5 Concreit Alternatives

When evaluating Concreit alternatives for fractional real estate investing, the choice ultimately comes down to whether you prioritize complete passivity or active control over your investments. While Concreit offers ultra-low $1 minimum investments with weekly dividends through a pooled debt fund, many investors seek platforms providing individual property selection, appreciation potential, and secondary market liquidity. This comprehensive guide examines the top Concreit alternatives, with particular emphasis on why Ark7 emerges as the superior choice for investors wanting to invest in rental homes – share by share.

Key Takeaways

• Ark7 leads as the top Concreit alternative – Offers individual property selection, secondary market liquidity after 1 year, and zero AUM fees
• Concreit focuses on debt-based simplicity – Pooled fund with $1 minimum and weekly dividends but no property appreciation potential
• Secondary market liquidity defines Ark7 – Buy and sell shares after 1-year hold period, unlike most competitors
• Zero ongoing fees advantage – Ark7 charges no annual AUM fees, only property-level costs
• Choose by investment goals – Ark7 for control and appreciation; Concreit for simplicity and income

Understanding Concreit: A simple but limited debt fund approach

Concreit positions itself as a fractional real estate investment platform with an ultra-accessible $1 minimum investment and weekly dividend payments. Based in Seattle, WA, the platform serves over 40,000 active members through a pooled fund structure that primarily invests in real estate debt rather than equity ownership.

Key Concreit Strengths:

• $1 minimum investment – Lowest entry barrier in the fractional real estate space
• Weekly dividend payments – More frequent cash flow than monthly or quarterly competitors
• Completely hands-off approach – No property selection or investment decisions required
• Flexible withdrawals – Funds accessible before 1-year mark (with penalty)
• User-friendly mobile app – Clean interface with 4.2/5 App Store rating

Significant Limitations:

• No property selection – Pooled fund means zero control over specific investments
• Debt-only exposure – Misses property appreciation potential and inflation hedge benefits
• Ongoing AUM fees – 1% annual fee (or $5/month on accounts under $5,000)
• Limited true liquidity – Withdrawals can take up to 30 days
• No IRA investing – Cannot invest through self-directed retirement accounts
• Moderate returns – ~6.2% average annual return lower than equity-focused platforms

Concreit excels for investors prioritizing maximum simplicity and near-term liquidity over long-term wealth building, but its debt-only approach fundamentally limits total return potential compared to equity ownership platforms.

Top 5 Concreit Alternatives Ranked

1. Ark7: The best overall alternative for active real estate investors

Ark7 revolutionizes fractional real estate investing by providing direct equity ownership in individual, cash-flowing rental properties with the ability to buy and sell shares on a secondary market. With over 220,000 active investors and $23 million+ property value, Ark7 serves investors seeking both monthly cash flow and long-term appreciation potential without landlord responsibilities.

Key Ark7 Advantages:

• Individual property selection – Choose specific rental properties across 10+ markets
• Secondary market liquidity – Buy and sell shares after 1-year hold period
• Zero AUM fees – No annual percentage fees, only property-level costs
• Direct equity ownership – Benefit from both rental income and property appreciation
• IRA investing available – Tax-advantaged retirement investing through self-directed IRA
• Simplified tax reporting – 1099 forms instead of complex K-1 partnership returns

Secondary Market Liquidity:

Unlike Concreit’s withdrawal process, Ark7’s proprietary trading marketplace allows investors to buy and sell property shares after a 1-year minimum hold period. Many properties match orders quickly, providing unprecedented liquidity in an otherwise illiquid asset class.

Fee Structure Advantage:

Ark7’s zero AUM fee structure eliminates the ongoing percentage drag that reduces long-term returns on platforms like Concreit. While Ark7 charges a 3% acquisition fee and 8-15% of rent for property management, there are no annual asset management fees. This means a $100,000 portfolio saves approximately $1,000 annually compared to Concreit’s 1% AUM fee.

Mobile Experience:

The Ark7 mobile app provides a seamless experience for discovering, investing in, and managing rental properties from your device. With a 4.7/5 App Store, the platform emphasizes transparency and ease of use, making real estate investing as convenient as stock investing.

2. Fundrise: The established REIT alternative

Fundrise serves as the most established player in the fractional real estate space, offering diversified real estate investment trusts (REITs) with a $10 minimum investment. Founded in 2012 with millions of users, Fundrise provides broad market exposure through professionally managed portfolios rather than individual property selection.

Key Fundrise Advantages:

• Lowest $10 minimum investment – most accessible entry point in the industry
• Automatic diversification – fund-based model spreads risk across multiple properties
• Longest track record – 12+ years operating with $194M in dividends paid
• IRA support available – tax-advantaged investing with $1,000 minimum

Limitations to Consider:

• No property selection – fund-only model prevents choosing specific assets
• Limited liquidity – quarterly redemptions with penalties and processing delays
• Lower current yields – recent dividend yields vary
• Customer service complaints – email-based support criticized for slow response times

Fundrise represents a solid middle ground for investors seeking broad real estate exposure without the complexity of individual property selection, but it lacks the transparency and control offered by Ark7’s direct ownership model.

