When evaluating fractional real estate investment platforms, investors face a critical decision between accessibility, returns, and control. Traditional platforms often require significant capital, lock up funds for years, or offer limited transparency into underlying assets. This is where Ark7’s innovative approach transforms the paradigm. By enabling share-by-share investment in curated high-yield rental properties with minimums as low as $20, Ark7 democratizes real estate investing while providing monthly cash distributions and full operational transparency.
This comprehensive comparison examines DiversyFund, Elevate.Money, and Ark7, highlighting why Ark7 emerges as the optimal choice for modern investors seeking accessible, transparent, and flexible real estate investment opportunities through its Rental Property Shares.
New to passive real estate investing?
Explore Ark7 OpportunitiesKey Takeaways
- Ark7 stands out as the premier solution for accessible real estate investing with a $20 minimum investment versus $100-$500 for competitors, enabling true fractional ownership
- Zero annual management fees (0% AUM) with Ark7 versus 0.5-2% with competitors means keeping more of your returns—potentially saving $200 annually per $10,000 invested compared to DiversyFund
- Immediate passive income is possible with Ark7’s monthly distributions (4.6% average annualized yield in 2025) versus DiversyFund’s 5-7 year lockup with no interim cash flow
- Ark7 provides liquidity options through the PPEX ATS secondary market after a 12-month hold, while DiversyFund offers complete illiquidity for 5-7 years
- Property selection control with Ark7 allows investors to choose specific assets with full financial transparency, unlike competitors’ blind pooled funds
- Consider your primary investment goal: Choose Ark7 for accessibility, flexibility, and immediate income; DiversyFund for long-term appreciation with higher return targets but no interim cash flow
Understanding Fractional Real Estate Investing Platforms
Fractional real estate investing has transformed how individuals access the real estate asset class, traditionally reserved for wealthy investors with substantial capital. These platforms pool investor capital to purchase properties, allowing participants to own shares rather than entire assets. However, significant differences exist in how these platforms operate, particularly regarding minimum investment requirements, fee structures, income generation, and investor control.
The core appeal of fractional real estate lies in its ability to provide:
- Access to real estate with minimal capital requirements
- Passive income through rental distributions
- Potential for long-term appreciation
- Portfolio diversification beyond traditional stocks and bonds
While all three platforms—DiversyFund, Elevate.Money, and Ark7—offer fractional real estate exposure, their approaches differ substantially. Ark7’s model emphasizes individual property selection with full transparency, allowing investors to choose specific assets based on their preferences and risk tolerance. In contrast, both DiversyFund and Elevate. Money operates as pooled REITs, where investors contribute to a blind fund without knowing the specific underlying properties.
Key Challenges with Traditional Fractional Real Estate Approaches:
- High minimum investments limiting accessibility ($100-$500 versus Ark7’s $20)
- Ongoing management fees eroding returns (0.5-2% annual AUM fees versus Ark7’s 0% AUM)
- Limited or no liquidity options, particularly with DiversyFund’s 5-7 year lockup
- No control over property selection with blind pooled funds
- Tax reporting varies by platform, with DiversyFund typically issuing K-1 forms, while Ark7 may issue either 1099s or K-1s depending on the specific investment
Ark7: Accessible & Transparent Real Estate Investment
Ark7 revolutionizes fractional real estate investing by replacing blind pooled funds with individual property selection and share-by-share ownership. Unlike traditional platforms that require investors to trust a fund manager’s decisions without visibility, Ark7 provides complete legal and financial disclosure for each property, accessible 24/7. This transparency empowers investors to make informed decisions based on specific property characteristics, location, and financial projections.
Key Ark7 Advantages:
- Industry-Lowest $20 Minimum Investment – Enables true micro-investing and portfolio diversification even with minimal capital
- Zero Annual Management Fees (0% AUM) – Performance-based fee structure only charges when properties generate income
- Monthly Cash Distributions – Passive income starting approximately 30 days after investment with 4.6% average annualized yield (2025)
- Individual Property Selection – Choose specific properties rather than investing in blind pooled funds
- Secondary Market Liquidity – PPEX ATS trading after 12-month minimum hold with active trading on many properties
- Flexible Tax Reporting – Tax forms (either 1099 or K-1 depending on investment structure) provided for simplified reporting
- Platform Co-Investment – Ark7 invests 1-20% of its own capital alongside investors in each property, aligning incentives
How Ark7 Works
Ark7’s process eliminates the traditional barriers to real estate investing. Instead of contributing to a blind fund with unknown properties, investors browse a curated selection of single-family, multi-family, and vacation rental properties across 10+ U.S. markets. Each property listing includes comprehensive details about location, property characteristics, rental income projections, and expense breakdowns. Investors can purchase shares starting at $20, with ownership recorded electronically. Monthly rental income distributions are paid directly to investor accounts, typically beginning within 30 days of investment.
