1031 Crowdfunding vs Willow Wealth vs Ark7: Finding Your Ideal Real Estate Investment Platform

When evaluating real estate investment platforms, investors face a critical decision: balancing accessibility, returns, liquidity, and risk. Traditional options often require substantial capital or restrict participation to accredited investors. This is where Ark7’s fractional ownership model transforms the paradigm. By allowing investors to purchase shares in individual rental properties for as little as $20, Ark7 democratizes real estate investing while providing monthly passive income. This comprehensive comparison examines 1031 Crowdfunding, Willow Wealth, and Ark7, with particular emphasis on why Ark7 emerges as the optimal choice for most investors seeking accessible, transparent, and hassle-free real estate exposure.

Key Takeaways

• Ark7 stands out as the premier solution for fractional real estate investing with the industry’s lowest minimum investment of $20, monthly cash distributions, and zero ongoing AUM fees
• 1031 Crowdfunding serves a specialized niche for investors needing tax-deferred exchanges but requires $25,000-$100,000 minimum investments and offers complete illiquidity
• Willow Wealth (formerly Yieldstreet) presents significant risks with documented losses exceeding $208M and approximately 30% default rate despite its multi-asset approach
• Ark7’s secondary trading market provides strong liquidity in fractional real estate with 1-3 day fulfillment after a 1-year hold period
• Consider your primary need: Choose 1031 Crowdfunding only for 1031 exchanges, exercise caution with Willow Wealth given its risk profile, and select Ark7 for accessible, transparent, and flexible real estate investing

Understanding Real Estate Investment Platforms

Real estate investment platforms generally fall into three categories: 1031 exchange specialists for tax-deferred property sales, multi-asset alternative investment platforms with real estate components, and dedicated fractional real estate platforms. Each serves distinct investor needs with varying requirements, risks, and benefits.

1031 Crowdfunding specializes exclusively in facilitating 1031 exchanges through Delaware Statutory Trusts (DSTs), enabling investors selling investment property to defer capital gains taxes. However, this specialization comes with high minimum investments ($25,000-$100,000), accreditation requirements, and complete illiquidity.

Willow Wealth (formerly Yieldstreet) offers a multi-asset approach including real estate, private credit, art, and venture capital. While this provides diversification beyond real estate, the platform has documented losses exceeding $208M and approximately 30% default rate across its offerings.

Ark7 focuses exclusively on fractional ownership of individual residential rental properties, allowing investors to buy shares starting at $20. This approach democratizes real estate investing while providing monthly cash distributions, professional property management, and access to a secondary trading market after a 1-year hold period.

Key Challenges with Traditional Approaches:

• High capital requirements excluding 95%+ of potential investors
• Complete illiquidity with 5-10 year hold periods
• Accreditation requirements limiting access to 2% of Americans
• Quarterly distributions limiting cash flow frequency and compounding potential
• Ongoing AUM fees creating cost drag over multi-year holds

Ark7: The best solution for accessible fractional real estate investing

Ark7 revolutionizes real estate investing by replacing high barriers to entry with an accessible fractional ownership model. Unlike platforms requiring substantial capital or restricting participation to accredited investors, Ark7 allows anyone to invest in individual rental properties for as little as $20 per share.

Key Ark7 Advantages:

• Industry-lowest minimum investment – $20 per share enables true portfolio diversification even with limited capital
• Monthly cash distributions – 12 income events per year vs. 4 quarterly payments from all competitors
• Zero ongoing AUM fees – Saves $500-1,000 over 5 years on a $10,000 investment compared to platforms with 1-2% annual fees
• Individual property selection – Choose specific properties rather than blind pooled funds
• Best liquidity in fractional real estate – SEC-registered PPEX ATS secondary market with 1-3 day fulfillment after 1-year hold
• Professional end-to-end management – Ark7 handles acquisition, leasing, tenanting, and maintenance

How It Works: Ark7’s process eliminates traditional real estate investing complexity. Instead of requiring $25,000-$100,000 for property purchases or accepting pooled fund investments with no control, investors can select specific properties and purchase shares starting at $20. The platform handles all operational aspects while providing monthly cash distributions and potential appreciation.

