Fundrise vs CrowdStreet vs Ark7: Knowing Your Real Estate Investment Choice

When evaluating real estate crowdfunding platforms, investors face a critical tradeoff between accessibility, control, and liquidity. Traditional options force difficult compromises: either accept blind pool investing with limited liquidity or meet high capital requirements for individual deal selection. This is where Ark7’s fractional real estate platform transforms the paradigm. By offering property-specific selection with a $20 minimum investment, monthly dividends, and a functional secondary market, Ark7 delivers what competitors fundamentally lack. This comprehensive comparison examines how Fundrise, CrowdStreet, and Ark7 stack up across critical investor priorities.

Key Takeaways

• Ark7 stands out as the premier solution for fractional real estate investing with property selection control, starting at just $20 per share
• Monthly dividend distributions provide more responsive cash flow than Fundrise’s quarterly or CrowdStreet’s variable schedules
• Only Ark7 offers a functional secondary market (PPEX ATS) enabling share trading after a 1-year minimum hold
• Ark7 charges zero platform fees to investors—only performance-based fees of 8-15% of rental income—versus Fundrise’s 1% annual asset-based fee
• Full operational transparency with 24/7 access to property financials, occupancy rates, and rent rolls exceeds Fundrise’s blind pool model

Understanding Real Estate Crowdfunding: What to Look For

Real estate crowdfunding platforms have democratized access to property investment, but they vary dramatically in their approach to investor experience. The key considerations include minimum investment requirements, property selection control, income frequency, liquidity options, and fee structures.

Critical Investor Priorities:

• Accessibility – Can non-accredited investors participate with reasonable capital?
• Control – Do you select specific properties or invest in blind pools?
• Income Frequency – How often are dividends distributed?
• Liquidity – Can you exit positions before property sale?
• Transparency – What operational data is available to investors?
• Fees – Are charges asset-based or performance-based?

These factors determine whether a platform aligns with your investment goals, risk tolerance, and capital constraints.

Fundrise vs. CrowdStreet: A Comparative Overview

Fundrise: Accessibility with Limited Control

Fundrise pioneered non-accredited real estate investing with a $10 minimum entry point, making it accessible to a broad range of investors. However, this accessibility involves certain considerations. Fundrise operates through eREITs—blind pools that automatically allocate your capital across multiple properties according to their algorithm. You cannot select specific properties or markets, which may affect your ability to build a targeted real estate portfolio based on personal preferences.

Fundrise distributes dividends quarterly rather than monthly, and their recommended holding period is 5+ years with quarterly redemption opportunities subject to certain limitations. Their fee structure includes a 1% annual charge on all assets under management regardless of property performance.

CrowdStreet: High Barriers with Commercial Focus

CrowdStreet caters exclusively to accredited investors with a substantial $25,000 minimum investment per deal. This requirement means the platform serves a specific investor segment. However, accredited investors gain access to institutional-quality commercial real estate deals (multifamily, office, industrial) with historical average returns of 17.7% IRR.

CrowdStreet provides detailed documentation for each deal and sponsor track records, offering transparency at the deal level. However, there is no secondary market for liquidity—capital is committed until property sale or refinance, typically 3-7 years. Fees vary by sponsor but typically range from 3-7% of invested capital through acquisition, management, and promotion structures.

Introducing Ark7: Fractional Real Estate for Everyone

Ark7 reimagines real estate crowdfunding by combining the accessibility of Fundrise with the property selection control of CrowdStreet, while adding unique features neither competitor offers. Founded on the principle that “everyone should have the freedom to build wealth through real estate,” Ark7 enables investors to buy shares in individual rental properties starting at just $20 per share.

Ark7’s Mission: Accessibility and Transparency

Ark7’s commitment to making real estate investment accessible, efficient, and transparent drives every aspect of the platform. Unlike Fundrise’s blind pools, Ark7 allows investors to handpick specific single-family and multifamily rental properties across diverse markets. The platform’s technology-first approach combines AI-powered property sourcing with local market expertise to identify high-yield opportunities with strong cash flow potential.

Ark7’s Investment Model: Buy Shares in Rental Homes

Ark7’s fractional ownership model provides direct exposure to individual rental properties with full operational transparency. Each property is structured as a separate series LLC under SEC Regulation A+ qualification, ensuring legal compliance and investor protection.

How Ark7 Curates High-Yield Properties

Ark7’s hybrid AI and local expertise model screens properties using AI and local expertise based on numerous market indicators to identify undervalued assets with strong cash flow potential. Properties are typically located in high-growth Sunbelt markets with strong job creation, population growth, and rental demand. Examples include:

• Atlanta-T3 Property Shares: A newly built 3-bedroom townhome in Jonesboro, GA, offering high cash yield and growth potential in a market with 15% population growth over the past decade
• Tampa-S10 Property Shares: A 4-bedroom single-family home in Land O Lakes, FL, fully occupied with a long-term lease for stable returns
• Dallas-S8 Property Shares: A 3-bedroom single-family home in Mesquite, TX, delivering strong performance with competitive dividend yields

Earning Passive Income with Ark7

Ark7 properties generate monthly cash distributions from rental income, providing consistent passive income streams. Returns typically range from 3.96% to 7.65% in cash flow yields, with additional appreciation potential as property values increase over time. The monthly distribution schedule enables better cash flow management compared to quarterly competitors.

