Ark7 vs Streitwise

When comparing fractional real estate investment platforms, investors face a fundamental choice between individual property ownership and pooled REIT structures. While Streitwise offers exposure to commercial office buildings through a non-traded REIT with higher current yields, Ark7 provides direct ownership in residential rental properties with industry-leading accessibility, monthly income distributions, and zero ongoing asset management fees. Understanding these structural differences—between pooled commercial exposure and individual residential control—helps investors select the approach that matches their investment goals, risk tolerance, and income preferences.

Key Takeaways

• Ark7 offers 50x lower investment minimums than Streitwise – Start with as little as $20 per share compared to Streitwise’s $1,000 minimum, democratizing real estate investing for beginners and experienced investors alike
• Monthly income vs quarterly distributions – Ark7 provides monthly cash distributions on the 3rd of each month, delivering 3x more frequent income than Streitwise’s quarterly payouts
• Zero ongoing AUM fees create significant long-term savings – Ark7 charges no annual asset management fees, saving investors $400+ over 5 years compared to Streitwise’s 2% annual fee
• Individual property selection with full control – Ark7 investors choose specific residential properties rather than blind pooled commercial investments, enabling personalized portfolio construction
• Superior liquidity through SEC-registered secondary market – Ark7 shares can be traded on the PPEX ATS platform after a 12-month hold with no penalties, unlike Streitwise’s redemption program with early exit penalties

Understanding Each Platform’s Core Investment Structure

Streitwise operates as a non-traded REIT (1st Streit Office Inc.) focused exclusively on commercial office real estate in secondary markets. Founded in 2017 with an 18-year sponsor track record, Streitwise pools investor capital to acquire institutional-quality office buildings, offering quarterly dividends with a historical average yield of 8.3% from 2017-2024. Investors have no control over property selection and face redemption penalties if they need to exit before the 5-year mark.

Ark7 takes a fundamentally different approach. As a Reg A+ qualified fractional ownership platform, Ark7 allows investors to purchase shares in individual, cash-flowing residential rental properties—single-family homes, multifamily units, and vacation rentals—across 10+ U.S. markets. Founded in 2019 and serving 220,000+ active investors, Ark7’s model provides direct ownership in specific properties rather than blind pooled funds. This structure aligns with Ark7’s mission of making real estate investment accessible to everyone while maintaining full operational transparency and control.

The core difference lies in ownership structure: Streitwise offers pooled commercial REIT shares with higher yields but less control, while Ark7 provides direct residential property ownership with better accessibility, control, and long-term fee advantages.

Investment Minimums and Accessibility Show Dramatic Differences

The barrier to entry represents one of the most significant differences between these platforms.

Streitwise’s accessibility profile:

• Minimum investment: $1,000 (reduced from $5,000 in 2024)
• No accreditation requirements
• Pooled REIT structure with no property selection
• Limited to commercial office exposure
• iOS app only (3.7/5 rating)

Ark7’s accessibility advantages:

• Minimum investment: $20 per share
• No accreditation requirements for most properties
• Individual property selection across residential types
• 10+ U.S. markets including Tampa, Austin, Dallas, and Atlanta
• Full-featured mobile app for iOS and Android

This 50x difference in minimum investment dramatically expands who can participate in real estate investing. While Streitwise’s $1,000 minimum excludes many beginning investors, Ark7’s $20 entry point allows anyone to start building real estate wealth. This accessibility aligns with Ark7’s core mission: “We are committed to making real estate investment accessible to everyone.”

For investors with limited capital or those wanting to diversify across multiple properties, Ark7’s low minimums provide significant advantages. You can build a diversified portfolio of 5-10 different properties with the same capital required for a single Streitwise investment.

Fee Structures Reveal Long-Term Cost Advantages

The fee structures reflect each platform’s business model and create dramatically different long-term costs.

Streitwise’s fee structure:

• 2% annual management fee (taken directly from dividends)
• No upfront fees
• Early redemption penalties: 10% if <1 year, decreasing to 0% at 5+ years
• IRA fees not specified

Ark7’s transparent fee approach:

• 3% one-time sourcing fee (paid at purchase)
• 8-15% property management fee (taken from rental income)
• Zero ongoing fees
• No early redemption penalties after 12-month hold
• IRA custodial fee: $100/property/year (capped at $400; waived for balances >$100,000)

When calculating total cost of ownership over a 5-year period, Ark7’s zero AUM fees create substantial savings. For a $10,000 investment, Streitwise charges $1,000 in management fees over 5 years, while Ark7 charges only $600 total (including the one-time sourcing fee and ongoing property management). This represents a 40% cost advantage for Ark7 over the long term.