Performance Validation: Ark7 maintains a clean track record with no major defaults since its 2019 launch and a 94.81% portfolio occupancy rate as of December 2024. The platform has distributed $2.5M+ to its 220,000+ investors, demonstrating consistent operational success.

Technical Integration

Ark7 seamlessly integrates with existing investment workflows through:

• Intuitive mobile app with 4.7/5 rating on App Store and 4.2/5 on Google Play
• IRA options with Traditional and Roth through Inspira Financial Company
• SEC-registered PPEX ATS secondary trading platform for share liquidity
• Complete operational transparency with 24/7 access to legal and financial disclosures

Data Quality Assurance

Ark7’s property portfolio includes residential properties across 10+ markets with detailed market analysis and property information. The platform emphasizes full operational transparency with complete legal and financial disclosure accessible 24/7.

1031 Crowdfunding

1031 Crowdfunding excels exclusively at facilitating 1031 exchanges through Delaware Statutory Trusts (DSTs). The platform reports over $2B in securities sold, positioning itself as a leading specialist for investors selling investment property who need tax-deferred replacement options.

Key 1031 Crowdfunding Strengths:

• 1031 exchange specialization – ONLY platform offering DST structures meeting IRS requirements for tax deferral
• Comprehensive due diligence documentation – Detailed audit reports, financial forecasts, and attorney opinions
• Core/core-plus investment focus – Targets stable, high-quality commercial properties with low volatility
• Professional service – Smooth exchange process with dedicated support

Specialized Use Case: 1031 Crowdfunding serves exclusively investors who are selling existing investment property and need to complete a 1031 exchange to defer capital gains taxes. For all other real estate investing needs, the platform’s high barriers and restrictions make it unsuitable.

Willow Wealth (formerly Yieldstreet)

Willow Wealth offers a multi-asset alternative investment platform including real estate, private credit, art, and venture capital. However, the platform has documented significant investor losses that warrant careful consideration of its risk profile.

Willow Wealth Features:

• Multi-asset diversification – Access to real estate plus private credit, art, and venture capital
• Institutional fund partnerships – Connections to Carlyle, Goldman Sachs, and other institutional funds
• Long operating history – 11 years in business (rebranded from Yieldstreet in 2025)

Risk Assessment: Willow Wealth’s documented losses exceeding $208M and approximately 30% default rate represent a higher-risk profile compared to platforms with cleaner track records. The platform’s decision to remove a decade of historical performance data following its rebrand raises additional transparency considerations.

Detailed Feature Comparison

Investment Minimums and Accessibility

Ark7 offers a $20 minimum investment with no accreditation requirement and full individual property selection. This represents the lowest barrier to entry for individual property selection in the fractional real estate space.

In comparison, 1031 Crowdfunding requires $25,000-$100,000 minimum investments with accreditation required for most offerings, though it does allow individual DST selection. Willow Wealth requires $10,000 minimums with accreditation required for most offerings but uses pooled funds without individual property selection.

Ark7’s $20 minimum enables investors with limited capital to build diversified real estate portfolios – a $500 investment can purchase shares across 25 different Ark7 properties versus 5 properties on Arrived ($100 minimum) or zero access to most other platforms.

Income Frequency and Fee Structure

Ark7 provides monthly distributions (12x per year) with 0% ongoing AUM fees, resulting in approximately $1,650 total 5-year cost on a $10,000 taxable investment. 1031 Crowdfunding offers quarterly distributions (4x per year) with 0% separate AUM fees (costs embedded in DST structure), totaling approximately $1,250-1,750 over 5 years. Willow Wealth provides quarterly distributions (4x per year) with 1-4% ongoing AUM fees, resulting in $500-2,000+ total costs over 5 years.

