When evaluating fractional real estate investment platforms, investors face a critical challenge: balancing accessibility with reliability, and low fees with strong performance. Traditional real estate investing requires substantial capital and active management, but fractional platforms promise to democratize access. However, not all platforms deliver on this promise equally. This comprehensive comparison examines Addy, YieldStreet, and Ark7, with particular emphasis on why Ark7 emerges as the competitive choice for investors seeking reliable, accessible real estate income. Get started with Ark7 with as little as $20 per share.
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Explore Ark7 OpportunitiesKey Takeaways
- Ark7 stands out as the premier solution for accessible fractional real estate with $20 minimum investments, 0% annual management fees, and monthly cash distributions
- Traditional platforms like YieldStreet charge 1-2% annual fees and require $10,000 minimums, while Addy has faced regulatory enforcement actions
- Ark7’s track record contrasts with YieldStreet’s reported investor losses and regulatory settlements
- Investors benefit from Ark7’s property-level control and PPEX ATS secondary market, providing transparency and liquidity options not widely available from competitors
- Consider your primary need: Choose Ark7 for reliable real estate income with minimal fees, Addy only for Canadian market exposure, and YieldStreet for alternative asset diversification beyond real estate
Understanding Fractional Real Estate Investing Platforms
Fractional real estate platforms allow investors to purchase shares in rental properties without the responsibilities of direct ownership. While this model democratizes real estate investing, platforms differ significantly in their approach to fees, minimum investments, transparency, and track records.
Ark7 addresses the fundamental challenge of making real estate truly accessible through its SEC Regulation A+ qualified offerings, allowing investors to buy shares in curated high-yield rental properties nationwide starting at just $20 per share. This approach eliminates the traditional barriers of $50,000+ down payments and landlord responsibilities.
Key Challenges with Traditional Approaches:
- High minimum investments excluding most retail investors
- Ongoing management fees eroding returns over time
- Limited transparency with pooled funds obscuring individual property performance
- Illiquidity with no secondary market options
- Varying track records across competing platforms
Head-to-Head Feature Comparison
Ark7: The best solution for accessible, transparent real estate investing
Ark7 revolutionizes fractional real estate by combining the lowest industry minimums with zero ongoing fees and monthly cash distributions. Unlike competitors that pool investor funds or charge annual management fees, Ark7 offers property-level control with complete transparency.
Key Ark7 Advantages:
- $20 minimum investment – 5-500x lower than competitors, democratizing real estate access
- 0% annual management fees – Industry-unique zero ongoing charges maximize returns
- Monthly cash distributions – 12 payments per year vs. quarterly industry standard
- Property-level control – Choose specific U.S. Sunbelt rental homes rather than blind pooled funds
- PPEX ATS secondary market – SEC-registered trading platform for share liquidity after 1-year hold
- Clean regulatory track record – No documented investor losses or enforcement actions since 2019
How It Works:
Ark7’s approach eliminates traditional real estate barriers through its end-to-end property management and investor-friendly structure. Investors select specific properties in high-growth Sunbelt markets, receive monthly rental income distributions, and benefit from professional property management without any landlord responsibilities. The Ark7 Mobile App provides real-time portfolio tracking and management from any device.
Performance Validation:
Ark7’s operational excellence is demonstrated through:
- 94.81% portfolio occupancy (as of late 2025)
- $2.5 million+ cumulative dividends paid to investors
- 230,000+ active investors on the platform
- 4.1/5 Trustpilot rating from verified users
Fee Structure Advantage
Ark7’s fee structure maximizes investor returns through:
- One-time 3% sourcing fee (standard in the industry)
- 0% annual management fees – Unique in the fractional real estate space
- Property management fees (8-15% of rental income) deducted at property level, not from investor capital
Liquidity Options:
Ark7 provides the only viable liquidity option in the fractional real estate space through the PPEX ATS secondary trading platform, allowing investors to sell shares after a 1-year minimum holding period. This contrasts sharply with competitors that offer no secondary market, effectively locking investor capital indefinitely.
