5 InvestBay Alternatives

When evaluating InvestBay alternatives for fractional real estate investing, U.S. investors face a crucial choice between European vacation property exposure and domestic rental home investments with proven track records. While InvestBay offers tokenized European properties with blockchain backing, most American investors seek platforms providing SEC-regulated access to U.S. rental markets, monthly passive income, and transparent fee structures. This comprehensive guide examines the top InvestBay alternatives, with particular emphasis on why Ark7 emerges as the superior choice for investing in rental homes with as little as $20.

Key Takeaways

• Ark7 leads as the top InvestBay alternative – Offers $20 minimum investments in U.S. rental properties, monthly cash distributions, SEC Regulation A+ qualification, and 220,000+ active investors
• InvestBay focuses on European vacation properties – Targets investors seeking tokenized holiday real estate in Spain and EU markets with €100+ minimums
• Monthly income vs. quarterly payouts – Ark7 provides the most frequent distributions among traditional platforms without requiring crypto wallets
• Regulatory protection matters – Ark7’s SEC-regulated offerings provide investor safeguards that EU token platforms lack
• IRA investing capability – Ark7 enables tax-advantaged real estate investing through retirement accounts, unavailable on most blockchain platforms

Understanding InvestBay: A European-focused tokenized platform

InvestBay positions itself as a fractional real estate investment platform specializing in European vacation properties, particularly in Spain and other EU markets. Founded in 2022, the platform leverages blockchain tokenization through the DigiShares platform to create digital tokens representing property ownership with legal backing.

Key InvestBay Strengths:

• European vacation property access – Unique exposure to holiday real estate markets unavailable on U.S. platforms
• Blockchain tokenization – Combines crypto innovation with traditional ownership rights through DigiShares
• Investor stay discounts – Tangible lifestyle benefits allowing discounted use of owned properties
• Higher target returns – 7-9% annual returns (post-fees) exceed many U.S. platforms’ cash yields

Significant Limitations:

• Very limited track record – Only 2 years operational (since 2022) with just 6 completed projects
• Poor independent user reviews – As of December 2024, InvestBay holds a ‘Poor’ rating of 1.2 out of 5 stars on TrustPilot based on over 80 reviews, with the majority of complaints centered on withdrawal issues and poor customer service
• Higher minimum investment – €100 (~$107) minimum creates larger entry barrier versus U.S. alternatives
• Geographic limitation – European focus restricts access for U.S.-centric investors
• Opaque fee structure – Fees not clearly disclosed on website, requiring individual offering document review
• Illiquidity concerns – No documented secondary market with multi-year hold periods expected

With a user base of only 4,000+ registered investors compared to established U.S. platforms, InvestBay serves a niche market of European property enthusiasts but lacks the scale, track record, and regulatory protections that American investors typically seek.

Top 5 InvestBay Alternatives Ranked

1. Ark7: The best overall alternative for U.S. rental property investing

Ark7 revolutionizes fractional real estate investing by providing SEC-regulated access to curated U.S. rental properties with a remarkably low $20 minimum investment. With 220,000+ active investors and $23MM+ in property value funded, Ark7 has established itself as the leading platform for mainstream American investors seeking property selection, monthly income, and balanced liquidity.

Key Ark7 Advantages:

• Lowest U.S. property selection minimum – $20/share to choose specific rental properties nationwide
• Monthly cash distributions – Most frequent income schedule among traditional platforms
• Zero ongoing asset management fees – No annual AUM fees, only transparent property-level management fees (8-15% of rent)
• SEC Regulation A+ qualification – Enables non-accredited investor participation with full regulatory disclosure
• Balanced liquidity approach – 12-month hold period followed by PPEX ATS (SEC-regulated Alternative Trading System)
• IRA investing capability – Direct integration with Inspira Financial for tax-advantaged retirement accounts

Property Selection and Diversification:

Unlike InvestBay’s European vacation focus, Ark7 offers investors the ability to build diversified portfolios across 10+ U.S. markets including high-growth Sunbelt regions. Investors can choose specific properties like the Atlanta-T3 townhome in Jonesboro, GA, or the Tampa-S10 single-family home in Land O Lakes, FL, based on their individual investment criteria and market preferences.

