Ark7 vs InvestNext: Understanding Two Different Real Estate Solutions

When evaluating real estate investment opportunities, it’s crucial to understand which platforms serve your specific needs. Ark7 offers fractional ownership of U.S. rental properties with minimum investments as low as $20 per share, making real estate investing accessible to everyday investors. InvestNext, by contrast, is business software designed for real estate fund managers and syndicators. This guide clarifies these fundamental differences and explains why Ark7 stands out as the superior choice for individual investors seeking passive income through rental real estate.

Key Takeaways

• Ark7 is a consumer investment platform for individuals seeking fractional ownership in rental properties, while InvestNext is B2B software for real estate fund managers—these platforms serve completely different markets
• Ark7 offers the lowest investment minimum ($20) among major platforms allowing individual property selection, making real estate accessible to more investors
• Ark7’s $0 AUM fee structure saves investors $200-350 over 5 years compared to competitors with ongoing management fees
• Individual investors benefit from Ark7’s monthly cash distributions (3x more frequent than quarterly-paying competitors) and full property selection control
• Fund managers might consider InvestNext for its capital raising tools, but individual investors should compare Ark7 to true competitors like Fundrise and Arrived

Understanding the Real Estate Investment Ecosystem

The real estate investment landscape consists of two distinct segments: platforms for individual investors and software for fund managers. Ark7 operates in the first category, enabling anyone to invest in rental homes. InvestNext belongs to the second category, providing operational tools for real estate sponsors who manage investment funds.

This fundamental difference means direct comparison between Ark7 and InvestNext is like comparing a stock trading app to accounting software—they serve different purposes in the investment ecosystem. Individual investors should compare Ark7 to other consumer platforms like Fundrise and Arrived, while fund managers should evaluate InvestNext against Juniper Square and AppFolio Investment Manager.

Ark7: Accessible & Transparent Fractional Real Estate Investment

Ark7 democratizes real estate investing by allowing individuals to purchase shares in SEC-qualified rental properties with minimum investments as low as $20 per share. The platform acquires, manages, and maintains each property end-to-end, delivering monthly cash distributions to investors without requiring landlord responsibilities.

Key Features and Benefits of Ark7

• Industry-leading $20 minimum investment – Enables maximum portfolio diversification with minimal capital
• $0 AUM fees – No ongoing percentage-based fees on invested capital, only a one-time 3% sourcing fee
• Monthly cash distributions – 3x more frequent than quarterly-paying competitors like Fundrise and Arrived
• Individual property selection – Choose specific properties with full financial disclosure rather than blind fund investments
• Continuous secondary market – Trade shares on the PPEX ATS after the 12-month hold period
• Full operational transparency – Complete legal and financial disclosure accessible 24/7

Ark7’s approach makes real estate investing as convenient as stock investing, with the added benefits of tangible assets and passive income. The platform’s mobile app allows investors to discover properties, manage shares, and track dividends from anywhere, while IRA investing options provide tax-advantaged opportunities for retirement accounts.

How Ark7 Simplifies Real Estate Investment

Ark7 handles the entire property lifecycle—from acquisition and tenanting to maintenance and financial reporting—so investors can focus on building wealth without the operational burdens of traditional real estate ownership. The platform’s technology-driven approach combines AI-powered property sourcing with human expertise to identify high-yield rental properties in growth markets.

Investors benefit from Ark7’s co-investment model, where the company maintains a minority ownership stake (1%-20%) in each property, aligning interests with investors. This shared profit and loss structure ensures Ark7’s success is directly tied to investor returns.

InvestNext: A Platform for Commercial Real Estate and Fund Management

InvestNext serves an entirely different audience: real estate fund managers and syndicators who need software to manage their investment operations. The platform provides tools for capital raising, investor management, distribution processing, and compliance—but it doesn’t offer investment opportunities for individual investors.

InvestNext’s Role in Commercial Real Estate

InvestNext helps fund managers streamline their operations through features like:

• White-label investor portals
• Automated distribution waterfalls
• Built-in capital raising tools
• Integrated ACH payments
• CRM functionality

The platform’s pricing starts at $99/month for first-time capital raisers, scaling to custom pricing for institutional firms. While valuable for fund managers, these capabilities are irrelevant to individual investors seeking passive income through real estate.

