Ark7 vs YieldStreet

For investors seeking real estate exposure through alternative investment platforms, the choice between specialized fractional ownership and diversified alternative assets determines your risk profile and cash flow potential. While YieldStreet offers access to various asset classes including real estate, art, and private credit, Ark7 delivers focused access to high-yield rental properties with monthly cash distributions and zero ongoing management fees. Understanding these fundamental differences—between pooled alternative funds and direct property ownership—helps investors select the approach that matches their income goals, risk tolerance, and desire for transparency.

Key Takeaways

• Ark7 delivers monthly passive income with zero ongoing fees – Earn monthly cash distributions from rental properties with no annual management fees (0% AUM), compared to YieldStreet’s variable annual fees (often exceeding 1-2% total cost) that reduce net returns over time
• Property-level control with accessible entry points – Choose specific properties starting at $20/share through Ark7 rental property shares, not blind pooled funds, enabling geographic and property-type diversification even with limited capital
• Transparent performance vs. YieldStreet’s documented losses – Ark7 maintains positive returns since inception while YieldStreet reported $208M+ in investor losses and -2% annualized real estate returns from 2015-2023
• Secondary market liquidity after minimum hold – Sell shares on the PPEX ATS trading platform after a 1-year hold period, providing an exit strategy unavailable on most fractional real estate platforms
• Full operational transparency with 24/7 document access – Review complete legal and financial disclosure for each property anytime, unlike limited disclosure on pooled fund offerings

When investors compare fractional real estate platforms, they face a critical choice between specialized real estate focus and diversified alternative assets. Two distinct approaches—Ark7 and YieldStreet—represent fundamentally different philosophies toward passive income generation. While YieldStreet operates as an alternative investment platform offering real estate alongside art, private credit, and venture capital, Ark7 specializes exclusively in fractional ownership of U.S. rental properties with monthly cash distributions. This comparison reveals why Ark7’s focused, transparent approach delivers superior value for investors seeking reliable real estate income with minimal fees.

Understanding Each Platform’s Core Positioning

YieldStreet positions itself as a diversified alternative investment platform, offering access to multiple asset classes beyond traditional stocks and bonds. Founded in 2015, YieldStreet built its reputation on democratizing alternative investments for both accredited and non-accredited investors. The platform serves investors through pooled funds like the Prism Fund, which historically had a $500 minimum but now requires $10,000 for new investors. However, YieldStreet’s recent performance has led to significant concerns, including Willow Wealth rebrand in late 2023 following substantial investor losses.

Ark7 takes a radically different approach. Founded in 2019 by former Google engineer Andy Zhao, Ark7 specializes exclusively in fractional ownership of cash-flowing U.S. rental properties. Rather than offering diversified alternative assets, Ark7 focuses on making single-family and multi-family rental home investment accessible through SEC-qualified (Reg A+) share offerings. The platform has attracted 220,000+ active investors and funded over $23 million in properties, paying more than $3.5 million in total dividends to investors. Ark7’s mission centers on transparency, accessibility, and reliable monthly income from tangible real estate assets.

The fundamental difference lies in focus: YieldStreet diversifies across alternative assets while Ark7 specializes in real estate income with full property-level transparency.

Investment Accessibility and Minimum Requirements

The entry requirements reveal each platform’s target investor and accessibility philosophy.

YieldStreet’s investment thresholds:

• Prism Fund (primary non-accredited option): $10,000 minimum
• Individual offerings: Vary by deal, often requiring accredited investor status
• Limited options for non-accredited investors seeking real estate exposure
• High minimums restrict diversification for smaller investors

Ark7’s accessible entry points:

• Individual property shares: $20 per share (some properties start at $100)
• Non-accredited investor access through SEC Regulation A+ offerings
• Ability to diversify across multiple properties with limited capital
• IRA investing available with $0 platform fee to open

The accessibility difference proves significant for most investors. While YieldStreet’s $10,000 minimum limits participation to wealthier investors or those willing to commit substantial capital to a single fund, Ark7’s $20 minimum enables investors to build a diversified real estate portfolio gradually. For example, an investor with $1,000 can purchase shares across 5-10 different properties through Ark7, while the same amount wouldn’t meet YieldStreet’s minimum threshold.

This democratization of access aligns with Ark7’s core mission: “We believe everyone should have the freedom to build wealth through real estate.” The low barrier to entry makes real estate investing as accessible as stock investing, without requiring accredited investor status or substantial capital commitments.

Income Generation and Distribution Frequency

The income generation models reflect each platform’s underlying investment approach and investor priorities.

YieldStreet’s income structure:

• Quarterly distributions from pooled funds
• Real estate debt and equity investments with varying payout schedules
• Historical targeted distributions for Prism Fund, but methodology excludes defaulted investments
• Income frequency limited to quarterly payments

Ark7’s monthly cash flow model:

• Monthly cash distributions from rental income
• Direct ownership in income-producing rental properties
• Transparent dividend yields visible for each property (recent examples available on property pages)
• Income frequency: 12 payments per year vs. industry-standard quarterly

The monthly distribution advantage becomes crucial for income-focused investors. While YieldStreet and most competitors pay quarterly, Ark7’s monthly payments provide better cash flow management and enable monthly reinvestment for compound growth. This frequency difference means Ark7 investors receive income events three times more often than YieldStreet investors.