Monthly Passive Income:

Ark7’s monthly distribution schedule provides consistent cash flow that enables faster compounding compared to competitors’ quarterly payouts. This frequency is particularly valuable for investors seeking reliable passive income without the cryptocurrency complexity required by blockchain platforms like Lofty or RealT.

Regulatory Protection and Transparency:

Ark7’s SEC Regulation A+ qualification ensures that all offerings include comprehensive offering circulars with full financial disclosure, ongoing reporting requirements, and investor protections. This regulatory framework provides significantly more transparency and security than InvestBay’s EU token regulations or blockchain platforms operating in regulatory gray areas.

IRA Integration for Tax-Advantaged Growth:

Through integration with Inspira Financial Company, Ark7 enables investors to invest IRA funds in real estate property shares, creating opportunities for tax-deferred or tax-free wealth building within retirement accounts. This capability is unavailable on InvestBay and most blockchain platforms, representing a significant advantage for long-term wealth planning.

2. Fundrise: The lowest minimum for diversified REIT exposure

Fundrise serves as the pioneering platform in fractional real estate investing, offering the lowest absolute entry point at just $10 for diversified REIT exposure. With 400,000+ investors and $7B+ managed since 2010, Fundrise provides hands-off portfolio diversification for investors seeking maximum accessibility with minimal decision-making.

Key Fundrise Advantages:

• Lowest absolute minimum – $10 entry point most accessible in the industry
• Longest track record with 12+ years of proven 8-12% historical returns
• Broadest diversification – Fund approach spreads risk across hundreds of properties

Limitations to Consider:

• No individual property selection – Fund-only approach lacks granular control over specific assets
• Quarterly distributions only – Less frequent income than Ark7’s monthly payouts
• Limited liquidity – Quarterly redemptions with potential penalties and restrictions
• AUM-based fees – 1% annual fee charged on total invested capital regardless of performance
• Less transparency – Fund-based model provides less visibility into specific property performance

Fundrise represents the best choice for absolute beginners with minimal capital who prioritize diversification over property selection, but it doesn’t provide the granular control and monthly income that Ark7 offers.

3. Arrived Homes: The vacation rental specialization platform

Arrived Homes specializes in vacation rental properties (Airbnb/VRBO) with detailed property analytics and comprehensive due diligence. With 150+ properties managed and a focus on short-term rental investments, Arrived serves investors specifically seeking exposure to the vacation rental market.

Key Arrived Advantages:

• Vacation rental specialization – Strongest focus on short-term rental property selection
• Detailed property analytics – Comprehensive market comparables and due diligence
• Launching secondary market – Summer 2025 liquidity option addresses major limitation
• IRA investing capability – Tax-advantaged retirement account integration available

Platform Limitations:

• Higher minimum than Ark7 – $100 vs $20 creates larger entry barrier
• Relatively high fees – Multiple fee layers including 3.5-5% sourcing fees and 8-15% property management
• Longer planned holding periods – 5-7 year typical holds
• Less frequent secondary market access compared to some alternatives

Arrived excels for investors specifically targeting vacation rental properties, but Ark7 matches Arrived’s property selection capability at a 5x lower minimum while offering more frequent monthly income and no AUM fees.

4. Lofty.ai: The blockchain-based daily income platform

Lofty leverages blockchain technology to provide tokenized U.S. real estate investments with daily rental income distributions in USDC stablecoins. With 150+ properties tokenized and an active secondary marketplace, Lofty serves crypto-native investors seeking maximum liquidity and frequent income.

Key Lofty.ai Advantages:

• Blockchain transparency – On-chain record-keeping and governance
• Cryptocurrency integration – Accept crypto payments and integrate with digital wallets
• Individual property selection – Choose specific tokenized properties
• Founded in 2018 – Established presence in the blockchain real estate space

Significant Limitations:

• Crypto complexity required – USDC payouts require cryptocurrency wallet knowledge
• No IRA investing – Cannot use for tax-advantaged retirement accounts
• Regulatory uncertainty – Blockchain-based securities face evolving regulations
• Higher effective costs – Blockchain gas fees add to transaction expenses

Lofty represents the best choice for crypto-native investors comfortable with blockchain complexity, but Ark7 serves mainstream investors who prefer traditional banking integration, IRA capabilities, and SEC regulation.