Comparing Investment Minimums and Accessibility

The minimum investment requirement significantly impacts who can participate in real estate crowdfunding and how effectively they can diversify their portfolios.

Ark7

• Minimum investment: $20 per share
• Accreditation required: No
• Diversification potential: High — for example, 500 shares = $10,000 spread across multiple properties

Fundrise

• Minimum investment: $10
• Accreditation required: No
• Diversification potential: Automatic — funds are allocated through a blind pool structure

CrowdStreet

• Minimum investment: $25,000 per deal
• Accreditation required: Yes
• Diversification potential: Low — typically one deal per $25,000 investment

Lowering the Barrier to Entry with Ark7

While Fundrise offers a slightly lower absolute minimum at $10, Ark7’s $20 entry point remains highly accessible while providing critical advantages. With Ark7, you can diversify a $10,000 investment across 500 shares in multiple properties, markets, and asset types. Fundrise’s $10 minimum provides access but investors are subject to their blind pool strategy.

CrowdStreet’s $25,000 minimum serves a specific investor segment. With $25,000, investors can access a single commercial deal, which represents a different diversification approach.

Fees and Transparency: What to Expect from Each Platform

Fee structures directly impact net returns and reveal how platforms align their interests with investors.

Ark7’s Approach to Transparent Costs

Ark7 charges zero platform fees, asset management fees, or trading commissions to investors. Instead, the platform earns performance-based fees of 8-15% of rental income generated by each property. This structure aligns Ark7’s incentives with investor success—you only pay when the property generates income. During periods of vacancy or negative cash flow, you pay nothing.

Additionally, Ark7 charges a 3% one-time sourcing fee on initial investment, which covers property acquisition, due diligence, and setup costs. This upfront transparency contrasts with Fundrise’s ongoing 1% annual fee that continues regardless of property performance.

Fee Comparison Summary

• Ark7: $0 platform fees + 8-15% of rental income + 3% one-time sourcing fee
• Fundrise: 1% annual fee on all assets (0.15% advisory + 0.85% management)
• CrowdStreet: 3-7% total fees through sponsor structures (acquisition, management, promote)

Liquidity Options and Secondary Markets

Liquidity represents one of the most significant differentiators between these platforms, with profound implications for investor flexibility and risk management.

Navigating Share Sales with Ark7

Ark7 operates the only functional secondary market in fractional real estate through the PPEX ATS, an SEC-registered Alternative Trading System. After a 1-year minimum holding period, investors can list their shares for sale, with typical fulfillment occurring in 1-3 business days. This liquidity safety valve is unavailable from competitors.

Fundrise offers quarterly redemption opportunities subject to certain limitations and conditions. CrowdStreet provides no secondary market whatsoever—capital is committed until property sale or refinance, typically 3-7 years.

Important compliance note: There can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely.

Mobile Investing and Portfolio Management with Ark7

The investment experience extends beyond property selection to ongoing portfolio management and monitoring.

Ark7 App: Discover, Invest, Manage

The Ark7 Mobile App provides a seamless mobile experience for discovering properties, purchasing shares, tracking dividends, and managing your portfolio. With ratings of 4.7/5 on Apple App Store and 4.2/5 on Google Play, Ark7 offers the highest-rated mobile experience in fractional real estate.

Key app features include:

• Real-time property analytics and occupancy updates
• Monthly dividend tracking and distribution notifications
• Secondary market trading capabilities
• Portfolio performance insights
• Secure transaction processing

While Fundrise and CrowdStreet offer mobile apps, neither provides the combination of property-level transparency, monthly income tracking, and secondary market functionality that Ark7 delivers.

Real Estate Investing for Retirement with Ark7 IRA

Real estate can be a powerful component of retirement portfolios, offering inflation protection, income generation, and tax advantages.

Maximizing Tax Benefits with Real Estate IRAs

The Ark7 IRA enables investors to use retirement funds to purchase fractional shares in rental properties. Supported through Inspira Financial Company as custodian, Ark7 IRAs accommodate both Traditional and Roth structures with no platform opening fee.

Key advantages include:

• Tangible asset ownership within retirement accounts
• Monthly passive income contributing to retirement cash flow
• Potential for long-term appreciation alongside income
• Tax-deferred or tax-free growth depending on IRA type
• Annual custodian fee of $100 per property (capped at $400, waived for balances >$100,000)

Fundrise and CrowdStreet also support IRA investing, but Ark7’s monthly income frequency and secondary market liquidity provide unique advantages for retirement portfolio management.

