5 DiversyFund Alternatives

When evaluating DiversyFund alternatives for real estate investment, the choice ultimately depends on whether you prioritize monthly cash flow or long-term appreciation with no interim income. While DiversyFund offers a growth-focused model targeting 10-20% returns through property appreciation, many investors seek platforms providing regular passive income, better liquidity, and lower investment minimums. This comprehensive guide examines the top DiversyFund alternatives, with particular emphasis on why Ark7 emerges as the superior choice for investors seeking monthly cash distributions from fractional real estate ownership.

Key Takeaways

• Ark7 leads as the top DiversyFund alternative – Delivers monthly cash distributions, $20 minimum investment, zero ongoing fees, and secondary market access after just 1 year
• DiversyFund focuses on growth-only returns – Offers no dividends during a 5-7 year illiquid hold period, targeting 10-20% appreciation at exit
• Monthly income vs. growth trade-off – Ark7 provides consistent cash flow while DiversyFund requires patience for potential higher long-term returns
• Accessibility defines Ark7 – Individual property selection with $20/share minimum makes real estate investing accessible to more investors
• Choose by income needs – Ark7 for monthly passive income; DiversyFund for pure growth; Fundrise for diversified funds

Understanding DiversyFund: A growth-focused but illiquid investment model

DiversyFund positions itself as a multifamily real estate investment platform that pools investor capital into apartment complexes across growth markets. With over $224M in assets under management and more than 30,000 investors, the platform combines property expertise with a growth-focused investment strategy that appeals to long-term real estate investors.

Key DiversyFund Strengths:

• Pure appreciation focus targeting 10-20% annual returns through property value increases
• 7% preferred return structure that prioritizes investor returns before platform profits
• Multifamily specialization with expertise in apartment complex investing
• $500 minimum investment accessible to non-accredited investors

Significant Limitations:

• Complete illiquidity for 5-7+ years with no ability to access invested capital
• No interim dividends – zero cash flow during the entire hold period
• BBB F rating with multiple unresolved complaints about communication and liquidity
• Limited transparency – Real Estate Crowdfunding Review rated it 1/10 stars

With its growth-only model, DiversyFund serves investors who can afford to lock up capital for 5-7 years without needing current income, but this approach leaves many investors seeking more accessible alternatives with regular cash flow.

Top 5 DiversyFund Alternatives Ranked

1. Ark7: The best overall alternative for monthly passive income

Ark7 revolutionizes fractional real estate investing by offering monthly cash distributions from curated rental properties nationwide. With the ability to invest in rental homes for as little as $20 per share, the platform makes high-yield rental home investment accessible to everyone while delivering consistent passive income.

Key Ark7 Advantages:

• Monthly cash distributions – Only major platform offering monthly (not quarterly) dividend payments
• $20 minimum investment – Lowest entry point for individual property selection
• Zero ongoing AUM fees – Saves investors $500-1,000+ over 5 years compared to 1-2% annual fee competitors
• Superior liquidity – Secondary market access after just 1-year minimum hold vs 5-7 years for competitors
• Individual property control – Choose specific properties rather than investing in pooled funds
• Platform co-investment – Ark7 maintains 1-20% ownership stake in every property, aligning interests

Monthly Income Model:

Unlike DiversyFund’s growth-only approach, Ark7’s monthly distribution model provides consistent cash flow that aligns with typical monthly expense cycles. Investors receive income 4x more frequently than quarterly competitors, with an average annualized dividend yield of 4.6%. This regular income stream allows for immediate reinvestment opportunities and better cash flow management.

Property Selection and Management:

Ark7’s platform features meticulously sourced properties like the Atlanta-T3 townhome, offering high cash yield and growth potential in growing markets. The Dallas-S8 property exemplifies portfolio leadership with a strong 3.96% annualized dividend return rate. Ark7’s professional management handles all aspects of property operations, from tenant screening to maintenance, allowing investors to earn passive income with no landlord responsibilities.

Accessibility and Technology:

The Ark7 mobile app makes real estate investing super convenient, with a 4.7-star rating on the iOS App Store and 3.9 stars on the Google Play store. Investors can discover rental properties, purchase shares, track monthly dividends, and manage their portfolio from their mobile device. For retirement-focused investors, Ark7 IRA options allow tax-advantaged real estate investing with the same $20 minimum as taxable accounts.

2. Fundrise: The diversified fund alternative with lowest absolute entry

Fundrise serves as the industry leader in real estate crowdfunding, operating since 2010 with over 400,000 investors and having paid out over $361M in net dividends. With its fund-based approach and $10 minimum investment, Fundrise offers the lowest absolute entry point for hands-off real estate diversification.