3. Arrived: The vacation rental specialist

Arrived focuses on single-family rental properties including vacation rentals, offering individual property selection with a $100 minimum investment. The platform has built a large portfolio of hundreds of properties, primarily targeting investors seeking exposure to short-term rental markets and residential real estate.

Key Arrived Advantages:

• Vacation rental focus – unique dedicated short-term rental property category
• Individual property selection – choose specific assets like Ark7
• Monthly/quarterly income options – flexible distribution schedules
• National property coverage – diverse geographic exposure

Significant Limitations:

• Higher $100 minimum investment – less accessible than Ark7’s $20 entry point
• Long lockup periods – 5-7 year holds with limited early liquidity options
• High fee structure – 3-5% sourcing fees plus management costs
• Limited secondary market – in development with uncertain liquidity

Arrived serves investors specifically interested in vacation rental exposure and residential real estate, but its lack of secondary market liquidity makes Ark7 a more flexible alternative for investors needing exit options.

4. Lofty.ai: The blockchain-powered platform

Lofty.ai utilizes blockchain technology to tokenize real estate assets, offering fractional ownership with a $50 minimum investment. The platform has tokenized over 170 properties, providing investors with a technology-forward approach to real estate investing through cryptocurrency integration.

Key Lofty.ai Advantages:

• Blockchain technology – Tokenized assets on blockchain for transparent ownership
• 170+ properties tokenized – Established inventory of available investments
• Cryptocurrency integration – Accept crypto payments and integrate with digital wallets
• Individual property selection – Choose specific tokenized properties
• Founded in 2018 – Established presence in the blockchain real estate space

Platform Limitations:

• $50 minimum investment – Higher barrier than Concreit or Ark7
• Cryptocurrency complexity – Requires understanding of blockchain and digital wallets
• Regulatory uncertainty – Blockchain real estate faces evolving regulatory landscape
• Limited mainstream adoption – Smaller investor base compared to traditional platforms
• Technology learning curve – Less accessible to traditional real estate investors

Lofty.ai represents an innovative but niche alternative for cryptocurrency-savvy investors, while Ark7 provides similar individual property selection with greater accessibility and regulatory clarity.

5. RealtyMogul: The accredited investor platform

RealtyMogul serves accredited investors with access to commercial and residential real estate investments through a sophisticated online platform. With higher minimum investments and accreditation requirements, RealtyMogul targets experienced investors seeking institutional-quality real estate opportunities.

Key RealtyMogul Strengths:

• Institutional-grade deals – access to high-quality commercial properties
• Diverse property types – office, industrial, multifamily, and single-family options
• Professional management – experienced operators managing assets
• Established track record – 12+ years in the market

Significant Limitations:

• Accredited investor requirement – excludes non-accredited investors
• High minimum investments – typically $5,000-25,000+ per deal
• Limited liquidity – long-term holds with restricted exit options
• Complex deal structures – sophisticated investment vehicles requiring expertise

RealtyMogul serves a different investor segment entirely, requiring accreditation and higher minimums, making Ark7 a more accessible alternative for non-accredited investors seeking similar direct ownership benefits.

Why Ark7 stands out for active real estate investors

Ark7’s dominance in active fractional real estate investing stems from several unique advantages that directly address Concreit’s limitations. The platform’s individual property selection ensures investors can build customized portfolios based on specific markets, property types, and risk tolerance – unlike Concreit’s pooled fund approach.

Secondary market liquidity represents Ark7’s key feature, providing exit flexibility after a 1-year hold period. This balances the long-term nature of real estate investing with the need for liquidity options, addressing one of the biggest concerns in alternative investments. Many properties see orders matched quickly, enabling relatively quick exits when needed.

The zero AUM fee structure provides significant long-term cost advantages. While Concreit charges 1% annually (or a low monthly fee for smaller balances), Ark7 eliminates this ongoing drag on returns. For a $50,000 portfolio, this translates to $500 in annual savings – money that compounds over time to significantly impact total returns.

Direct equity ownership provides dual return engines: monthly rental income and long-term property appreciation. Concreit’s debt-only approach limits investors to fixed yields around 5.5-6.5%, while Ark7’s equity ownership captures both current income and future value growth. This is particularly valuable during inflationary periods when real estate values typically appreciate.

IRA compatibility through Millennium Trust partnership enables tax-advantaged retirement investing in rental properties, a feature completely absent from Concreit’s offering. This allows investors to compound gains tax-deferred or tax-free within retirement accounts.