Ark7 stands alone as the ONLY fractional real estate platform paying monthly distributions. This 12x annual frequency enables faster compounding through more frequent reinvestment and better cash flow management for income-dependent investors. Additionally, Ark7’s zero ongoing AUM fees save investors $500-1,000 over 5 years compared to platforms with 1-2% annual fees.

Liquidity and Exit Options

Ark7 requires a 1-year minimum hold period, offers a secondary market through PPEX ATS with 1-3 day fulfillment, and has no early exit penalties after 1 year. 1031 Crowdfunding requires 5-10 year hold periods with no secondary market and is essentially illiquid with no exit options. Willow Wealth requires 5-15 year hold periods with limited quarterly redemptions and penalties that vary by offering.

Real estate is traditionally illiquid, but Ark7 provides strong liquidity in fractional real estate through its SEC-registered PPEX ATS secondary market. After just a 1-year hold (versus 5-10 years at competitors), investors can sell shares with average 1-3 day fulfillment. This institutional-grade exit mechanism transforms real estate from a completely illiquid asset to one with meaningful liquidity options.

Property Portfolio and Market Focus

Ark7’s Strategic Property Selection

Ark7 focuses exclusively on residential rental properties across high-growth Sunbelt markets including Atlanta, Dallas, and Tampa. The platform’s properties include newly built townhomes and single-family homes in growing suburban markets with strong rental demand near major employers.

For example, the Atlanta-T3 Property is a newly built 3-bedroom, 2.5-bath townhome in Jonesboro, GA with strong rental demand near major employers. Ark7’s focus on individual residential properties provides investors with direct exposure to specific markets and properties, unlike pooled fund approaches that offer no control or transparency.

1031 Crowdfunding’s Commercial Focus

1031 Crowdfunding specializes exclusively in commercial real estate through DST structures, including office, retail, industrial, and multifamily properties. This commercial focus serves investors needing 1031 exchange options but provides no residential exposure.

Willow Wealth’s Mixed Asset Approach

Willow Wealth includes real estate as one component of its multi-asset platform, but the lack of specialization and documented losses exceeding $208M raise considerations about its property selection and underwriting standards.

Investing Through Retirement Accounts

Ark7 IRA Options

Ark7 offers both Traditional and Roth IRA options through Inspira Financial Company, allowing investors to use retirement funds for real estate investing with the same $20 minimum as taxable accounts. The annual custodian fee is $100 per property (capped at $400 annually) and is waived for accounts with average balances exceeding $100,000.

This IRA compatibility enables tax-advantaged real estate investing while maintaining Ark7’s core advantages of individual property selection, monthly distributions, and zero ongoing AUM fees.

Competitor IRA Offerings

1031 Crowdfunding and Fundrise also offer IRA options, but with significantly higher minimums ($25,000+ and $1,000 respectively). Willow Wealth offers IRA options but with the same risk profile considerations that affect its taxable offerings.

Risk Assessment and Track Record

Ark7’s Clean Performance History

Ark7 maintains a positive track record with no major defaults since its 2019 launch and a 94.81% portfolio occupancy rate. The platform has distributed $2.5M+ to its 230,000+ investors, demonstrating consistent operational success and property management capabilities.

Willow Wealth’s Documented Losses

Willow Wealth has documented losses exceeding $208M, including $89M in marine loan defaults and $78M+ in real estate losses. The platform’s approximately 30% default rate exceeds typical industry norms and raises considerations about its underwriting standards and risk management.

1031 Crowdfunding’s Specialized Risk Profile

1031 Crowdfunding’s focus on core/core-plus commercial real estate through DST structures provides relatively stable, low-volatility investments. However, the complete illiquidity and high minimums create different risk considerations around opportunity cost and capital accessibility.