Key Fundrise Advantages:

• Lowest absolute minimum at $10 for diversified real estate fund access
• Diversified portfolios reducing property-specific concentration risk
• Professional portfolio management eliminating individual property selection
• Quarterly dividend payments from rental income and appreciation
• IRA accounts available with $1,000 minimum initial investment

Limitations to Consider:

• No individual property selection – Fund-only model removes investor control over specific assets
• 1% annual AUM fees – Ongoing costs compound over time, reducing net returns
• Quarterly distributions – Less frequent cash flow than Ark7’s monthly model
• Limited liquidity – Redemption requests subject to conditions and potential delays

Fundrise represents a solid choice for investors prioritizing diversification over property selection, but it doesn’t provide the individual asset control and monthly income that Ark7 offers.

3. Arrived: The individual property alternative with higher minimums

Arrived offers individual property selection for single-family rental investments, serving 766,000+ registered investors with a focus on both short-term and long-term rental properties. The platform provides property-level control similar to Ark7 but with higher investment minimums.

Key Arrived Advantages:

• Individual property selection for specific single-family rental homes
• Large user base with tens of thousands of active investors and strong adoption
• Vacation rental specialization – Unique focus on short-term rental category
• Quarterly distributions providing regular income

Significant Limitations:

• Higher $100 minimum investment – 5x more expensive than Ark7’s $20 entry
• Higher total fees at 3.5-5% acquisition plus 0.15% annual AUM fees
• Quarterly distributions – Less frequent income than Ark7’s monthly model
• 5-7 year hold periods – Significantly less liquidity than Ark7’s 1-year option

Arrived serves investors seeking individual property control but requires substantially more capital upfront and offers less frequent income distributions compared to Ark7.

4. RealtyMogul: The commercial real estate specialist

RealtyMogul specializes in commercial real estate investments including office, retail, and industrial properties. With $7B in property value offered and 20.7% realized IRR, the platform serves investors seeking exposure to commercial real estate assets.

Key RealtyMogul Strengths:

• Commercial property focus – Unique specialization in office, retail, and industrial assets
• Strong historical performance with 20.7% realized IRR
• Institutional-quality deals with larger property values
• Established platform operating since 2012

Significant Limitations:

• Higher investment minimums typically $5,000+ per offering
• Accredited investor requirements for many offerings
• Quarterly or annual distributions – Less frequent than monthly options
• Longer hold periods typically 3-7 years with limited liquidity

RealtyMogul excels for accredited investors seeking commercial real estate exposure but doesn’t provide the accessibility and monthly income that Ark7 offers to all U.S. investors.

5. Groundfloor: The short-term lending alternative

Groundfloor focuses on short-term real estate lending rather than equity ownership, allowing investors to earn interest from real estate-backed loans with terms as short as 6-12 months. This debt-based approach provides different risk-return characteristics than equity platforms.

Key Groundfloor Advantages:

• Short-term investment terms at 6-12 months providing faster capital return
• Debt-based security with real estate collateral backing loans
• Quarterly interest payments providing regular income
• Lower correlation to equity markets due to debt structure

Platform Limitations:

• Debt vs. equity structure – No property appreciation benefits or ownership
• Default risk inherent in lending model
• Limited property selection control – Invest in loan pools rather than specific properties
• Interest rate risk affecting returns in changing rate environments

Groundfloor serves investors seeking short-term, debt-based real estate exposure but doesn’t provide the equity ownership, appreciation potential, and monthly income that Ark7 delivers.

Why Ark7 stands out for monthly passive income

Ark7’s dominance in monthly passive income stems from several unique advantages. The platform’s monthly distribution model ensures investors receive consistent cash flow 4x more frequently than quarterly competitors, providing immediate income that can be reinvested or used for expenses.

Accessible individual property ownership represents Ark7’s killer feature, enabling investors to select specific rental properties with just $20 per share. This combination of individual control and low minimums is unmatched in the industry, where competitors either require higher minimums (Arrived at $100) or remove property selection entirely (Fundrise funds).

The zero ongoing AUM fee structure provides significant long-term savings, with investors saving $500-1,000+ over 5 years on a $10,000 investment compared to platforms charging 1-2% annual fees. This fee advantage directly translates to higher net returns for Ark7 investors.

Superior liquidity options offer 5-7x faster potential access to capital, with secondary market availability after just 1 year versus the 5-7+ year lockup periods required by DiversyFund and Arrived. This reduced illiquidity risk provides investors with more flexibility and control over their investment timeline.

