InvestNext vs EquityMultiple vs Ark7: The Best Fractional Real Estate Platform

When evaluating real estate investment platforms, investors face a critical decision that impacts accessibility, returns, and long-term wealth building. While traditional platforms impose high barriers to entry and restrict access to accredited investors only, Ark7 democratizes real estate investing through fractional ownership of residential rental properties with minimum investments as low as $20 per share. This comprehensive guide examines three fundamentally different approaches to real estate investing—InvestNext’s B2B software for sponsors, EquityMultiple’s accredited-only commercial real estate platform, and Ark7’s accessible fractional residential property model—demonstrating why Ark7 emerges as the ideal choice for retail investors seeking passive income and portfolio diversification.

Key Takeaways

• Ark7 stands out as the premier solution for accessible real estate investing with a $20 minimum investment versus EquityMultiple’s $5,000 barrier and InvestNext’s B2B-only model
• Only Ark7 accepts non-accredited investors, opening real estate wealth-building opportunities to most retail investors excluded by accredited-only platforms
• Ark7 delivers monthly cash distributions (12x per year) compared to competitors’ quarterly or irregular payment schedules, enabling faster compounding
• Ark7 provides secondary market liquidity through PPEX ATS after a 12-month holding period, offering capital access 2-6 years earlier than EquityMultiple’s typical 3-7 year lockups
• Simpler tax reporting with many forms instead of complex K-1s reduces accountant fees and filing complexity
• Direct property selection allows investors to choose specific rental homes rather than relying on blind fund allocations

Understanding Real Estate Crowdfunding Platforms

Real estate crowdfunding platforms have transformed property investment from an exclusive, capital-intensive endeavor into an accessible opportunity for retail investors. However, not all platforms serve the same market or offer equivalent value propositions. The fundamental distinction lies in their target audience and business model:

InvestNext operates as B2B software for real estate sponsors and fund managers, providing tools to manage investor relationships rather than serving as an investment platform for retail investors. EquityMultiple caters exclusively to accredited investors seeking commercial real estate exposure with higher minimum investments and complex tax reporting. Ark7 democratizes residential rental property ownership through fractional shares, accepting all U.S. investors 18+ with minimum investments starting at $20.

This comparison reveals that while all three entities operate in the real estate investment ecosystem, they serve fundamentally different audiences with distinct needs and capabilities.

InvestNext: Streamlining Investment Management

InvestNext represents a completely different category in the real estate investment landscape—it’s not an investment platform for retail investors but rather B2B software designed for real estate sponsors, general partners (GPs), and fund managers. Founded in 2016, InvestNext provides comprehensive investor relationship management tools that help real estate professionals raise capital, manage investor communications, and automate distributions.

For Sponsors: Enhancing Efficiency

InvestNext’s platform includes features specifically designed for real estate sponsors:

• Investor Portal: White-label, customizable portals for investor communications
• CRM Integration: Lead management and pipeline tracking capabilities
• Fundraising Automation: E-signatures, ACH integration, and accreditation tracking
• Distribution Management: Waterfall modeling and automated ACH payments
• Compliance Tools: KYC/AML integration and accreditation verification

The platform operates on a subscription model ranging from $99/month for first-time capital raisers to $699+/month for established firms managing $10M-$500M in investor equity.

Investor Experience on InvestNext

Since InvestNext serves sponsors rather than retail investors, there’s no direct investment opportunity for individuals seeking real estate exposure. Retail investors cannot invest through InvestNext; instead, they would invest in deals managed by sponsors who use InvestNext software. This fundamental distinction means InvestNext isn’t a viable alternative for individual investors seeking direct real estate investment opportunities.

EquityMultiple: Diversified Commercial Real Estate

EquityMultiple, founded in 2015, operates as an investment platform exclusively for accredited investors seeking commercial real estate exposure. The platform offers access to institutional-grade office, retail, industrial, and large multifamily properties with target returns ranging from 8-12% annually.

Investment Opportunities and Asset Classes

EquityMultiple focuses on commercial real estate assets through various investment structures:

• Senior Debt: Lower-risk debt investments with priority repayment
• Preferred Equity: Hybrid investments with debt-like security and equity upside
• Syndicated Equity: Direct ownership stakes in commercial properties

The platform requires investors to be accredited, meaning they must have a net worth exceeding $1 million (excluding primary residence) or annual income above $200,000 ($300,000 for joint filers).

Ark7: Accessible Fractional Residential Property Investing

Ark7 revolutionizes real estate investing by making residential rental property ownership accessible to everyone through fractional shares. Founded in 2018 and headquartered in San Francisco, Ark7 has attracted over 230,000 active investors and funded $23+ million in property value through its innovative platform.

