Ark7 vs Stessa: Understanding the Difference Between Fractional Investment Platforms and Property Management Software

When evaluating real estate investment options, many investors encounter confusion between platforms that help you acquire property ownership and tools that help you manage properties you already own. Ark7 and Stessa represent these two fundamentally different approaches to real estate. Ark7 is a fractional real estate investment platform that allows you to buy shares in curated rental properties starting at just $20, while Stessa is property management software designed for landlords who already own rental properties and need to track their finances.

If you’re looking to build wealth through real estate without the hassles of being a landlord, Ark7’s fractional real estate investment model offers a compelling solution. By investing in shares of professionally managed rental properties, you can earn passive income through monthly cash distributions while Ark7 handles all aspects of property acquisition, tenanting, and maintenance.

Key Takeaways

• Ark7 enables property acquisition through fractional ownership starting at $20 per share, while Stessa is solely for tracking finances of properties you already own
• Ark7 provides truly passive income with professional property management included, whereas Stessa requires you to actively manage your own properties
• Ark7 investors benefit from monthly dividend distributions, SEC Regulation A+ qualified offerings, and a secondary market for liquidity after a 12-month holding period
• Stessa offers free basic tracking for landlords but cannot help you acquire new properties or generate passive income
• Savvy investors might use both tools complementarily: Ark7 for passive fractional ownership investments and Stessa for tracking directly-owned rental properties

Understanding the Fundamental Difference

The confusion between Ark7 and Stessa stems from both being associated with real estate, but they serve completely different functions in the investment lifecycle. Comparing them is like comparing a stock brokerage (which helps you acquire investments) to accounting software (which helps you track investments you already own).

Ark7’s Core Function:

• Fractional real estate investment platform
• Enables property acquisition through share purchases
• Provides passive income through monthly dividends
• Includes professional property management
• Offers SEC Regulation A+ qualified investment opportunities

Stessa’s Core Function:

• Property management software/tracking tool
• Designed for landlords who already own rental properties
• Provides financial tracking and accounting features
• Cannot help you acquire new properties
• Requires you to actively manage your own properties

Ark7: Building Wealth Through Fractional Real Estate Investment

Ark7 democratizes real estate investing by allowing anyone to purchase shares in high-yield rental properties nationwide with minimum investments as low as $20 per share. The platform handles all aspects of property acquisition, tenanting, and maintenance, enabling truly passive income generation through monthly cash distributions.

Key Ark7 Advantages

• Low Barrier to Entry – Invest in rental properties for as little as $20 per share, making real estate accessible to investors with limited capital
• Professional Property Management – Ark7 handles all aspects of property operations including acquisition, leasing, tenanting, and maintenance
• Monthly Dividend Distributions – Receive passive income through monthly cash distributions paid directly to your account
• SEC Regulation A+ Qualified – Investments are qualified under SEC Regulation A+, providing investor protections and transparency
• Secondary Market Liquidity – Sell shares on the PPEX ATS secondary trading market after a 12-month holding period
• No Annual Platform Fees – Zero ongoing AUM fees that compound over time, unlike many competitors

How Ark7 Works

Ark7’s process eliminates the traditional barriers to real estate investing. Instead of needing hundreds of thousands of dollars to purchase an entire property, you can buy shares in specific rental properties that have been professionally sourced and underwritten. Once you invest, you become a fractional owner entitled to monthly cash distributions from rental income and potential appreciation when the property is eventually sold.

The platform currently serves over 220,000 active investors and has funded more than $23 million in property value. Ark7’s properties are typically located in high-growth Sunbelt markets with strong economic and population trends, demonstrating their commitment to quality investments with strong cash yield and appreciation potential.

Ark7 Investment Experience

Investors can manage their entire Ark7 experience through the Ark7 mobile app, available for both iOS and Android. The app allows you to discover new properties, purchase shares, track monthly dividends, and monitor your portfolio performance all in one secure place.

For retirement-focused investors, Ark7 also offers IRA investing through a partnership with Inspira Financial Company, allowing you to use your retirement funds to invest in real estate property shares. The IRA option supports both Traditional and Roth accounts with no Ark7 platform fee to open, though Inspira charges a $100 annual fee per property (capped at $400 annually, waived for account balances over $100,000).

