Ark7 vs BuyProperly

For investors seeking to build wealth through U.S. rental real estate without the burdens of being a landlord, the choice between fractional investing platforms is critical. While both Ark7 and BuyProperly offer a way to own shares in income-producing properties, they represent fundamentally different models in terms of accessibility, cost, income frequency, and liquidity. Ark7 is built on the principle of making real estate investment accessible to everyone, with share purchases starting as low as $20. In contrast, BuyProperly’s higher entry points and fee structure cater to a different segment. This comparison reveals why Ark7’s model delivers a more accessible, transparent, and flexible investment experience for the modern investor.

Key Takeaways

• Ark7’s $20 minimum investment dramatically lowers the barrier to entry, enabling true portfolio diversification for far less capital than BuyProperly’s around $2,500 CAD (~$1,800 USD) typical minimum
• Only Ark7 offers monthly cash distributions, providing a more frequent and predictable passive income stream compared to BuyProperly’s rental distributions, with frequency varying by offering and not publicly standardized
• Ark7 uses a performance-based fee model rather than charging fees based on total assets under management, a significant cost advantage over BuyProperly’s annual management fees typically between 1.25–2.5% + applicable taxes
• Superior liquidity with Ark7’s 12-month minimum hold and continuous trading on the PPEX ATS secondary market, versus BuyProperly’s typical longer intended investment horizons with less transparent secondary liquidity
• Full property-level control and transparency with Ark7 allows investors to select specific, curated rental homes, while both platforms offer professionally managed assets

Understanding Each Platform’s Core Positioning

Ark7 was founded in 2018 with a mission to democratize real estate investing. The platform allows investors to buy shares in individual, single-family rental homes and townhomes across high-growth U.S. markets. With a focus on accessibility, Ark7 enables investors to start building a real estate portfolio with as little as $20 per share, earning passive income through monthly rental distributions. The platform’s end-to-end management means investors receive the benefits of ownership—cash flow and potential appreciation—without the operational headaches of being a landlord.

BuyProperly, founded in 2019, also offers fractional ownership in real estate but with a higher barrier to entry. Its model requires a $500 minimum investment for U.S. properties (and $2,500 in Canada), making it less accessible for beginners or those looking to diversify across multiple assets with a smaller capital base. While it provides access to a curated portfolio of properties and includes management, its fee structure and income distribution model differ significantly from Ark7’s, creating a less flexible and more expensive long-term investment.

The fundamental difference lies in their commitment to accessibility: Ark7 is built for the many, while BuyProperly’s structure serves a more limited investor base.

Investment Accessibility and Minimums

The initial cost to get started is often the first and most significant hurdle for new real estate investors. Here, Ark7’s model is a clear leader.

Ark7’s accessibility features:

• Investment minimum of just $20 per share for most properties
• Ability to build a diversified portfolio across multiple properties with a few hundred dollars
• A streamlined process through the Ark7 Mobile App for discovery and purchase

BuyProperly’s investment requirements:

• $500 minimum investment for U.S. properties
• $2,500 minimum for Canadian properties
• A single investment represents a much larger capital commitment, limiting diversification for smaller investors

This difference is not merely about the entry price; it’s about the philosophy of inclusion. Ark7’s $20 minimum allows an investor to purchase shares in five different properties for the price of a single BuyProperly investment. This level of diversification is a cornerstone of sound investment strategy, and Ark7 makes it achievable for everyone, not just those with significant capital.

Fee Structures and Long-Term Value

Over time, fees can significantly erode investment returns. A transparent and efficient fee structure is therefore paramount. The two platforms take very different approaches here.

Ark7’s fee structure is designed for long-term value:

• A one-time 3% sourcing fee at the time of investment
• An income-linked property management fees of ~8–15% and a one-time sourcing fee of distributable cash flow, rather than a fee based on total assets under management (AUM)
• Property management fees of 8-15% are paid from the rental income generated by the property, not from the investor’s principal

BuyProperly’s fee structure includes ongoing costs:

• An annual management fees typically between 1.25–2.5% + applicable taxes
• This fee is applied to the principal investment value and compounds over time, regardless of the property’s income performance

The impact of this difference is substantial. According to a direct comparison, for a $1,000 investment over five years, Ark7’s performance-based fee structure saves investors approximately $35 compared to platforms that charge fees based on total asset value. For a larger portfolio, these savings multiply, directly increasing the investor’s net return. Ark7’s performance-based model means fees are only paid when properties generate distributable income, aligning management compensation directly with investor returns.