Moreover, Ark7’s income comes directly from rental payments on tangible properties, providing a clear connection between tenant payments and investor distributions. YieldStreet’s quarterly payments from pooled funds obscure the underlying performance of individual assets, particularly problematic given their documented defaults and losses.

Fee Structures and Total Cost of Ownership

The fee structures reveal significant differences in ongoing costs that compound over time.

YieldStreet’s fee structure:

• Annual management fees: 1.0-2.0% of assets under management
• Offering-specific acquisition fees: Varies by deal (0-2%)
• Built-in property management costs within fund structure
• 5-year TCO on $10,000 investment: $500-1,200 in fees

Ark7’s transparent fee model:

• Annual management fees: 0% (zero ongoing AUM fees)
• One-time sourcing fee: 3% at purchase
• Property management fees: 8-15% of rental income (deducted before distributions)
• IRA custodial fee: $100/property annually (capped at $400, waived for balances >$100,000)
• 5-year TCO on $10,000 investment: ~$300 in total fees

The fee difference creates substantial long-term advantages for Ark7 investors. On a $10,000 investment over 5 years, Ark7 saves investors $200-900 compared to YieldStreet. These savings compound over time, as the money not paid in annual fees continues to generate returns.

Ark7’s “no hidden fees” philosophy extends beyond just management fees. All property-level expenses are transparently disclosed, and investors can review complete financial statements for each property through the Ark7 mobile app. This transparency contrasts with YieldStreet’s pooled fund model, where underlying fees and expenses may be less visible to investors.

Performance Track Records and Risk Profiles

The performance histories reveal stark differences in real estate investment outcomes.

YieldStreet’s performance challenges:

• -2.1% annualized returns for real estate category (2015-2023)
• $208M+ in investor losses across marine loans, Nashville/Houston real estate, and other defaults (2023-2024)
• Historical performance data removed during late 2023 rebrand
• Published returns exclude defaulted investments from calculations

Ark7’s consistent performance:

• Positive returns since inception (2019)
• 94.81% portfolio occupancy rate (November 2025)
• Transparent monthly dividend yields for each property
• $3.5 million+ total cash dividends paid to investors

The performance difference reflects fundamental structural advantages of Ark7’s model. By focusing exclusively on residential rental properties in growing Sunbelt markets, Ark7 avoids the complexity and risk of diversified alternative assets. YieldStreet’s losses in marine loans and commercial real estate demonstrate the dangers of spreading across multiple asset classes without specialized expertise in each area.

Ark7’s property-level transparency also enables better risk management. Investors can review occupancy rates, rental income, and property expenses for each specific asset, rather than relying on pooled fund performance that may mask underperforming investments. This transparency aligns with Ark7’s core value of “Access Operation Transparency.”

Liquidity Options and Secondary Markets

The liquidity mechanisms reflect each platform’s approach to investor flexibility and exit strategies.

YieldStreet’s liquidity limitations:

• Limited or no secondary market for most offerings
• Pooled fund structure typically lacks broad secondary market liquidity for individual deals
• Quarterly redemptions with potential restrictions for some funds
• Investors often face indefinite holding periods

Ark7’s secondary market solution:

• PPEX ATS secondary trading platform after 1-year minimum hold
• SEC-registered alternative trading system operated by North Capital
• Ability to sell shares to other investors (subject to platform availability)
• Most developed secondary market among fractional real estate platforms

While both platforms involve illiquid investments requiring long-term commitment, Ark7 provides a structured exit mechanism through the PPEX ATS. This secondary market, though not guaranteed to provide immediate liquidity, offers more flexibility than YieldStreet’s typically closed-end fund structure.

The 1-year minimum hold period ensures properties have time to stabilize with tenants before shares become eligible for trading, protecting both initial investors and potential buyers from short-term volatility. After this period, investors can access the secondary market through the Ark7 mobile app, providing a level of liquidity unprecedented in fractional real estate investing.

Property Selection and Geographic Focus

The investment selection process reveals fundamental differences in investor control and diversification.

YieldStreet’s pooled approach:

• Blind pooled funds with no individual property selection
• Professional fund managers allocate across various real estate assets
• Limited transparency into specific property holdings
• Geographic diversification determined by fund strategy

Ark7’s property-level control:

• Choose specific properties in growing Sunbelt markets
• Review complete details for each property before investing
• Geographic diversification across Atlanta, Dallas, Tampa, and other markets
• Property types include single-family homes and townhomes built 1992-2020

Ark7 investors maintain full control over their real estate allocation, selecting individual properties that match their investment criteria. For example, investors can choose properties in high-growth Sunbelt markets like the upgraded 4-bedroom home in Mesquite, TX (Dallas-S9) benefiting from Dallas area job growth.

