HoneyBricks vs Lofty vs Ark7: Finding the Right Fractional Real Estate Platform

When evaluating fractional real estate investment platforms, investors face a critical decision between traditional structures and newer crypto-based models. HoneyBricks has been discontinued (acquired by EquityMultiple in April 2024), leaving investors to choose between blockchain-tokenized platforms like Lofty and traditional fractional ownership platforms like Ark7. This comprehensive comparison examines the key differences in accessibility, fees, income distribution, and user experience, with particular emphasis on why Ark7 emerges as the optimal choice for mainstream investors seeking monthly passive income without cryptocurrency complexity.

Key Takeaways

• HoneyBricks is no longer operational, having been acquired by EquityMultiple in April 2024, making this comparison effectively between Lofty and Ark7
• Ark7 offers the lowest minimum investment ($20) for individual property selection, enabling true diversification with limited capital compared to Lofty’s $50 minimum
• Ark7 provides monthly USD distributions, the only major platform with this frequency in traditional currency, while Lofty pays daily in USD
• Ark7 charges zero ongoing AUM fees, saving investors $200-350 annually compared to platforms with recurring management fees
• Ark7 features a highly-rated mobile app (4.7/5) for on-the-go management, while Lofty remains web-only with no mobile application
• Ark7 maintains strong portfolio performance with transparent monthly reporting and consistent dividend distributions
• Ark7 offers clear IRA investing pathways with a structured fee schedule ($100/property, capped at $400 annually)

Understanding Fractional Real Estate Investing: A Primer

Fractional real estate investing allows individuals to purchase shares of income-generating properties without the substantial capital required for full ownership. This democratization of real estate investment enables portfolio diversification, passive income generation, and potential appreciation benefits previously accessible only to wealthy investors.

The fractional real estate landscape has evolved into two distinct approaches: traditional platforms using SEC-qualified structures with USD transactions, and blockchain-based platforms utilizing tokenization and cryptocurrency payments. While both models aim to make real estate investing more accessible, they differ significantly in complexity, fees, and user experience.

Key Benefits of Fractional Real Estate:

• Lower capital requirements compared to full property ownership
• Professional property management eliminating landlord responsibilities
• Passive income through rental distributions
• Portfolio diversification across multiple properties and markets
• Potential for long-term appreciation

HoneyBricks: A Discontinued Platform

Important Update: HoneyBricks is no longer operational as a fractional real estate platform. The company was acquired by EquityMultiple in April 2024 and has ceased its independent operations. This acquisition reflects the ongoing consolidation in the fractional real estate space and the challenges faced by platforms targeting commercial real estate with higher minimum investments ($1,000-$5,000).

Historical Context:

• Focused exclusively on commercial real estate investments
• Required accredited investor status for participation
• Featured higher minimum investment thresholds compared to residential-focused platforms
• Operated with blockchain integration similar to current tokenized platforms

For investors previously considering HoneyBricks, the acquisition means redirecting attention to active platforms like Ark7 and Lofty, which continue to serve the fractional real estate market with different approaches and target audiences.

Lofty: Blockchain Tokenization with Crypto Complexity

Lofty represents the blockchain-native approach to fractional real estate, utilizing tokenization on the Algorand blockchain to represent property ownership. While innovative in its technology implementation, Lofty introduces certain complexities for traditional investors through its cryptocurrency infrastructure and fee structure.

Key Lofty Characteristics:

• Minimum Investment: $50 per token
• Property Selection: Individual residential properties with detailed property pages
• Income Distribution: Daily payments in USD
• Fees: 0.5% transaction fee for sellers on secondary market; no fee for buyers
• Liquidity: Instant trading with no holding period restrictions
• Technology: Web-only platform with no mobile application

Advantages for Crypto-Savvy Investors:

• Daily rental income provides frequent cash flow opportunities
• Instant liquidity allows immediate position adjustments
• Blockchain ownership records offer transparent transaction history
• No minimum holding period before selling tokens

The platform’s innovative approach appeals to cryptocurrency enthusiasts, but the blockchain infrastructure makes it less suitable for investors seeking straightforward real estate exposure with traditional investment experiences.

Ark7: Accessible, Transparent, and Hassle-Free Real Estate Investing

Ark7 represents the traditional approach to fractional real estate investing, prioritizing accessibility, transparency, and user experience over blockchain complexity. The platform enables investors to purchase shares in individual, cash-flowing residential rental properties with minimum investments as low as $20, making real estate investment truly accessible to everyone.