Passive Income: Monthly vs. Quarterly Distributions

The frequency of cash distributions is a major factor for investors seeking reliable passive income. This is one of Ark7’s most significant and unique advantages.

Ark7 delivers consistent monthly cash flow:

• Monthly dividend distributions paid directly to your account
• This predictable income stream can be used for reinvestment or personal expenses
• Monthly compounding allows for faster growth of your investment portfolio

BuyProperly offers less frequent income:

• Quarterly dividend distributions
• This less frequent payment schedule provides fewer opportunities for reinvestment and makes cash flow planning less precise

For an investor, receiving income 12 times a year instead of 4 times creates a more dynamic and responsive investment experience. It allows for quicker reinvestment, which can compound returns over time. In a landscape where most real estate crowdfunding platforms, including BuyProperly, stick to a quarterly model, Ark7’s monthly distributions are a genuine differentiator that directly benefits the investor’s bottom line.

Liquidity and the Secondary Market

Real estate is traditionally an illiquid asset, but fractional platforms seek to solve this problem. The effectiveness of their solutions varies greatly.

Ark7 provides a superior liquidity solution:

• A 12-month minimum holding period is the shortest among major platforms offering individual property investment
• After the hold period, shares can be traded on the PPEX ATS, an SEC-registered alternative trading system
• This provides a continuous, institutional-grade secondary market with no early sale penalties

BuyProperly’s liquidity is more restricted:

• A typical holding period of 5 years, which is a much longer capital commitment
• Limited secondary market options are disclosed, creating potential illiquidity risk

This difference is crucial. An investor’s financial situation or goals can change. Ark7’s model provides a clear and accessible exit path after just one year, offering peace of mind and strategic flexibility. BuyProperly’s 5-year horizon locks capital away for a much longer period, which may not align with many investors’ plans.

Property Selection and Management

Both platforms offer professionally managed properties, removing the landlord burden from the investor. However, the level of control and selection differs.

With Ark7, you have direct control:

• You select and invest in specific, individual properties from a curated list
• Full operational transparency is provided, with complete legal and financial disclosure for each asset accessible 24/7
• Properties are vetted by Ark7 using over 100 indicators to ensure quality and growth potential

BuyProperly’s property selection:

• Also offers investment in individual properties
• Uses an AI-driven selection process to build its portfolio

While both offer a hands-off management experience, Ark7’s model provides greater transparency and investor agency. You know exactly which home you own a share of, its location, its financials, and its performance. This property-level granularity is a key part of Ark7’s commitment to operational transparency and allows investors to align their choices with their specific market preferences.

Specialized Investment Accounts: The IRA Option

For long-term wealth building, the ability to use retirement accounts is a powerful feature.

Ark7 offers a seamless IRA solution:

• Investors can open a self-directed IRA with Ark7 to purchase real estate shares
• The account is managed by Inspira Financial Company, a qualified custodian
• The annual fee is $100 per property (capped at $400 per year) and is waived for account balances over $100,000

BuyProperly’s website does not clearly disclose an IRA investment option. For investors looking to leverage the tax advantages of retirement accounts to build real estate wealth, Ark7 provides a clear, structured, and accessible pathway.

Performance, Reliability, and User Trust

An investment platform’s track record and user satisfaction are strong indicators of its reliability.

Ark7’s performance is transparent and consistent:

• Top-performing properties, like those in the Urbana market, have delivered historical annual yields that have ranged roughly between ~3–8%, varying by property

User trust in Ark7 is high:

• A 4.1/5 rating on Trustpilot based on over 240 reviews
• A strong 4.7/5 rating on the Apple App Store

These metrics demonstrate a platform that is not only performing well operationally but is also delivering a positive user experience.

