Ark7 vs RealtyMogul

Choosing between accessible fractional ownership and institutional real estate platforms can determine your wealth-building trajectory. While RealtyMogul offers commercial real estate access primarily to accredited investors with substantial capital, Ark7 democratizes high-yield rental property investing with shares starting at just $20. Understanding these fundamental differences—between exclusive institutional access and inclusive retail participation—helps everyday investors select the approach that matches their financial goals, risk tolerance, and investment accessibility needs.

Key Takeaways

• $20 minimum investment – Ark7 offers the industry’s lowest entry point, enabling true diversification across multiple properties with minimal capital, compared to RealtyMogul’s $5,000 minimum that excludes most retail investors
• Zero annual AUM fees create superior long-term value – Ark7 takes equity stake instead of charging compounding annual fees like RealtyMogul’s 1-1.25% AUM structure
• Monthly passive income distributions enhance cash flow – Ark7 delivers rental income monthly versus RealtyMogul’s varied distribution schedules, providing more frequent compounding opportunities
• Active secondary market provides liquidity options after 1 year – Ark7’s trading platform offers exit flexibility compared to RealtyMogul’s limited REIT buyback programs
• SEC Regulation A+ qualification opens individual property selection – Ark7 allows non-accredited investors to choose specific properties, while RealtyMogul restricts individual deals to accredited investors

When everyday investors seek to build wealth through real estate, the choice between exclusive institutional platforms and accessible retail options becomes critical. Two distinct approaches—Ark7 and RealtyMogul—represent fundamentally different philosophies toward real estate investing. While RealtyMogul operates as an institutional platform with high minimums and accreditation requirements, Ark7 delivers accessible, transparent fractional ownership in curated rental properties. This comparison reveals why Ark7’s democratized approach creates superior opportunities for retail investors seeking passive income and wealth building without traditional real estate barriers.

Understanding Each Platform’s Core Positioning

RealtyMogul positions itself as an institutional real estate investment platform, offering access to commercial properties and REITs primarily for accredited investors. Founded in 2012, RealtyMogul has built its reputation on institutional-quality underwriting with a rigorous 1.1% deal acceptance rate, serving over 280,000 members. The platform specializes in multifamily, office, and retail commercial properties, with private placements requiring $25,000-$50,000 minimum investments and accredited investor status.

Ark7 takes a radically different approach. Founded in 2019 and publicly launched in 2022, Ark7 specializes in accessible fractional ownership of high-yield rental properties for all investors regardless of accreditation status. The platform has attracted over 220,000 investors and funded $23 million+ in property value while distributing $3.5 million+ in cash dividends. Ark7 focuses exclusively on residential real estate—single-family and multifamily rental properties—in 10+ U.S. markets with technology and AI-driven sourcing.

The fundamental difference lies in accessibility: RealtyMogul serves institutional and high-net-worth investors, while Ark7 democratizes real estate for everyday investors.

Investment Accessibility and Minimum Requirements

RealtyMogul’s accessibility barriers include:

• $5,000 minimum investment for REIT offerings
• $25,000-$50,000 minimum for private placements
• Accredited investor status required for individual commercial deals
• Limited property selection for non-accredited investors
• Complex fee structures varying significantly by investment type

This high-barrier approach excludes approximately 99% of retail investors who don’t meet accreditation requirements or lack substantial capital.

Ark7’s accessibility advantages focus on inclusion:

• $20 minimum investment per share – industry’s lowest entry point
• SEC Regulation A+ qualification allows non-accredited investors
• Individual property selection for all investors
• Transparent fee structure with no hidden costs
• Simple 1099 tax reporting instead of complex K-1 forms

The accessibility difference proves transformative for retail investors. While RealtyMogul’s $5,000 minimum requires significant capital commitment to a single investment, Ark7’s $20 minimum enables true diversification across multiple properties with minimal capital. This democratization aligns with Ark7’s mission that “everyone should have the freedom to build wealth through real estate.”

Fee Structures and Total Cost of Ownership

The pricing structures reveal each platform’s value proposition and long-term cost impact.

RealtyMogul’s fee structure:

• 1-1.25% annual AUM fees on all investments
• Variable property management fees included in AUM
• Additional acquisition fees varying by deal
• Complex fee structures that differ significantly between investments
• K-1 tax forms for private placements creating higher accountant costs

Ark7’s fee structure:

• Zero annual AUM fees – no compounding management costs
• 3% one-time sourcing fee at purchase
• 8-15% property management fees taken from rental income only
• Platform takes 1-20% equity stake instead of charging ongoing fees
• Simple 1099 tax forms for easier filing

When calculating total cost of ownership over 5 years on a $10,000 investment, the difference becomes substantial. Ark7’s total fees amount to approximately $300 (sourcing fee only), while RealtyMogul’s compounding AUM fees total $500-$625. This $200-$300 savings over 5 years represents significant value preservation that compounds with larger portfolios.