Key Ark7 Advantages:

• Minimum Investment: $20 per share for individual property selection
• Income Distribution: Monthly USD payments directly to investor accounts
• Fees: Zero ongoing AUM fees, only one-time 3% sourcing fee and performance-based property management (8-15% of rental income)
• Mobile Experience: Highly-rated iOS and Android apps (4.7/5) for on-the-go management
• Portfolio Performance: Strong historical performance with consistent dividend distributions
• Transparency: Monthly public performance updates with detailed property metrics

Investment Accessibility: Ark7’s $20 minimum investment represents the lowest barrier to entry for individual property selection in the fractional real estate space. This enables meaningful diversification—investors can spread $1,000 across 50 different properties rather than being limited to 10-20 properties on competing platforms. The platform focuses exclusively on residential rental properties in growth markets across the United States, including single-family homes and townhomes in cities like Atlanta, Dallas, and Tampa.

User Experience Excellence: The Ark7 mobile app sets the platform apart with its 4.7/5 rating and comprehensive feature set. Investors can discover new properties, purchase shares, track monthly dividends, and manage their portfolios entirely from their mobile devices. This mobile-first approach contrasts sharply with Lofty’s web-only platform and provides superior convenience for busy investors.

Operational Transparency: Ark7 publishes monthly portfolio performance updates that include dividend yields, trading volumes, and property-specific performance metrics. This level of transparency enables informed decision-making and builds investor confidence through consistent, factual reporting rather than promotional claims.

Comparing Investment Minimums and Asset Types

The minimum investment requirements and asset focus differ significantly between active fractional real estate platforms, directly impacting investor accessibility and diversification potential.

Minimum Investment Comparison:

• Ark7: $20 per share for individual property selection
• Lofty: $50 per token for individual property selection
• Fundrise: $10 minimum, but only for pooled REIT funds (not individual properties)

Asset Type Focus:

• Ark7: Residential rental properties (single-family homes and townhomes) in growth markets across the United States
• Lofty: Residential rental properties with a mix of single-family homes and small multifamily units
• Fundrise: Pooled funds across mixed property types including residential, commercial, and development projects

Diversification Implications: With a $1,000 investment, Ark7 investors can diversify across 50 individual properties, while Lofty investors are limited to 20 properties. This significant difference in diversification potential directly impacts risk management and portfolio resilience. Additionally, Ark7’s focus on individual property selection gives investors control over their specific investments, unlike pooled fund approaches that remove individual property choice.

Property Quality and Management: Ark7 maintains strong portfolio performance through effective property management and tenant screening processes. The platform focuses on properties in growth markets with strong economic fundamentals, including proximity to major employers, favorable demographic trends, and stable rental demand.

Fee Structures and Operational Transparency

Fee structures significantly impact long-term investment returns, with ongoing AUM fees creating substantial drag on performance over time.

Total Cost of Ownership (5-Year, $10,000 Investment):

• Ark7: $300-500 total (one-time 3% sourcing fee only)
• Lofty: $300-500+ (0.5% transaction fees on secondary market sales)
• Fundrise: $500-1,000 ($100 annual AUM fees plus potential redemption fees)

Fee Breakdown Analysis:

• Ark7 charges a one-time 3% sourcing fee with zero ongoing AUM fees, resulting in significant long-term savings
• Lofty charges 0.5% transaction fees for sellers on the secondary market with no buyer fees
• Fundrise charges approximately 1% annual AUM fees, which compound over time to create substantial cost drag

Transparency Comparison: Ark7 provides complete operational transparency with 24/7 access to legal and financial disclosure documents, monthly performance updates, and detailed property financials. The platform’s SEC Regulation A+ qualification ensures compliance with federal securities regulations and investor protection standards.

Lofty’s blockchain approach provides transaction transparency but has a different regulatory framework compared to traditional platforms. The evolving regulatory landscape for tokenized real estate creates uncertainty about future compliance requirements and investor protections.

Liquidity Options and Secondary Market Access

Liquidity provisions vary significantly between platforms, with important implications for investment flexibility and emergency access to capital.

Secondary Market Comparison:

• Ark7: Investors have flexibility to sell shares after a minimum holding period; however, the platform’s legal disclosures note there is no guarantee a secondary market will be available, and investors should be prepared to hold shares indefinitely
• Lofty: Instant blockchain trading with no holding period restrictions, but 0.5% transaction fees apply for sellers
• Fundrise: Limited quarterly redemption windows with potential restrictions and fees

Liquidity Trade-offs: Ark7’s minimum holding period before potential secondary market access represents a reasonable balance between investment stability and liquidity needs. While Lofty offers instant liquidity, investors should consider whether frequent trading aligns with long-term real estate investment strategies.

Regulatory Considerations: Ark7’s SEC Regulation A+ qualification provides investor protections and regulatory oversight that support market integrity. This regulatory framework offers transparency and compliance standards that benefit long-term investors.

Earn Passive Income with Real Estate: How Platforms Deliver

Income distribution frequency and currency significantly impact cash flow management and reinvestment opportunities.

