Ark7 vs EquityMultiple

When comparing fractional real estate investment platforms, understanding the fundamental differences between residential-focused accessibility and commercial-grade exclusivity is crucial. While Ark7 enables anyone to invest in curated residential rental properties with as little as $20 per share, EquityMultiple restricts access to accredited investors seeking commercial real estate opportunities with minimum investments starting at $5,000. This distinction—between democratized residential investing and institutional commercial access—determines which platform aligns with your financial goals, accreditation status, and investment preferences. Learn more about Ark7’s rental property shares to understand how fractional ownership works.

Key Takeaways

• Ark7 offers the lowest entry point for property selection at just $20 per share, compared to EquityMultiple’s $5,000 minimum that excludes non-accredited investors entirely
• Monthly passive income vs. quarterly distributions – Ark7 pays monthly cash distributions while EquityMultiple typically pays quarterly, providing more frequent cash flow for investors
• No platform-level AUM fee with Ark7 versus EquityMultiple’s ongoing asset-level or sponsor fees that vary by deal, saving hundreds of dollars over time on the same investment amount
• Non-accredited investor access – Ark7’s SEC Regulation A+ qualification allows anyone to invest in residential properties, while EquityMultiple is exclusively for accredited investors
• Secondary market liquidity – Ark7 provides access to the PPEX ATS secondary trading platform after a 12-month hold with no penalties, offering more flexibility than EquityMultiple’s typically illiquid 3-5 year commercial real estate investments

Understanding Each Platform’s Core Positioning

Ark7 positions itself as a democratizing force in real estate investing, making high-yield rental home ownership accessible to everyone through fractional shares. Founded in 2018 and headquartered in San Francisco, Ark7 has built its reputation on transparency, accessibility, and operational excellence. The platform serves over 220,000 active investors who have collectively funded $23 million in properties and received $3.5 million in dividends since inception. Ark7’s mission centers on enabling everyday investors to build wealth through professionally managed residential rental properties without landlord responsibilities.

EquityMultiple takes a fundamentally different approach, focusing exclusively on institutional-grade commercial real estate opportunities for accredited investors. Founded in 2015, EquityMultiple provides access to office buildings, industrial properties, and multifamily commercial developments through equity, preferred equity, and debt investment structures. The platform caters specifically to investors who meet SEC accreditation requirements (net worth exceeding $1 million or annual income above $200,000) and can commit substantial capital to longer-term commercial real estate investments.

The core philosophical difference is clear: Ark7 democratizes residential real estate investing for everyone, while EquityMultiple provides exclusive commercial real estate access for accredited investors only.

Investment Models Show Distinct Strategic Approaches

Ark7’s residential investment model includes:

• Fractional ownership properties including single-family homes, townhomes, and multifamily units
• Regulation A+ offerings allowing both accredited and non-accredited investors
• Monthly cash distributions from rental income
• Properties professionally sourced, acquired, and managed end-to-end
• Ark7 holds a sponsor ownership stake in many offerings in each property, aligning interests with investors
• Access to secondary market trading via PPEX ATS after 12-month holding period
• Mobile app for convenient investing and portfolio management
• IRA investment options with compliant custodianship through Inspira Financial

This accessible model empowers everyday investors to build diversified residential real estate portfolios with minimal capital requirements.

EquityMultiple’s commercial investment model focuses on:

• Institutional-grade commercial real estate including office, industrial, and multifamily properties
• Accredited investor requirement excluding the majority of U.S. adults
• Higher minimum investments starting at $5,000
• Diverse capital stack options including equity, preferred equity, and senior debt
• Alpine Notes offering short-term (3-9 month) high-yield opportunities at 7.4%+
• Typically longer investment horizons (3-5 years) with limited liquidity
• Higher potential returns with historical, blended net IRR reported by the platform reported on their Grow Plan since 2015

The exclusivity of EquityMultiple’s model creates a stark contrast with Ark7’s inclusive approach to real estate investing.

For example, while EquityMultiple might offer a commercial office building investment with a $20,000 minimum exclusively for accredited investors, Ark7 provides access to a newly built Jonesboro townhome for as little as $20 per share to any investor. This accessibility difference represents a fundamental philosophical divide in real estate investing.

Pricing and Fee Structures Reveal Significant Cost Differences

The fee structures between these platforms reveal dramatically different cost implications over time.

