BuyProperly vs Addy vs Ark7: The Best Fractional Real Estate Platform for Monthly Income

For investors seeking to build wealth through rental real estate without the landlord headaches, the fractional ownership model has become a compelling solution. But with platforms like BuyProperly and Addy in the market, how do you choose the right one? The key differentiator is a consistent, hassle-free income stream coupled with true transparency. This is where Ark7’s model of fractional ownership in U.S. rental homes, where you can invest in rental homes, stands apart. By focusing on monthly cash distributions, zero ongoing asset fees, and a functional secondary market, Ark7 has engineered a platform that aligns its success directly with its investors. This comprehensive guide breaks down the critical differences between these three platforms to help you make the most informed decision.

Key Takeaways

• Ark7 is the best choice for consistent monthly income, offering regular cash distributions, a unique feature its competitors lack, with yields between 3.96% and 7.65%.
• Ark7’s $0 AUM fee structure saves investors significant costs over time compared to BuyProperly’s 1.25-2.5% annual fee, aligning its interests directly with investor performance.
• Liquidity is a key Ark7 advantage, with a functional secondary market (PPEX ATS) where 70% of properties are actively trading after a one-year hold, a feature Addy completely lacks.
• Ark7 is the only platform of the three that supports IRA investing, allowing you to use tax-advantaged retirement accounts to purchase real estate shares through its IRA offering.
• While Addy boasts a $1 minimum and BuyProperly offers cross-border assets, Ark7’s combination of low entry ($20/share), monthly income, and liquidity makes it the superior choice for most U.S.-based investors.

Understanding Fractional Real Estate Investing: A Primer

Fractional real estate investing allows multiple investors to pool their capital to purchase a single property, with each owning a share of the asset. This model democratizes real estate, an asset class traditionally reserved for the wealthy, by lowering the entry barrier. Investors benefit from rental income and potential property appreciation without the burdens of property management, tenant issues, or massive upfront capital.

The core appeal lies in accessibility, passive income, and diversification. However, not all platforms are created equal. The fine print on fees, distribution frequency, and liquidity options can drastically alter your investment’s long-term value. When evaluating platforms, it’s crucial to look beyond the minimum investment and consider the total cost of ownership, the reliability of income, and your ability to exit the investment if needed.

Ark7: Accessible & Transparent Real Estate for Everyone

Ark7’s mission is to make real estate investment accessible to everyone, and its platform is built around this core principle. It offers fractional ownership in a curated portfolio of cash-flowing, single-family homes and townhomes across high-growth Sunbelt markets in the United States. The platform is designed for simplicity and transparency, from the initial investment through to monthly distributions.

Key Ark7 Advantages:

• Monthly Cash Distributions: Unlike its competitors, Ark7 provides consistent monthly income. This predictable cash flow is a powerful tool for investors looking to build a passive income stream. Historical yields have ranged from 3.96% to 7.65%.
• Zero AUM Fees: Ark7 charges no annual asset-under-management (AUM) fees. This is a critical differentiator. While other platforms take a percentage of your total investment each year, regardless of performance, Ark7’s fee structure is aligned with success. You only pay a one-time 3% sourcing fee and a management fee of 8-15% of the rental income generated, which is paid from the rent itself, not your principal.
• Operational Transparency: Ark7 provides full access to property documents, financials, and legal disclosures 24/7, empowering investors to make confident, informed decisions. The platform is built on the value of community, efficiency, and transparency.
• SEC Regulation A+ Compliance: All offerings are qualified with the SEC under Regulation A+, and securities are issued through series LLCs, providing a clear legal structure for investors. The broker-dealer of record is Dalmore Group LLC, a registered member of FINRA and SIPC.

Investment Opportunities: Property Types and Markets

The quality and location of the underlying assets are paramount to a successful real estate investment. All three platforms focus on residential properties, but their geographic and strategic focus differs.

Ark7 concentrates its efforts on the U.S. Sunbelt region, a market known for its strong population growth, job creation, and landlord-friendly policies. Its portfolio includes a mix of modern single-family homes and townhomes in cities like Atlanta, Tampa, and Dallas. For example, you can invest in a newly built 3-bedroom townhome in Jonesboro, GA, or a spacious 4-bedroom home in Land O Lakes, FL. This focused strategy allows Ark7 to develop deep expertise in its chosen markets, leading to better property selection and management.