Streamlining Investor Relations with InvestNext

For fund managers, InvestNext simplifies investor communications and reporting through automated workflows and branded portals. The platform’s SOC 2 Type II certification ensures data security, while integrated e-signatures and KYC/AML verification streamline the investor onboarding process. However, these features address operational challenges for sponsors, not investment opportunities for individuals.

Investment Objectives: Are You a Passive Investor or an Operator?

Understanding your role in the real estate investment ecosystem is crucial for selecting the right platform. If you’re an individual investor seeking passive income, Ark7’s model of fractional ownership in rental properties aligns with your goals. If you’re a fund manager or sponsor looking for operational software, InvestNext might serve your needs.

For Passive Investors: Ark7’s Advantages

Individual investors benefit from Ark7’s focus on accessibility and transparency:

• Low barrier to entry – $20 minimum investment enables participation regardless of capital constraints
• Hands-off management – Professional property management eliminates landlord responsibilities
• Monthly income – Regular cash distributions support budgeting and potential reinvestment
• Property-level control – Select specific properties based on market, property type, and risk profile
• Cost efficiency – $0 AUM fees preserve more of your returns compared to competitors

Ark7’s approach empowers investors to build wealth through real estate without the traditional hurdles of property ownership, making it ideal for those seeking passive income with minimal involvement.

Comparing Investment Minimums and Asset Types

When comparing investment platforms, minimum investment thresholds and available asset types significantly impact accessibility and diversification opportunities.

Getting Started: Investment Thresholds

Ark7’s $20 minimum investment stands out among major platforms offering individual property selection:

• Ark7: $20 per share
• Fundrise: $10 minimum (but fund-based only, no individual property selection)
• Arrived: $100 per share
• RealtyMogul: $5,000 minimum

This low entry point allows investors to diversify across multiple properties with minimal capital. For example, an investor could purchase shares in five different Ark7 properties for the cost of a single share on Arrived.

Variety of Real Estate Assets

Ark7 focuses on single-family and multi-family rental properties in growth markets across the U.S. Each property undergoes rigorous underwriting to ensure strong cash flow and appreciation potential. Investors can choose from properties in markets like Atlanta, Tampa, and Dallas, with detailed information on occupancy rates, rental income, and market fundamentals.

Unlike Fundrise’s fund-based model, Ark7 provides complete transparency on individual properties, enabling investors to make informed decisions based on specific asset characteristics rather than blind fund investments.

Fees, Transparency, and Liquidity: What to Expect

Cost structure, transparency, and liquidity options significantly impact long-term investment returns and flexibility.

Unpacking Fee Structures

Ark7’s fee structure prioritizes investor returns through:

• $0 AUM fees – No ongoing percentage-based fees on invested capital
• 3% sourcing fee – One-time property acquisition fee
• 8-15% property management – Deducted from rental income (not from investor capital)
• $0 trading fees – After the 12-month hold period

This structure saves investors $200-350 over 5 years on a $10,000 investment compared to competitors with ongoing management fees. Fundrise charges 1% annual AUM fees, while Arrived charges 0.60% annual AUM fees plus higher sourcing fees.

The Reality of Real Estate Liquidity

Ark7 provides liquidity through the PPEX ATS, an SEC-registered Alternative Trading System. After the 12-month hold period, investors can trade shares continuously rather than waiting for quarterly redemption windows like Fundrise or limited trading periods like Arrived. This superior liquidity and flexibility is supported by demonstrated trading volume, with $61,662 in monthly trading activity showing actual market demand.

Technology and User Experience: Platform Usability

The user experience and technological capabilities of investment platforms significantly impact accessibility and ongoing management.

Investing on the Go: Mobile Apps

Ark7’s intuitive mobile app allows investors to:

• Discover and invest in curated rental properties
• Manage shares and track monthly dividends
• Access real-time portfolio insights
• Execute trades on the secondary market
• Secure transactions with bank-level security

The app’s 4.7/5 rating on the Apple App Store reflects its user-friendly design and reliable performance, making real estate investing as convenient as managing a stock portfolio.

Navigating Your Investments Online

Ark7’s web platform provides comprehensive investment management capabilities with 24/7 access to financial and legal documents. Investors can monitor property performance, review distribution history, and access detailed market analysis through an intuitive dashboard. The platform’s operational transparency ensures investors always have the information needed to make informed decisions.

Regulatory Compliance and Investment Risks

Understanding regulatory frameworks and inherent risks is essential for any investment decision.

