Ark7 vs Roofstock

When comparing fractional real estate investment platforms, the fundamental difference between accessibility and exclusivity becomes clear. While Roofstock offers a dual model of full property marketplace alongside their accredited-only Roofstock One fractional offering, Ark7 has built a purpose-driven platform that makes real estate investing accessible to everyone starting from just $20 per share. This distinction—between platforms that require $5,000 minimums and accreditation versus those that welcome all investors—determines which approach better serves today’s democratized investment landscape.

Key Takeaways

• Ark7 offers industry-lowest $20 minimum investment – Start building real estate wealth with just $20 per share compared to Roofstock One’s $5,000 minimum that excludes most potential investors
• Non-accredited investor access defines true democratization – Ark7 welcomes all U.S. investors 18+ while Roofstock One restricts participation in fractional ownership to accredited investors, while direct property purchases remain open to all U.S. investors
• Monthly passive income provides consistent cash flow – Ark7 delivers monthly dividend distributions versus Roofstock’s irregular payment schedule, enabling better financial planning and reinvestment opportunities
• Zero annual management fees maximize investor returns – Ark7 charges no AUM fees while Roofstock One assesses 0.5% annual fees, keeping more money in investors’ pockets
• Active secondary market ensures liquidity – Some trading activity has occurred on Ark7’s PPEX ATS secondary market, though liquidity can vary

Understanding Each Platform’s Core Positioning

Ark7 positions itself as a democratized fractional real estate investing platform, allowing investors to buy shares in curated high-yield rental properties nationwide with minimums as low as $20. Founded in 2018 and headquartered in San Francisco, Ark7 has built its reputation on making real estate investment accessible to everyone, serving over 220,000 active investors and facilitating more than $23 million in property investments. The platform operates under SEC Regulation A+ with series LLC structures, ensuring proper legal compliance while maintaining accessibility.

Roofstock takes a different approach with its dual-model structure. Founded in 2015 and based in Oakland, California, Roofstock operates both a full single-family rental marketplace where investors can purchase entire properties, and Roofstock One, their fractional ownership platform that requires accredited investor status and $5,000 minimum investments. This bifurcated model serves different investor segments but creates a significant accessibility barrier for the majority of potential real estate investors.

The fundamental difference lies in philosophy: Ark7 believes real estate investing should be accessible to everyone, while Roofstock’s fractional offering remains exclusive to accredited investors.

Investment Accessibility Shows Stark Contrasts

Ark7’s accessibility features include:

• Minimum investment of $20 per share
• No accredited investor requirements—open to all U.S. investors 18+
• Fractional ownership in individual properties (not pooled funds)
• Mobile app for on-the-go investing
• Support for both cash and IRA accounts
• Diversification across multiple properties with minimal capital

This accessibility-focused approach enables investors to build diversified real estate portfolios regardless of their financial situation. With just $100, an investor can own shares in 5 different properties across various markets.

Roofstock’s accessibility limitations include:

• Roofstock One requires $5,000 minimum investment
• Accredited investor status mandatory for fractional ownership
• Full property marketplace requires significantly higher capital (often much higher than fractional minimums, since whole property purchases depend on property price rather than a platform-set minimum)
• Less diversification potential with higher minimums
• More complex decision-making for full property purchases

The accessibility gap is substantial. While Ark7 enables micro-investing in real estate with $20 minimums, Roofstock One’s $5,000 threshold represents a 250x higher barrier to entry. This difference excludes the vast majority of potential real estate investors from participating in fractional ownership through Roofstock.

For beginning investors or those with limited capital, Ark7’s approach eliminates traditional real estate investment barriers. Why save for years to afford an entire property or meet accreditation requirements when you can start building real estate wealth immediately with $20?

Passive Income Potential and Distribution Frequency

Ark7’s income advantages include:

• Monthly dividend distributions providing consistent cash flow
• Average annualized yield of 3.96% as of December 2025
• Top-performing properties delivering up to 7.65% yields
• Portfolio occupancy rate of 94.81% as of December 2025
• $75,538 in monthly dividends paid to investors as of December 2025
• Transparent property-level performance reporting

The monthly distribution schedule provides significant advantages for income-focused investors. Receiving rental income every month enables better cash flow management, consistent reinvestment opportunities, and 12 payment cycles annually versus the quarterly standard of most competitors.