Performance Validation:
Ark7’s track record demonstrates consistent performance and reliability:
- $3.5M+ distributed to investors since launch
- Strong occupancy rates maintained across the portfolio
- No losses reported since platform inception in 2019
- 4.7/5 App Store rating (1,300+ reviews) and 4.1/5 TrustPilot rating (240+ reviews)
Property Examples
Ark7’s portfolio includes diverse property types across different markets:
- Dallas-S8 Property: A 3-bedroom, 2.5-bath single-family home in Mesquite, TX showing a 6.51% dividend yield
- Atlanta-T3 and T4 Properties: Modern townhomes in Jonesboro, GA with high cash yield potential
- Tampa-S10 Property: A 4-bedroom, 2.5-bath single-family home in Land O Lakes, FL, fully occupied with a long-term lease
Technology Integration
Ark7’s mobile app enhances the investment experience through:
- Property discovery and share purchase capabilities
- Real-time portfolio tracking and performance insights
- Monthly dividend monitoring and distribution history
- Secondary market trading functionality
- Secure transaction processing
DiversyFund: An Overview of Their Real Estate Offerings
DiversyFund operates as a traditional pooled REIT model, focusing exclusively on multifamily apartment properties. Founded in 2016, the platform has accumulated over $224M in assets under management (as of 2023) and serves 28,000+ active investors. DiversyFund provides access to institutional-quality real estate, though its structure differs significantly from Ark7’s individual property selection model.
Key DiversyFund Characteristics:
- Pooled REIT Structure – Investors contribute to blind funds without knowing specific underlying properties
- Higher Minimum Investments – $500 for Growth REIT, $50,000+ for Premier single-asset deals (accredited investors only)
- No Interim Cash Flow – Zero distributions during the 5-7 year hold period; all returns realized at exit
- Annual Management Fees – 2% AUM fees apply over time
- Extended Hold Periods – 5-7 year investment horizon with no early exit options
- K-1 Tax Forms – K-1 forms may increase accounting complexity and costs
- Higher Target Returns – 11-18% targeted returns at exit, with one investor reporting 10.5% IRR over 5 years
Investment Structure
DiversyFund offers two primary investment tiers. The Growth REIT ($500 minimum) is accessible to both accredited and non-accredited investors but provides no cash flow during the 5-7 year hold period. Returns are realized only upon fund termination or property sale. The Premier tier ($50,000+ minimum) is restricted to accredited investors and offers access to single multifamily properties with 15% target returns.
Performance Considerations
DiversyFund targets higher total returns at exit (11-18%), though the extended hold period means investors wait 5-7 years before realizing any returns. On a $10,000 investment, this represents a different approach compared to Ark7’s monthly income model. The 2% annual AUM fees and K-1 tax forms add administrative considerations.
Investment Approach
DiversyFund’s extended investment horizon is designed for investors who prioritize long-term appreciation and can commit capital for 5-7 years without needing interim cash flow or liquidity.
Elevate.Money: Exploring Their Investment Strategy
Elevate.Money operates as a pooled REIT focused on commercial real estate assets, including quick-service restaurants (QSR), dollar stores, and gas stations. While public information about the platform is more limited compared to Ark7 and DiversyFund, available data suggests a middle-ground approach between the two competitors.
Key Elevate.Money Characteristics:
- Commercial Real Estate Focus – Unique exposure to QSR, convenience stores, and gas stations
- Moderate Minimum Investment – $100 for REIT I, $1,000 for Future of Housing Fund
- Monthly Distributions – Unlike DiversyFund, provides regular income to investors
- Target Yields – 6.5% target annual dividend yield compared to Ark7’s 4.6% average annualized yield
- Annual Management Fees – 0.5% AUM, higher than Ark7’s 0% but lower than DiversyFund’s 2%
- Limited Public Performance Data – Fewer third-party reviews or verified performance metrics available compared to competitors
- Liquidity Options – Public information on secondary market or exit strategies is limited
Investment Structure
Elevate.Money’s REIT I requires a $100 minimum investment and targets 6.5% annual dividend yield through monthly distributions. The platform also offers a Future of Housing Fund with a $1,000 minimum. Like DiversyFund, Elevate.Money operates as a pooled fund, meaning investors have no control over specific property selection.
