YieldStreet vs InvestBay vs Ark7: Which Fractional Real Estate Platform Delivers the Best Returns?

When evaluating fractional real estate investment platforms, investors face a critical decision between specialized expertise and diluted focus. Ark7 stands out as the premier solution for investors seeking direct ownership in U.S. rental properties with monthly income distributions, zero annual fees, and property-level control. Unlike competitors offering blind pooled funds, Ark7 enables anyone to invest in rental homes with a minimum of just $20.

This comprehensive guide examines the key differences between YieldStreet (now Willow Wealth), InvestBay, and Ark7, with particular emphasis on why Ark7 emerges as the superior choice for cost-conscious income investors seeking transparent, accessible real estate investment opportunities.

Key Takeaways

• Ark7 delivers the best value proposition with 0% annual AUM fees, saving investors $200-$1,900 over 5 years on a $10,000 investment compared to fee-charging competitors
• Only Ark7 provides monthly income distributions (12x/year) versus industry-standard quarterly payments from competitors
• Ark7 offers the lowest property-selection minimum at $20/share with full property-level control and transparency
• Zero investor losses since 2019 demonstrate Ark7’s effective risk management
• InvestBay focuses on European vacation properties with blockchain tokenization, raising regulatory compliance considerations for U.S. investors
• Ark7’s PPEX ATS secondary market provides reliable liquidity options after a 1-year hold period

Understanding Real Estate Crowdfunding Platforms

Real estate crowdfunding platforms have revolutionized access to property investment, but their approaches vary dramatically. Ark7 specializes exclusively in fractional ownership of individual U.S. rental properties, allowing investors to select specific homes and receive monthly rental income. This contrasts with YieldStreet’s multi-asset approach that includes real estate among art, private credit, and marine finance investments, often through blind pooled funds that obscure individual asset performance.

InvestBay takes a different path entirely, focusing on European vacation properties with blockchain tokenization.

Key Differences in Approach:

• Property Selection Control: Ark7 and Arrived allow investors to choose specific properties; YieldStreet and Fundrise use blind pooled funds
• Geographic Focus: Ark7 focuses on U.S. Sunbelt markets; InvestBay targets European vacation destinations; YieldStreet offers global alternatives
• Investor Accessibility: Ark7 serves both accredited and non-accredited U.S. investors through SEC Regulation A+; InvestBay serves international investors with varying regulatory frameworks
• Income Frequency: Ark7 provides monthly distributions; competitors typically offer quarterly payments
• Fee Structure: Ark7 charges 0% annual AUM fees; competitors charge 0.15-4% annually

Diversifying Your Portfolio with Alternative Investments

Alternative investments like real estate can provide valuable portfolio diversification by offering returns that aren’t perfectly correlated with traditional stock and bond markets. However, the quality of diversification depends on the specific assets and transparency of the platform.

Portfolio Diversification Capabilities

Ark7 enables true diversification through direct ownership in individual rental properties across multiple Sunbelt markets, with full access to property-level financials and occupancy data. This transparency allows investors to make informed decisions about which specific assets align with their risk tolerance and investment goals.

• Ark7: Direct ownership in individual properties with full financial transparency and 94.81% occupancy rates as of Q4 2024
• YieldStreet: Pooled funds with limited transparency; has experienced documented investor losses across multiple asset classes
• InvestBay: European vacation properties with stay discounts and blockchain tokenization
• Fundrise: Blind eREIT structure without individual property selection

For investors seeking meaningful diversification with transparent, high-quality real estate assets, Ark7’s property-level approach provides superior control and risk management compared to pooled fund alternatives.

Generating Passive Income Opportunities

Passive income generation is a primary motivation for real estate investors, but the frequency and reliability of distributions vary significantly between platforms. Ark7 stands alone in providing monthly cash distributions from rental properties, delivering 12 income events per year compared to the industry-standard quarterly payments from competitors.

Monthly Income Advantages

This monthly income frequency provides several advantages:

• Better cash flow management for retirees and income-dependent investors
• More frequent opportunities for compound reinvestment
• Enhanced ability to track and verify property performance

Passive Income Comparison

• Ark7: Monthly distributions (12x/year) from rental income, with 0% annual fees preserving 100% of net rental income
• YieldStreet: Quarterly distributions (4x/year) with 1-4% annual fees reducing net returns
• InvestBay: Monthly rental income from European vacation properties
• Arrived: Quarterly distributions (4x/year) with 0.15% annual AUM fees
• Fundrise: Quarterly distributions (4x/year) with approximately 1% annual fees

For investors prioritizing regular, reliable income, Ark7’s monthly distribution model combined with zero annual fees creates a superior passive income engine.

Navigating Online Investment Platforms

The user experience and accessibility of investment platforms significantly impact investor success. Ark7’s intuitive mobile app provides a seamless experience for discovering, investing in, and managing rental property shares, with 24/7 access to complete property documentation and financial performance data.

