RealtyMogul vs DiversityFund vs Ark7: Finding the Best Fractional Real Estate Platform

When evaluating fractional real estate investment platforms, investors face a critical decision between accessibility and exclusivity. Traditional platforms like RealtyMogul and DiversyFund cater primarily to high-net-worth investors with significant minimums and complex fee structures. Ark7 revolutionizes this paradigm by making real estate investment accessible to everyone through share-by-share ownership of cash-flowing rental properties. With investments starting as low as $20 per share, Ark7 enables true diversification with minimal capital while providing monthly passive income and full operational transparency. 

This comprehensive comparison examines the three platforms to help investors understand why Ark7 emerges as the optimal choice for most investors seeking accessible, transparent, and hassle-free real estate investing.

Key Takeaways

• Ark7 stands out as the most accessible platform with a $20 minimum investment, enabling true diversification with limited capital compared to RealtyMogul’s $5,000+ and DiversyFund’s $500+ minimums
• Ark7 is the only major platform offering monthly cash distributions, providing 4x more frequent income than quarterly competitors
• Ark7 charges zero annual AUM fees, saving investors $500-1,000+ over 5 years compared to 1-2% annual fees from competitors
• Ark7 provides superior liquidity through an established secondary market after just 12 months, versus 5-7+ year lockups (DiversyFund) or limited buybacks (RealtyMogul)
• Non-accredited investors gain individual property selection control on Ark7, while competitors restrict them to pooled funds or REITs

Understanding Fractional Real Estate Investing: A Quick Overview

Fractional real estate investing allows multiple investors to purchase shares of individual properties, making real estate ownership accessible without requiring hundreds of thousands of dollars. This approach democratizes access to rental income and property appreciation while eliminating landlord responsibilities.

Traditional real estate investment requires significant capital, property management expertise, and carries substantial illiquidity risk. Fractional real estate platforms solve these challenges by:

• Lowering capital requirements through shared ownership
• Providing professional property management
• Offering potential liquidity through secondary markets
• Enabling portfolio diversification across multiple properties

Key Benefits of Fractional Ownership:

• Accessibility – Invest with minimal capital starting at $20 per share
• Passive income – Receive regular cash distributions without landlord duties
• Diversification – Spread investments across multiple properties and markets
• Professional management – Full-service property management included
• Transparency – Access to complete financial and legal documentation

RealtyMogul: Deep Dive into Offerings and Minimums

RealtyMogul, founded in 2012, established itself as a pioneer in real estate crowdfunding with a focus on commercial properties and institutional-quality investments. The platform serves 280,000+ members and has facilitated over $7 billion in property offerings.

RealtyMogul Investment Structure:

• Accredited investors can access private placements with $25,000+ minimums and direct commercial deals
• Non-accredited investors are limited to REITs with $5,000 minimum investments
• Property types focus exclusively on commercial real estate (office, retail, industrial, multifamily)
• Fee structure includes 1-1.25% annual AUM fees plus potential transaction costs

While RealtyMogul offers established track records and commercial exposure, its high minimums and fee structure make it inaccessible to most retail investors seeking monthly income from residential properties.

DiversityFund: Exploring Its Unique Investment Approach

DiversyFund, founded in 2016, focuses exclusively on multifamily apartment complexes with a growth-oriented strategy that forgoes interim distributions in favor of appreciation at sale. The platform serves 28,000+ active investors with $300+ million in assets under management.

DiversyFund Investment Structure:

• Non-accredited investors can access the Multifamily Fund with $500 minimums
• Accredited investors gain access to Fund V with $100,000 minimums
• Property focus is exclusively on multifamily apartment complexes
• Fee structure includes 2% annual AUM fees plus transaction costs
• Distribution model provides zero interim cash flow, targeting 10-20% returns at exit after 5-7+ years

DiversyFund’s growth-focused model suits long-term investors comfortable with complete illiquidity and no interim income, but may not meet the needs of investors seeking monthly cash flow and liquidity options.

Ark7: Accessible Rental Home Investment for Everyone

Ark7, founded in 2019, democratizes real estate investing by enabling share-by-share ownership of individual rental properties with unprecedented accessibility and transparency. The platform provides investors access to carefully curated rental properties with full operational transparency.

Ark7 Investment Structure:

• Universal accessibility with $20 per share minimums for all U.S. investors (accredited and non-accredited)
• Individual property selection allows investors to choose specific single-family, multifamily, or vacation rental properties
• Monthly cash distributions typically paid on the 3rd of each month, providing consistent passive income
• Zero annual AUM fees with platform revenue coming from 3% one-time sourcing fees and 1-20% equity ownership
• Residential focus on curated rental properties across 10+ Sunbelt markets

Ark7 Unique Advantages:

• Mobile-first platform with 4.7/5 iOS app rating enabling full investment management from smartphones
• Individual property control for non-accredited investors, unlike REIT-only or pooled alternatives
• Platform co-investment with 1-20% ownership in each property, aligning interests with investors
• Full transparency with 24/7 access to complete legal and financial documentation
• Strong portfolio occupancy ensuring consistent rental income

Ark7’s mission to make real estate investment accessible to everyone is reflected in its $20 minimum investment, monthly distributions, and individual property selection capabilities that empower investors regardless of their capital position.