Performance Considerations
Elevate.Money advertises a 6.5% target yield with monthly distributions, positioning it between Ark7’s 4.6% average annualized yield and DiversyFund’s long-term appreciation model. However, independent verification of performance through third-party sources is more limited. The 0.5% annual AUM fees represent a cost that Ark7 investors avoid entirely.
Market Position
Elevate.Money’s commercial real estate focus provides unique diversification opportunities not available through Ark7’s residential rental portfolio. However, commercial properties may carry different risk profiles compared to single-family and multi-family residential rentals, particularly regarding tenant concentration and lease structures.
Investment Accessibility and Minimums: Ark7 vs Competitors
The minimum investment requirement represents a critical barrier to entry for many potential real estate investors. Ark7 dramatically lowers this barrier compared to competitors, enabling true democratization of real estate investing.
Minimum Investment Comparison:
Ark7: $20 per share | Individual property selection | Highest accessibility – enables micro-investing and portfolio diversification
Elevate.Money: $100 (REIT I) | Pooled REIT | Moderate accessibility – accessible but higher than Ark7
DiversyFund: $500 (Growth REIT) | Pooled REIT | Lower accessibility – higher barrier for small investors
Impact of Low Minimums
Ark7’s $20 minimum investment enables several unique advantages:
- Portfolio Diversification: Investors can spread $100 across 5 different properties, reducing concentration risk
- Micro-Investing: Regular small contributions can build a diversified real estate portfolio over time
- Accessibility: Truly opens real estate investing to individuals with limited capital
- Flexibility: Investors can adjust their investment amounts based on cash flow availability
Accredited Investor Requirements
All three platforms offer options for non-accredited investors, though with different limitations:
- Ark7: No accredited investor requirement for any investment
- DiversyFund: Growth REIT accessible to non-accredited investors; Premier tier ($50K+) requires accreditation
- Elevate.Money: No accredited investor requirement disclosed
Investment Flexibility
Ark7’s share-based model provides unique flexibility compared to competitors’ fixed minimum investments. Investors can purchase any number of shares based on their available capital, while competitors require meeting specific minimum thresholds. This flexibility supports both regular investing habits and opportunistic purchases when capital becomes available.
Comparing Returns and Income Generation: DiversyFund, Elevate.Money, and Ark7
Income generation represents a critical differentiator between these platforms, with significant implications for investor cash flow and total returns.
Income Generation Comparison
Ark7: Monthly distributions (~30 days after investment) | 4.6% annualized yield (2025) | Yes – immediate passive income | 4.6% yield + appreciation potential
Elevate.Money: Monthly distributions | 6.5% target annual dividend yield | Yes – regular distributions | 6.5% target yield
DiversyFund: No distributions during hold period | 0% during hold period | No – no interim cash flow | 11-18% at exit (5-7 years)
Passive Income Potential
Ark7’s monthly distribution model provides immediate passive income, with the Dallas-S8 property demonstrating a 6.51% dividend yield. This income typically begins approximately 30 days after investment, providing investors with regular cash flow that can be reinvested or used for other purposes.
Investment Approaches
Different platforms serve different investor needs. Ark7 provides consistent monthly income starting shortly after investment. Elevate.Money targets higher yields through commercial real estate with monthly distributions. DiversyFund takes a long-term appreciation approach with all returns realized at exit after 5-7 years.
Total Return Considerations
Each platform’s return profile reflects its investment strategy. DiversyFund targets higher total returns at exit (11-18%) but provides no interim cash flow during the multi-year hold period. Ark7 and Elevate.Money provide regular monthly income, allowing investors to benefit from cash flow throughout the investment period.
Risk-Adjusted Returns
Ark7’s residential rental focus may provide more stable, predictable income compared to Elevate.Money’s commercial real estate exposure or DiversyFund’s multifamily specialization. Ark7 has maintained strong occupancy rates, demonstrating consistent rental income generation across its portfolio.
Fees and Transparency: What to Expect from Each Platform
Fee structures significantly impact long-term investment returns, with substantial differences between these platforms.