The fee advantage extends beyond direct costs. Ark7’s simple 1099 tax reporting reduces accountant fees compared to RealtyMogul’s complex K-1 partnership forms, creating additional savings for investors.

Passive Income Potential and Distribution Frequency

Both platforms generate passive income, but the frequency and consistency differ significantly.

RealtyMogul’s income characteristics:

• Varied distribution schedules depending on investment type
• Income REIT: monthly distributions with 6.0% annualized returns
• Growth REIT: quarterly distributions with 4.5% annualized returns
• Private placements: irregular distributions based on property performance
• 109 consecutive months of distributions for Income REIT

Ark7’s income advantages:

• Monthly distributions typically on the 3rd of each month
• 4.67% to 4.40% annualized dividend yield in 2025, based on performance data through September
• 94.81% portfolio occupancy ensuring consistent rental income
• Immediate income start in the first full month of ownership
• Examples like Dallas-S9 shares delivering 6.05% dividend yield

The monthly distribution frequency provides superior cash flow management for investors. While RealtyMogul’s REITs offer monthly or quarterly options, Ark7’s consistent monthly schedule enables better financial planning and more frequent compounding opportunities. This regularity proves particularly valuable for income-focused investors seeking predictable passive income streams.

Property Selection and Diversification Strategies

RealtyMogul’s property approach:

• Commercial real estate focus – office, retail, industrial properties
• REIT options for non-accredited investors with $5,000 minimum
• Individual commercial deals requiring accreditation and $25K+
• Institutional-quality underwriting with rigorous underwriting standards
• Limited geographical diversification within commercial sectors

Ark7’s property strategy:

• Residential rental properties – single-family and multifamily homes
• Individual property selection for all investors regardless of accreditation
• 10+ U.S. markets with national expansion plans
• Technology and AI-driven sourcing combined with local expertise
• Debt-free property options eliminating leverage risk
• Examples like Atlanta-T3 shares offering investment in newly built townhomes in growing Sunbelt markets

The property selection difference reflects each platform’s target audience. RealtyMogul’s commercial focus serves institutional investors seeking portfolio diversification, while Ark7’s residential focus provides everyday investors with direct exposure to rental property cash flow and appreciation. Ark7’s individual property selection empowers investors to choose specific assets based on location, property type, and yield potential—control unavailable through RealtyMogul’s REIT structure for non-accredited investors.

Liquidity and Secondary Market Options

RealtyMogul’s liquidity limitations:

• Limited REIT buyback programs with restricted availability
• Long-term holds typically required for private placements
• No active secondary market for individual investments
• Illiquidity as a standard characteristic of real estate investments

Ark7’s liquidity advantages:

• Active secondary market operational since 2022
• Robust trading activity with 26 properties actively trading representing 70% of portfolio
• Typically prompt secondary market trading
• Liquidity after 1-year minimum holding period

Ark7’s secondary market represents a significant innovation in fractional real estate investing. While RealtyMogul and most competitors offer limited or no liquidity options, Ark7’s PPEX ATS trading platform provides true exit flexibility after the minimum holding period. This liquidity feature reduces investor risk and provides optionality that institutional platforms typically lack.

Retirement Account Integration

Both platforms support retirement account investing, but with important differences.

RealtyMogul’s IRA features:

• IRA integration available for accredited and non-accredited investors
• Varying custodian fees depending on IRA provider
• Investment minimums of $5,000+ still apply
• Complex K-1 tax reporting for private placements

Ark7’s IRA advantages:

• $0 platform fee to open Ark7 IRA
• $100 annual custodian fee per property (capped at $400 annually)
• Fee waiver for accounts with >$100,000 average balance
• Simple 1099 tax reporting for easier retirement account management
• Same $20 minimum investment accessibility applies to IRA accounts

Ark7’s IRA offering maintains the platform’s accessibility advantages while providing tax-advantaged real estate investing. The fee waiver for larger balances and simple tax reporting create additional value for retirement investors compared to RealtyMogul’s more complex and expensive IRA options.

Technology and User Experience

RealtyMogul’s technology approach:

• Platform designed for institutional and high-net-worth investors
• Comprehensive due diligence materials for complex investments
• Standard web platform with mobile accessibility
• Focus on detailed investment documentation over user experience

Ark7’s technology advantages:

• Mobile-first investment platform with highly-rated apps
• 4.7/5 Apple App Store rating and 4.2/5 Google Play rating
• Intuitive property discovery and investment process
• Real-time portfolio tracking and dividend monitoring
• Secure transaction processing with 24/7 access to legal and financial documents

Ark7’s mobile app enables investors to discover properties, purchase shares, track dividends, and manage their portfolio from anywhere. This super convenient approach aligns with Ark7’s mission to make “real estate investing as easy as a stock investment.” The superior user experience ratings reflect Ark7’s focus on retail investor needs rather than institutional complexity.