Specific use cases where each platform excels

Choose Ark7 when:

• Seeking monthly passive income from rental properties
• Wanting individual property selection with low minimum investment
• Prioritizing zero ongoing AUM fees to maximize net returns
• Needing better liquidity options with 1-year secondary market access
• Looking to invest using an IRA with the same $20 minimum as taxable accounts
• Preferring a platform that co-invests alongside you with 1-20% ownership

Select other platforms for:

• Pure growth focus without need for current income (DiversyFund’s 10-20% targets)
• Lowest absolute entry with hands-off diversification (Fundrise at $10)
• Individual property control with higher capital available (Arrived at $100 minimum)
• Commercial real estate exposure for accredited investors (RealtyMogul)
• Short-term debt-based real estate lending (Groundfloor)

Technical capabilities showdown

Investment Structure:

• Ark7: Individual property equity with monthly distributions
• DiversyFund: Pooled multifamily equity with growth-only focus
• Fundrise: Diversified eREIT funds with quarterly distributions
• Arrived: Individual single-family equity with quarterly distributions

Minimum Investment:

• Ark7: $20 per share for individual property selection
• Fundrise: $10 for fund-based investing
• DiversyFund: $500 for pooled multifamily investments
• Arrived: $100 for individual property selection
• RealtyMogul: $5,000+ for commercial property offerings

Distribution Frequency:

• Ark7: Monthly cash distributions
• Fundrise: Quarterly distributions
• Arrived: Quarterly distributions
• DiversyFund: No interim distributions (5-7 year hold)

Liquidity Options:

• Ark7: Secondary market after 1-year minimum hold
• Fundrise: Limited redemptions with potential restrictions
• DiversyFund: Complete illiquidity for 5-7+ years
• Arrived: 5-7 year hold periods with limited liquidity

Making the Right Choice

Selecting the ideal DiversyFund alternative depends on your specific income needs, investment timeline, and capital availability. Ark7 emerges as the clear winner for investors seeking monthly passive income, combining accessible individual property ownership with industry-leading cash flow frequency and superior liquidity.

For investors prioritizing consistent monthly income, requiring individual property selection with low minimums, or seeking to avoid ongoing AUM fees, Ark7 provides the optimal balance of accessibility and returns. The platform’s proven track record with 220,000+ active investors, $3.5M+ in dividend distributions, and high-rated mobile app ensures successful real estate investing without landlord responsibilities.

The future of fractional real estate investing is accessible, transparent, and hassle-free, and Ark7 leads the charge in democratizing monthly income from rental properties for every U.S. investor. Start building your real estate portfolio today with Ark7’s $20 minimum and join the growing community of investors who’ve chosen the platform for their passive income needs.

Frequently Asked Questions

What is real estate crowdfunding and how does it compare to traditional property ownership?

Real estate crowdfunding allows investors to purchase fractional shares of rental properties without the responsibilities of direct ownership. Unlike traditional property ownership requiring significant capital, property management, and landlord duties, platforms like Ark7 enable investment in rental homes with as little as $20. Investors receive proportional rental income and potential appreciation without managing tenants, maintenance, or operations. This approach democratizes real estate investing by lowering barriers to entry while eliminating hands-on management requirements.

How does Ark7 simplify the process of investing in rental homes?

Ark7 simplifies rental home investing through its end-to-end platform that handles property sourcing, acquisition, leasing, tenanting, and maintenance. Investors can discover properties, purchase shares, earn monthly cash distributions, and track portfolio performance through the mobile app – all without landlord responsibilities. The platform’s $20 minimum investment and individual property selection make real estate investing as easy as stock investment. Professional management teams handle all operational aspects while investors receive passive monthly income.

What are the typical risks associated with fractional real estate investments?

Fractional real estate investments involve substantial risks including illiquidity, lack of diversification, and complete loss of capital. Investors must be prepared to hold shares indefinitely as there’s no guarantee an active secondary market will develop, and past performance is no guarantee of future results. Market fluctuations can affect property values and rental income significantly. You should speak with your financial advisor, accountant and/or attorney when evaluating any offering.

Can I invest in Ark7 properties using my Individual Retirement Account (IRA)?

Yes, you can invest in Ark7 properties using Traditional or Roth IRA accounts through Ark7 IRA, with the same $20 minimum as taxable accounts. This makes tax-advantaged real estate investing accessible to retirement savers with limited capital. IRA accounts have an annual custodian fee of $100 per property (capped at $400/year), which is waived if your account balance exceeds $100,000. This enables investors to build diversified real estate portfolios within retirement accounts.

How does Ark7 ensure transparency in its investment offerings?

Ark7 ensures transparency through full operational disclosure, with complete legal and financial documents accessible 24/7. All offerings are SEC Regulation A+ qualified with Dalmore Group LLC serving as the FINRA and SIPC-registered broker-dealer of record. The platform maintains no hidden fees and provides regular updates on property performance, rental income, and operational matters through the mobile app and investor portal. This commitment to transparency helps investors make informed decisions about their real estate investments.

What are the minimum investment requirements for Ark7 shares?

Ark7 shares start as low as $20 per share for most properties, making fractional real estate investing accessible to a wide range of investors. Some properties may have higher minimums starting at $100 per share, but the platform consistently offers the lowest minimum investment for individual property selection compared to competitors. This accessibility aligns with Ark7’s mission of making real estate investment available to everyone. The low entry point allows investors to build diversified portfolios gradually across multiple properties.