How Ark7 Works: Share by Share Investing

Ark7’s model is straightforward and accessible:

1. Property Selection: Investors browse and select from curated residential rental properties in Sunbelt markets like Dallas, Atlanta, and Tampa
2. Fractional Purchase: Buy shares starting at $20 per share in specific properties
3. Passive Income: Receive monthly cash distributions from rental income
4. Transparency: Access complete legal and financial disclosure 24/7
5. Liquidity Option: Sell shares on the secondary trading market after a 12-month holding period

Each property is structured as a separate series LLC with SEC Regulation A+ qualification, ensuring regulatory compliance while maintaining accessibility for non-accredited investors.

Benefits of Investing with Ark7

Ark7’s advantages over competitors are substantial and well-documented:

• Industry-Lowest Minimum Investment: $20 per share enables micro-diversification across multiple properties
• No Accreditation Required: Open to all U.S. investors 18+, democratizing real estate wealth building
• Monthly Distributions: 12 cash payments per year versus competitors’ quarterly schedules
• Zero Ongoing AUM Fees: No annual asset management fees, saving hundreds over time
• Secondary Market Liquidity: PPEX ATS trading after 12 months provides capital access years earlier than competitors
• Simple Tax Reporting: 1099 forms instead of complex K-1s reduce filing complexity and costs
• Direct Property Control: Choose specific rental homes rather than blind fund allocations
• Mobile-First Platform: Highly-rated iOS (4.7/5) and Android (4.2/5) apps enable investing anywhere

Specific Property Examples

Ark7’s portfolio includes diverse residential properties across Sunbelt markets:

• Dallas-S8 Property: A 3-bedroom, 2.5-bath single-family home in Mesquite, TX, built in 1998, demonstrating strong market appreciation with a +6.51% dividend yield as of June 2025
• Tampa-S10 Property: A 4-bedroom, 2.5-bath single-family home in Land O Lakes, FL, built in 2020, fully occupied with long-term leases for stable returns
• Atlanta-T3 and T4 Properties: Modern townhomes in Jonesboro, GA, built in 2020, positioned near major employers and tech companies for strong rental demand

These properties exemplify Ark7’s focus on high-yield residential rentals in growing Sunbelt markets with strong economic fundamentals.

Comparing Investment Accessibility and Minimums

The accessibility gap between these platforms is stark and represents a fundamental differentiator for retail investors.

Who Can Invest Where?

Ark7 accepts all U.S. investors 18+ with no accreditation requirement and a minimum investment of just $20 per share, making it the most accessible platform for retail investors. EquityMultiple restricts access to accredited investors only and requires $5,000+ per investment, creating a 250x higher barrier than Ark7. InvestNext operates as B2B software with monthly subscription fees ranging from $99-$699+, serving real estate sponsors and GPs rather than retail investors.

Ark7’s accessibility advantage is clear: it serves the 93% of retail investors excluded by EquityMultiple’s accredited-only requirement while offering a minimum investment that’s 250 times lower.

Starting Your Real Estate Investment Journey

For beginners and retail investors, Ark7 provides the most accessible entry point:

• Low Capital Requirements: Start with as little as $20, enabling investment even with limited capital
• No Accreditation Hassles: Skip the complex net worth and income verification required by accredited-only platforms
• Intuitive Mobile App: Ark7 mobile app to discover, invest in, and manage properties from your phone
• Educational Resources: Comprehensive property details and market analysis help inform investment decisions

This accessibility doesn’t compromise on quality—Ark7 properties are professionally sourced, acquired, and managed, with the company maintaining minority ownership (1%-20%) in each property, aligning interests with investors.

Investment Focus: Residential vs. Commercial Real Estate

The asset class focus represents another critical differentiator between these platforms.

Tailoring Your Portfolio to Your Goals

Ark7’s residential focus offers distinct advantages for retail investors:

• Stable Cash Flow: Single-family and small multifamily rentals provide consistent monthly rental income
• Lower Volatility: Residential properties tend to be less volatile than commercial assets during economic downturns
• Demographic Tailwinds: Strong demand from millennials and Gen Z renters supports occupancy rates (currently 94.81% across Ark7’s portfolio as of December 2025)
• Geographic Concentration: Focus on Sunbelt markets with strong population and job growth

EquityMultiple’s commercial focus appeals to accredited investors seeking:

• Higher Return Potential: 8-12% target returns through institutional-grade assets
• Portfolio Diversification: Exposure to office, retail, industrial, and large multifamily properties
• Multiple Investment Structures: Senior debt, preferred equity, and syndicated equity options

However, commercial real estate comes with higher complexity, longer lockup periods, and greater sensitivity to economic cycles—factors that may not align with retail investors’ risk tolerance and liquidity needs.