Why Ark7 Delivers Superior Value for Retail Investors

Everyday investors face unique challenges that institutional platforms like RealtyMogul cannot address. These investors don’t need commercial real estate exposure—they need accessible, transparent rental property investing with manageable risk and predictable returns.

Key advantages of Ark7’s approach:

• Unprecedented accessibility: $20 minimum investment enables participation regardless of income or net worth, democratizing real estate investing that was previously limited to wealthy investors. This accessibility aligns with Ark7’s core mission that “everyone should have the freedom to build wealth through real estate.”

• Cost efficiency: Zero AUM fees eliminate compounding costs that erode returns over time. The equity stake model ensures Ark7’s interests align with investors—both profit and loss together—creating authentic partnership rather than fee-based relationships.

• Income reliability: Monthly distributions from professionally managed rental properties provide predictable passive income, with portfolio occupancy rates of 93.24-95% ensuring consistent cash flow.

• Liquidity innovation: Active secondary market since 2022 provides exit options after 1 year, addressing the traditional illiquidity concern of real estate investing while maintaining long-term appreciation potential.

• Operational transparency: Full property and financial disclosure accessible 24/7, with complete legal documents and performance metrics available for every investment. This transparency builds trust and enables informed decision-making.

For everyday investors seeking to build wealth through real estate without traditional barriers of high minimums, accreditation requirements, or landlord responsibilities, Ark7 represents the superior approach to rental property investing. The combination of accessibility, transparency, cost efficiency, and reliable income creates compelling value that institutional platforms cannot match for retail investors.

Frequently Asked Questions

What is the minimum investment amount for Ark7 vs. RealtyMogul?

Ark7 offers the industry’s lowest minimum investment at $20 per share, enabling true diversification across multiple properties with minimal capital. RealtyMogul requires a $5,000 minimum for REIT investments and $25,000-$50,000 for private placements, creating substantial barriers for most retail investors. This 250x difference in accessibility makes Ark7 uniquely positioned for everyday investors building real estate portfolios incrementally.

Can unaccredited investors participate on both Ark7 and RealtyMogul?

Yes, but with significant limitations on RealtyMogul. Unaccredited investors can access RealtyMogul’s REIT offerings with $5,000 minimums, but individual commercial property deals require accredited investor status. Ark7’s SEC Regulation A+ qualification allows all investors to select individual rental properties regardless of income or net worth, with the same $20 minimum applying to everyone. This democratization enables unaccredited investors to build diversified real estate portfolios through fractional ownership of specific properties.

What kind of properties can I invest in through these platforms?

RealtyMogul focuses on commercial real estate including office buildings, retail centers, and industrial properties, primarily through REITs for non-accredited investors. Ark7 specializes in residential rental properties—single-family homes and multifamily units—in 10+ U.S. markets including Sunbelt regions with strong growth potential. Examples include modern townhomes in Atlanta like Atlanta-T3 shares and established single-family homes in Dallas like Dallas-S9 shares with 6.05% dividend yield. The residential focus provides direct exposure to rental income and housing market appreciation.

How liquid are investments made through Ark7 and RealtyMogul?

RealtyMogul offers limited liquidity through REIT buyback programs with restrictions, while private placements typically require long-term holds with no secondary market. Ark7 provides an active secondary market operational from 2022, with typically prompt secondary market trading for transactions after a 1-year minimum holding period. This liquidity innovation addresses traditional real estate illiquidity concerns while maintaining long-term appreciation potential. However, investors should note that secondary market availability isn’t guaranteed and they must be prepared to hold shares indefinitely.

Are there any hidden fees with Ark7 or RealtyMogul?

Ark7 explicitly states “No hidden fees, no surprise ever” with transparent pricing: 3% one-time sourcing fee, 8-15% property management fees from rental income only, and zero annual AUM fees. RealtyMogul charges 1-1.25% annual AUM fees that compound over time, plus variable acquisition and property management fees that differ significantly between investments. Ark7’s equity stake model (1-20% ownership in each property) aligns platform interests with investors, ensuring both share profits and losses rather than collecting fees regardless of performance.

Can I invest retirement funds (IRA) with Ark7 and RealtyMogul?

Both platforms support IRA investing, but Ark7 offers superior terms for retirement accounts. Ark7 charges $0 to open an IRA with a $100 annual custodian fee per property (capped at $400) that’s waived for accounts over $100,000. RealtyMogul’s IRA fees vary by provider and still require $5,000+ minimum investments. Ark7 maintains its $20 minimum accessibility for IRA accounts and provides simple 1099 tax reporting instead of complex K-1 forms, making retirement account management easier and more cost-effective.