BuyProperly offers a broader range of asset classes, including not just U.S. and Canadian real estate, but also private credit, private equity, and hedge funds. While this provides diversification, it also means its real estate expertise is spread thinner across multiple markets and asset types.

Addy has a strong focus on the Canadian market, with a large portfolio of properties there, and a smaller, growing presence in the U.S. Its extensive asset base of $1.36+ billion is impressive, but its lack of a secondary market is a major liquidity constraint for investors.

For investors seeking a focused, expertly managed U.S. real estate portfolio, Ark7’s targeted strategy in high-growth Sunbelt markets provides a compelling, high-quality opportunity.

Minimum Investment and Accessibility

A major draw of fractional real estate is its low barrier to entry. Here’s how the platforms compare:

• Addy: $1 per share. This is the lowest entry point in the industry, making it highly accessible for those with very limited capital.
• Ark7: $20 per share. This is a very low minimum that still allows for meaningful portfolio diversification. For $200, you could invest in 10 different properties, spreading your risk.
• BuyProperly: $500 USD (or $2,500 CAD). This is a significantly higher barrier to entry, which can be prohibitive for many new investors or those looking to diversify across multiple assets.

While Addy’s $1 minimum is attractive, the practical difference between $1 and $20 is minimal for most investors who are looking to make a serious, diversified investment. Ark7’s $20 minimum strikes an ideal balance between accessibility and the ability to build a resilient portfolio of real estate assets.

Fees and Structure: What You Pay and Why

Fees are the silent killer of investment returns. A seemingly small annual fee can compound into a significant cost over a 5- or 10-year holding period.

Ark7’s Fee Structure:

• One-time 3% sourcing fee on your investment.
• 8-15% of the monthly rental income as a property management fee (paid from the rent, not your capital).
• $0 annual AUM fee.

BuyProperly’s Fee Structure:

• AUM fees of 1.25-2.5% annually, plus taxes. On a $10,000 investment, this is $125-$250 every year, whether the property performs well or not. Fee structures are subject to change; this information is based on the latest available third-party analysis.

Addy’s Fee Structure:

• A flat $25 annual membership fee.

The long-term cost difference is stark. Over five years, an investor on BuyProperly could pay $625-$1,250 in AUM fees alone on a $10,000 investment, while an Ark7 investor pays $0 in such fees. This performance-aligned fee structure is a fundamental reason why Ark7 is the superior choice for building long-term wealth.

Liquidity Options & Secondary Market Trading

Real estate is traditionally an illiquid asset. One of the most significant innovations in fractional ownership is the potential for a secondary market, where investors can buy and sell their shares before the property is sold.

• Ark7: Offers a functional secondary market through the PPEX ATS, a SEC-registered alternative trading system. After a one-year holding period, investors can list their shares for sale. Approximately 70% of properties are actively trading on this platform, providing a real liquidity option.
• Addy: Has no secondary market. Investors are locked into their investment until the property is sold, which can take 5-10 years. This is a major drawback for investors who may need access to their capital.
• BuyProperly: Provides limited information on a secondary market. Its typical hold period is around 5 years, suggesting that liquidity is not a core feature of its platform.

For investors who value flexibility and the option to adjust their portfolio, Ark7’s secondary market is a game-changing feature that its competitors simply cannot match.

IRA Investing in Real Estate through Fractional Shares

For long-term wealth building, using a tax-advantaged retirement account to invest in real estate is a powerful strategy. Ark7 is the only platform among the three that offers this capability.

Through a partnership with Inspira Financial Company, a qualified custodian, investors can open a self-directed IRA (Traditional or Roth) and use those funds to purchase shares of Ark7 properties. This allows your real estate investment to grow either tax-free (Roth) or tax-deferred (Traditional), significantly boosting your long-term returns. This feature is a major advantage for retirement-focused investors and is completely absent from both BuyProperly and Addy’s offerings.

