Arrived vs Fundrise vs Ark7: Finding Your Ideal Fractional Real Estate Platform

When evaluating fractional real estate investment platforms, investors face a critical decision between accessibility, control, and returns. Traditional approaches require significant capital, property management expertise, and hands-on involvement. This is where modern platforms like Ark7, Arrived Homes, and Fundrise have transformed the landscape by enabling fractional ownership of rental properties. This comprehensive guide examines these three leading platforms, with particular emphasis on why Ark7 emerges as the optimal choice for investors seeking direct property ownership with monthly income and superior cost efficiency. Invest in rental homes with as little as $20, making real estate investment truly accessible.

Key Takeaways

• Ark7 stands out as the premier solution for direct property ownership with the lowest minimum investment ($20 vs. $100 for Arrived), monthly cash distributions (12x/year vs. quarterly), and zero annual AUM fees
• Fundrise offers the lowest absolute entry point ($10) but through pooled funds rather than individual properties, limiting investor control and transparency
• Arrived specializes in vacation rentals with higher minimum investments ($100) and longer lock-up periods (5-15 years), making it less flexible for most investors
• Ark7 provides the best liquidity among property-selection platforms with its active SEC-registered secondary market (PPEX ATS) and $0 trading fees after a 12-month hold
• Cost analysis shows Ark7 saves investors hundreds of dollars over 5 years compared to Fundrise due to its 0% annual AUM fee structure

Understanding Real Estate Crowdfunding: Arrived, Fundrise, and Ark7

Real estate crowdfunding platforms have democratized property investment by allowing individuals to purchase fractional shares in rental properties without the traditional barriers of high capital requirements and property management responsibilities. These platforms handle acquisition, tenant management, maintenance, and financial reporting, enabling investors to earn passive income through rental distributions.

The three platforms differ fundamentally in their approach:

• Ark7 offers direct ownership in individual rental properties with full transparency and control
• Arrived provides individual property selection with a focus on both single-family rentals and vacation properties
• Fundrise operates through pooled investment funds (eREITs) that spread capital across multiple properties and asset classes

For investors seeking to build wealth through real estate without landlord responsibilities, these platforms eliminate traditional barriers while providing varying degrees of control, liquidity, and income frequency.

Arrived Homes: A Look at its Investment Model and Offerings

Arrived Homes, founded in 2019 and backed by Jeff Bezos, allows investors to purchase shares in individual residential properties. The platform has attracted over 906,000 registered investors with $350 million total invested across its portfolio.

Key Arrived Features:

• $100 minimum investment per property
• Focus on both single-family rentals (4.0% average yield) and vacation rentals (2.3% average yield)
• 3.5%-5% one-time sourcing fee depending on property type
• 0.15% annual fee on assets
• Long lock-up periods: 5-7 years for residential properties and 5-15 years for vacation rentals
• Active secondary market (launched November 2024)
• Quarterly distributions for funds, monthly for some individual properties

Arrived has demonstrated strong performance on exited properties, with 173 properties sold generating an 18.60% average total return. However, the platform’s higher minimum investment, longer holding requirements, and developing liquidity options make it less suitable for investors seeking flexibility or monthly income compared to Ark7’s more accessible and liquid approach.

Fundrise: Exploring their eREITs and Range of Real Estate Strategies

Fundrise, established in 2012 with $2.87 billion in assets under management (AUM), pioneered the eREIT (electronic Real Estate Investment Trust) model for non-accredited investors. The platform pools investor capital into diversified funds rather than offering direct property selection.