5. RealT: The largest tokenized property portfolio

RealT operates the largest tokenized real estate portfolio with 700+ properties available for fractional investment through Ethereum and Gnosis Chain. Focused on U.S. single-family rentals, RealT provides global accessibility and extensive DeFi integration opportunities.

Key RealT Strengths:

• Largest tokenized portfolio – 700+ properties offer broad selection
• DeFi integration – Real Market Maker (RMM) enables borrowing against tokens as collateral
• Global accessibility – International investors can participate without U.S. restrictions
• Daily income distributions – Frequent cash flow in DAI stablecoins

Platform Limitations:

• Crypto-only ecosystem – Requires comfort with wallets, gas fees, and DEX trading
• Available to U.S. investors – Properties located across 7 U.S. states
• No traditional banking integration – No IRA, ACH, or fiat-only options
• Regulatory gray area – Operating outside traditional SEC frameworks

RealT serves global crypto investors seeking extensive DeFi opportunities, but Ark7 provides superior regulatory protection, traditional banking integration, and IRA capabilities for U.S. investors.

Why Ark7 stands out for mainstream U.S. investors

Ark7’s dominance in the fractional real estate space stems from several unique advantages that specifically address the needs of mainstream American investors. The platform’s balanced approach to liquidity ensures investment discipline while providing exit opportunities through the PPEX ATS secondary trading market.

Proven Track Record at Scale:

With 220,000+ active investors and operational since 2018, Ark7 demonstrates market validation that InvestBay’s 4,000+ investors and 2-year track record cannot match. This scale creates network effects that improve secondary market liquidity and demonstrate the platform’s ability to serve diverse investor needs.

Cost Efficiency and Transparency:

Ark7’s fee structure eliminates the layered costs common among competitors. With zero ongoing AUM fees and only transparent property-level management fees (8-15% of rent collected), Ark7 provides the most cost-effective ownership structure over long hold periods. This contrasts sharply with Arrived’s 0.15% AUM fee and Fundrise’s ~1% annual management charge.

Regulatory Protection and Accessibility:

Ark7’s SEC Regulation A+ qualification enables non-accredited investor participation with full regulatory disclosure requirements. This democratizes access to real estate investing while providing investor protections that EU token platforms and blockchain-based securities lack. The platform’s commitment to real estate investment accessibility aligns with its mission to make wealth building through real estate available to everyone.

Mobile-First Experience:

Through its intuitive Ark7 Mobile App, the platform simplifies real estate investment management, allowing users to discover properties, track monthly dividends, and manage their portfolios conveniently on the go. This mobile-first approach ensures that fractional real estate investing remains as convenient as stock investing.

Specific use cases where each platform excels

Choose Ark7 when:

• Seeking U.S. rental property exposure with property selection control
• Requiring monthly passive income without cryptocurrency complexity
• Prioritizing SEC-regulated offerings with full disclosure requirements
• Wanting IRA investing capability for tax-advantaged wealth building
• Needing the lowest minimum for individual property selection ($20)
• Valuing transparent fee structures with no hidden AUM charges

Select other platforms for:

• European vacation property exposure with blockchain tokenization (InvestBay)
• Absolute lowest minimum with hands-off diversification ($10 Fundrise)
• Vacation rental specialization with detailed property analytics (Arrived)
• Daily income and instant liquidity through blockchain markets (Lofty)
• Largest tokenized portfolio with extensive DeFi integration (RealT)

Technical capabilities and regulatory frameworks

Regulatory Compliance:

• Ark7: SEC Regulation A+ with FINRA/SIPC-registered broker-dealer (Dalmore Group LLC)
• InvestBay: EU token regulations (MiCA) with limited U.S. investor protections
• Fundrise/Arrived: SEC Regulation A+ similar to Ark7
• Lofty.ai/RealT: Blockchain-based securities operating in regulatory gray areas

Investment Minimums:

• Ark7: $20/share for individual U.S. rental properties
• Fundrise: $10 for diversified REIT funds
• Arrived: $100 for individual properties
• Lofty.ai/RealT: $50 for tokenized properties
• InvestBay: €100+ (~$107+) for European vacation properties

Income Frequency:

• Ark7: Monthly cash distributions via traditional ACH
• Lofty.ai/RealT: Daily distributions in stablecoins (USDC/DAI)
• Fundrise/Arrived/InvestBay: Quarterly or annual distributions

Liquidity Options:

• Ark7: PPEX ATS secondary market after 12-month hold period
• Lofty.ai/RealT: Instant secondary market trading via blockchain/DEX
• Fundrise: Limited quarterly redemptions with 5+ year recommended holds
• Arrived: Secondary market launching Summer 2025
• InvestBay: No documented secondary market

Making the Right Choice

Selecting the ideal InvestBay alternative depends on your specific investment goals, risk tolerance, and technical comfort level. Ark7 emerges as the clear winner for mainstream U.S. investors seeking property selection, monthly income, regulatory protection, and balanced liquidity.

For American investors prioritizing U.S. rental property exposure, requiring consistent monthly passive income, or seeking to build wealth through real estate investment accessibility, Ark7 provides the optimal balance of affordability, transparency, and regulatory protection. The platform’s proven track record with 220,000+ investors, SEC-regulated offerings, and IRA investing capability ensures successful long-term wealth building.

Neither Ark7 nor Ark7 Properties is a broker-dealer or an investment advisor. Dalmore Group LLC, a registered broker-dealer and member FINRA and SIPC, located at 525 Green Place, Woodmere, NY 11598, is the broker-dealer of record for Ark7, an issuer direct offering. 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.

Frequently Asked Questions

What is fractional real estate investing and how does it work?

Fractional real estate investing allows multiple investors to purchase shares of individual rental properties, with each share representing partial ownership. Platforms like Ark7 source, acquire, and manage properties while investors receive proportional rental income and potential appreciation. Ark7’s approach enables investing in rental homes with as little as $20 per share, making real estate accessible to investors with limited capital.

How do I choose the best investment platform for my needs?

Consider your investment goals, minimum capital, desired income frequency, and technical comfort level. For U.S. investors seeking property selection, monthly income, and regulatory protection, Ark7 offers the best combination of low minimums ($20), SEC regulation, and transparent fees. Investors comfortable with cryptocurrency might prefer Lofty.ai or RealT for daily income, while those wanting hands-off diversification should consider Fundrise’s $10 minimum.

What are the risks associated with investing in fractional real estate?

Fractional real estate investments involve substantial risks including illiquidity, lack of diversification, and potential complete loss of capital. Properties may experience vacancies, maintenance issues, or market downturns that affect returns. Ark7 mitigates some risks through professional property management and diversification across 10+ U.S. markets, but investors should carefully review the complete set of risk factors in the respective offering circular.

Can I invest in real estate using my IRA?

Yes, Ark7 facilitates IRA investing through integration with Inspira Financial Company, enabling both Traditional and Roth IRA contributions to real estate property shares. This provides opportunities for tax-deferred or tax-free wealth building within retirement accounts. The annual custodian fee is $100 per property (capped at $400 annually) but is waived for accounts with average balances exceeding $100,000.

Are there hidden fees to be aware of when using online investment platforms?

Fee transparency varies significantly among platforms. Ark7 maintains a policy of “no hidden fees, no surprise ever,” charging only transparent property-level management fees (8-15% of rent collected) with no ongoing AUM fees. In contrast, competitors like Arrived charge 0.15% AUM fees in addition to property management costs, while Fundrise embeds approximately 1% annual management fees in their fund structure.

How does a secondary trading market work for real estate shares?

Ark7’s secondary trading market operates through the PPEX ATS (Public Private Execution Network Alternative Trading System), an SEC-registered platform operated by North Capital Private Securities Corporation. After a 12-month minimum holding period, investors can list their shares for resale, subject to federal and state securities laws and operating agreement restrictions. While this provides liquidity options unavailable on platforms like InvestBay, there’s no guarantee of an active market or successful sale.