Stessa: Property Management Software for Existing Landlords

Stessa serves a completely different purpose than Ark7. It’s property management software designed for landlords who already own rental properties and need to track their finances, manage tenant relationships, and prepare for tax season. Stessa cannot help you acquire new properties or generate passive income from properties you don’t own.

Key Stessa Features

• Free Essentials Plan – Unlimited properties with automatic bank feeds, basic reports, and tenant screening
• Financial Tracking – Automated expense tracking and income recording through bank feed integration
• Tax Preparation – Schedule E reports and comprehensive tax packages for rental property owners
• Tenant Management – Screening tools, lease management, and rent collection features
• Mobile App – iOS app (4.8/5) and Android app (4.1/5) for on-the-go property management

Stessa Limitations

While Stessa excels at tracking properties you already own, it has significant limitations for investors looking to build a real estate portfolio:

• No Property Acquisition – Cannot help you buy new properties or invest in real estate
• Requires Property Ownership – Only useful if you already own rental properties
• Active Management Required – You must handle all aspects of property management yourself
• Limited Free Features – Only 5 receipt scans per month on the free plan

Investment Accessibility: Ark7 vs. Traditional Property Ownership

The traditional barrier to real estate investing has been the substantial capital required to purchase entire properties. Ark7 eliminates this barrier by allowing fractional ownership starting at just $20 per share.

Traditional Property Ownership Challenges

• High Capital Requirements – Typically need $100,000+ for a down payment on a single-family rental
• Property Management Hassles – Responsible for tenant screening, maintenance, repairs, and emergencies
• Limited Diversification – Most investors can only afford 1-2 properties, creating concentration risk
• Illiquidity – Selling entire properties takes months and involves significant transaction costs

Ark7’s Accessibility Advantages

• Low Minimum Investment – Start with as little as $20 per share in high-quality rental properties
• Professional Management – Ark7 handles all property operations, creating truly passive income
• Instant Diversification – Invest in multiple properties across different markets with minimal capital
• Secondary Market Liquidity – Sell shares on the PPEX ATS secondary trading market after 12 months

For investors who want to build a diversified real estate portfolio without the landlord responsibilities, Ark7’s model provides a compelling solution. The platform’s focus on curated properties in high-growth markets like the Atlanta-T3 property shares (a newly built 2020 townhome in Jonesboro, GA) demonstrates their commitment to quality investments with strong cash yield and appreciation potential.

Evaluating Returns: Passive Income and Appreciation Potential

Ark7 investors benefit from two potential sources of returns: monthly cash distributions from rental income and potential appreciation when properties are eventually sold.

Ark7 Return Structure

• Monthly Dividend Distributions – Rental income is distributed to shareholders monthly (typically on the 3rd of each month)
• Property Appreciation – Potential capital gains when properties are sold (though properties are typically held long-term)
• Competitive Yields – Properties have delivered competitive dividend yields
• Transparent Reporting – Monthly property performance reports and annual 1099-DIV tax forms

Stessa’s Return Limitations

Stessa does not generate any returns for investors. It’s purely a tracking tool that helps landlords manage the finances of properties they already own. Any returns come from the underlying properties themselves, not from Stessa.

For investors seeking passive income, Ark7’s model of professional property management combined with monthly dividend distributions creates a compelling value proposition. The platform’s focus on high-growth Sunbelt markets with strong economic and population trends helps maximize both cash flow and appreciation potential.

Platform Transparency and Regulatory Compliance

Ark7’s commitment to transparency and regulatory compliance sets it apart in the fractional real estate space.

Ark7’s Compliance Framework

• SEC Regulation A+ Qualified – All offerings are qualified under SEC Regulation A+, providing investor protections
• FINRA/SIPC Registered Broker-Dealer – Dalmore Group LLC serves as the registered broker-dealer of record
• Full Operational Transparency – Complete legal and financial disclosures accessible 24/7
• Trustpilot Rating – 4.1 out of 5 based on 243 reviews
• Accredited Business – Certified accredited business status

Stessa’s Compliance Position

As property management software rather than an investment platform, Stessa is not subject to the same regulatory requirements as Ark7. While this isn’t necessarily a disadvantage (since Stessa serves a different purpose), it does mean that Stessa users don’t benefit from the same level of investor protections that come with SEC-qualified offerings.

