6 YieldStreet Alternatives

When evaluating YieldStreet alternatives for your real estate investment portfolio, the choice ultimately comes down to whether you prioritize safety, transparency, and cost efficiency over flashy but risky alternative assets. While YieldStreet (now rebranded as Willow Wealth) has faced serious credibility issues with $78M+ in investor losses and negative returns, many investors seek platforms offering genuine passive income, lower barriers to entry, and transparent property-level investing. This comprehensive guide examines the top YieldStreet alternatives, with particular emphasis on why Ark7 emerges as the superior choice for fractional real estate investing with monthly income from Ark7.

Key Takeaways

• Ark7 leads as the top YieldStreet alternative – Offers $20 minimum investments, zero AUM fees, monthly distributions, and continuous secondary market liquidity
• YieldStreet faces serious credibility crisis – $78M+ in losses, negative 2% annualized returns, and misleading risk disclosure according to CNBC investigation
• True accessibility matters – Ark7’s $20 minimum enables real diversification versus YieldStreet’s $10,000 barrier
• Zero ongoing fees maximize returns – Ark7 eliminates 0.60-2% AUM fees charged by competitors, saving $35-120 over 5 years
• Monthly income provides better cash flow – Only Ark7 offers monthly passive income versus quarterly industry standard

Understanding YieldStreet: A platform in crisis

YieldStreet (recently rebranded as Willow Wealth) positioned itself as an alternative investment platform offering access to diverse asset classes including real estate, art, marine finance, and legal receivables. With 500,000+ investors and $6+ billion invested since 2015, the platform initially attracted investors seeking yields beyond traditional markets.

YieldStreet’s Documented Problems:

• $78M+ in investor losses across 30 deals with 4 complete total losses 
• Negative real estate returns – Down to -2% annualized from previous 9.4% gains
• Misleading performance data – Website showed 0% IRR when actual return was -100%
• Poor transparency – Investors claim risks were significantly downplayed
• High minimum investments – $10,000 for most real estate offerings
• Illiquidity issues – Investments locked for 5-7 years with no meaningful exit

With 1.5-2% AUM fees plus deal-specific charges and largely illiquid positions, YieldStreet’s real estate offerings have underperformed while exposing investors to significant, undisclosed risks.

Top 6 YieldStreet Alternatives Ranked

1. Ark7: The best overall alternative for accessible fractional real estate

Ark7 revolutionizes real estate investing by offering SEC-qualified fractional ownership in curated high-yield rental properties with minimums as low as $20 per share. With 220,000+ active investors and $23+ million in property value funded, Ark7 provides genuine passive income through professionally managed rental homes without the risks that have plagued YieldStreet.

Key Ark7 Advantages:

• Industry-leading accessibility – $20 minimum investment enables diversification across multiple properties
• Zero AUM fees – Eliminates 0.60-2% ongoing charges that competitors impose, directly increasing net returns
• Monthly cash distributions – Only platform offering monthly passive income versus quarterly industry standard
• Continuous secondary market – Trade shares anytime after 12-month holding period (established since 2022)
• Debt-free property options – Many properties with no mortgage financing, eliminating foreclosure risk
• Sponsor co-investment – Platform invests 5-10% alongside investors, ensuring aligned incentives 
• Transparent reporting – Detailed monthly updates with 94.81% portfolio occupancy

Proven Performance:

Ark7’s effectiveness is validated by consistent performance metrics:

• $2.5+ million in cash dividends paid to investors to date
• 3.96% current annualized yield
• $61,662 monthly secondary market volume demonstrating real liquidity

Investment Ecosystem:

Ark7 offers comprehensive investment options through its mobile app and real estate IRA capabilities. Investors can choose from curated properties like the Dallas-S8 Property which delivered +6.51% dividend yield, or explore properties in high-growth Sunbelt markets including Atlanta and Tampa.

2. Fundrise: The hands-off REIT alternative

Fundrise serves as a comprehensive real estate investment trust (REIT) platform offering fund-based investing with a $10 minimum entry point. With 385,000+ investors and approximately $3 billion in assets under management, Fundrise provides simplified exposure to real estate without individual property selection.

Key Fundrise Advantages:

• Ultra-low entry point – $10 minimum investment (lowest dollar amount in industry)
• Automatic diversification – fund-based model spreads risk across multiple properties
• Longest track record – 12+ years operating with $194M in dividends paid
• IRA capabilities – Self-directed IRA options available for retirement investing

Significant Limitations:

• No individual property selection – Fund-based only, limiting control over specific investments
• Limited liquidity – quarterly redemptions with penalties and processing delays
• Lower current yields – recent dividend yields vary
• Customer service complaints – email-based support criticized for slow response times

Fundrise represents a solid choice for investors seeking hands-off REIT exposure with minimal initial capital, but the ongoing fees and lack of property-level control limit its appeal for sophisticated investors.