Income Distribution Comparison:

• Ark7: Monthly USD distributions directly to investor accounts
• Lofty: Daily USD payments to investor accounts
• Fundrise: Quarterly distributions in USD

Cash Flow Management Implications: Ark7’s monthly USD distributions provide 12 income events per year compared to quarterly platforms’ 4 events, enabling more frequent reinvestment opportunities and better cash flow management. The traditional USD payments eliminate the complexity associated with cryptocurrency conversions.

Yield Performance: Recent Ark7 dividend yields have ranged from 3.64% to 7.65%, with individual properties like Dallas-S8 achieving +6.51% dividend yields. The platform’s focus on professionally managed, occupied properties in growth markets supports consistent income generation and potential appreciation.

Reinvestment Opportunities: Monthly distributions enable compounding through reinvestment, with Ark7 investors able to immediately deploy income into additional property shares without cryptocurrency conversion friction or additional fees.

Investing with Your Retirement Account: IRA Options

Retirement account investing adds another dimension to platform comparison, with significant differences in accessibility and fee structures.

IRA Investment Comparison:

• Ark7: Clear IRA structure through Inspira Financial Company with $100 annual fee per property (capped at $400 annually, waived for accounts with >$100,000 average balance)
• Lofty: Limited IRA functionality with unclear fee structure and implementation details
• Fundrise: IRA availability with $1,000 minimum investment requirement

Ark7 IRA Advantages: The Ark7 IRA program offers both Traditional and Roth IRA options with transparent fee structures and zero Ark7 platform fees. The $100 per property annual fee (capped at $400) provides predictable costs for retirement investors, while the waiver for larger accounts (>$100,000) rewards long-term commitment.

Implementation Simplicity: Ark7’s IRA program integrates seamlessly with the main platform, allowing investors to use the same intuitive interface for both taxable and retirement account investments. The traditional USD structure eliminates cryptocurrency complexity that could complicate IRA administration and compliance.

Choosing the Right Platform for Your Investment Goals

Selecting the optimal fractional real estate platform depends on your investment experience, risk tolerance, and specific financial objectives.

Choose Ark7 when you:

• Prioritize monthly USD income over daily cryptocurrency payments
• Want the lowest minimum investment ($20) for individual property selection
• Prefer zero ongoing AUM fees for long-term cost efficiency
• Value mobile app convenience (4.7/5 rating) for portfolio management
• Seek transparent, regulated investment structures with SEC qualification
• Want clear IRA investing pathways with predictable fee structures
• Prefer traditional USD transactions over cryptocurrency complexity

Consider Lofty when you:

• Are comfortable with cryptocurrency wallets and blockchain technology
• Prioritize instant liquidity over longer holding periods
• Want daily income distributions
• Are interested in blockchain-based real estate ownership

Platform Reviews and Due Diligence: Ark7 maintains a strong reputation with investor testimonials praising its intuitive mobile app and convenient investment process. The platform’s focus on operational transparency, including monthly public performance updates and 24/7 access to financial documents, supports informed decision-making and builds long-term investor confidence.

Frequently Asked Questions

How does Ark7 ensure transparency in its real estate investments?

Ark7 provides complete operational transparency through 24/7 access to legal and financial disclosure documents and monthly public portfolio performance updates with detailed metrics. The platform maintains SEC Regulation A+ qualification, ensuring compliance with federal securities regulations and investor protection standards. Investors can access real-time portfolio performance and property details through the highly-rated mobile app (4.7/5), which provides comprehensive features for monitoring investments. This multi-layered approach to transparency enables informed decision-making and builds long-term investor confidence.

What kind of returns can I expect from fractional real estate investments on platforms like Ark7?

Recent Ark7 dividend yields have ranged from 3.64% to 7.65%, with individual properties like Dallas-S8 achieving +6.51% dividend yields. Returns consist of monthly cash distributions from rental income plus potential long-term appreciation as property values increase. The platform focuses on professionally managed properties in growth markets to support consistent income generation. However, all investments involve risks, and past performance is no guarantee of future results, so investors should carefully review offering materials before investing.

Is there a secondary market to sell my shares with Ark7, and what are the limitations?

Ark7 states that investors have the flexibility to sell shares after a minimum holding period. However, the platform’s legal disclosures note there is no guarantee a secondary market will be available, and liquidity may be limited or unavailable. Investors must be prepared to hold their shares indefinitely as there is no assurance of an active trading market. This liquidity consideration is typical for fractional real estate investments and should be factored into investment decisions based on your financial goals and timeline.

What are the typical risks involved when investing in fractional real estate?

Fractional real estate investments involve substantial risks including illiquidity, lack of diversification when investing in individual properties, potential complete loss of capital, and market fluctuations affecting property values and rental income. Properties may experience vacancies, maintenance issues, or declining market conditions that impact returns. Economic downturns, changes in local real estate markets, and property-specific challenges can all affect investment performance. Investors should carefully review offering materials, understand their risk tolerance, and consider consulting with financial advisors before investing.