Addy: Canadian-focused platform with regulatory challenges
Addy operates primarily in the Canadian market with some expansion into U.S. properties. While it offers lower minimums than YieldStreet, it has faced regulatory compliance challenges.
Key Addy Limitations:
- Regulatory enforcement action – $100,000 BCSC fine for unregistered trading of $26M in securities
- No secondary market – Zero liquidity options with funds locked indefinitely
- Annual management fees – 1-3.5% ongoing charges reducing net returns
Performance Concerns:
Addy has faced regulatory enforcement from the British Columbia Securities Commission, which resulted in a $100,000 penalty for unregistered securities trading. The platform provides limited publicly available performance data, which may make it difficult for investors to fully evaluate returns.
Fee Structure
Addy’s fee structure includes:
- Variable one-time sourcing fees
- 1-3.5% annual management fees – Among the highest in the industry
- No secondary market means fees continue indefinitely with no exit option
YieldStreet: Alternative investment platform with mixed real estate performance
YieldStreet operates as a broader alternative investment platform offering real estate alongside art, crypto, and private credit. While it provides asset diversification, its real estate performance has been mixed.
Key YieldStreet Limitations:
- Reported investor losses – Including marine loan defaults and real estate fund challenges totaling over $200M
- Real estate returns – Reported negative annualized performance for certain periods (2015-2023)
- SEC settlement – $1.9M settlement for disclosure-related matters
- High minimum investments – $10,000 for Prism Fund excludes most retail investors
- Pooled funds with limited transparency – Obscures individual asset performance
Regulatory and Performance History:
YieldStreet has experienced regulatory matters including an SEC settlement related to disclosure practices. The platform has reported losses on certain investment offerings, including marine loans and real estate funds. During a 2023 rebrand, some historical performance data was removed from public view.
Fee Structure
YieldStreet’s fee structure includes:
- Variable one-time fees (0-2%)
- 1-2% annual management fees – Reducing stated returns
- High minimum investments limit accessibility for most investors
Total Cost of Ownership Comparison
5-Year TCO on $10,000 Investment
- Ark7
- Year 1: $300
- Years 2–5: $0 per year
- 5-Year Total: $300
- Addy
- Year 1: $200–$450
- Years 2–5: $100–$350 per year
- 5-Year Total: $600–$2,050
- YieldStreet
- Year 1: $200–$300
- Years 2–5: $100–$200 per year
- 5-Year Total: $600–$1,200
Source: Fee structures compiled from Ark7 comparison data
ROI Implications:
The fee difference has significant compounding effects over time:
- Ark7: 0% annual drag = full rental income flows to investors
- Addy: 1-3.5% annual drag = reduces 5% gross return to 1.5-4% net
- YieldStreet: 1-2% annual drag = reduces stated returns by management fees
On a 5% gross rental yield, Ark7 investors keep the full return while competitors’ fees reduce net returns by 1-3.5 percentage points annually.