When to Choose Ark7 vs. Stessa

The choice between Ark7 and Stessa depends entirely on your current situation and investment goals.

Choose Ark7 When You:

• Want to invest in real estate but don’t have the capital to buy entire properties
• Prefer passive income without landlord responsibilities
• Need low-barrier entry to real estate investing ($20 minimum)
• Want monthly dividend income from rental properties
• Prefer professional property management included with your investment
• Are looking to diversify your portfolio across multiple properties and markets

Choose Stessa When You:

• Already own rental properties and need financial tracking tools
• Want automated accounting and tax preparation for your existing properties
• Need tenant screening and lease management features
• Require rent collection automation for properties you manage yourself
• Are an active landlord looking to streamline your property management operations

Using Both Together

Savvy investors might use both platforms complementarily:

• Ark7 for passive fractional ownership in 5-10 properties across different markets
• Stessa for tracking 2-3 directly-owned rental properties in their local market

This hybrid approach allows investors to build both passive and active real estate portfolios, maximizing diversification while maintaining local property ownership for hands-on experience.

Frequently Asked Questions

What is the main difference between Ark7 and Stessa?

Ark7 is a fractional real estate investment platform that allows you to buy shares in rental properties starting at $20, while Stessa is property management software designed for landlords who already own rental properties and need to track their finances. Ark7 helps you acquire property ownership, while Stessa helps you manage properties you already own. The fundamental difference is that Ark7 is an investment acquisition platform, whereas Stessa is a tracking and management tool. Think of Ark7 as a way to build your real estate portfolio, and Stessa as a way to organize properties you’ve already acquired.

Can I manage my Ark7 investments using Stessa?

No, you cannot manage your Ark7 investments using Stessa because they serve entirely different purposes. Ark7 provides its own platform and mobile app for managing your fractional real estate investments, tracking dividends, and monitoring portfolio performance. Stessa is designed specifically for tracking finances of properties you directly own and manage yourself, not for managing fractional ownership investments. Your Ark7 shares represent fractional ownership with professional management included, so there’s no need for third-party property management software.

Is Ark7 suitable for beginners in real estate investing?

Yes, Ark7 is particularly well-suited for beginners in real estate investing due to its low barrier to entry and hands-off approach. The platform’s minimum investment of $20 per share makes it accessible to investors with limited capital or real estate experience, while professional property management eliminates the learning curve of being a landlord. Beginners can start small with just one or two properties, learn about real estate investing through actual ownership, and gradually build their portfolio over time. The user-friendly mobile app and monthly dividend distributions make it easy to track your investments and see returns.

What kind of fees are associated with Ark7 investments or IRAs?

Ark7 charges a 3% one-time sourcing fee applied to property market cap and property management fees of 8-15% deducted from rental income monthly, with no annual platform fees that compound over time. For IRA investments, Inspira Financial Company charges a $100 annual fee per property (capped at $400 annually), which is waived for account balances over $100,000. Secondary market trading on the PPEX ATS platform is free after the mandatory 12-month holding period. These fees are transparently disclosed in each property’s offering circular before you invest.

How does Ark7 ensure the transparency and security of investments?

Ark7 ensures transparency and security through multiple layers of regulatory oversight and disclosure. All investments are qualified under SEC Regulation A+, providing investor protections and requiring comprehensive financial disclosures. The platform partners with Dalmore Group LLC, a FINRA/SIPC registered broker-dealer, adding another layer of regulatory compliance. Investors have 24/7 access to complete legal and financial disclosures for each property, including offering circulars that detail all risks, fees, and investment terms. Ark7 maintains an accredited business status and has earned a 4.1 out of 5 Trustpilot rating based on 243 reviews.

Can I sell my Ark7 shares if I need to?

Yes, you can sell your Ark7 shares on the PPEX ATS secondary trading market after completing the mandatory 12-month holding period from your initial purchase. However, investors should be prepared to hold their shares indefinitely, as there’s no guarantee that an active market will develop or that buyers will be available when you want to sell. The secondary trading platform may not be available in all states, and liquidity is not guaranteed. Trading on the secondary market is free, but the ability to successfully liquidate your position depends on market demand for the specific property shares you own.