Why Ark7 is the Superior Choice for Most Investors

The comparison between Ark7 and BuyProperly reveals a clear winner for investors seeking an accessible, cost-effective, and flexible way to invest in real estate.

Key advantages of the Ark7 model:

• Unmatched Accessibility: The $20 minimum investment makes real estate portfolio diversification a reality for a much wider audience. This is not just a lower price; it’s a fundamental commitment to financial inclusion that BuyProperly’s $500 minimum cannot match.
• Superior Cash Flow: Monthly dividend distributions provide a more active and responsive income stream. This feature is unique in the fractional real estate space and offers a tangible benefit for both income-focused and growth-focused investors.
• Performance-Aligned Fee Structure: Ark7’s performance-based fee model means you only pay fees when properties generate distributable income, rather than paying fees based on total asset value regardless of performance. The compounding savings over a 5- or 10-year horizon are significant and directly enhance your net return.
• Best-in-Class Liquidity: A 12-month hold followed by a continuous secondary market is a far more investor-friendly structure than a typical 5-year lock-up. This flexibility is a critical safety net and strategic advantage.
• Transparency and Control: The ability to choose specific properties and access their full financials aligns with a modern, informed approach to investing. You are not just buying into a fund; you are a direct owner in a tangible asset.

For the investor who values control, transparency, low costs, and monthly income, the choice is clear. Ark7’s platform is engineered to simplify the complicated world of real estate investing and deliver its benefits to everyone. Whether you are a first-time investor or a seasoned portfolio builder, Ark7 provides the tools, access, and flexibility to build wealth through real estate on your terms.

Frequently Asked Questions

What is the minimum investment for fractional real estate platforms like Ark7?

Ark7 offers one of the lowest barriers to entry in the industry, with a minimum investment of just $20 per share on most properties. This allows investors to start building a diversified real estate portfolio with a very small amount of capital. In comparison, BuyProperly requires a $500 minimum for U.S. properties, which is 25 times higher. This low minimum is a core part of Ark7’s mission to make real estate investment accessible to everyone.

How do I earn passive income through fractional real estate investing?

On the Ark7 platform, you earn passive income through monthly cash distributions from the rental income generated by the properties you invest in. Once a property is tenanted, the rental income is collected, operating expenses and management fees are paid, and the remaining profit is distributed to shareholders on a monthly basis. This provides a predictable and hands-off income stream. You can manage and track these dividends easily through the Ark7 Mobile App.

Are there risks associated with investing in fractional real estate?

Yes, 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. Fractional real estate investments are speculative and involve substantial risks, including illiquidity, lack of diversification, and the potential for complete loss of capital. It is crucial to carefully review the risks located in the respective offering circular for any property you are considering and to speak with your financial advisor before investing.

Can I sell my shares in properties purchased through platforms like Ark7?

Yes, after a 12-month minimum holding period, you can sell your shares on Ark7’s secondary trading market, the PPEX ATS. This is an SEC-registered alternative trading system that provides a venue for share liquidity. However, it is important to understand that a liquid market is not guaranteed, and you should be prepared to hold your shares for the long term. 

What types of properties are available for investment on Ark7?

Ark7 offers shares in a curated selection of single-family homes and townhomes in high-growth U.S. markets, primarily in the Sunbelt region. Examples include modern townhomes in the Atlanta area, like the Atlanta-T3 Property, and spacious single-family homes in areas like Land O’ Lakes, Florida, and Mesquite, Texas. All properties are professionally managed and selected for their potential to generate stable cash flow and long-term appreciation. Each property undergoes rigorous vetting using over 100 indicators to ensure quality and growth potential.

Can I invest using an IRA with Ark7?

Yes, you can invest in Ark7 property shares through a Self-Directed IRA. Ark7 partners with Inspira Financial Company to provide this service. You can learn more and open an account on the dedicated Ark7 IRA page. The annual custodian fee is $100 per property (capped at $400 per year) and is waived if your account balance exceeds $100,000.