Platform Accessibility Comparison

Minimum Investment:

• Ark7: $20/share for individual property selection
• YieldStreet: $10,000 for Prism Fund (pooled alternatives)
• InvestBay: €100 (~$107) for European vacation properties
• Arrived: $100 per property
• Fundrise: $10 for pooled eREITs (no property selection)

Mobile Experience:

• Ark7: 4.7/5 rating on iOS, 4.2/5 on Android
• All competitors offer mobile apps with varying feature sets

Account Types:

• Ark7: Cash accounts and IRA options with $0 platform fee
• YieldStreet: Cash accounts and self-directed IRAs
• InvestBay: Cash accounts
• Arrived: Cash accounts only
• Fundrise: Cash accounts and IRAs (with $1,000 minimum)

Reporting and Transparency:

• Ark7: Complete property-level financials and occupancy data accessible 24/7
• YieldStreet: Limited pooled fund disclosure
• Competitors: Varying levels of transparency, generally less than Ark7

Ark7’s combination of low minimum investment, mobile accessibility, and complete transparency creates the most accessible and user-friendly experience for real estate investors.

Investment Strategies and Property Selection

Successful real estate investing depends on rigorous property selection and professional management. Ark7’s investment strategy focuses exclusively on U.S. residential rental properties in high-growth Sunbelt markets, with professional sourcing, acquisition, and management of each asset.

Ark7’s Property Approach

The platform’s approach includes:

• AI-driven property sourcing combined with local market expertise
• Focus on markets with strong population and job growth
• Professional property management handling leasing, tenant relations, and maintenance
• Ark7’s minority ownership (1%-20%) in each property, aligning interests with investors

Property Selection and Management Comparison

• Ark7: Individual property selection with full underwriting details, professional management, and 94.81% occupancy rate
• YieldStreet: Blind pooled funds with limited property-level information
• InvestBay: European vacation properties with included management
• Arrived: Individual property selection with third-party management
• Fundrise: No property selection; completely hands-off eREIT approach

For investors seeking both control and professional management, Ark7’s combination of property-level selection with full-service management creates an optimal balance.

Fees, Liquidity, and Risk Considerations

Fees significantly impact long-term investment returns, making cost structure a critical consideration. Ark7’s 0% annual AUM fee structure stands out in an industry where competitors typically charge 0.15-4% annually.

5-Year Total Cost of Ownership (on $10,000 investment)

• Ark7: ~$300 (3% one-time acquisition fee, 0% annual AUM fees)
• YieldStreet: $500-$2,200 (0-2% acquisition fees, 1-4% annual AUM fees)
• Arrived: $425-$575 (3.5-5% acquisition fees, 0.15% annual AUM fees)
• Fundrise: ~$500 (undisclosed acquisition fees, ~1% annual fees)

This fee advantage translates to $200-$1,900 in savings over 5 years on a $10,000 investment, representing 2-19% of the principal preserved for continued growth.

Liquidity Options

• Ark7: PPEX ATS secondary market after 1-year hold period with 1-3 day fulfillment
• YieldStreet: Limited or no liquidity options
• InvestBay: Tokenized trading with variable liquidity
• Arrived: New secondary market launched in 2025
• Fundrise: Quarterly redemptions (not guaranteed and may be suspended)

Risk Management

• Ark7: Zero investor losses since 2019 inception, demonstrating effective risk management
• YieldStreet: Has experienced documented investor losses across various asset classes
• Other Platforms: Limited public data on investor losses

For fee-conscious investors seeking reliable liquidity and proven risk management, Ark7’s combination of zero annual fees, institutional-grade secondary market, and clean performance record creates a superior risk-adjusted return profile.

Accreditation vs. Accessibility

Investor accessibility varies significantly between platforms, with important implications for wealth-building opportunities. Ark7’s SEC Regulation A+ qualification makes real estate investment accessible to both accredited and non-accredited U.S. investors with a minimum of just $20.

Investor Requirements

• Ark7: Open to all U.S. investors (accredited and non-accredited) through SEC Regulation A+
• YieldStreet: Limited access for non-accredited investors (Prism Fund only, with $10,000 minimum)
• InvestBay: Open to international retail investors; U.S. investors should verify regulatory compliance
• Arrived: Open to U.S. investors with $100 minimum
• Fundrise: Open to U.S. investors with $10 minimum

Ark7’s commitment to accessibility aligns with its mission of making real estate investment available to everyone, not just wealthy accredited investors. This democratization of real estate investing enables broader wealth-building opportunities across income levels.

Retirement Investing with Real Estate

Tax-advantaged retirement investing adds another dimension to real estate platform comparison. Ark7 offers both Traditional and Roth IRA accounts through Inspira Financial Company, with a $0 platform fee and only $100 annual custodian fee per property (capped at $400 annually, waived for accounts with $100,000+ average balance).

IRA Investment Comparison

• Ark7: $0 platform fee, $100/property annual custodian fee (capped $400, waived >$100k)
• YieldStreet: $0 platform fee, but limited real estate options within IRA structure
• InvestBay: No IRA options
• Arrived: No IRA options
• Fundrise: IRA available but requires $1,000 minimum

For investors seeking to diversify their retirement portfolios with real estate, Ark7’s low-cost IRA structure combined with property-level control and monthly income creates a compelling option for long-term wealth building.

