Concreit vs 1031 Crowdfunding vs Ark7: Finding the Right Fractional Real Estate Platform

When evaluating fractional real estate investment platforms, investors face a critical decision between accessibility, control, and long-term value. Traditional approaches often force tradeoffs between low entry barriers and property selection, or between passive income and potential appreciation. This is where Ark7 transforms the paradigm. By offering direct equity ownership in individual rental properties with a $20 minimum investment per share, Ark7 delivers both accessibility and control that competitors cannot match. This comprehensive guide examines the key differences between Concreit, 1031 Crowdfunding, and Ark7, with particular emphasis on why Ark7 emerges as the superior choice for most investors seeking to participate in digital real estate investing.

Key Takeaways

• Ark7 stands out as the premier solution for fractional real estate investing with individual property selection, zero annual AUM fees, and secondary market liquidity after a 12-month hold period
• Concreit offers the lowest absolute minimum ($1) but provides only pooled debt exposure without property selection or appreciation potential
• 1031 Crowdfunding is specialized for accredited investors needing tax-deferred exchanges but charges 5-7% embedded fees and requires $25,000+ minimum investments
• Ark7’s zero AUM fee structure saves investors $1,000-$2,000 over 10 years on a $10,000 investment compared to platforms charging 1% annual fees
• Consider your primary need: Choose Ark7 for individual property control with dual return engines, Concreit for ultra-low minimum with weekly dividends, or 1031 Crowdfunding specifically for 1031 exchange eligibility

Understanding Fractional Real Estate Investing Platforms

Fractional real estate investing platforms have democratized access to rental property ownership, allowing investors to build wealth through real estate without the burdens of direct property management. However, not all platforms are created equal. The fundamental differences lie in investment structure, minimum requirements, fee structures, and liquidity options.

Ark7’s approach centers on direct equity ownership in individual, cash-flowing rental properties. Investors purchase shares representing fractional ownership in specific single-family or multi-family homes, receiving monthly rental distributions and potential appreciation. With a $20 minimum investment, Ark7 makes real estate accessible to virtually any investor while maintaining full transparency through 24/7 access to complete legal and financial disclosure.

Key Benefits of Fractional Real Estate Investing:

• Accessibility – Lower capital requirements compared to traditional real estate purchases
• Diversification – Ability to spread investments across multiple properties and markets
• Passive income – Regular cash distributions without landlord responsibilities
• Professional management – End-to-end property management handled by the platform
• Transparency – Access to detailed financial and operational information

Concreit: A Look at its Investment Approach

Concreit takes a fundamentally different approach to fractional real estate investing by offering a pooled debt fund rather than direct equity ownership. Investors contribute to a fund that provides short-term loans to real estate developers and investors, earning fixed income through monthly (or weekly) dividends.

Key Concreit Characteristics:

• Ultra-low minimum investment of $1, making it the most accessible entry point in the industry
• Pooled fund model with no ability to select specific properties or markets
• Debt-only exposure providing fixed 5.5-6.5% yields but no appreciation potential
• 1% annual AUM fees (or $5/month for accounts under $5,000)
• Weekly dividend distributions, the most frequent payout schedule in the industry
• No IRA investing capabilities, limiting retirement account options

Investment Structure Considerations: Concreit’s pooled fund model doesn’t provide individual property selection, market exposure control, or investment timing flexibility. While this simplicity appeals to completely passive investors, it prevents strategic portfolio construction and doesn’t offer the potential for property appreciation that comes with direct equity ownership.

Liquidity Considerations: Concreit allows redemption requests at any time, though withdrawals made before the one-year mark incur penalties. However, redemption processing can take up to 30 days and depends on the fund’s available cash reserves, which may create liquidity constraints during certain market conditions.

1031 Crowdfunding: Navigating the 1031 Exchange Landscape

1031 Crowdfunding specializes in Delaware Statutory Trusts (DSTs) designed specifically for investors needing to complete like-kind exchanges under Section 1031 of the Internal Revenue Code. This platform serves a niche but important market segment of accredited investors seeking to defer capital gains taxes on real estate sales.

Key 1031 Crowdfunding Characteristics:

• Accredited investor requirement limits accessibility for non-accredited investors
• High minimum investments of $25,000+ per DST investment
• 5-7% embedded fees significantly higher than other platforms
• 7-10 year typical holding periods with no secondary market liquidity
• Complex K-1 tax reporting instead of simple 1099 forms
• DST qualification specifically designed for 1031 exchange compliance

Specialized Use Case: 1031 Crowdfunding’s value proposition is narrowly focused on tax deferral for investors completing like-kind exchanges. The platform’s DST structures are IRS-approved vehicles that enable investors to defer 20-30% capital gains taxes on property sales by reinvesting proceeds into qualified replacement properties.

Cost and Accessibility Considerations: The combination of accredited investor requirements, high minimum investments, and substantial embedded fees limits accessibility for many retail investors. The 5-7% embedded fees translate to $50,000-$70,000 in costs over 10 years on a $100,000 investment, notably reducing net returns compared to lower-cost alternatives.