Ark7’s transparent fee structure:

• $20 minimum investment per share (some properties start at $100/share)
• 3% one-time sourcing fee
• No platform-level AUM fee
• 8-15% property management fee of rental income
• IRA custodial fee of $100 per property annually (capped at $400/year, waived for accounts >$100,000)
• No early sale penalties after 12-month holding period

EquityMultiple’s fee structure:

• $5,000 minimum investment
• 0.5-1% sourcing fee
• 1-1.25% annual AUM fees
• Property management fees vary by deal
• IRA investments require self-directed custodian with separate fees
• Typically no early exit options due to 3-5 year investment terms

When calculating the 5-year Total Cost of Ownership on a $10,000 investment, the difference becomes substantial:

• Ark7: $540-750 in total fees over 5 years
• EquityMultiple: $550-725+ in total fees over 5 years

However, this comparison doesn’t account for the significant barrier that EquityMultiple’s $5,000 minimum creates for most investors. For those who can meet the minimum, Ark7’s zero AUM fees provide meaningful long-term savings. On a $10,000 investment, Ark7 saves $100-125 annually compared to EquityMultiple’s 1-1.25% annual fees, compounding to $500-625 in savings over 5 years.

Target Investors Reveal Fundamental Market Differences

Ark7 primarily serves a broad investor base including:

• Non-accredited investors seeking real estate exposure
• Beginners with limited capital starting with $20 investments
• Investors seeking monthly passive income from residential rentals
• Those wanting property-level transparency and control
• IRA investors looking to diversify retirement portfolios with real estate
• Mobile-first investors who appreciate the Ark7 app experience

Ark7’s inclusive model aligns with their mission that “everyone should have the freedom to build wealth through real estate.”

EquityMultiple exclusively targets:

• Accredited investors meeting SEC requirements
• Sophisticated investors with $5,000+ to allocate to commercial real estate
• Those seeking institutional-grade commercial property exposure
• Investors comfortable with 3-5 year illiquid investments
• Those pursuing higher potential returns with commercial real estate risk profiles

This exclusivity creates a fundamental divide: the majority of U.S. adults cannot access EquityMultiple regardless of their interest in the platform’s offerings, while Ark7 welcomes all investors regardless of accreditation status.

Returns and Income Generation Show Different Risk-Reward Profiles

Both platforms offer attractive returns, but with different risk profiles and income structures.

Ark7’s return profile:

• 3.96% average dividend yield (November 2025)
• Top-performing properties reaching 7.65% dividend yield (Urbana property, November 2025)
• 94.81% portfolio occupancy (December 2025)
• Monthly cash distributions providing consistent passive income
• Potential appreciation from long-term property value growth
• Conservative approach with many properties purchased debt-free

EquityMultiple’s return profile:

• 6.62% net IRR on Keep Plan (cumulative since 2015)
• 8.64% net IRR on Earn Plan (cumulative since 2015)
• 15.24% net IRR on Grow Plan (cumulative since 2015)
• Alpine Notes offering 7.4%+ yields on 3-9 month terms
• Typically quarterly distributions rather than monthly

The higher potential returns from EquityMultiple come with increased risk, longer lock-up periods, and exclusive access requirements. Ark7’s more modest but consistent returns provide reliable monthly income with greater accessibility and liquidity options.

Transparency, Liquidity, and Regulatory Compliance

Ark7’s transparency and compliance framework:

• Regulation A+ offerings
• Broker-dealer of record: Dalmore Group LLC (FINRA and SIPC registered)
• Full transparency with 24/7 access to legal and financial documents
• PPEX secondary platform after 12-month hold
• Simplified 1099 reporting (no complex K-1 forms)
• 4.1/5 Trustpilot rating from over 250 reviews
• A rating from Better Business Bureau

EquityMultiple’s compliance structure:

• SEC-registered funding portal and broker-dealer
• Accredited investor verification required
• K-1 or 1099 tax reporting depending on investment structure
• F rating from Better Business Bureau
• Limited liquidity with 3-5 year typical hold periods
• Communication concerns reported by some investors regarding underperforming deals

Ark7’s commitment to transparency extends to their offering circulars, which provide complete disclosure of risks and business terms. The platform’s secondary market functionality through PPEX ATS—a SEC-registered alternative trading system—provides meaningful liquidity options unavailable on most competing platforms.