Understanding Market Dynamics

Ark7’s residential property focus in Sunbelt markets leverages several favorable trends:

• Population Migration: Continued migration to Sunbelt states from higher-cost coastal areas
• Employment Growth: Proximity to major employers and tech companies in markets like Dallas and Atlanta
• Affordable Housing: Lower home prices relative to coastal markets create strong rental demand
• Favorable Policies: Business-friendly regulations and lower taxes in Sunbelt states

These factors contribute to consistent rental income and long-term appreciation potential, making residential rentals an attractive asset class for retail investors seeking passive income and wealth building.

Fees, Returns, and Payout Structures

The fee structure and return profile significantly impact long-term investment performance.

Understanding Your Total Investment Costs

Ark7’s fee structure is transparent and investor-friendly:

• One-time Sourcing Fee: 3% of investment amount
• Management Fee: 15% of distributable cash flow (not a percentage of total assets)
• Zero Ongoing AUM Fees: No annual percentage-based asset management fees
• IRA Fees: $0 to open, $100 annual fee per property (capped at $400/year, waived for balances >$100,000)

EquityMultiple’s fee structure includes ongoing costs that compound over time:

• Annual AUM Fees: 0.5%-1.5% annually
• Administrative Fees: $30-$70 per investor annually
• Profit Share: 10% of profits upon exit
• Acquisition Fees: Included in returns but reduce net investor returns

For a $10,000 investment over 5 years, Ark7’s total fees would be approximately $300 upfront, while EquityMultiple’s ongoing fees would total $400-$1,100—representing significant savings with Ark7.

Maximizing Your Passive Income

Ark7’s monthly distribution model provides distinct advantages for income-focused investors:

• 12 Distributions Per Year: Monthly payments on the 3rd of each month enable faster compounding
• Consistent Cash Flow: Annualized yields ranging from 3.96% to 7.65% provide reliable passive income
• Reinvestment Opportunities: Monthly cash flow can be reinvested immediately in new properties
• Transparency: Clear distribution calculations and property performance metrics

EquityMultiple’s quarterly or irregular distribution schedule limits compounding opportunities and creates less predictable cash flow for investors.

Secondary Market Liquidity and Exit Strategies

Liquidity represents one of the most significant differentiators between these platforms.

When Can You Sell Your Investment?

Ark7 provides secondary market liquidity through PPEX ATS (Public Private Execution Network Alternative Trading System), an SEC-registered secondary trading platform:

• 12-Month Holding Period: Shares can be traded after holding for 12 months
• Continuous Trading: Active market with $77,204 in monthly trading volume as of December 2025
• 70% Active Trading: 26 out of 37 properties had active trading as of November 2025
• 1-3 Business Day Settlement: Quick transaction processing

EquityMultiple offers no secondary market, requiring investors to hold until property sale or refinance—typically 3-7 years. This illiquidity represents a significant risk for investors who may need capital access before the investment term ends.

InvestNext, as B2B software, doesn’t involve direct investor liquidity considerations.

Navigating the Exit: Risks and Opportunities

Ark7’s liquidity advantage is substantial: investors gain capital access 2-6 years earlier than EquityMultiple’s typical lockup periods. While there’s no guarantee of an active market for all shares, the existence of a regulated secondary trading platform provides options that simply don’t exist with EquityMultiple.

This liquidity option is particularly valuable for retail investors who may face unexpected financial needs or want to rebalance their portfolios without waiting for property sales.

Regulatory Compliance and Investor Protection

Regulatory compliance ensures investor protection and platform legitimacy.

Ensuring a Secure Investment Environment

Ark7 operates under SEC Regulation A+, providing several investor protections:

• Broker-Dealer Oversight: Dalmore Group LLC serves as the FINRA and SIPC-registered broker-dealer of record
• Comprehensive Disclosures: Offering circulars available for all qualified series
• Accredited Business Status: BBB Accredited with a Trustpilot rating of 4.1/5 (235 reviews)
• Regulatory Filings: All offerings filed with and qualified by the SEC

EquityMultiple also maintains regulatory compliance but operates under different rules due to its accredited-only focus:

• Accredited Investor Verification: Mandatory verification processes
• Detailed Offering Materials: Comprehensive risk disclosures for qualified investors

InvestNext, as B2B software, focuses on sponsor compliance rather than direct investor protection.

Understanding Your Rights and Risks

All real estate investments involve substantial risks, including illiquidity, lack of diversification, and potential complete loss of capital. However, Ark7’s transparent approach to risk disclosure and regulatory compliance provides investors with the information needed to make informed decisions.