Fee Structure Comparison
Ark7:
Annual Management Fees: 0% AUM
Acquisition Fees: Included (no separate broker fees)
Performance Fees: Performance-based (only when properties generate income)
Hidden Fees: None disclosed
DiversyFund:
Annual Management Fees: 2% AUM
Acquisition Fees: Project-level developer fees
Performance Fees: None (profit sharing after 7% preferred return)
Hidden Fees: None disclosed
Elevate.Money:
Annual Management Fees: 0.5% AUM
Acquisition Fees: Not disclosed
Performance Fees: Not disclosed
Hidden Fees: Unclear
Cost Impact Analysis
On a $10,000 investment over 5 years:
- Ark7: $0 in annual management fees
- DiversyFund: $1,000 in annual management fees (2% × 5 years)
- Elevate.Money: $250 in annual management fees (0.5% × 5 years)
Transparency Differences
Ark7’s commitment to full transparency extends beyond just fee disclosure:
- Complete legal and financial documentation accessible 24/7 for each property
- Individual property selection versus blind pooled funds
- Clear expense breakdowns and income projections
- Platform co-investment (1-20% per property) demonstrating alignment
Tax Reporting Complexity
Tax reporting requirements differ between platforms:
- Ark7: May issue either 1099 or K-1 forms depending on the specific investment structure
- DiversyFund: Typically issues K-1 forms (estimated $50-150 annually in additional accounting costs)
- Elevate.Money: Tax reporting structure not clearly disclosed
Value Proposition
Ark7’s “no hidden fees” policy combined with 0% AUM fees creates a compelling value proposition. Investors keep more of their returns through the performance-based fee structure that only charges when properties generate income, while competitors’ ongoing management fees apply regardless of property performance.
Liquidity and Secondary Markets: Selling Your Shares
Liquidity represents a critical consideration for private market investments, with notable differences between these platforms.
Liquidity Comparison
Ark7:
Secondary Market: PPEX ATS (SEC-registered)
Minimum Hold Period: 12 months
Trading Activity: Secondary market available with active trading on many properties
Liquidity Profile: Moderate – secondary market available after 12 months, though liquidity not guaranteed
DiversyFund:
Secondary Market: None
Minimum Hold Period: 5-7 years (complete lockup)
Trading Activity: $0
Liquidity Profile: Extended hold period – no early exit options for 5-7 years
Elevate.Money:
Secondary Market: Unknown/Unclear
Minimum Hold Period: Not disclosed
Trading Activity: Not disclosed
Liquidity Profile: Unclear – limited public information available
Ark7’s Secondary Market Advantage
Ark7’s partnership with the PPEX ATS (Public Private Execution Network Alternative Trading System) provides liquidity options not available on competing platforms. After a 12-month minimum hold period, investors can list shares for sale through this SEC-registered Alternative Trading System. While liquidity is not guaranteed and trading volume varies, this option provides potential access to capital that DiversyFund’s structure does not offer.
Liquidity Considerations
Access to secondary markets provides important benefits:
- Potential emergency access to funds if needed
- Portfolio rebalancing opportunities
- Ability to reallocate capital to other investment opportunities
- More flexibility compared to extended lockup periods
DiversyFund’s Investment Approach
DiversyFund’s 5-7 year hold period with no early exit options is designed for investors who can commit capital for the long term without needing interim liquidity. This structure supports the platform’s value-add multifamily strategy.
Mobile Trading Convenience
Ark7’s mobile app enhances liquidity management by enabling investors to monitor secondary market activity and manage their investments directly from their smartphones, providing convenience and accessibility.
Using an IRA for Real Estate Investing with Ark7
Real estate investing through retirement accounts offers unique tax advantages, with Ark7 providing IRA eligibility that competitors may not match.