Transparency and Investor Protection
Regulatory Compliance
Ark7 Regulatory Framework:
- SEC Regulation A+ qualified offerings
- Dalmore Group LLC as registered broker-dealer (FINRA/SIPC member)
- Complete legal and financial disclosure accessible 24/7
- Offering circulars available for all property series
Competitor Regulatory History:
- Addy: $100,000 BCSC fine for unregistered trading of $26M in securities
- YieldStreet: $1.9M SEC settlement for disclosure-related matters
Transparency Differences
Ark7 Transparency Features:
- Property-level financials for each investment
- Real-time occupancy and performance data
- Complete offering documents available 24/7
- Monthly distribution statements and tax documentation
Competitor Transparency Characteristics:
- Addy: Limited publicly available performance disclosure
- YieldStreet: Pooled funds obscure individual asset performance; historical data was removed during 2023 rebrand
Liquidity and Exit Strategies
Secondary Market Options
Ark7 Liquidity Advantage:
- PPEX ATS secondary trading platform – SEC-registered marketplace
- Shares available for sale after 1-year minimum hold
- Active trading on ~70% of properties
- Transparent pricing and market depth
Competitor Liquidity Limitations:
- Addy: No secondary market, indefinite capital lockup
- YieldStreet: Limited or no secondary market options
Migration Difficulty:
- From Addy/YieldStreet to Ark7: Easy with new capital allocation (existing investments remain illiquid)
- From Ark7 to competitors: Easy after PPEX sale or with new capital
Use Cases Where Each Platform Excels
Choose Ark7 when:
- You need the lowest possible entry point ($20 minimum)
- You want monthly cash distributions for better cash flow management
- You seek 0% annual management fees to maximize returns
- You require property-level control and transparency
- You need a secondary market exit option after 1 year
- You prioritize a clean regulatory track record
Choose Addy only when:
- You are a Canadian investor seeking domestic market exposure
- You accept the risk of indefinite capital lockup
- You are comfortable with the platform’s regulatory history
Choose YieldStreet only when:
- You are an accredited investor with $10,000+ to deploy
- You want alternative asset diversification beyond real estate (art, crypto, private credit)
- You are comfortable with the platform’s historical performance and regulatory matters
Integration and Technical Capabilities
Ark7 Integration Features:
- Ark7 Mobile App – 4.6/5 Apple App Store rating with real-time portfolio management
- Ark7 IRA – $0 platform fee with tax-advantaged retirement investing
- Direct ACH bank transfers for easy funding
- Electronic share issuance with 24/7 document access
Competitor Integration Characteristics:
- Addy: Mobile app available with varying user ratings
- YieldStreet: Higher technical barriers due to $10,000 minimums
Building Long-Term Wealth Through Real Estate
Ark7 IRA Advantages
The Ark7 IRA provides unique advantages for retirement investing:
- $0 Ark7 platform fee – Only $100/property annual custodian fee (capped at $400, waived for balances >$100,000)
- Tangible real estate assets in tax-advantaged accounts
- Monthly rental income distributions
- Professional property management without landlord responsibilities
Compounding Benefits
Ark7’s combination of monthly distributions and 0% annual fees creates superior compounding:
- Monthly reinvestment opportunities vs. quarterly competitors
- Full rental income retention vs. 1-3.5% annual fee drag
- Professional property management ensuring consistent occupancy and income
Frequently Asked Questions
How does fractional real estate investing generate passive income?
Fractional real estate investing generates passive income through monthly rental distributions from professionally managed properties. Ark7 investors receive 12 cash distributions per year from their share of rental income, compared to the quarterly distributions offered by some competitors. These monthly payments provide consistent cash flow without any landlord responsibilities, as Ark7 handles all property management, tenant relations, and maintenance.
Are Ark7 investments liquid, and how can I sell my shares?
Ark7 provides liquidity through the PPEX ATS secondary trading platform, an SEC-registered marketplace. After a 1-year minimum holding period, investors can sell their shares on this platform. Approximately 70% of Ark7 properties have active trading on the secondary market, providing exit options not commonly available with competing platforms.
What are the fees associated with investing through Ark7, especially with an IRA?
Ark7’s fee structure includes a one-time 3% sourcing fee and 0% annual management fees, which is unique in the fractional real estate industry. For IRA investments, Ark7 charges $0 platform fee, with only a $100 per property annual custodian fee (capped at $400 per year, waived for account balances over $100,000). This compares favorably to competitors charging 1-3.5% annual management fees that compound over time.
Is Ark7 available for international investors?
Ark7 operations are exclusive to the U.S., without international business engagements. Both the platform and underlying properties are U.S.-based, making it ideal for domestic investors seeking exposure to high-growth Sunbelt real estate markets.
How does Ark7 ensure transparency and investor protection?
Ark7 ensures transparency through SEC Regulation A+ qualified offerings with complete legal and financial disclosure accessible 24/7. The platform works with Dalmore Group LLC as the registered broker-dealer (FINRA/SIPC member) and provides property-level financials for each investment. Ark7 maintains a clean regulatory track record with no documented investor losses or enforcement actions since its founding in 2019.
