CrowdStreet vs RealtyMogul vs Ark7: How to Choose the Right Fractional Real Estate Platform

When evaluating real estate crowdfunding platforms, investors face a fundamental choice between accessibility, returns, and control. Traditional platforms like CrowdStreet and RealtyMogul have established track records but come with significant barriers to entry. Ark7 transforms this paradigm by offering fractional ownership of rental properties with minimum investments as low as $20, making real estate investing accessible to everyday investors without accreditation requirements. This comprehensive comparison examines the features, fees, and suitability of each platform, demonstrating why Ark7 emerges as the optimal choice for most investors seeking passive income through real estate.

Key Takeaways

• Ark7 stands out as the most accessible platform with $20 minimum investments, no accredited investor requirements, and zero annual AUM fees
• CrowdStreet caters exclusively to accredited investors with $25,000 minimums per deal, offering commercial real estate exposure but limited liquidity
• RealtyMogul provides middle-ground options with $5,000 REIT minimums but charges 1-1.25% annual fees that compound over time
• Ark7 offers superior liquidity through its PPEX ATS secondary market after a 12-month holding period, unlike competitors’ 3-5 year typical lockups
• All three platforms serve different investor profiles: Ark7 for accessibility and transparency, CrowdStreet for commercial real estate, and RealtyMogul for REIT diversification

Understanding Real Estate Crowdfunding: What to Look For

Real estate crowdfunding platforms have democratized access to property investment, but they vary significantly in structure, accessibility, and investor experience. When comparing platforms, key evaluation criteria include minimum investment thresholds, accreditation requirements, fee structures, liquidity options, property types, and distribution frequency.

The ideal platform balances accessibility with quality investment opportunities while maintaining transparency about risks and fees. Ark7 addresses these needs through its focus on residential rental properties with monthly cash distributions, while CrowdStreet and RealtyMogul take different approaches targeting different investor segments.

Critical Evaluation Factors:

• Accessibility – Minimum investment amounts and accreditation requirements determine who can participate
• Liquidity – Secondary market availability and holding period restrictions impact capital flexibility
• Fees – Ongoing management fees compound over time and significantly impact long-term returns
• Property Control – Individual property selection versus auto-allocated REIT shares affects investment strategy
• Tax Complexity – 1099 versus K-1 reporting impacts tax preparation costs and complexity
• Distribution Frequency – Monthly versus quarterly payments affects cash flow management

CrowdStreet: Features and Investor Profile

CrowdStreet operates as a commercial real estate investment marketplace, connecting accredited investors with institutional-quality deals across office, retail, industrial, and multifamily properties. With $4.3 billion invested across 790+ deals and 329,000+ registered members, CrowdStreet has established itself as a leader in the commercial real estate crowdfunding space.

CrowdStreet Key Characteristics:

• Accredited Investors Only – Excludes approximately 98% of the population from participation
• High Minimum Investment – $25,000 per deal creates substantial barriers to diversification
• Commercial Focus – Office, retail, industrial, and multifamily properties with institutional sponsors
• Limited Liquidity – Typical 3-5 year hold periods with no secondary market functionality
• Historical Performance – 19.7% realized IRR on completed deals through 2023
• Tax Reporting – Complex K-1 partnership returns increase tax preparation complexity

While CrowdStreet offers strong historical returns and access to commercial properties that are typically unavailable to individual investors, its accredited-only structure and longer holding periods may limit its suitability for some retail investors. Investor experiences have varied, with 2023 survey data indicating lower recommendation rates, suggesting that customer service and communication expectations can differ across users.

RealtyMogul: Platform Overview and Accessibility

RealtyMogul provides a hybrid approach, offering both private placements for accredited investors and REIT options for non-accredited investors. Founded in 2012 with 280,000+ members, RealtyMogul has built a reputation for strong due diligence and consistent distributions, particularly through its Income REIT which has delivered payments for 109 consecutive months.

RealtyMogul Platform Features:

• Dual Investor Access – REITs available to all investors; private placements require accreditation
• Moderate Minimums – $5,000 for REITs; $25,000-50,000 for private placements
• Automatic Diversification – REIT structure spreads risk across multiple properties and markets
• Ongoing Fees – 1-1.25% annual AUM fees compound over time and reduce net returns
• Limited Liquidity – Buyback programs with restrictions that can be suspended during high-demand periods
• Mixed Property Types – Commercial and residential exposure through different investment vehicles

RealtyMogul’s established track record and REIT consistency make it attractive for investors seeking diversified exposure without property selection responsibility. However, the platform’s ongoing fees, limited liquidity, and lack of individual property control represent significant drawbacks compared to more modern alternatives.

Ark7 Review: Fractional Investing for Everyone

Ark7 revolutionizes real estate investing by offering fractional ownership in curated rental properties with minimum investments starting at just $20 per share. With 230,000+ active investors and $23 million+ in property value funded, Ark7 has democratized access to rental real estate for everyday investors regardless of accreditation status.