Transparency, Regulation, and Investor Protection

In the world of online investing, trust and security are non-negotiable. Ark7 operates with a high degree of transparency and regulatory compliance.

All of its offerings are qualified under SEC Regulation A+, which requires detailed financial and legal disclosures in an offering circular that is publicly available. The platform’s securities are issued through a series LLC structure, providing a clear legal separation for each property investment. Furthermore, transactions are handled by Dalmore Group, LLC, a FINRA and SIPC registered broker-dealer, adding another layer of investor protection.

While BuyProperly and Addy also operate under regulatory frameworks, Ark7’s commitment to “full operational transparency” and its provision of 24/7 access to all relevant documents sets a high standard for the industry and gives investors peace of mind.

Ark7 vs. Its Competitors: Key Differentiators

While all three platforms offer a path into fractional real estate, Ark7’s unique combination of features creates a superior investor experience.

• Consistent Monthly Income: In a world of quarterly or variable payouts, Ark7’s monthly distributions provide a reliable and predictable cash flow, a feature that directly benefits an investor’s financial planning.
• Cost Efficiency: The $0 AUM fee structure is a massive, long-term advantage that keeps more of your money working for you.
• Liquidity: The active secondary market provides a real exit strategy, a freedom that Addy investors do not have.
• Technology & Experience: The Ark7 Mobile App offers an intuitive and seamless experience for managing your portfolio, while the company’s focus on the U.S. Sunbelt allows for deep market expertise.
• Aligned Interests: Ark7 holds a minority ownership stake (1%-20%) in every property it offers, meaning its own capital is on the line, and its success is directly tied to the success of its investors.

In summary, while Addy excels in ultra-low entry and Canadian market share, and BuyProperly offers cross-border diversification, Ark7 delivers the most holistic and investor-friendly platform for those seeking a reliable, transparent, and liquid way to build wealth through U.S. rental real estate.

Frequently Asked Questions

What is fractional real estate investing?

Fractional real estate investing allows you to buy a share of a property alongside other investors. This model lets you gain exposure to the rental income and potential appreciation of real estate without needing the capital to buy an entire property or the responsibility of managing it yourself. Platforms like Ark7 handle all acquisition, leasing, and maintenance, so you can earn passive income. This approach democratizes real estate investing and makes it accessible to a broader range of investors.

What is the minimum investment required for Ark7?

The minimum investment on Ark7 is as low as $20 per share. This low barrier to entry allows investors to easily diversify their portfolio across multiple properties in different markets. For example, with just $200, you could invest in 10 different properties, spreading your risk. This makes Ark7 highly accessible for both new and experienced investors.

Can I invest my IRA funds in real estate through Ark7?

Yes, you can. Ark7 is the only platform among its key competitors to offer IRA investing. You can open a self-directed Traditional or Roth IRA through their partner, Inspira Financial Company, and use those funds to purchase shares in Ark7 properties, allowing for tax-advantaged growth. This feature significantly boosts your long-term returns by either deferring taxes (Traditional IRA) or eliminating them entirely on gains (Roth IRA).

How liquid are investments on real estate crowdfunding platforms?

Liquidity varies greatly by platform. Ark7 offers a significant advantage with its secondary market on PPEX ATS, where you can sell your shares after a one-year holding period. Approximately 70% of Ark7 properties are actively trading, providing real liquidity. In contrast, Addy has no secondary market, meaning your capital is locked in until the property is sold, which can be many years.

Are there hidden fees when investing with Ark7?

No, Ark7 emphasizes a policy of “no hidden fees, no surprise ever.” The fee structure is transparent: a one-time 3% sourcing fee and a property management fee of 8-15% of the rental income. Crucially, there are $0 annual AUM fees, which is a major cost savings compared to competitors like BuyProperly. All fees are clearly disclosed upfront in the offering circular.

How does Ark7 ensure transparency for investors?

Ark7 is committed to “full operational transparency.” All investors have 24/7 access to complete legal, financial, and property documents for every offering. All offerings are qualified under SEC Regulation A+, which mandates detailed public disclosure, and transactions are handled by a FINRA-registered broker-dealer. This comprehensive approach ensures investors can make fully informed decisions with confidence.