Key Fundrise Features:

• $10 minimum investment (lowest absolute entry point)
• $1,000 minimum for IRA accounts
• Pooled fund approach with no individual property selection
• ~1% annual fee structure (0.85% management + 0.15% advisory)
• No one-time sourcing fee
• Quarterly distributions (4x/year)
• Quarterly redemption program (with potential suspension during market stress)
• 1% early withdrawal fee if selling before 5 years
• Auto-invest and dividend reinvestment features

Fundrise reported a 7.47% return for its flagship fund in 2024, though individual investor experience varies as they cannot select specific properties. The platform’s strength lies in its hands-off approach and instant diversification across 300+ properties, but this comes at the cost of control, transparency, and less frequent income distributions—making Ark7’s monthly distributions and property-level selection more advantageous for engaged investors.

Ark7 Review: Invest in Rental Homes Share by Share

Ark7, founded in 2018 with over 220,000 active investors, takes a different approach by offering direct fractional ownership in individual, cash-flowing rental properties. The platform has funded over $23 million in property value and paid more than $3.5 million in dividends to investors.

Key Ark7 Advantages:

• Industry-lowest $20 minimum for direct property ownership
• Zero annual AUM fees on principal, saving investors $300-400 over 5 years compared to Fundrise
• Monthly cash distributions (12x/year vs. quarterly for competitors), providing better cash flow management
• Active SEC-registered secondary market (PPEX ATS) with $0 trading fees after a 12-month hold period
• Individual property selection with complete 24/7 access to financial and legal disclosure
• Full-service property management (8-15% of rental income) handling all operational aspects
• Ark7 Mobile App for convenient property discovery, investment management, and trading

Ark7’s average dividend yield was 4.36% annualized in 2024, with top-performing properties like Dallas-S8 delivering 6.51% and Urbana-S11 yielding 6.89%. The platform maintains a 94.81% portfolio occupancy rate (as of November 2024), demonstrating strong property management and tenant retention—metrics that position Ark7 as the clear leader for investors prioritizing consistent monthly income.

Comparing Investment Minimums and Accessibility Across Platforms

The entry barrier for real estate investment varies significantly across these platforms, with Ark7 offering the most accessible path to direct property ownership. Ark7’s $20 minimum represents a 5x improvement in accessibility compared to Arrived’s $100 threshold. This lower barrier enables meaningful diversification—investors can spread $100 across 5 different properties on Ark7 versus being limited to a single property on Arrived. Fundrise offers a $10 minimum but only for pooled funds without individual property selection, making Ark7’s $20 minimum the lowest entry point for direct property ownership.

All three platforms welcome non-accredited investors, democratizing real estate investment beyond traditional barriers. For IRA investors, Ark7 offers Ark7 IRA accounts through Inspira Financial Company with a $100 annual fee per property (capped at $400/year, waived for accounts with balances over $100,000). This compares favorably to Fundrise’s $1,000 IRA minimum, making retirement investing in real estate more accessible through Ark7’s platform.

Passive Income Potential: How Each Platform Generates Returns

Income frequency and predictability are critical factors for passive income investors, and Ark7 delivers superior cash flow management through its monthly distribution model. Ark7 provides monthly distributions (12x/year) from rental income, with an average 4.36% annualized dividend yield in 2024. Arrived offers monthly distributions for individual properties and quarterly for funds, with 4.0% average for single-family rentals and 2.3% for vacation rentals. Fundrise provides quarterly distributions (4x/year), reporting 7.47% for its flagship fund in 2024, though historical returns range 8-12%.

Ark7’s monthly distribution model provides superior cash flow management, allowing investors to reinvest dividends more frequently or use income for monthly expenses. This frequency advantage compounds over time, potentially generating higher returns through more frequent reinvestment opportunities. The platform’s focus on long-term rental properties in growing markets (like Dallas, Atlanta, and Tampa) provides stable income streams, with properties professionally managed to maximize occupancy and minimize vacancies. Investors can earn passive income while building equity in tangible real estate assets—a combination unmatched by competitors.