Ark7’s Core Advantages:

• Unprecedented Accessibility – $20 minimum investments enable true fractional ownership for all investors
• No Accreditation Required – SEC Regulation A+ qualification opens institutional-quality real estate to all US investors 18+
• Zero AUM Fees – No ongoing management fees preserve investor returns over time
• Superior Liquidity – PPEX ATS secondary market enables trading after 12-month holding period
• Monthly Distributions – Consistent rental income paid on the 3rd of each month
• Simple Tax Reporting – Straightforward 1099 forms versus complex K-1 partnership returns
• High Occupancy – 94.81% portfolio occupancy as of December 2025 ensures consistent rental income

The Ark7 Mobile App enhances the investor experience with real-time portfolio tracking, property analytics, and seamless transaction capabilities, earning a 4.7/5 rating on the Apple App Store. For retirement-focused investors, Ark7 IRA options provide tax-advantaged real estate investing with transparent custodian fees capped at $400 annually.

Minimum Investments and Investor Type: Accredited vs. Non-Accredited

Investment minimums and accreditation requirements represent the most significant barriers to real estate investing accessibility. Ark7’s $20 minimum stands in stark contrast to competitors’ much higher thresholds, fundamentally changing who can participate in rental property ownership.

Minimum Investment Comparison:

• Ark7: $20 per share – enables meaningful portfolio diversification with limited capital
• RealtyMogul: $5,000 for REITs – still substantial for many beginning investors
• CrowdStreet: $25,000 per deal – effectively excludes most retail investors

Accreditation requirements further limit accessibility. CrowdStreet’s exclusive focus on accredited investors excludes approximately 98% of the population, while RealtyMogul’s REIT options provide some non-accredited access but without individual property selection control.

Ark7’s SEC Regulation A+ qualification specifically addresses this accessibility gap, allowing all US investors 18+ to participate in fractional real estate ownership without accreditation requirements. This democratization enables investors to build diversified real estate portfolios with the same capital they might spend on other investments, making fractional real estate truly accessible to everyone.

Fees and Transparency: What You’ll Pay

Fee structures significantly impact long-term investment returns, with ongoing annual fees compounding over time to substantially reduce investor profits. Ark7’s zero AUM fee model provides a clear advantage over competitors charging recurring management fees.

Fee Structure Comparison:

• Ark7: 3% one-time sourcing fee + 8-15% property management (from rental income) + zero annual AUM fees
• CrowdStreet: Sponsor-paid platform fees + deal-specific investor fees (varies by deal)
• RealtyMogul: Embedded acquisition fees + 1-1.25% annual AUM fees + property management costs

Over a 5-year period on a $10,000 investment, these differences become significant. Ark7’s total fees amount to approximately $300 (3% sourcing fee only), while RealtyMogul’s annual fees compound to $500-625 over the same period. This $200-325 difference represents capital that remains invested and compounding with Ark7.

Beyond quantitative differences, Ark7’s commitment to transparency ensures investors understand exactly what they’re paying. The platform provides complete legal and financial disclosure accessible 24/7, with no hidden fees or surprise costs. For IRA investors, Ark7’s IRA structure includes transparent custodian fees of $100 per property annually, capped at $400 and waived for accounts with balances exceeding $100,000.

Investment Selection and Diversification Opportunities

Property selection control and geographic diversification significantly impact investment strategy and risk management. Ark7 and CrowdStreet both offer individual property selection, while RealtyMogul’s REIT structure provides automatic diversification without selection control.

Investment Selection Comparison:

• Ark7: Direct selection of individual residential properties across 10+ markets, including specific opportunities like Atlanta-T3 Property Shares in Jonesboro, GA
• CrowdStreet: Direct selection of commercial deals with detailed sponsor information and due diligence materials
• RealtyMogul: Auto-allocated REIT shares for non-accredited investors; individual deal selection for accredited investors only

Ark7’s residential focus provides exposure to single-family and multifamily rental properties that have demonstrated resilience during economic cycles. Properties like the Dallas-S8 Property Shares offer high dividend yields (+6.51% as of June 2025) and strong market appreciation potential in growing Sunbelt markets.

While CrowdStreet’s commercial focus offers higher historical returns (19.7% realized IRR), it also carries higher risk and volatility. Ark7’s residential approach provides more stable, consistent returns with superior accessibility and liquidity.

Liquidity Options and Secondary Markets

Liquidity represents one of the most significant challenges in real estate investing, with traditional platforms imposing multi-year lockup periods. Ark7’s PPEX ATS secondary market addresses this fundamental issue, providing liquidity options unavailable on competitor platforms.

Liquidity Comparison:

• Ark7: Secondary market trading available after 12-month holding period through PPEX ATS
• CrowdStreet: Typically illiquid with 3-5 year hold periods and no secondary market functionality
• RealtyMogul: Limited buyback programs with restrictions that can be suspended during high-demand periods

Ark7’s secondary market generated $77,204 in monthly trading volume as of December 2025, demonstrating real investor demand for liquidity options. While there’s no guarantee an active market will develop for any specific property, the availability of a regulated secondary trading platform represents a significant advancement in real estate investment accessibility.