Important compliance note: Investments such as those on the Ark7 platform are speculative and involve substantial risks to consider before investing, outlined in the respective offering materials and including, but not limited to, illiquidity, lack of diversification, and complete loss of capital.

Ark7 Properties: Spotlight on Diverse Markets (Tampa, Dallas)

Ark7’s property portfolio demonstrates the platform’s strategic focus on high-growth markets with strong fundamentals.

Tampa-S10: Stable Yield in a Growing Market

The Tampa-S10 property in Land O Lakes, FL represents Ark7’s focus on stable, income-producing assets in strong Sunbelt markets. This 4-bedroom, 2,775 sqft single-family home built in 2020 is fully occupied with a long-term lease, providing consistent cash flow. The Tampa area benefits from strong demographics, A-rated schools, and proximity to major employers.

Dallas-S9 & S8: Appreciating Assets in the Lone Star State

Ark7’s Dallas properties in Mesquite, TX showcase the platform’s ability to identify assets in markets with strong appreciation potential. The Dallas area has experienced strong appreciation driven by 23 Fortune 500 companies in the region and favorable population trends.

Ark7’s Commitment to Community, Efficiency, and Transparency

Ark7’s core values of community, efficiency, and transparency differentiate the platform beyond just features and fees.

The Ark7 Advantage: Building Wealth Together

Ark7 maintains minority ownership (1%-20%) in each property, ensuring the platform shares both profits and losses with investors. This skin-in-the-game approach aligns interests and demonstrates confidence in property selection. The platform also maintains an Accredited Business badge and 4.1/5 Trustpilot rating based on 243 reviews, reflecting strong customer satisfaction.

Ark7’s belief in “information democracy” manifests through 24/7 access to complete legal and financial disclosure for every property. Investors can review offering circulars, operating statements, rent rolls, and occupancy data at any time, enabling informed decision-making that Fundrise’s blind pool model cannot match.

Making Confident Real Estate Investment Decisions

Choosing the right real estate crowdfunding platform requires careful consideration of your investment goals, risk tolerance, and capital constraints.

Important Considerations Before Investing with Any Platform

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. You should speak with your financial advisor, accountant and/or attorney when evaluating any offering.

Key due diligence steps include:

• Reviewing the complete offering circular for Ark7 Properties Plus LLC or relevant series
• Understanding the specific risks associated with each property and market
• Evaluating your liquidity needs and ability to hold investments long-term
• Considering diversification across multiple properties and markets
• Consulting with financial professionals about suitability for your portfolio

An investment in an offering constitutes only an investment in a particular series and not in Ark7 or any of the underlying asset(s). Investors should carefully review the risks located in the respective offering materials for a more comprehensive discussion of risks.

Frequently Asked Questions

What is real estate crowdfunding and how does it work?

Real estate crowdfunding platforms like Ark7 allow multiple investors to pool capital to purchase rental properties, with each investor receiving fractional ownership shares proportional to their investment. Ark7 structures each property as a separate series LLC under SEC Regulation A+ qualification, enabling investors to buy shares starting at $20 and receive monthly cash distributions from rental income. Unlike traditional real estate investing that requires significant capital and landlord responsibilities, crowdfunding provides accessible, professionally managed exposure to rental property returns.

Can I sell my Ark7 property shares easily?

Ark7 operates the only functional secondary market in fractional real estate through the PPEX ATS, enabling investors to sell shares after a 1-year minimum holding period. While there can be no assurance that an active market will develop or that the platform will be available in all states, this liquidity option is fundamentally unavailable from Fundrise or CrowdStreet. Typical share sales are fulfilled within 1-3 business days, providing significantly more flexibility than competitors’ multi-year capital commitments.

Are there hidden fees when investing with Ark7?

Ark7 maintains a transparent fee structure with no hidden charges. The platform charges zero platform fees, asset management fees, or trading commissions to investors. Instead, Ark7 earns performance-based fees of 8-15% of rental income, meaning you only pay when the property produces income. There is also a 3% one-time sourcing fee on initial investment that covers property acquisition and setup costs.

What kind of properties does Ark7 offer?

Ark7 focuses exclusively on single-family and small multifamily rental properties in high-growth Sunbelt markets across the United States. Properties are typically newer construction (many built 2018-2020) in areas with strong job growth, population trends, and rental demand. All properties are professionally managed with full operational transparency available 24/7 to investors.

Can I invest in Ark7 properties using my retirement account?

Yes, Ark7 offers IRA investing through Inspira Financial Company as custodian, supporting both Traditional and Roth IRA structures. This enables investors to use retirement funds to purchase fractional shares in rental properties, combining the tax advantages of retirement accounts with real estate’s income generation and appreciation potential. The annual custodian fee is $100 per property (capped at $400 annually, waived for accounts with average balances over $100,000), with no platform opening fee.