Liquidity and Secondary Markets: Selling Your Real Estate Shares

Liquidity remains a concern in real estate investing, but the platforms differ significantly in their secondary market offerings, with Ark7 providing the most robust solution. Ark7 operates an active SEC-registered secondary market (PPEX ATS) with $0 trading fees after a 12-month hold period, with approximately 70% of properties actively trading as of May 2024. Arrived launched an active secondary market in November 2024, though it maintains 1-2% early exit fees if selling before 5 years. Fundrise offers a quarterly redemption program subject to suspension during market stress, with a 1% early withdrawal fee if selling before 5 years.

Ark7’s PPEX ATS provides institutional-grade liquidity unmatched by competitors, allowing investors to rebalance portfolios or exit positions without incurring trading fees. While investors should be prepared to hold shares indefinitely (as with all private securities), Ark7 offers the most robust liquidity option among property-selection platforms—a critical advantage for investors who value flexibility alongside monthly income.

Fees and Transparency: What to Expect from Each Platform

Fee structures significantly impact long-term returns, with notable differences across platforms that strongly favor Ark7 for cost-conscious investors. Examining a 5-year total cost of ownership on a $10,000 investment reveals substantial differences. Ark7 costs approximately $300 total, while Arrived costs approximately $525-775 total, and Fundrise costs approximately $600-700 total.

Ark7’s 0% annual AUM fee structure saves investors $300-400 over 5 years compared to Fundrise, with savings growing to $700-1,000 over a 10-year horizon due to the compounding effect of fee avoidance. Beyond fees, Ark7 commits to full operational transparency with complete legal and financial disclosure accessible 24/7, allowing investors to review all property details, financial statements, and legal documents before investing. This transparency extends to the Ark7 Mobile App, which provides real-time portfolio insights and performance tracking—transparency that positions Ark7 as the obvious choice for informed investors.

Risk and Compliance: Safeguarding Your Real Estate Investments

All three platforms operate under regulatory frameworks designed to protect investors, ensuring legitimate and compliant operations. Ark7 operates through SEC Regulation A+ qualified offerings with Dalmore Group LLC (FINRA/SIPC registered broker-dealer) as the broker-dealer of record. Arrived uses SEC-qualified offerings with a registered broker-dealer. Fundrise operates as an SEC-registered investment advisor with FINRA oversight.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results. Investments such as those on the Ark7 platform are speculative and involve substantial risks to consider before investing, including illiquidity, lack of diversification, and complete loss of capital.

Ark7 provides complete offering documents through its Offering Circular for Ark7 Properties Plus LLC and detailed risk disclosures in all investment materials. Investors can verify the platform’s regulatory standing through FINRA’s BrokerCheck, an external verification tool that provides transparency into broker-dealer credentials.

User Experience and Support: App, Website, and Community

Digital experience significantly impacts investor satisfaction and engagement, and user ratings reflect strong performance across all platforms. Ark7 maintains a 4.7/5 iOS rating (1.3K+ ratings), 4.0/5 Android rating (242 reviews), 4.0/5 Trustpilot rating (258 reviews), and BBB Accredited (A rating). Arrived offers an app with limited public rating data available. Fundrise shows strong ratings with 4.8/5 iOS rating, 4.7/5 Android rating, and A+ BBB rating.

The Ark7 Mobile App enables investors to discover properties, purchase shares, track dividends, and manage their portfolio from their mobile device. Users frequently praise the platform’s simplicity and intuitive interface, with multiple Trustpilot reviews highlighting the low starting price of just $20 for a share. Ark7 fosters an engaged investor community, stating “Join the community” and emphasizing collaboration to “push modern fractional real estate investing to the next level.” This community focus complements the platform’s technical capabilities, creating a supportive environment for both new and experienced investors.