This liquidity advantage enables investors to respond to changing financial circumstances or reallocate capital as needed, addressing one of the traditional drawbacks of real estate investment. The 12-month minimum holding period ensures properties have time to stabilize while providing reasonable access to liquidity.

Performance and Track Record: What to Expect

Performance expectations should align with investment strategy and risk tolerance. CrowdStreet’s impressive historical returns reflect its higher-risk commercial real estate focus, while Ark7’s more modest yields reflect its lower-risk residential approach with superior accessibility and liquidity.

Performance Metrics:

• Ark7: 3.96-4.67% annualized yields (2025) with monthly distributions and 94.81% portfolio occupancy
• CrowdStreet: 19.7% realized IRR on completed deals (through 2023) with quarterly distributions
• RealtyMogul: 4.5-6% annualized returns on REITs with monthly (Income REIT) or quarterly (Growth REIT) distributions

It’s important to note that CrowdStreet’s historical returns were achieved during favorable market conditions through 2023 and may not be representative of future performance, particularly given current challenges in commercial real estate. Ark7’s residential focus provides more stable, consistent returns that align with rental income fundamentals.

All securities involve substantial risks, including illiquidity, lack of diversification, and potential complete loss of capital. Investors should carefully review the complete set of risk factors in the respective SEC offering circular before investing.

Ark7’s Technology-Driven Approach and Investor Support

Ark7’s modern technology infrastructure provides a superior investor experience compared to traditional platforms. The Ark7 Mobile App enables complete investment management from smartphones, including property discovery, share purchases, portfolio tracking, and secondary market trading.

Technology Advantages:

• AI-Driven Property Sourcing – Combines data analytics with local market expertise for optimal property selection
• Mobile-First Design – 4.7/5 rated app provides seamless investment management anytime, anywhere
• Real-Time Analytics – Portfolio performance tracking and property-level insights
• Secure Transactions – Bank-level security for all investment activities
• Community Focus – 4.2/5 Trustpilot rating based on 243 reviews reflects strong investor satisfaction

Ark7’s commitment to operational transparency ensures investors have access to complete legal and financial disclosure 24/7. The platform’s focus on community and investor feedback drives continuous improvement, with regular updates based on user input.

This technology-driven approach, combined with Ark7’s commitment to making real estate investment accessible, transparent, and hassle-free, creates a superior investor experience that addresses the limitations of traditional platforms.

Frequently Asked Questions

What is the main difference between CrowdStreet, RealtyMogul, and Ark7?

CrowdStreet focuses exclusively on commercial real estate for accredited investors with $25,000 minimums and limited liquidity. RealtyMogul offers both commercial and residential exposure through REITs ($5,000 minimum) and private placements, but charges 1-1.25% annual fees. Ark7 provides fractional ownership of residential rental properties with $20 minimums, no accreditation requirements, zero annual fees, and secondary market liquidity after 12 months. Each platform serves different investor needs based on capital availability, accreditation status, and investment preferences.

Can non-accredited investors use Ark7?

Yes, Ark7 accepts all US investors 18+ without accreditation requirements through its SEC Regulation A+ qualification. This democratizes access to institutional-quality real estate investing that was previously available only to accredited investors through platforms like CrowdStreet. The $20 minimum investment makes it accessible to virtually any investor interested in building a real estate portfolio. Non-accredited investors can select individual properties and receive the same returns as accredited investors.

What kind of fees should I expect with Ark7?

Ark7 charges a 3% one-time sourcing fee and 8-15% property management fees from rental income, but importantly has zero annual AUM fees. This saves investors $200-325 over 5 years compared to RealtyMogul’s 1-1.25% annual fees on a $10,000 investment. For IRA investors, Ark7 includes transparent custodian fees of $100 per property annually, capped at $400 and waived for accounts exceeding $100,000. All fees are clearly disclosed upfront with no hidden costs.

How liquid are investments on Ark7 compared to other platforms?

Ark7 offers superior liquidity through its PPEX ATS secondary market, enabling share sales after a 12-month holding period. This contrasts sharply with CrowdStreet’s typical 3-5 year illiquid hold periods and RealtyMogul’s restricted buyback programs that can be suspended during high-demand periods. While there’s no guarantee of finding a buyer, the secondary market provides a trading mechanism unavailable on competitor platforms. The 12-month minimum ensures properties stabilize before shares become tradeable.

What are the typical risks associated with investing on platforms like Ark7?

All real estate investments involve substantial risks including illiquidity, lack of diversification, and potential complete loss of capital. Ark7 investments are speculative and investors must be prepared to hold shares indefinitely, as there’s no guarantee an active secondary market will develop. Property values can decline, vacancies can reduce income, and external market factors can impact returns. Investors should carefully review the complete risk factors in the SEC offering circular and consult with financial, tax, and legal advisors before investing.