rental properties, allowing investors to buy SEC-qualified (Reg A+) shares starting as low as $20. The platform handles all property management, from acquisition to tenanting to maintenance, delivering passive income through monthly cash distributions. With over 220,000 active investors as of March 2025, Ark7 has democratized real estate investing for non-accredited individuals seeking tangible assets with regular income.

CrowdStreet, founded in 2013 and launched its marketplace in 2014, focuses exclusively on commercial real estate opportunities for accredited investors. With billions in capital facilitated across 700–800+ commercial offerings, the platform connects wealthy individuals with institutional-quality commercial properties, including office buildings, retail centers, and industrial facilities. CrowdStreet requires investors to meet accredited status (typically $200K+ annual income or $1M+ net worth excluding primary residence) and commit minimum investments of $25,000.

Ark7 Review: Accessible Fractional Real Estate Investing

Ark7’s mission is to make real estate investment accessible to everyone, and its platform design reflects this commitment. Investors can buy shares in curated high-yield rental properties nationwide through a straightforward process that requires no landlord responsibilities.

Ark7’s Investment Model

Ark7 acquires and manages individual rental properties, then offers fractional shares to investors through SEC Regulation A+ qualified offerings. This regulatory framework allows both accredited and non-accredited investors (18+ U.S. residents) to participate. Each property operates as its own series LLC, providing legal separation between assets.

Investors receive monthly cash distributions from rental income, typically paid on the 3rd of each month. Ark7 maintains a minority ownership stake (1%-20%) in each property, aligning its interests with investors. The platform’s portfolio has achieved occupancy rates at 94.81% in 2025, demonstrating strong property management and tenant retention.

Key Benefits for Investors

• Low minimum investment: Start with as little as $20 per share, allowing for portfolio diversification even with limited capital
• Monthly passive income: Consistent dividends provide predictable cash flow for budgeting and reinvestment
• Full operational transparency: Complete legal and financial disclosure accessible 24/7
• No hidden fees: Transparent fee structure with no annual AUM fees
• Professional management: Ark7 handles all aspects of property operations, from tenant screening to maintenance

Ark7 Mobile App Experience

The Ark7 Mobile App provides a convenient way to discover, invest in, and manage rental property shares from anywhere. With ratings of 4.7/5 on iOS and 4.2/5 on Android, the app offers a seamless experience for monitoring your portfolio, tracking dividends, and managing investments. This mobile-first approach appeals to modern investors who expect financial services to be as accessible as their other digital experiences.

CrowdStreet Overview: Commercial Real Estate Opportunities

CrowdStreet serves a different market segment entirely, focusing on accredited investors seeking commercial real estate exposure. The platform’s offerings reflect the complexities and requirements of institutional-grade investments.

CrowdStreet’s Investment Focus

CrowdStreet specializes in commercial properties across various asset classes:

• Office buildings
• Retail centers
• Industrial facilities
• Multifamily developments

Investors choose between individual deals or funds, with the platform facilitating connections between investors and experienced property sponsors. The deals have historically achieved realized IRRs of approximately 17.5% across completed investments, though CrowdStreet no longer advertises target IRRs on its offerings since August 2023 to comply with FINRA regulations.

Who is CrowdStreet For?

CrowdStreet caters exclusively to accredited investors who:

• Meet SEC accreditation requirements ($200K+ annual income or $1M+ net worth)
• Can commit substantial capital ($25,000 minimum)
• Seek commercial real estate exposure
• Have longer investment horizons (3-5+ years)
• Understand the complexities of commercial real estate

Navigating the CrowdStreet Platform

CrowdStreet operates as a primarily web-based interface with no mobile app, requiring investors to manage their portfolios through a desktop interface. The platform provides detailed due diligence materials for each offering, but the investment process remains more complex than residential platforms like Ark7.

Notably, investor satisfaction with CrowdStreet has declined, with some investors reporting mixed satisfaction in online forums. Common criticisms include deal quality concerns, sponsor vetting issues, and poor investor outcomes.

Investment Offerings: Ark7’s Single-Family vs. CrowdStreet’s Commercial

The property types available on each platform reflect their different target markets and risk profiles.