Specific Use Cases Where Each Platform Excels

Choose Ark7 when:

• You want the lowest barrier to entry for individual property selection ($20 minimum)
• You prioritize monthly passive income (12x/year vs. 4x quarterly)
• You seek zero ongoing AUM fees to maximize long-term returns
• You need better liquidity options with a 1-year hold period
• You’re a non-accredited investor seeking real estate exposure
• You want direct control over specific property selection

Select 1031 Crowdfunding only when:

• You’re selling existing investment property and need 1031 exchange tax deferral
• You have $25,000-$100,000+ available for investment
• You’re an accredited investor meeting income/net worth requirements
• You can accept complete illiquidity for 5-10 years

Exercise caution with Willow Wealth given:

• Documented losses exceeding $208M
• Approximately 30% default rate across offerings
• Removed historical performance data following rebrand
• Higher risk profile compared to alternatives

Integration and Technical Capabilities

Ark7’s Mobile-First Approach: Ark7’s mobile app with 4.7/5 App Store rating and 4.2/5 Google Play rating enables complete investment management from smartphones. Investors can discover properties, purchase shares, track distributions, and manage their portfolio entirely through the mobile platform.

IRA Integration: Ark7’s IRA offering through Inspira Financial Company provides seamless retirement account integration with the same user-friendly experience as taxable accounts.

Secondary Trading Platform: Ark7’s integration with the SEC-registered PPEX ATS provides institutional-grade liquidity through a regulated alternative trading system, setting it apart from competitors with limited or no secondary market options.

Frequently Asked Questions

What is the fundamental difference between ‘1031 Crowdfunding’ platforms and ‘fractional real estate investing’ platforms like Ark7?

1031 Crowdfunding platforms specialize exclusively in facilitating 1031 exchanges through Delaware Statutory Trusts (DSTs) for investors selling existing investment property who need tax-deferred replacement options, requiring $25,000-$100,000 minimums and offering complete illiquidity with 5-10 year holds. Fractional real estate platforms like Ark7 allow investors to purchase shares in individual rental properties for as little as $20, provide monthly cash distributions, and offer secondary market liquidity after a 1-year hold. Ark7 is accessible to all U.S. investors regardless of accreditation status, while 1031 Crowdfunding primarily restricts access to accredited investors.

Can unaccredited investors participate in platforms like Ark7, and what are the typical minimum investment amounts?

Yes, Ark7 is accessible to all U.S. investors regardless of accreditation status, unlike many competitors that restrict access to accredited investors. Ark7 offers the industry’s lowest minimum investment for individual property selection at just $20 per share, enabling true portfolio diversification even with limited capital. This contrasts sharply with 1031 Crowdfunding ($25,000-$100,000 minimums) and Willow Wealth ($10,000 minimums), both of which primarily serve accredited investors with substantially higher capital requirements.

How does Ark7 ensure transparency regarding the properties and financial performance of its offerings?

Ark7 emphasizes full operational transparency with complete legal and financial disclosure accessible 24/7 through its platform. Investors can review detailed property information, market analysis, financial projections, and ongoing performance metrics for each property. The platform maintains a clean track record with no major defaults since its 2019 launch and a 94.81% portfolio occupancy rate as of December 2024. This transparency extends to the Ark7 mobile app, which provides real-time portfolio insights and performance tracking.

Is there a way to sell my shares on Ark7 if I need liquidity, and what are the limitations?

Yes, Ark7 provides strong liquidity in fractional real estate through its SEC-registered PPEX ATS secondary trading platform. After a 1-year minimum hold period, investors can sell their shares with average 1-3 day fulfillment. While there can be no assurance that an active market will always exist for any shares, this institutional-grade exit mechanism transforms real estate from a completely illiquid asset to one with meaningful liquidity options. This contrasts with competitors offering 5-10 year illiquidity or restricted quarterly redemptions.

How does fractional real estate investing through Ark7 compare to traditional real estate investment in terms of management and hassle?

Fractional real estate investing through Ark7 eliminates the traditional hassles of direct property ownership by handling all operational aspects including acquisition, leasing, tenanting, and maintenance. Investors receive monthly cash distributions and potential appreciation while avoiding the time-intensive management duties, tenant issues, and maintenance headaches associated with traditional real estate ownership. This turnkey approach makes real estate investing truly passive and accessible to investors without property management experience.