Cost Comparison: Fees and Minimum Investments Across Platforms

The total cost of ownership varies dramatically between platforms, with significant implications for long-term returns.

Entry-Level Investment Requirements:

• Ark7: $20 per share – enables diversification across 25+ properties with $500
• RealtyMogul: $5,000 minimum for REITs – limits diversification to 1 property with $5,000
• DiversyFund: $500 minimum – allows 10 properties with $5,000

Fee Structure Comparison (5-Year, $10,000 Investment):

Ark7 charges $300 in one-time sourcing fees (3%) with $0 in annual fees, resulting in approximately $300 in total 5-year costs and leaving investors with $9,700+ in net value after fees.

RealtyMogul charges varying one-time fees plus $500-625 in annual management fees (1-1.25% annually), resulting in $500-625+ in total 5-year costs and leaving investors with $9,375-9,500 in net value after fees.

DiversyFund charges transaction fees plus $1,000 in annual fees (2% annually), resulting in $1,000+ in total 5-year costs and leaving investors with $9,000 in net value after fees.

Additional Cost Considerations:

• Tax preparation: Ark7 provides simple 1099 forms ($150+ avg)
• Compounding impact: Ark7’s fee savings of $200-300 annually reinvested at 4.5% yields an additional $1,100-1,650 over 5 years
• IRA investing: Ark7 charges $0 platform fees with $100/property custodian fees (capped at $400, waived for balances >$100,000)

Ark7’s zero AUM fee structure represents a fundamental advantage, saving investors $500-1,000+ over 5 years while aligning platform incentives through equity ownership rather than ongoing fees.

Liquidity Options: How Easy is it to Exit Your Investment?

Liquidity remains a critical concern for real estate investors, with significant differences between platforms.

Ark7 Liquidity Features:

• Secondary market access after 12-month minimum holding period through PPEX ATS
• Active trading volume with established peer-to-peer marketplace
• Significant portfolio participation in secondary market trading
• Peer-to-peer trading enables price discovery and exit flexibility

Competitor Liquidity Limitations:

• RealtyMogul: Limited quarterly REIT buybacks subject to capital availability; no active secondary market
• DiversyFund: Complete illiquidity with no redemption options during 5-7+ year holds

Liquidity Risk Considerations

While Ark7 provides the most robust liquidity options among fractional platforms, investors must understand that secondary market trading is not guaranteed and they should be prepared to hold shares indefinitely. The PPEX ATS secondary trading platform is subject to federal and state securities laws, and there can be no assurance that an active market will develop.

However, Ark7’s established trading volume and active participant base provide significantly better liquidity prospects than competitors’ complete illiquidity or limited buyback programs.

Investment Types and Property Selection: From Commercial to Single-Family Homes

Property selection and investment types vary significantly between platforms, reflecting different strategic focuses.

Ark7 Property Portfolio:

• Property types: Single-family homes, multifamily properties, and vacation rentals
• Geographic focus: 10+ Sunbelt markets with strong population and job growth
• Selection process: AI-driven sourcing combined with local expertise for curation
• Examples: Tampa-S10 single-family home in Land O Lakes, FL and Dallas-S9 property in Mesquite, TX showcase growth markets with strong rental demand

RealtyMogul Property Focus:

• Property types: Commercial real estate (office, retail, industrial, multifamily)
• Investment minimums: $25,000+ for accredited investors, $5,000 for REITs
• Geographic scope: National commercial markets
• Underwriting: 1.1% deal acceptance rate with institutional-quality due diligence

DiversyFund Property Strategy:

• Property types: Multifamily apartment complexes exclusively
• Investment approach: Value-add strategy with no interim distributions
• Hold period: 5-7+ years for appreciation and growth
• Management: Vertically integrated model handling acquisition through management

Investor Choice Implications

Ark7’s residential focus provides stable monthly income through rental cash flow, while RealtyMogul’s commercial properties may offer higher appreciation potential but require significantly more capital. DiversyFund’s multifamily focus targets pure growth but sacrifices all interim income and liquidity.

For most investors seeking monthly passive income with reasonable capital requirements, Ark7’s residential rental properties provide the optimal balance of accessibility, income, and growth potential.

Transparency and Due Diligence: What Information is Available to Investors?