Roofstock’s income characteristics include:

• Varying distribution schedules based on property ownership
• Reported returns ranging from 6% to 20%
• Higher potential returns but with increased risk exposure
• Less predictable cash flow timing for income planning
• Full property ownership requiring more active management

While Roofstock reports higher average returns (6-10% versus Ark7’s 3.96%), this comparison requires context. Ark7’s returns represent stable, consistent passive income from professionally managed properties, while Roofstock’s higher returns often come with increased risk, higher minimum investments, and less passive management requirements. For investors prioritizing consistent monthly income over maximum returns, Ark7’s approach better serves their needs.

Fee Structures and Total Cost of Ownership

Ark7’s transparent fee structure includes:

• $0 annual management (AUM) fees
• 3% one-time sourcing fee
• 8-15% property management fee (of rental income)
• $0 selling fees on the secondary market
• IRA custodian fees of $100 per property annually (capped at $400, waived for balances over $100,000)
• No hidden fees or surprise charges

This fee structure maximizes investor returns by eliminating percentage-of-portfolio fees that compound over time. The absence of AUM fees means investors keep more of their returns compared to competitors charging annual management fees.

Roofstock’s fee complexity includes:

• Roofstock One charges 0.5% annual AUM fee
• Full property purchases include $500 or 0.5% buyer fees
• Selling fees of $2,500 or 3% of sale price for full properties
• Property management fees vary by third-party managers
• Additional custodian fees for IRA investments

When calculating total cost of ownership, Ark7’s approach proves more investor-friendly. While both platforms charge property management fees, Ark7’s elimination of AUM fees represents significant long-term savings. For a $5,000 investment, Roofstock One’s 0.5% AUM fee costs $25 annually, money that could otherwise contribute to investor returns.

The fee transparency extends to Ark7’s commitment to operational clarity. Investors can access complete financial and legal disclosure 24/7, ensuring they understand exactly how their investments perform and what fees apply.

Liquidity and Secondary Market Capabilities

Ark7’s liquidity features include:

• Active secondary market through PPEX ATS platform
• Monthly trading volume of $61,662 as of November 2025
• 12-month minimum holding period
• $0 trading fees after the holding period expires
• 70% of portfolio actively trades on the secondary market
• Established trading since 2022

The secondary market provides crucial liquidity for real estate investments, which are traditionally illiquid assets. Ark7’s established trading platform with consistent monthly volume demonstrates real market demand and exit options for investors.

Roofstock’s liquidity characteristics include:

• Roofstock One’s liquidity share is limited 
• Shorter holding period but less transparent trading volume
• Varying selling fees and restrictions
• Less established secondary market compared to Ark7’s PPEX ATS

While Roofstock One offers a shorter 6-month hold period versus Ark7’s 12 months, the practical liquidity depends on actual trading activity and market depth. Ark7’s transparent reporting of $61,662 in monthly trading volume provides concrete evidence of market liquidity, giving investors confidence in their ability to exit positions when needed.

Technology Platform and User Experience

Ark7’s technology advantages include:

• User-friendly mobile app rated 4.7/5 on Apple App Store and 4.2/5 on Google Play
• Intuitive web platform for property discovery and management
• Real-time portfolio tracking and performance insights
• Secure transactions and account management
• IRA integration for retirement account investing
• 24/7 access to legal and financial documents

The mobile-first approach makes real estate investing as convenient as stock trading. Investors can discover properties, purchase shares, track dividends, and manage their portfolios from their smartphones, fulfilling Ark7’s mission to make real estate investing super convenient.

Roofstock’s platform characteristics include:

• Established marketplace with longer operational history
• Dual interface for full property and fractional purchases
• Property analytics and market data
• Mobile app availability with varying user ratings
• Less focus on fractional-only user experience

Ark7’s purpose-built fractional platform provides a more streamlined experience for investors seeking passive real estate exposure. Rather than navigating between full property and fractional options, Ark7 users enjoy a focused interface designed specifically for fractional investing with minimal friction.

Property Selection and Portfolio Performance

Ark7’s property curation approach includes:

• AI-driven property sourcing combined with local market expertise
• 1,000+ properties reviewed monthly for potential inclusion
• Focus on high-yield rental properties in growth markets
• Properties typically built between 1992-2020 in Sunbelt regions
• Examples include Dallas-S8 with 6.51% dividend yield
• Atlanta-T3 and Tampa-S10 properties in high-growth Sunbelt markets

Ark7’s selective approach ensures quality over quantity, focusing on properties with strong rental demand, modern amenities, and growth potential. The platform’s curation process combines technology and human expertise to identify properties that meet strict underwriting criteria.