This property-level control enables strategic diversification based on market fundamentals, property characteristics, and personal preferences. YieldStreet’s pooled fund approach removes this control, leaving investors dependent on fund manager decisions that may not align with individual risk tolerance or market views.

Building a Passive Income Portfolio with Ark7

For investors seeking reliable passive income from real estate, Ark7 offers a comprehensive solution that addresses multiple investment goals simultaneously.

Strategic advantages of Ark7’s approach:

• Monthly cash flow: Receive rental income distributions 12 times per year, providing consistent passive income for living expenses or reinvestment
• Long-term appreciation: Benefit from potential property value growth in high-demand Sunbelt markets with strong job and population growth
• Tax-advantaged investing: Use Ark7 IRA accounts to invest retirement funds in tangible real estate assets with potential tax deferral benefits
• Professional management: Ark7 handles all property operations including leasing, tenant management, and maintenance, eliminating landlord responsibilities
• Transparency and control: Monitor performance and review documents anytime through the Ark7 mobile app, maintaining full visibility into your investments

The combination of monthly income, professional management, and property-level transparency creates a compelling passive income solution. Unlike YieldStreet’s opaque pooled funds, Ark7 investors know exactly which properties generate their income and can track performance metrics in real-time.

For retirement-focused investors, the Ark7 IRA option provides a unique opportunity to diversify retirement accounts beyond traditional stocks and bonds into income-producing real estate. With $0 platform fees to open and transparent custodial fees, Ark7 IRAs offer accessible real estate exposure for retirement portfolios.

Why Ark7 Delivers Superior Value for Real Estate Investors

Investors seeking real estate exposure face a clear choice between specialized fractional ownership and diversified alternative assets. For those prioritizing reliable income, transparency, and cost efficiency, Ark7 represents the superior option.

Key advantages of Ark7’s focused approach:

• Cost efficiency: Zero ongoing management fees save investors $500-1,000 over 5 years compared to YieldStreet’s 1-2% annual fees, allowing more rental income to flow directly to investors
• Income frequency: Monthly distributions provide 3x more cash flow events than quarterly-paying competitors, enabling better income management and compound growth through reinvestment
• Property-level control: Choose specific properties starting at $20/share rather than investing in blind pooled funds, enabling strategic diversification based on market fundamentals and personal preferences
• Transparent performance: Full access to property-level financials and performance metrics, unlike pooled funds that obscure underlying asset performance
• Proven track record: Positive returns since inception with no documented investor losses, contrasting sharply with YieldStreet’s reported $208M+ defaults

For investors seeking reliable passive income from real estate without the complexity of direct property management, Ark7 represents the superior approach to fractional real estate investing. The combination of accessible entry points, monthly cash distributions, zero ongoing fees, and full operational transparency creates compelling value that diversified alternative investment platforms cannot match.

Frequently Asked Questions

What is the minimum investment required to start with Ark7?

Ark7 offers fractional real estate investing with shares starting as low as $20 per share for most properties, with some properties requiring a $100 minimum investment. This accessible entry point enables investors to build a diversified real estate portfolio even with limited capital, compared to YieldStreet’s $10,000 minimum for their Prism Fund. The low minimum makes real estate investing as accessible as buying stocks.

How does Ark7 ensure transparency in its property investments?

Ark7 provides 24/7 access to complete legal and financial disclosure for each property through their platform. Investors can review property details, rental income, occupancy rates, expenses, and offering documents before investing and monitor performance ongoing. This full operational transparency contrasts with pooled fund models that provide limited visibility into underlying assets. All documents are accessible through the Ark7 mobile app anytime.

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

Yes, Ark7 offers both Traditional and Roth IRA accounts through custodian Inspira Financial Company. Ark7 charges $0 to open an IRA account, with an annual custodian fee of $100 per property invested, capped at $400 annually and waived for accounts with average balances over $100,000. This enables tax-advantaged real estate investing with property-level control.

What are the liquidity options for selling shares on the Ark7 platform?

Ark7 provides a secondary trading market through the PPEX ATS (Public Private Execution Network Alternative Trading System), operated by North Capital. Investors can sell shares after a 1-year minimum holding period, subject to platform availability and federal/state securities restrictions. However, investors must be prepared to hold shares indefinitely as there’s no guarantee of an active trading market.

How do fractional real estate investments generate passive income?

Fractional real estate investments generate passive income through monthly rental payments from tenants. Ark7 collects rent from tenants and distributes the net income (after property management fees and expenses) to shareholders monthly. This provides consistent cash flow without requiring investors to handle property management, tenant issues, or maintenance responsibilities.

Is Ark7 suitable for non-accredited investors, and what regulatory compliance do they follow?

Yes, Ark7 is accessible to both accredited and non-accredited investors through SEC Regulation A+ qualified offerings. Ark7 Properties offerings are qualified under Regulation A, with Dalmore Group LLC serving as the FINRA/SIPC-registered broker-dealer of record. All offering materials and risks are disclosed in SEC-filed offering circulars available on the Ark7 platform.