Ark7’s Property Portfolio

Ark7 focuses exclusively on residential rental properties, primarily single-family homes and small multifamily units in growing markets across the U.S. Examples include:

• Dallas-S9 Property Shares: A 4-bedroom, 2-bath single-family home in Mesquite, TX, built in 1992, benefiting from Dallas’ strong job market and population growth
• Atlanta-T3 Property Shares: A newly built 3-bedroom, 2.5-bath townhome in Jonesboro, GA, featuring modern design and low maintenance requirements

These properties generate rental income from individual tenants or families, providing relatively stable cash flow compared to commercial properties dependent on business tenants.

CrowdStreet’s Diverse Asset Classes

CrowdStreet offers access to commercial properties that typically require professional management and carry different risk factors:

• Office buildings dependent on corporate lease agreements
• Retail centers affected by consumer spending patterns and e-commerce competition
• Industrial facilities tied to supply chain and logistics trends
• Large multifamily developments requiring significant operational expertise

While these assets can provide higher returns, they also expose investors to business cycle risks, tenant concentration issues, and longer vacancy periods during economic downturns.

Minimum Investment and Investor Accessibility

The accessibility gap between these platforms is perhaps their most significant difference.

Ark7: Real Estate for Everyone

Ark7’s $20 minimum investment represents the lowest entry point in fractional real estate crowdfunding. This accessibility stems from its SEC Regulation A+ qualification, which allows non-accredited investors to participate. The platform embodies its mission to “make real estate investment accessible to everyone” by removing traditional financial barriers.

This low minimum enables investors to:

• Start building real estate exposure with minimal capital
• Diversify across multiple properties even with limited funds
• Learn about real estate investing with smaller commitments
• Reinvest dividends to compound returns over time

CrowdStreet: Accredited Investors Only

CrowdStreet’s $25,000 minimum investment excludes the vast majority of potential investors. Combined with accreditation requirements, this effectively limits participation to the top 10% of wealth holders in the U.S. While this approach provides access to institutional-quality deals, it reinforces wealth concentration rather than democratizing real estate investing.

The high minimum also limits diversification opportunities, as investors must commit substantial capital to each deal, potentially concentrating risk in fewer assets.

Returns, Liquidity, and Exit Strategies

Investment returns and liquidity options differ significantly between these platforms.

Ark7’s Passive Income and Secondary Market

Ark7 delivers consistent monthly dividends, with annualized returns of 3.96% in 2025. While these yields may appear modest compared to some alternatives, they come with lower risk profiles and predictable cash flow.

The platform’s most significant innovation is its SEC-registered secondary market on PPEX ATS, which allows investors to sell shares after a 12-month holding period. In August 2025 alone, the secondary market facilitated $89,749 in trading volume across 26 actively trading properties, representing 70% of Ark7’s portfolio.

CrowdStreet’s Long-Term Strategy

CrowdStreet investments typically have 3-5+ year holding periods with no secondary market for liquidity. Investors must be prepared to hold their investments until project completion or sale, which can extend beyond initial timelines. This illiquidity represents a significant opportunity cost, especially for investors who may need access to their capital unexpectedly.

While CrowdStreet claims approximately 15% IRR targets, actual results vary widely, with some deals underperforming and 6 total losses out of 138 realized deals (4.3% failure rate).

Fees, Transparency, and Due Diligence

Fee structures and transparency practices reveal important differences in how these platforms treat investors.

Ark7’s Transparent Fee Structure

Ark7 charges a 3% one-time sourcing fee and property management fees of 8-15% of rental income, with zero annual AUM fees. This transparent structure ensures investors know exactly what they’re paying, with no hidden charges eroding returns over time.

The platform provides 24/7 access to complete legal and financial disclosures, including offering circulars filed with the SEC. This operational transparency aligns with Ark7’s commitment to “making real estate investment as easy as a stock investment” while maintaining full regulatory compliance.

CrowdStreet’s Disclosure Process

CrowdStreet charges no direct investor fees for individual deals (sponsors pay platform costs), but funds may carry 1-2% annual AUM fees. The platform provides deal-specific disclosures, but the complexity of commercial real estate investments requires more sophisticated due diligence from investors.

Tax reporting also differs significantly: Ark7 provides simple 1099 forms, while CrowdStreet investments may generate complex K-1 forms that require specialized tax preparation.

Retirement Investing: Ark7 IRA vs. General Investment

Both platforms support retirement account investing, but Ark7’s approach offers greater accessibility.