More importantly, Ark7’s fee structure aligns incentives: instead of charging percentage-based AUM fees, Ark7 maintains a minority ownership stake (1-20%) in each property, sharing both profits and losses with investors. This creates true partnership alignment rather than fee-based revenue models.

Income Frequency and Yield Considerations

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

Streitwise income profile:

• Quarterly dividend distributions
• Historical average yield: 8.3% (2017-2024)
• Recent yield: 7.2%
• Commercial office exposure with ~85% occupancy

Ark7 income advantages:

• Monthly cash distributions on the 3rd of each month
• Current annualized yield: 3.96% (as of November 2024)
• Residential rental exposure with 94.81% occupancy
• 30+ consecutive months of dividend payments

While Streitwise offers higher current yields, Ark7’s monthly distributions provide more frequent cash flow and better income stability. The 3x more frequent payments help investors with regular income needs and provide better compounding opportunities when dividends are reinvested.

Additionally, Ark7’s higher occupancy rate (94.81% vs ~85%) demonstrates the stability advantage of residential rentals over commercial office space in the current work-from-home environment. Residential demand remains strong even as commercial offices face structural challenges.

Property Selection and Portfolio Control

This represents another fundamental difference in investment philosophy.

Streitwise’s pooled approach:

• No property selection control
• All capital goes into the single REIT
• Commercial office exposure only
• Limited geographic diversification
• Professional management with no investor input

Ark7’s individual ownership model:

• Choose specific properties that match your investment criteria
• Diversify across property types (single-family, multifamily, vacation rentals)
• Select markets based on your research and preferences
• Residential focus with stable long-term demand
• Full transparency on property details, leases, and financials

With Ark7, you can build a personalized portfolio that reflects your investment thesis. Want exposure to Sunbelt growth markets? Ark7’s Atlanta-T3 and Tampa-S10 properties offer modern homes in high-growth areas. Prefer established Texas markets? Dallas-S8 and Dallas-S9 provide strong rental demand near major employers.

This control enables sophisticated portfolio construction strategies that aren’t possible with pooled REITs. You can balance high-yield properties with high-appreciation potential, diversify across markets, and adjust your portfolio based on changing market conditions.

Liquidity and Exit Options

Liquidity represents a critical consideration for real estate investments.

Streitwise liquidity limitations:

• Redemption program only (no secondary market)
• Early redemption penalties: 10% if <1 year
• Graduated penalties decreasing to 0% at 5+ years
• No control over redemption timing
• Limited to quarterly redemption windows

Ark7’s superior liquidity solution:

• SEC-registered secondary market (PPEX ATS)
• No early exit penalties after 12-month hold
• Trade shares at market prices
• Greater control over exit timing
• Regulated alternative trading system

Ark7’s PPEX ATS platform provides true liquidity options that Streitwise cannot match. After the 12-month holding period, you can sell shares on the secondary market without penalties, giving you control over when and at what price you exit. This flexibility is invaluable for investors who may need to access capital unexpectedly or want to rebalance their portfolios.

While both platforms acknowledge the illiquid nature of real estate investments, Ark7’s regulated secondary market provides significantly more options and control than Streitwise’s penalty-based redemption program.

Performance Metrics and Track Records

Both platforms have demonstrated consistent performance, though with different risk profiles.

Streitwise performance highlights:

• 8.3% average dividend yield (2017-2024)
• 30 consecutive quarters of dividends
• 18-year sponsor track record with 25.4% average IRR
• Recent NAV decline: $6.84 (Q4 2024) from $7.14 (Q3 2024)
• Commercial office exposure with market headwinds

Ark7 performance advantages:

• 3.96% annualized yield (as of November 2024)
• 30+ consecutive months of distributions
• 94.81% occupancy rate
• 220,000+ active investors
• $23+ million in property value funded
• Residential stability with consistent demand

While Streitwise offers higher historical yields, Ark7’s residential focus provides better stability in the current economic environment. The recent NAV decline in Streitwise’s commercial portfolio reflects the challenges facing office real estate, while Ark7’s high occupancy rate demonstrates the resilience of residential rentals.

For long-term investors, Ark7’s combination of stable occupancy, monthly income, and zero ongoing fees may provide better risk-adjusted returns despite lower headline yields.

IRA Investment Options

Both platforms support retirement account investing, but with different structures.