The platform’s commitment to “Access Operation Transparency” means investors can review complete legal and financial documents 24/7, ensuring they understand the risks and opportunities before investing.

Technology, User Experience, and Customer Support

The user experience significantly impacts investment success and satisfaction.

Investing Made Easy: Platform Design

Ark7’s mobile-first approach sets it apart from competitors:

• Highly-Rated Mobile App: iOS (4.7/5) and Android (4.2/5) apps enable investing anywhere
• Intuitive Interface: Easy property browsing, share purchasing, and portfolio management
• Real-Time Updates: Property performance metrics and market insights at your fingertips
• AI-Driven Sourcing: Technology and data insights enhance property selection and underwriting

EquityMultiple offers a desktop-focused platform with no public mobile app, limiting accessibility for mobile-first investors.

InvestNext provides sponsor-focused software with no retail investor interface.

Support When You Need It

Ark7’s commitment to community and transparency extends to customer support:

• Educational Resources: Comprehensive blog content covering real estate investing topics
• Transparent Communication: Regular property updates and operational highlights
• Community Engagement: Building a mutually beneficial relationship with investors
• Professional Management: End-to-end property management eliminates landlord responsibilities

The platform’s 4.1/5 Trustpilot rating reflects positive user experiences with both the investment offering and customer support.

Making the Right Choice for Your Investment Goals

The choice between these platforms depends on your investor status, capital availability, and investment objectives.

When Ark7 Is the Clear Winner

Choose Ark7 when you:

• Are a non-accredited investor seeking real estate exposure
• Have limited capital ($20-$5,000 to invest initially)
• Want monthly passive income from rental properties
• Prefer direct property selection and control
• Value secondary market liquidity options
• Seek simple tax reporting with 1099 forms
• Want to explore IRA real estate investing for retirement planning

When Other Platforms May Suit Your Needs

EquityMultiple may be appropriate if you:

• Are an accredited investor with $5,000+ available per investment
• Seek commercial real estate exposure with higher return potential
• Can tolerate 3-7 year lockup periods without liquidity
• Prefer institutional-grade investments with complex structures

InvestNext serves a completely different market as B2B software for real estate sponsors and fund managers, not retail investors.

Frequently Asked Questions

Can non-accredited investors invest with Ark7?

Yes, Ark7 accepts all U.S. investors 18+ regardless of accreditation status. This is a significant advantage over EquityMultiple, which requires accredited investor status (net worth >$1M or income >$200K annually). Ark7’s SEC Regulation A+ qualification enables this inclusive approach, serving the 93% of retail investors excluded by accredited-only platforms. No complex income or net worth verification is required to begin investing.

What are the fees associated with investing in real estate through Ark7?

Ark7 maintains a transparent fee structure with no hidden costs. Investors pay a 3% one-time sourcing fee and a 15% management fee on distributable cash flow. Crucially, Ark7 charges no ongoing AUM fees, saving investors $400-$1,100 over 5 years compared to EquityMultiple’s 0.5-1.5% annual fees. IRA accounts have a $100 annual fee per property, capped at $400/year and waived for balances exceeding $100,000.

How does the secondary trading market work for Ark7 shares?

Ark7 provides secondary market liquidity through PPEX ATS (Public Private Execution Network Alternative Trading System), an SEC-registered platform. After holding shares for 12 months, investors can sell them on this regulated marketplace. As of December 2025, the platform facilitated $77,204 in monthly trading volume, with 70% of Ark7’s portfolio (26 properties) having active trading. Settlement typically occurs within 1-3 business days, though there’s no guarantee of an active market for all shares.

Does Ark7 offer IRA investment options for real estate?

Yes, Ark7 offers IRA investment options through Inspira Financial Company as the custodian. Investors can open Traditional or Roth IRAs to purchase real estate shares using retirement funds. The IRA structure includes a $0 Ark7 fee to open and an annual custodian fee of $100 per property (capped at $400/year, waived for account balances exceeding $100,000). This enables tax-advantaged real estate investing for retirement planning.

What kind of properties can I invest in through Ark7?

Ark7 focuses exclusively on residential rental properties in Sunbelt markets, including single-family homes, townhomes, and small multifamily properties. Current markets include Dallas, Atlanta, and Tampa, with properties professionally sourced and managed. Examples include the Dallas-S8 property (3-bedroom home in Mesquite, TX) and Tampa-S10 property (4-bedroom home in Land O Lakes, FL), both demonstrating strong rental yields and appreciation potential. All properties are located in growing markets with strong economic fundamentals.