Investing Your IRA with Ark7

Ark7 allows investors to use IRA funds to purchase property shares through a partnership with Inspira Financial Company as custodian. This enables both Traditional and Roth IRA holders to build real estate exposure within their retirement portfolios.

The IRA structure carries a $100 annual fee per property (capped at $400 annually), which is waived for accounts with average balances exceeding $100,000. This fee structure remains accessible even for smaller retirement accounts, unlike CrowdStreet’s $25,000 minimum that would require substantial IRA balances.

Benefits of Real Estate in Retirement

Real estate investments in retirement accounts offer several advantages:

• Tangible asset ownership providing inflation protection
• Passive income that can supplement retirement distributions
• Potential for long-term appreciation
• Tax-deferred or tax-free growth (depending on IRA type)

Ark7’s low minimums make these benefits accessible to a broader range of retirement investors, not just those with substantial existing balances.

Making Your Choice: Ark7 for Passive Income or CrowdStreet for Larger Deals?

The choice between these platforms ultimately depends on your investor profile and goals.

Who Benefits Most from Ark7?

Ark7 is ideal for:

• Non-accredited investors seeking real estate exposure
• Investors with limited capital ($20 minimum vs. $25,000)
• Those seeking monthly passive income
• Investors wanting liquidity options after 12 months
• Mobile-first investors who value app-based portfolio management
• Retirement account holders looking to diversify into real estate

When is CrowdStreet the Right Fit?

CrowdStreet may be appropriate for:

• Accredited investors meeting SEC requirements
• Those with substantial capital to commit ($25,000+)
• Investors seeking commercial real estate exposure
• Individuals with long-term investment horizons (3-5+ years)
• Those comfortable with illiquid investments and complex tax reporting

Aligning Platforms with Your Investment Strategy

For most individual investors, Ark7’s accessibility, transparency, and liquidity advantages make it the superior choice. The platform’s focus on residential rentals provides stable cash flow with lower complexity than commercial properties, while its mobile-first approach and monthly dividends align with modern investor expectations.

CrowdStreet serves an important role in providing accredited investors with commercial real estate access, but its high barriers to entry and illiquidity make it unsuitable for the majority of investors seeking real estate exposure.

Frequently Asked Questions

What is the main difference between Ark7 and CrowdStreet?

The main difference is accessibility: Ark7 allows anyone (18+ U.S. residents) to invest with as little as $20 in residential rental properties, while CrowdStreet requires accredited investor status and a $25,000 minimum investment in commercial real estate deals. Ark7 also offers monthly dividends and a secondary market for liquidity after 12 months, while CrowdStreet investments are typically illiquid for 3-5+ years.

Do I need to be an accredited investor to use Ark7?

No, you do not need to be an accredited investor to use Ark7. The platform’s SEC Regulation A+ qualification allows both accredited and non-accredited investors (18+ U.S. residents) to participate in real estate investments. This democratizes real estate investing for the 90%+ of Americans who don’t meet accredited investor requirements.

What kind of properties can I invest in with Ark7?

Ark7 focuses exclusively on residential rental properties, including single-family homes and small multifamily units in growing markets across the U.S. Properties are typically located in Sun Belt regions with strong population growth, job markets, and rental demand. Examples include the Dallas-S9 Property in Mesquite, TX, and the Atlanta-T3 Property in Jonesboro, GA.

How does liquidity work on the Ark7 platform?

Ark7 offers liquidity through a SEC-registered secondary market on PPEX ATS after a 12-month holding period. Investors can list their shares for sale, and other investors can purchase them through the platform. In August 2025, the secondary market facilitated $89,749 in trading volume across 26 actively trading properties. However, there can be no assurance that an active market will develop or that shares can be sold when desired.

Are there any hidden fees with Ark7 investments?

Ark7 maintains a transparent fee structure with no hidden charges. The platform charges a 3% one-time sourcing fee and property management fees of 8-15% of rental income, with zero annual AUM fees. This contrasts with many competitors that charge 1%+ annual fees that compound over time. Ark7 also provides simple 1099 tax forms rather than complex K-1 forms.

Can I invest my IRA funds with Ark7?

Yes, you can invest IRA funds with Ark7 through a partnership with Inspira Financial Company as custodian. Both Traditional and Roth IRAs are supported, with a $100 annual fee per property (capped at $400 annually), which is waived for accounts with average balances exceeding $100,000. This allows retirement investors to build real estate exposure with the same $20 minimum investment as regular accounts.