Transparency and access to information significantly impact investment confidence and decision-making quality.

Ark7 Transparency Features:

• 24/7 document access to complete legal and financial documentation
• SEC Regulation A+ qualified offerings with full disclosure requirements
• Regular performance reporting including occupancy rates, distributions, and trading volume
• Trustpilot rating: 4.2/5 based on 243 reviews
• Individual property details including market data, property specifications, and financial projections

Competitor Transparency Approaches:

• RealtyMogul: Quarterly updates with institutional-quality reporting for investors
• DiversyFund: Varies by fund with standard investor communications

Due Diligence Capabilities

Ark7’s commitment to operational transparency enables investors to conduct thorough due diligence on individual properties before investing. Each property listing includes:

• Detailed property specifications and photos
• Market analysis with Redfin data
• Financial projections and yield calculations
• Legal documentation and offering circulars
• Real-time occupancy and performance metrics

This level of transparency empowers investors to make informed decisions based on complete information rather than relying solely on platform curation.

Is Real Estate Crowdfunding Right for Your Retirement with an IRA?

Real estate IRAs offer tax advantages and diversification benefits for retirement portfolios.

Ark7 IRA Features:

• $0 platform fee to open IRA accounts
• Custodian fee: $100 per property annually (capped at $400, waived for balances >$100,000)
• IRA types: Traditional and Roth IRAs supported
• Custodian: Inspira Financial Company provides regulatory compliance and safekeeping
• Investment access: Full property selection available through IRA accounts

Competitor IRA Availability:

• RealtyMogul: IRA eligibility available but with higher minimums and fees
• DiversyFund: IRA eligibility limited to Fund V ($100,000 minimum) for accredited investors only

IRA Investment Considerations

Ark7’s IRA offering provides the most accessible path to real estate retirement investing, with no platform fees and reasonable custodian costs. The ability to invest in individual properties through an IRA enables true diversification and control over retirement assets.

However, investors should consult with their financial advisor, accountant, and/or attorney when evaluating IRA real estate investments, as tax implications and regulatory requirements can be complex.

The Role of Technology: Mobile Apps and AI in Real Estate Investing

Technology adoption varies significantly between platforms, impacting user experience and investment efficiency.

Ark7 Technology Advantages:

• Mobile-first platform with full investment lifecycle management
• 4.7/5 iOS app rating and 3.9/5 Android rating reflect user satisfaction
• AI-driven property sourcing combines data insights with human calibration
• Real-time portfolio tracking with dividend monitoring and performance analytics
• Secure transactions with bank-level encryption and authentication

Competitor Technology Approaches:

• RealtyMogul: Web-only platform with no mobile app
• DiversyFund: Standard online platform functionality

Technology Impact on Investing

Ark7’s commitment to making real estate investing “as easy as stocks” is reflected in its mobile-first approach. Investors can discover properties, purchase shares, track dividends, and manage their portfolio entirely from their smartphone.

The platform’s belief in “AI and human calibration” enables efficient property sourcing while maintaining human oversight for quality control. This technology-driven approach reduces operational costs while improving investment quality.

Frequently Asked Questions

Are these platforms only for accredited investors, or can anyone invest?

Ark7 allows all U.S. investors (accredited and non-accredited) to invest in individual properties through SEC Regulation A+ qualification. RealtyMogul restricts non-accredited investors to REITs only, while accredited investors can access private placements. DiversyFund allows non-accredited investors in its Multifamily Fund but requires accreditation for Fund V. This makes Ark7 the most accessible option for retail investors seeking individual property selection.

How does the fee structure differ between RealtyMogul, DiversityFund, and Ark7?

Ark7 charges zero annual fees, with revenue from 3% one-time sourcing fees and equity ownership. RealtyMogul charges 1-1.25% annual AUM fees plus transaction costs, while DiversyFund charges 2% annual AUM fees. This fee difference saves Ark7 investors $500-1,000+ over 5 years on a $10,000 investment, significantly impacting long-term returns.

What kind of liquidity options are available for investments on these platforms?

Ark7 provides liquidity through an established secondary market after a 12-month minimum holding period, with active peer-to-peer trading. RealtyMogul offers limited quarterly REIT buybacks subject to capital availability, while DiversyFund provides no liquidity during 5-7+ year holds. However, secondary market trading is not guaranteed, and investors should be prepared to hold shares indefinitely.

Can I invest in real estate through an IRA on these platforms?

Yes, all three platforms support IRA investing with varying terms. Ark7 charges $0 platform fees with $100/property custodian fees (capped at $400, waived for balances >$100,000). RealtyMogul and DiversyFund also support IRAs but with higher minimums and fees. Investors should consult financial advisors regarding tax implications and regulatory requirements before making IRA real estate investments.