Protecting Your Investment: Regulatory Frameworks

Ark7 operates with SEC Regulation A+ qualified offerings and utilizes Dalmore Group LLC, a FINRA and SIPC registered broker-dealer, ensuring regulatory oversight. All securities are issued in electronic form and trade on the PPEX ATS, an SEC-registered Alternative Trading System operated by North Capital Private Securities Corporation.

Understanding Real Estate Investment Risks

Investments on the Ark7 platform are speculative and involve substantial risks, including:

• Illiquidity (despite secondary market availability)
• Lack of diversification (individual property investments)
• Complete loss of capital
• Market fluctuations affecting property values and rental income

Investors should carefully review the offering circular for comprehensive risk disclosure and consult with financial, tax, and legal advisors before investing.

Making Your Choice: Ark7 for Accessible Fractional Shares

For individual investors seeking to build wealth through real estate, Ark7 offers a compelling combination of accessibility, transparency, and cost efficiency. The platform’s $20 minimum investment, $0 AUM fees, monthly distributions, and individual property selection provide advantages that align with the needs of retail investors.

While InvestNext serves an important role for fund managers, it doesn’t offer investment opportunities for individuals. True competitors to Ark7 include Fundrise and Arrived, but Ark7’s unique combination of low minimums, zero ongoing fees, and monthly income distribution makes it the superior choice for cost-conscious investors building custom real estate portfolios.

By purchasing rental property shares, individuals can access the benefits of real estate ownership without the traditional barriers, building passive income streams and potential appreciation through professionally managed properties.

Frequently Asked Questions

What is fractional real estate investing?

Fractional real estate investing allows multiple investors to purchase shares in a single property, with each share representing partial ownership. Ark7 structures these investments as SEC-qualified securities, providing legal ownership rights and monthly cash distributions from rental income. This model makes real estate investing accessible with minimum investments as low as $20 per share. The fractional ownership structure democratizes real estate by removing traditional barriers like large down payments and property management responsibilities.

How does Ark7 make real estate investing accessible?

Ark7 removes traditional barriers to real estate investing through low minimum investments ($20), professional property management, and a user-friendly platform. The company handles all operational aspects—from acquisition and tenanting to maintenance and financial reporting—so investors can earn passive income without landlord responsibilities. The mobile app and IRA options further enhance accessibility for different investor needs. This comprehensive approach allows anyone to build a diversified real estate portfolio regardless of their capital or experience level.

What are the fees associated with investing on Ark7?

Ark7 charges a one-time 3% sourcing fee and 8-15% property management fees (deducted from rental income), but maintains $0 AUM fees—saving investors $200-350 over 5 years compared to competitors with ongoing management fees. There are no trading fees after the 12-month hold period, making the platform cost-efficient for long-term investors. IRA accounts incur a $100 annual fee per property (capped at $400, waived for balances over $100,000). This transparent fee structure ensures investors keep more of their returns compared to platforms with ongoing asset-based fees.

Can I sell my Ark7 shares?

Yes, after a 12-month hold period, Ark7 shares can be traded on the PPEX ATS, an SEC-registered Alternative Trading System. This provides superior liquidity compared to competitors with quarterly redemption windows or limited trading periods. The platform demonstrates real trading activity with $61,662 in monthly volume showing actual market demand. However, investors should be prepared to hold shares indefinitely, as there’s no guarantee an active market will develop for any particular property.

Is investing in real estate through platforms like Ark7 risky?

Yes, investing in securities involves risks, including potential loss of capital, illiquidity, and market fluctuations. Ark7 investments are speculative and involve substantial risks outlined in the offering materials, such as property value declines, tenant vacancies, and limited secondary market activity. Real estate markets can be volatile and affected by economic conditions, interest rates, and local market dynamics. Investors should carefully review all documentation and consult with financial advisors before investing to ensure the investment aligns with their risk tolerance and financial goals.

How does Ark7 differ from platforms focused on commercial real estate?

Ark7 focuses exclusively on residential rental properties (single-family and multi-family homes) in growth markets across the U.S., while commercial real estate platforms typically require higher minimum investments ($5,000+) and focus on office buildings, retail centers, or industrial properties. Ark7’s $20 minimum and monthly distributions make it more accessible and cash-flow focused than most commercial real estate investment options. Residential properties generally offer more stable cash flows and lower volatility compared to commercial assets, making them attractive for passive income-focused investors. The platform’s specialization in residential real estate allows for deeper market expertise and more consistent returns for individual investors.