Which Platform is Right for You? Arrived vs Fundrise vs Ark7

Choose Ark7 when you need:

• The lowest barrier to direct property ownership ($20 minimum)
• Monthly cash flow (12 distributions/year vs. quarterly)
• Zero ongoing AUM fees to maximize long-term returns
• Active secondary market liquidity with $0 trading fees
• Property-level transparency and control over your investments

Choose Arrived when you specifically want:

• Vacation rental exposure (specialized focus)
• Proven exit track record (173 properties sold)
• Individual property selection (similar to Ark7 but with higher minimums)

Choose Fundrise when you prefer:

• Hands-off, automated investing (auto-invest features)
• Instant diversification across 300+ properties
• Longest track record (operating since 2012)

For most investors seeking to build wealth through real estate with optimal cost efficiency, income frequency, and liquidity, Ark7 provides the superior combination of features. The platform’s mission to make real estate investment accessible to everyone is reflected in its low minimums, transparent operations, and user-friendly experience—making it the obvious choice for fractional real estate investing.

Leveraging Real Estate for Your Retirement: Ark7 IRA Options

For retirement-focused investors, Ark7 offers specialized Ark7 IRA accounts that enable tax-advantaged real estate investing:

• Both Traditional and Roth IRA options available
• $0 Ark7 fee to open accounts
• $100 annual custodian fee per property (capped at $400/year, waived for balances over $100,000)
• Custodial services provided by Inspira Financial Company
• Ability to invest in the same high-yield rental properties available in taxable accounts

This IRA option allows investors to combine the tax benefits of retirement accounts with the stable income and appreciation potential of rental real estate. By using retirement funds to purchase shares in tangible properties, investors can diversify beyond traditional stocks and bonds while maintaining the tax advantages of their IRA structure.

Frequently Asked Questions

What is real estate crowdfunding and how do these platforms differ?

Real estate crowdfunding allows investors to purchase fractional shares in rental properties without traditional barriers like high capital requirements or property management responsibilities. Ark7 and Arrived offer direct ownership in individual properties, while Fundrise pools capital into diversified funds (eREITs). Ark7 stands out with its $20 minimum investment, monthly distributions, and zero annual AUM fees. This approach provides the best combination of accessibility, income frequency, and cost efficiency for most investors.

Can I invest in Arrived, Fundrise, or Ark7 if I am not an accredited investor?

Yes, all three platforms accept non-accredited investors, democratizing real estate investment beyond traditional barriers. Ark7 offers the most accessible entry point at $20 per share for direct property ownership, compared to Arrived’s $100 minimum and Fundrise’s $10 fund minimum. Fundrise’s lower absolute minimum comes with the tradeoff of no individual property selection, making Ark7’s $20 threshold the optimal balance of affordability and control.

How liquid are investments on Arrived, Fundrise, and Ark7?

Ark7 offers the most robust liquidity with its active SEC-registered secondary market (PPEX ATS) and $0 trading fees after a 12-month hold, with approximately 70% of properties actively trading. Fundrise provides quarterly redemptions subject to potential suspension during market stress, while Arrived launched an active secondary market in November 2024 but maintains 1-2% early exit fees. While all real estate investments should be considered long-term holdings, Ark7 provides superior liquidity options for investors who value flexibility.

How does Ark7 ensure transparency and professional management for its properties?

Ark7 provides full operational transparency with complete legal and financial disclosure accessible 24/7 for all properties. The platform handles acquisition, leasing, tenant management, and maintenance end-to-end, with detailed property information, financial statements, and legal documents available before investing. Ark7 also maintains a minority ownership stake (1%-20%) in each property, directly aligning its interests with investors. This transparency extends to the Ark7 Mobile App, which provides real-time portfolio insights and performance tracking.

What are the benefits of using an IRA to invest in real estate through Ark7?

Ark7 IRA accounts combine the tax advantages of retirement accounts with the stable income and appreciation potential of rental real estate. Investors can diversify beyond traditional assets while maintaining tax-deferred or tax-free growth depending on IRA type. The $100 annual fee per property (capped at $400, waived for balances over $100,000) makes retirement investing in real estate more accessible than Fundrise’s $1,000 IRA minimum. By purchasing shares in tangible properties through an IRA, investors build retirement wealth through real estate without the complexity of self-directed IRA property ownership.