Technology and User Experience Differences

Ark7’s technology advantages:

• Mobile app for iOS and Android with 4.7/5 App Store rating 
• Real-time portfolio tracking and dividend monitoring
• Property discovery and investment capabilities on mobile devices
• Secure transaction processing and account management
• Intuitive interface designed for both beginners and experienced investors
• IRA account integration within the same platform

EquityMultiple’s technology platform:

• Web-based investment platform with mobile responsiveness
• Deal due diligence materials and offering documents
• Portfolio tracking and distribution monitoring
• Limited public information about mobile app capabilities
• Email and chat support

Ark7’s mobile-first approach reflects their commitment to making real estate investing as convenient as stock investing. The ability to discover properties, purchase shares, track dividends, and manage investments entirely from a smartphone aligns with modern investor expectations for digital convenience.

Why Ark7 Delivers Superior Value for Most Real Estate Investors

For the vast majority of investors seeking real estate exposure, Ark7 represents the superior choice for several compelling reasons:

• Accessibility for all investors: With 220,000+ active investors, Ark7 proves that real estate investing doesn’t require accreditation or substantial capital. The $20 minimum opens doors for beginners, students, and those building wealth gradually.

• Cost efficiency over time: No platform-level AUM fee save hundreds of dollars compared to EquityMultiple’s 1-1.25% annual fees, allowing more of your returns to compound over time.

• Monthly cash flow advantage: Monthly dividend payments provide more frequent passive income than quarterly competitors, improving cash flow management for investors relying on rental income.

• Residential stability: Residential rental properties have often shown comparatively steadier cash flows through economic cycles compared to commercial real estate, which can be more sensitive to business cycle fluctuations.

• Liquidity options: The PPEX secondary platform provides meaningful liquidity after a 12-month hold, while EquityMultiple investments typically require 3-5 year commitments with no early exit options.

• Simplified tax reporting: 1099 forms instead of K-1s make tax preparation easier and less expensive, avoiding the complexity of partnership tax returns.

For accredited investors specifically seeking commercial real estate exposure, EquityMultiple provides valuable access to institutional-grade opportunities. However, for the majority of U.S. adults who don’t meet accreditation requirements—and even for many accredited investors seeking residential real estate exposure—Ark7 delivers superior accessibility, cost efficiency, and user experience.

Frequently Asked Questions

What is the minimum investment required for Ark7 versus EquityMultiple?

Ark7 requires a minimum investment of just $20 per share, making it accessible to virtually any investor. Some properties may start at $100 per share, but the platform maintains the lowest minimum for individual property selection in the industry. In contrast, EquityMultiple requires a $5,000 minimum and is exclusively available to accredited investors. This creates a significant barrier to entry for most Americans.

Can non-accredited investors use Ark7?

Yes, non-accredited investors can use Ark7 thanks to the platform’s SEC Regulation A+ qualification. This regulatory framework allows both accredited and non-accredited investors to participate in real estate offerings. It democratizes access to real estate investment opportunities that were previously available only to wealthy individuals. EquityMultiple, by comparison, is exclusively for accredited investors who meet specific income or net worth requirements.

How does Ark7 generate passive income for investors?

Ark7 generates passive income through monthly cash distributions from rental income collected on properties in which investors hold shares. The platform professionally manages all aspects of property operations—including tenant placement, maintenance coordination, and rent collection—allowing investors to receive regular income without landlord responsibilities. The average dividend yield was 3.96% as of November 2025, with top-performing properties reaching 7.65% dividend yields. This provides consistent monthly passive income for portfolio diversification.

Is there a secondary market to sell Ark7 shares?

Yes, Ark7 provides access to the PPEX secondary platform after a 12-month holding period. This SEC-registered alternative trading system allows investors to sell their shares to other investors, providing liquidity options that are rare in real estate investing. Unlike some competitors that charge early sale penalties, Ark7 imposes no penalties for selling shares after the 12-month minimum holding period. However, liquidity depends on buyer demand in the secondary market.

What are the fees associated with investing through Ark7?

Ark7’s fee structure includes a 3% sourcing fee and 8-15% management fees of rental income, but crucially, the platform charges zero annual fees. This contrasts with competitors like EquityMultiple that charge 1-1.25% annual fees, which compound over time and significantly reduce long-term returns. For IRA investors, Ark7 charges $100 annually per property (capped at $400/year, waived for accounts with $100,000+ average balance).

Are returns guaranteed with real estate investments on Ark7 or similar platforms?

No, returns are never guaranteed with real estate investments on Ark7 or any similar platform. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results. Real estate investments can be affected by market conditions, property-specific issues, tenant vacancies, and economic factors. Ark7 provides transparent disclosure of all risks in their offering circulars, and investors should carefully review these documents before investing.