Streitwise IRA features:

• Traditional and Roth IRA compatibility
• Various custodian partnerships
• Standard IRA investment process
• Same 2% annual fee applies

Ark7 IRA advantages:

• Traditional and Roth IRA options
• Partnership with Inspira Financial Company as custodian
• No Ark7 platform fee to open IRA
• Annual custodian fee: $100/property (capped at $400; waived for balances >$100,000)
• Same property selection and control as taxable accounts

Ark7’s IRA offering maintains the same advantages as its taxable accounts: individual property selection, monthly income, and zero ongoing AUM fees. The transparent fee structure with caps and waivers for larger accounts makes it cost-effective for retirement investing.

For investors looking to diversify their retirement portfolios with real estate, Ark7’s IRA option provides the same control and advantages as taxable investing, while Streitwise’s IRA offering maintains its pooled REIT structure with ongoing fees.

Why Ark7 Delivers Superior Value for Most Real Estate Investors

For most investors seeking real estate exposure, Ark7’s model provides compelling advantages over Streitwise’s commercial REIT approach.

Key advantages of Ark7’s residential fractional ownership model:

• Unmatched accessibility: The $20 minimum investment democratizes real estate investing, allowing anyone to start building wealth through property ownership regardless of their current financial situation.

• Superior income frequency: Monthly cash distributions provide 3x more frequent income than quarterly competitors, better supporting investors’ cash flow needs and compounding opportunities.

• Long-term cost savings: Zero ongoing AUM fees save investors hundreds or thousands of dollars over multi-year holding periods compared to platforms charging annual management fees.

• Individual property control: The ability to select specific residential properties enables personalized portfolio construction and alignment with individual investment theses, unlike blind pooled investments.

• Residential stability: With 94.81% occupancy rates, residential rentals demonstrate greater stability than commercial office properties facing structural demand challenges.

• Better liquidity options: The SEC-registered PPEX ATS platform provides true secondary market liquidity after 12 months with no penalties, offering greater control than redemption programs with early exit fees.

For investors prioritizing accessibility, control, and long-term value over maximum current yield, Ark7 represents the superior choice for fractional real estate investing. The platform’s combination of low minimums, monthly income, zero ongoing fees, and individual property selection creates a compelling value proposition that aligns with the needs of most real estate investors.

Frequently Asked Questions

What is the minimum investment for Ark7 and how does it compare to Streitwise?

Ark7 offers the industry’s lowest minimum investment at $20 per share, allowing investors to start building real estate wealth with minimal capital. Streitwise requires a $1,000 minimum investment (reduced from $5,000 in 2024), making it 50 times more expensive to start. This dramatic difference in accessibility enables Ark7 to serve 220,000+ investors who might be excluded from platforms with higher minimums. The low entry point also allows for better diversification, as investors can spread their capital across multiple properties rather than being limited to a single pooled investment.

How do I earn passive income with Ark7?

Ark7 investors earn passive income through monthly cash distributions paid on the 3rd of each month from rental income generated by their properties. With a current annualized yield of 3.96% (as of November 2024), investors receive regular income without any landlord responsibilities. Ark7 handles all property management, tenant relations, maintenance, and operations, while maintaining 94.81% occupancy rates to ensure consistent cash flow. You can track your distributions and property performance through the Ark7 mobile app or web platform.

Can I sell my Ark7 shares if I need to access my money?

Yes, Ark7 provides superior liquidity through the PPEX ATS platform, an SEC-registered alternative trading system. After a 12-month holding period, you can sell your shares on this regulated platform without early redemption penalties. This contrasts with Streitwise’s redemption program, which charges 10% penalties for exits under 1 year. While real estate investments are inherently illiquid and investors should be prepared to hold shares indefinitely, Ark7’s secondary market provides more flexibility and control over exit timing and pricing compared to redemption-based programs.

Are Ark7 investments suitable for retirement accounts?

Yes, Ark7 offers IRA options through partnership with Inspira Financial Company as custodian. You can invest IRA funds in the same individual residential properties available in taxable accounts, maintaining the same advantages of property selection control, monthly income, and zero ongoing AUM fees. Ark7 charges no platform fee to open an IRA, with annual custodian fees of $100 per property (capped at $400 annually, waived for account balances over $100,000). This allows investors to diversify their retirement portfolios with direct real estate ownership while potentially benefiting from tax advantages.

What are the main risks associated with investing on platforms like Ark7?

Investments on Ark7 involve substantial risks as outlined in their offering materials. Key risks include illiquidity (shares may be difficult to sell), lack of diversification (investments are in specific properties, not diversified portfolios), and potential complete loss of capital. Real estate investments are speculative and past performance doesn’t guarantee future results. The secondary market may not develop active trading, and there’s no guarantee you can sell shares when desired.