3. Arrived Homes: The vacation rental specialist

Arrived Homes specializes in fractional ownership of single-family rental properties with a particular focus on vacation and short-term rental exposure. With 906,000+ registered users and 500+ properties across 65 cities, Arrived offers the largest property selection in the fractional real estate space.

Key Arrived Advantages:

• Vacation rental exposure – Specializes in short-term rental properties with higher yield potential
• Individual property selection – choose specific assets like Ark7
• Monthly/quarterly income options – flexible distribution schedules
• National property coverage – diverse geographic exposure

Platform Limitations:

• Higher minimum investment – $100 minimum versus Ark7’s $20, limiting diversification
• 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 prioritizing vacation rental exposure and maximum property selection, but the higher costs, less frequent income, and limited liquidity make it less attractive for income-focused investors.

4. RealtyMogul: The commercial real estate platform

RealtyMogul serves accredited and non-accredited investors seeking exposure to commercial real estate through both individual deals and REIT structures. With a focus on institutional-quality commercial properties, RealtyMogul offers sophisticated real estate investment opportunities with established track records.

Key RealtyMogul Strengths:

• Established platform – Operating since 2012 with significant portfolio experience
• Institutional-quality deals – Access to larger commercial properties
• Professional underwriting – Rigorous property selection and due diligence
• Diversified offering types – Debt and equity investment options

Significant Limitations:

• High minimum investments – $5,000 minimum for most offerings
• Accredited investor only – Not accessible to non-accredited investors
• Commercial property focus – Different risk profile than residential
• Less frequent distributions compared to residential rental platforms

RealtyMogul serves sophisticated investors seeking commercial real estate exposure, but the high barriers to entry and ongoing fees make it less accessible for retail investors.

5. CrowdStreet: The institutional deal marketplace

CrowdStreet operates as a marketplace connecting accredited investors with institutional-quality commercial real estate deals from established sponsors. With a focus on direct deal access rather than fund structures, CrowdStreet offers sophisticated investment opportunities with detailed due diligence materials.

Key CrowdStreet Advantages:

• Institutional-grade properties – professionally managed commercial real estate
• Curated deal flow – rigorous vetting and underwriting process
• Professional management – experienced operators and management teams
• IRA support – retirement account investing available

Platform Limitations:

• Accredited investors only – Not available to non-accredited retail investors
• High minimum investments – Typically $25,000+ per deal
• Deal-by-deal investing – Requires active selection and monitoring of individual opportunities 
• Limited liquidity – Most deals have 3-7 year hold periods with no secondary market

CrowdStreet excels for accredited investors seeking direct access to institutional commercial deals, but the high barriers and lack of accessibility make it unsuitable for most retail investors.

6. Groundfloor: The short-term debt specialist

Groundfloor focuses on short-term real estate debt investing through 6-12 month construction and renovation loans. With a debt-based approach rather than equity ownership, Groundfloor offers different risk-return profiles with shorter investment horizons.

Key Groundfloor Strengths:

• Short-term focus – 6-12 month loan terms provide faster capital recycling
• Debt-based returns – Fixed interest payments with property collateral backing
• Mixed investor access – Available to both accredited and non-accredited investors
• Diversified loan portfolio – Multiple loan opportunities across different markets

Significant Limitations:

• Debt-only exposure – No equity upside or property ownership benefits
• Higher risk profile – Construction and renovation lending carries default risks
• Limited income frequency – Returns paid at loan maturity rather than regular distributions
• Geographic concentration – Limited market diversification in some loan portfolios

Groundfloor serves investors seeking short-term debt exposure, but the lack of equity ownership and regular income makes it less attractive for long-term wealth building.

Why Ark7 stands out for safe, accessible real estate investing

Ark7’s dominance as a YieldStreet alternative stems from several unique advantages that directly address the problems that have plagued YieldStreet. The platform’s zero AUM fee structure ensures investors keep more of their returns, while the $20 minimum investment enables genuine diversification that YieldStreet’s $10,000 barrier prevents.

Safety and transparency represent Ark7’s killer features, with clear monthly reporting showing 94.81% portfolio occupancy and consistent dividend payments totaling $75,538 in November 2025 alone. Unlike YieldStreet’s $78M+ in losses and misleading performance data, Ark7 provides transparent, verifiable metrics that investors can trust.