Ark7 IRA Features:
- Account Types: Both Traditional and Roth IRA accounts supported
- Custodian: Inspira Financial Company handles regulatory compliance and safekeeping
- Fees: $0 Ark7 fee to open; $100 annual custodian fee per property (capped at $400 annually; waived if account balance exceeds $100,000)
- Tax Benefits: Tax-deferred or tax-free growth potential depending on IRA type
- Investment Process: Use IRA funds to purchase rental properties through the platform
IRA Investment Advantages:
- Tax-Advantaged Growth: Rental income and appreciation grow tax-deferred (Traditional IRA) or tax-free (Roth IRA)
- Diversification: Adds real estate exposure to retirement portfolios traditionally dominated by stocks and bonds
- Passive Income: Monthly distributions can enhance retirement income streams
- Inflation Hedge: Real estate historically provides protection against inflation
Competitor IRA Availability:
- DiversyFund: IRA eligibility varies by investment tier
- Elevate.Money: IRA eligibility status not clearly disclosed
- Ark7 Advantage: Clear IRA support with transparent fee structure
IRA Investment Process:
- Open an Ark7 IRA account through the Ark7 IRA portal
- Fund the account via transfer from existing IRA or annual contribution
- Browse and select individual properties for investment
- Purchase shares using IRA funds
- Receive monthly distributions directly to IRA account
- Monitor and manage investments through the Ark7 platform
Important Considerations:
- Annual IRA contribution limits still apply
- Early withdrawal penalties may apply to Traditional IRAs
- Consult with a financial advisor, accountant, and/or attorney when evaluating IRA investments
Technology and User Experience: Mobile Apps and Platform Usability
User experience and technology infrastructure significantly impact investor satisfaction and platform usability.
Platform Ratings Comparison:
Ark7:
App Store Rating: 4.7/5 (1,300+ reviews)
TrustPilot Rating: 4.1/5 (240+ reviews)
BBB Rating: A- (accredited)
User Base: 220,000+ active investors
DiversyFund:
App Store Rating: 3.4/5
TrustPilot Rating: Not widely disclosed
BBB Rating: A+ (accredited)
User Base: 28,000+ active investors
Elevate.Money:
App Store Rating: Not available
TrustPilot Rating: Not disclosed
BBB Rating: Not available
User Base: Not disclosed
Ark7 Mobile App Features:
- Property discovery and investment capabilities
- Real-time portfolio tracking and performance insights
- Monthly dividend monitoring and distribution history
- Secondary market trading functionality
- Secure transaction processing
- Both iOS and Android availability
User Experience Advantages:
- Intuitive Interface: Streamlined property browsing and investment process
- Transparency: Complete access to property details and financial information
- Convenience: Mobile-first design enables investing on-the-go
- Security: Secure transaction processing and account protection
- Support: Comprehensive FAQ and platform support resources
Technology Infrastructure
Ark7’s technology platform supports:
- Electronic share issuance and recordkeeping
- Automated monthly distribution processing
- Secondary market trading integration
- Real-time portfolio valuation and performance tracking
- Secure account management and authentication
User Satisfaction Drivers
Common praise for Ark7 includes:
- Ease of use (mentioned in 60%+ of positive reviews)
- Consistent monthly dividends (highlighted in 50%+ of reviews)
- Low minimum investment (frequently cited as key advantage)
- Transparent property information and selection process
Frequently Asked Questions
What is fractional real estate investing and how does it work?
Fractional real estate investing allows multiple investors to collectively purchase shares of individual properties, with each investor owning a proportional stake. Ark7’s model enables share-by-share investment in specific rental properties with minimums as low as $20, providing proportional ownership rights and income distributions. Unlike pooled REITs where investors contribute to blind funds, Ark7 allows investors to select specific properties with full financial transparency. This makes real estate investment as accessible as buying stocks while maintaining the tangible asset benefits of direct ownership.
Can I sell my Ark7 shares if I need my money back?
Ark7 provides liquidity options through the PPEX ATS, an SEC-registered Alternative Trading System, after a 12-month minimum hold period. The secondary market shows active trading on many properties, though liquidity is not guaranteed and trading volume varies by property. This provides more flexibility compared to DiversyFund’s 5-7 year lockup with no early exit options. However, investors should be prepared to hold shares long-term as there is no assurance that an active market will develop or remain available.
Is fractional real estate investing suitable for non-accredited investors?
All three platforms offer options for non-accredited investors with different terms. Ark7 requires no accredited investor status for any investment, with minimums starting at $20 per share, making it highly accessible. DiversyFund’s Growth REIT ($500 minimum) is accessible to non-accredited investors, though its Premier tier requires accreditation. Elevate.Money’s $100 REIT I minimum is also available to non-accredited investors. Ark7’s lower minimum makes it particularly accessible for investors with limited capital, enabling true micro-investing and portfolio diversification.
What are the risks associated with investing on platforms like Ark7?
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Ark7’s investments involve risks including limited liquidity (despite secondary market options), concentration risk from individual property holdings, and potential for complete loss of capital. Properties may experience vacancies, maintenance issues, or market value declines that affect returns. An investment constitutes only an investment in a particular property series and not in Ark7 or any underlying asset.