Roofstock’s property selection includes:

• Broader geographic reach across 70+ markets
• Marketplace model with varying property quality
• Roofstock One properties curated for accredited investors
• Greater diversification potential across regions
• Less standardized property requirements

While Roofstock offers broader geographic diversification, Ark7’s focused approach on high-performing Sunbelt markets has delivered consistent results. The platform’s emphasis on newer construction (many properties built in 2020) and strong rental fundamentals supports stable occupancy rates and consistent income generation.

Why Ark7 Delivers Superior Value for Most Real Estate Investors

For the vast majority of real estate investors—particularly beginners, non-accredited investors, and those with limited capital—Ark7 represents the superior platform choice. The combination of accessibility, transparency, and consistent performance creates compelling advantages that Roofstock cannot match for most investors.

Key advantages of Ark7’s approach:

• Democratized access: $20 minimum investments enable anyone to start building real estate wealth, regardless of their financial situation. This accessibility has attracted over 220,000 active investors who might otherwise be excluded from real estate investing.

• Consistent monthly income: The monthly dividend distribution schedule provides reliable cash flow that supports financial planning and reinvestment strategies, unlike the irregular payments from Roofstock’s varying schedules.

• Cost efficiency: Zero annual management fees mean more of your returns stay in your pocket. Combined with transparent fee structures and no hidden charges, Ark7 maximizes investor returns over time.

• Proven liquidity: The established secondary market with $61,662 in monthly trading volume provides real exit opportunities, addressing the traditional illiquidity concerns of real estate investments.

For investors seeking to build real estate wealth without the traditional barriers of high capital requirements, accreditation status, or active property management, Ark7 provides the most accessible, transparent, and investor-friendly platform available. The combination of SEC-qualified offerings, professional property management, and technology-driven convenience makes real estate investing as easy as stock investing while delivering consistent passive income.

Frequently Asked Questions

What is the difference between fractional real estate investing and traditional real estate ownership?

Fractional real estate investing allows you to purchase shares in individual rental properties rather than buying entire properties. With Ark7, you can start with as little as $20 per share and own a fractional interest in professionally managed rental properties. Traditional real estate ownership requires significant capital (typically $50,000+ for single-family rentals), active property management responsibilities, and complete financial responsibility for maintenance and vacancies. Fractional investing through Ark7 eliminates these barriers while providing monthly passive income and potential appreciation benefits.

How does Ark7 ensure transparency in its investment offerings?

Ark7 provides complete operational transparency with 24/7 access to legal and financial disclosure documents. All offerings are SEC Regulation A+ qualified, and investors can review detailed offering circulars before investing. The platform publishes monthly performance reports showing property-level occupancy rates, rental income, and distribution amounts. With a 4.2/5 Trustpilot rating based on 243 reviews, Ark7 has demonstrated consistent transparency and reliability since 2018.

Can I invest in Ark7 properties using my IRA?

Yes, Ark7 supports both Traditional and Roth IRA investments through partnerships with qualified custodians. You can open an IRA account through Ark7 with no platform fees, though custodian fees apply ($100 per property annually, capped at $400, and waived for account balances over $100,000). This allows you to invest retirement funds in tangible real estate assets while benefiting from potential tax advantages of IRA accounts.

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

Investments in fractional real estate involve substantial risks including potential illiquidity, lack of diversification if investing in a single property, and complete loss of capital. Properties may experience vacancies, maintenance issues, or market value declines. Ark7 mitigates some risks through professional property management, careful underwriting, and high occupancy rates (94.81% as of December 2025), but investors should carefully review offering materials and consider their risk tolerance before investing.

How does Ark7 select the properties available on its platform?

Ark7 employs a rigorous property selection process combining AI-driven market analysis with local market expertise. The team reviews over 1,000 properties monthly, focusing on high-yield rental properties in growth markets with strong economic fundamentals. Properties typically feature modern construction (many built in 2020), desirable amenities, and locations near major employers and transportation corridors. Selected properties undergo thorough due diligence including rental market analysis, neighborhood assessment, and financial modeling to ensure they meet Ark7’s underwriting criteria for consistent income generation.