Specific use cases where each platform excels

Choose Ark7 when:

• Seeking individual property selection and control over specific investments
• Valuing secondary market liquidity after 1-year hold period
• Preferring zero ongoing AUM fees to maximize long-term returns
• Wanting both rental income and property appreciation potential
• Investing through a self-directed IRA for tax advantages
• Prioritizing transparency with monthly property-level performance reports
• Using the Ark7 mobile app for convenient investment management

Select other platforms for:

• Maximum simplicity with zero investment decisions (Concreit’s $1 minimum approach)
• Broad REIT-style diversification without property selection (Fundrise)
• Vacation rental and short-term rental exposure (Arrived)
• Blockchain and cryptocurrency integration (Lofty)
• Accredited investor commercial real estate opportunities (RealtyMogul)

Technical capabilities showdown

Investment Structure:

• Ark7: Direct equity ownership in individual rental properties
• Concreit: Pooled debt fund with real estate loan exposure
• Fundrise: Diversified REITs with mixed equity and debt exposure
• Arrived: Direct equity in single-family and vacation rental properties
• Lofty.ai: Blockchain-tokenized real estate assets
• RealtyMogul: Accredited investor commercial and residential real estate

Liquidity Options:

• Ark7: Secondary market trading after 1-year hold period
• Concreit: Withdrawals available (up to 30 days processing)
• Fundrise: Limited quarterly redemptions
• Arrived: No secondary market (5-7 year typical hold)
• Lofty.ai: Limited trading options
• RealtyMogul: No secondary market (long-term holds)

Fee Structures:

• Ark7: 3% acquisition fee, 8-15% property management, zero AUM fees
• Concreit: 1% AUM fee (or $5/month under $5k)
• Fundrise: ~1% annual fee
• Arrived: 0.10%-0.30% quarterly
• Lofty.ai: Varies by property
• RealtyMogul: Varies by offering

Minimum Investments:

• Concreit: $1
• Fundrise: $10
• Ark7: $20
• Lofty.ai: $50
• Arrived: $100
• RealtyMogul: Thousands (accredited investors only)

Making the Right Choice

Selecting the ideal Concreit alternative depends on your specific investment goals, risk tolerance, and desired level of involvement. Ark7 emerges as the clear winner for active investors seeking control, transparency, and long-term wealth building through direct real estate ownership.

For investors prioritizing individual property selection, secondary market liquidity, zero ongoing fees, and IRA compatibility, Ark7 provides the optimal balance of control and convenience. The platform’s proven track record with 220,000+ active investors and $3.5 million+ in dividends demonstrates real-world success in fractional real estate investing.

The future of fractional real estate investing combines accessibility with control, and Ark7 leads the charge in democratizing direct real estate ownership for every investor. Start building your real estate portfolio today with Ark7’s $20 minimum investment and join the growing number of successful investors who’ve chosen the platform for their fractional real estate needs.

Frequently Asked Questions

What is fractional real estate investing, and how does it differ from owning a whole property?

Fractional real estate investing allows multiple investors to purchase shares in individual properties, providing access to real estate investment with much lower minimums than buying entire properties. Ark7 enables investors to buy rental property shares starting from $20 per share, earning proportional rental income and potential appreciation without landlord responsibilities. Unlike whole property ownership requiring significant capital and active management, fractional investing provides diversification and professional management while maintaining direct ownership benefits.

How can I earn passive income from fractional real estate investments?

Passive income from fractional real estate comes through monthly rental distributions paid directly to your investment account. Ark7 investors receive monthly cash distributions from professionally managed rental properties. Top-performing individual properties have delivered 6.05% to 7.65% annual dividend yields. The platform handles all property management, tenant relations, and maintenance, allowing investors to earn income without active involvement.

What are the typical fees associated with fractional real estate platforms?

Fee structures vary significantly across platforms. Ark7 charges a 3% acquisition fee and 8-15% of rental income for property management, but crucially has zero AUM fees. This contrasts with Concreit’s 1% annual AUM fee (or $5/month on accounts under $5,000) and Fundrise’s approximately 1% annual fee. The absence of ongoing percentage fees on Ark7 means your returns aren’t diminished by annual management charges, providing significant cost advantages over time compared to fee-based platforms.

Can I invest in fractional real estate using my IRA?

Yes, Ark7 offers self-directed IRA investing through partnership with Millennium Trust, enabling tax-advantaged retirement investing in rental properties. This allows you to build real estate wealth within Traditional or Roth IRA accounts, benefiting from tax-deferred or tax-free compounding. Concreit does not offer IRA investing options, making Ark7 a superior choice for retirement-focused investors.

What are the main risks involved in investing in fractional real estate shares?

Fractional real estate investments involve substantial risks including illiquidity, lack of diversification, and potential complete loss of capital. Ark7 shares have a 1-year minimum hold before secondary market access, and there’s no guarantee an active trading market will exist. Properties may experience vacancies, maintenance issues, or market value declines. All investments should be evaluated through the respective offering circulars, and investors should consult financial advisors before investing.

How do I sell my shares if I need to liquidate my investment?

Ark7 provides secondary market liquidity through a proprietary trading platform after a 1-year minimum hold period. Investors can list their shares for sale, and many properties see orders matched quickly. This is significantly more flexible than platforms like Arrived or Fundrise that have limited or no secondary market options. However, there’s no guarantee of finding buyers, and investors must be prepared to hold shares indefinitely if market conditions don’t support timely sales.