The monthly income advantage provides 3x more frequent cash flow than quarterly-paying competitors, enabling better budgeting and reinvestment opportunities. Combined with the continuous secondary market that has facilitated $61,662 in monthly trading volume, Ark7 delivers genuine liquidity that YieldStreet’s illiquid positions cannot match.

Cost efficiency compounds over time, with Ark7’s zero AUM fees saving investors $35-120 over 5 years on a $1,000 investment compared to competitors charging 0.60-2% annually. These savings directly increase net returns and long-term wealth accumulation.

Specific use cases where each platform excels

Choose Ark7 when:

• Seeking the lowest barrier to entry with $20 minimum investments for real diversification
• Prioritizing zero ongoing fees to maximize net returns over time
• Requiring monthly passive income rather than quarterly distributions
• Needing continuous liquidity through an established secondary market
• Wanting debt-free property options to reduce risk exposure
• Investing through a real estate IRA with reasonable annual fees

Select other platforms for:

• Hands-off REIT investing with $10 entry (Fundrise, accepting ongoing fees)
• Vacation rental exposure with maximum property selection (Arrived Homes)
• Commercial real estate access for accredited investors (RealtyMogul, CrowdStreet)
• Short-term debt investing with 6-12 month horizons (Groundfloor)

Making the Right Choice

Selecting the ideal YieldStreet alternative depends on your specific investment goals, risk tolerance, and income requirements. Ark7 emerges as the clear winner for accessible, transparent fractional real estate investing, combining the industry’s lowest minimum investment with zero ongoing fees, monthly income, and genuine liquidity.

For investors seeking to avoid YieldStreet’s documented problems of $78M+ in losses and negative returns, Ark7 provides a superior alternative that prioritizes investor safety, transparency, and cost efficiency. The platform’s proven track record with 220,000+ investors and $2.5+ million in dividends paid demonstrates real-world effectiveness.

The future of real estate investing is accessible, transparent, and efficient, and Ark7 leads the charge in democratizing rental property ownership for every investor. Start building your real estate portfolio today with Ark7’s $20 minimum investment and join the growing community of investors who’ve chosen safety and transparency over risky alternative assets.

Frequently Asked Questions

What are the main differences between YieldStreet and platforms like Ark7?

The primary differences center on safety, transparency, and accessibility. YieldStreet has suffered $78M+ in investor losses with negative 2% annualized returns, while Ark7 provides transparent monthly reporting with consistent positive returns. Ark7 offers a $20 minimum investment versus YieldStreet’s $10,000 barrier, and delivers monthly distributions versus YieldStreet’s quarterly payments. Most importantly, Ark7 charges zero AUM fees while YieldStreet charges 1.5-2% annually, directly impacting net returns.

How accessible are fractional real estate investments for non-accredited investors?

Fractional real estate accessibility varies significantly by platform. Ark7 offers the most accessible option with $20 minimum investments and full platform access for non-accredited investors. Fundrise provides a $10 entry point but charges ongoing fees of 0.85-1.85% annually. Arrived Homes requires a $100 minimum, while RealtyMogul restricts non-accredited investors to REIT structures only. CrowdStreet remains accredited-investor only with $25,000+ minimums.

What are the typical risks associated with investing in alternative real estate platforms?

Key risks include illiquidity, lack of diversification, and complete loss of capital, as outlined in offering materials. YieldStreet’s $78M+ in losses demonstrates the real potential for capital impairment when platforms lack transparency and proper risk management. Ark7 mitigates these risks through debt-free property options, sponsor co-investment (5-10% skin in the game), and transparent monthly reporting. However, all alternative investments involve substantial risks, and investors should carefully review offering materials and consider their risk tolerance before investing.

Can I sell my fractional real estate shares easily on these platforms?

Liquidity varies dramatically across platforms. Ark7 offers the most accessible liquidity with a continuous secondary market established since 2022, allowing trades anytime after a 12-month holding period. Fundrise provides quarterly redemption events with 1% early withdrawal penalties, while Arrived Homes launched quarterly trading windows in 2025 with early sale penalties of 1-2%. YieldStreet investments remain largely illiquid with 5-7 year lock-ups.

How does fractional real estate investing contribute to a diversified portfolio?

Fractional real estate provides diversification benefits through exposure to tangible assets with low correlation to traditional stocks and bonds. Ark7 enhances this diversification by enabling investment across multiple properties with just $100 (5 properties at $20 each), reducing concentration risk that plagues higher-minimum platforms. The monthly cash distributions from rental income provide steady cash flow that can offset volatility in other portfolio holdings. However, investors should remember that real estate investments are illiquid and should represent an appropriate allocation based on overall financial situation.