YieldStreet Performance Considerations

YieldStreet’s rebranding to Willow Wealth coincided with changes to historical performance data visibility. Independent reports have documented investor losses across various asset classes, with particular challenges in real estate and marine lending portfolios.

Documented items to note

• Performance variability across deals – Some real estate offerings have faced operational or market-related headwinds.
• Regulatory matter (2023) – An SEC settlement related to aspects of risk disclosure practices.
• Legal resolution tied to earlier offerings (2018–2020) – A class action lawsuit was settled regarding certain offerings from that period.
• Periods of negative performance – Some investments have posted negative returns over certain timeframes, which can occur in real estate depending on conditions and execution.

These documented challenges highlight the importance of platform-specific risk management expertise. Ark7’s focus exclusively on residential real estate enables specialized expertise and more effective risk management, as demonstrated by its track record since 2019.

InvestBay’s European Focus and Regulatory Considerations

InvestBay operates as a European-focused platform specializing in vacation properties with blockchain tokenization. The platform targets international retail investors with fractional ownership in holiday destinations.

Key Considerations for U.S. Investors

While InvestBay serves global investors, U.S. citizens should carefully evaluate regulatory compliance and tax implications when investing in foreign-based platforms. Ark7’s SEC Regulation A+ qualification ensures full compliance with U.S. securities laws while providing access to high-quality domestic real estate investments with straightforward tax reporting.

Which Platform is Right for You?

Choose Ark7 when you need:

• Lowest cost structure: 0% annual AUM fees save $200-$1,900 over 5 years
• Monthly income: 12 distributions/year for better cash flow management
• Property-level control: Choose specific rental homes vs. blind pooled funds
• Accessible entry: $20 minimum enables diversification with limited capital
• Proven track record: Zero investor losses since 2019
• Tax-advantaged options: IRA accounts with $0 platform fee

Consider YieldStreet if:

• You’re an accredited investor seeking multi-asset diversification beyond real estate
• You’re comfortable with pooled fund structures and higher fee levels
• You prioritize alternative assets like art and private credit over real estate specialization

Fundrise may suit you if:

• You want the absolute lowest minimum ($10) for completely hands-off diversification
• You prefer blind pooled funds over individual property selection
• You value the longest track record (since 2010) over fee structure and income frequency

Arrived could work if:

• You prefer high-profile backing over cost structure
• You’re comfortable with 5-15 year holding periods
• You want individual property selection but accept higher fees and quarterly distributions

For most investors seeking cost-effective, transparent, and accessible real estate investment with monthly income, Ark7 emerges as the clear superior choice.

How to Get Started with Ark7

Getting started with Ark7 is straightforward and accessible:

1. Create an account at ark7.com
2. Complete identity verification (required by SEC regulations)
3. Fund your account with as little as $20
4. Browse available properties with complete financial disclosure
5. Select properties that match your investment goals
6. Purchase shares and begin receiving monthly distributions

For retirement investing, Ark7’s IRA options enable tax-advantaged real estate investment with the same low-cost structure and property-level control.

The Ark7 mobile app provides convenient access to your portfolio, property documentation, and distribution tracking, making real estate investment as easy as stock investing.

Frequently Asked Questions

Are investments on these platforms accessible to non-accredited investors?

Ark7 is accessible to both accredited and non-accredited U.S. investors through SEC Regulation A+ qualification, with no minimum income or net worth requirements. YieldStreet offers limited access to non-accredited investors through its Prism Fund but requires a $10,000 minimum investment. InvestBay serves international retail investors with varying requirements based on jurisdiction. Arrived and Fundrise are also accessible to non-accredited U.S. investors with $100 and $10 minimums respectively.

How does each platform handle property management and investor communication?

Ark7 provides full-service property management including leasing, tenant relations, and maintenance, with 24/7 access to complete property documentation and financial performance data through its mobile app. YieldStreet’s pooled fund structure limits property-level transparency and communication compared to Ark7’s detailed reporting. InvestBay includes property management for its European vacation properties with tokenized ownership tracking. For investors seeking maximum transparency, Ark7’s property-level disclosure approach provides the most comprehensive information access.

Can I sell my fractional real estate shares on a secondary market?

Ark7 provides access to the PPEX ATS secondary market after a 1-year hold period, with 1-3 day fulfillment for successful trades, offering the most reliable liquidity option in fractional real estate investing. YieldStreet offers limited or no liquidity options depending on the specific investment. InvestBay uses tokenized trading with variable liquidity based on market demand. Arrived launched a new secondary market in 2025, while Fundrise offers quarterly redemptions that aren’t guaranteed and may be suspended during market stress.

What are the tax implications of investing in real estate crowdfunding?

Real estate crowdfunding investments typically generate ordinary income from rental distributions, reported on Form 1099, and capital gains or losses occur when shares are sold. IRA accounts provide tax-deferred (Traditional IRA) or tax-free growth (Roth IRA) depending on account type. Investors should consult with tax professionals for personalized advice, as neither Ark7 nor its broker-dealer makes tax recommendations. All Ark7 investments involve risks including potential loss of principal, and investors should review the complete offering materials before investing.