Ark7: Accessible & Transparent Fractional Real Estate Investments

Ark7 revolutionizes fractional real estate investing by combining accessibility, control, and long-term value in a single platform. Unlike pooled fund models, Ark7 offers direct equity ownership in individual, cash-flowing rental properties with complete transparency and professional management.

Key Ark7 Advantages:

• Individual property selection with full access to financials, legal documents, and performance metrics
• Zero annual AUM fees, eliminating ongoing percentage-based drag on returns
• Secondary market liquidity through PPEX ATS after a 12-month hold period
• Dual return engines combining monthly rental income with long-term appreciation potential
• Low minimum investment of $20 per share, accessible to all investor types
• Simple 1099 tax reporting instead of complex K-1 partnership forms
• Professional property management handling all operational aspects

How It Works: Ark7’s platform enables investors to browse curated rental properties across 10+ U.S. markets, review complete financial and legal documentation, and purchase shares representing fractional ownership. Each property operates as a separate series LLC, with investors receiving monthly cash distributions and maintaining ownership stakes in specific assets rather than pooled funds.

Performance and Transparency: Ark7 provides property-specific performance data, with current dividend yields ranging from 2.5% to 8.33% depending on the specific property. Top performers include Urbana-S11 at 8.33% and Dallas-S8 at 6.51%. The platform maintained an 87.12% portfolio occupancy rate as of November 2024, demonstrating strong tenant demand and operational effectiveness.

Investment Accessibility and Minimums: Concreit vs 1031 Crowdfunding vs Ark7

The entry barriers for fractional real estate investing vary dramatically across platforms, significantly impacting accessibility for different investor types.

Minimum Investment Comparison:

• Concreit: $1 minimum, but pooled fund only with no property selection
• Ark7: $20 per share minimum with individual property selection and direct equity ownership
• 1031 Crowdfunding: $25,000+ minimum with accredited investor requirement
• Fundrise: $10 minimum but pooled fund only

Investor Type Requirements:

• Ark7: Open to all investors, accredited and non-accredited alike
• Concreit: Open to all investors
• 1031 Crowdfunding: Accredited investors only
• Fundrise: Open to all investors

Accessibility Analysis: While Concreit offers the lowest absolute minimum investment, Ark7 provides strong value by combining low entry barriers with individual property selection. The $20 minimum enables meaningful diversification across multiple properties even with limited capital—for example, $200 could be allocated across 10 different properties in various markets.

1031 Crowdfunding’s $25,000+ minimum and accredited investor requirement create significant barriers for many retail investors, limiting its relevance to a specialized market segment.

Fee Structures and Operational Transparency: A Comparative Analysis

Fee structures significantly impact long-term investment returns, making this a critical comparison factor across platforms.

Fee Structure Comparison

Ark7 charges 0% AUM fees, 3% one-time acquisition fees, 8-15% property management fees (of rent), and $0 secondary market transaction fees.

Concreit charges 1% annual AUM fees (or $5/month for accounts under $5,000), no acquisition fees, and embedded property management within the fund, plus up to 0.1% ACH transaction fees.

1031 Crowdfunding charges 5-7% embedded fees that include acquisition, property management, and other costs within the DST structure, with transaction fees not publicly disclosed.

Long-Term Cost Impact: Ark7’s zero AUM fee structure provides substantial cost savings over time. On a $10,000 investment held for 10 years, Ark7 saves investors $1,000-$2,000 compared to 1% fee platforms like Concreit, and $47,000-$67,000 compared to 1031 Crowdfunding on a $100,000 investment.

Transparency Advantages: Ark7’s individual property structure provides complete transparency with 24/7 access to legal and financial disclosure documents. Investors can review detailed property financials, lease agreements, market analysis, and monthly performance reports for each specific asset in their portfolio.

In contrast, Concreit’s pooled fund model provides more limited transparency, with investors unable to see specific loan details or property-level performance metrics. 1031 Crowdfunding offers moderate transparency through DST offering documents but lacks the granular, ongoing reporting available through Ark7’s platform.

Risk and Liquidity: What Investors Need to Know

Liquidity remains one of the most significant concerns in fractional real estate investing, with platforms offering dramatically different solutions.

Liquidity Comparison:

• Ark7: Secondary market trading available through PPEX ATS after 12-month hold period
• Concreit: Redemption requests accepted anytime (penalty if <1 year), processing up to 30 days
• 1031 Crowdfunding: Illiquid 7-10 year typical holding periods with no secondary market
• Fundrise: Quarterly redemption windows with penalties and processing delays

Ark7’s Secondary Market Innovation: Ark7’s integration with PPEX ATS represents a significant innovation in fractional real estate liquidity. After a 12-month minimum hold period, investors can buy and sell shares on the secondary market, enabling portfolio rebalancing and access to capital without waiting for property sales.

However, investors should note that secondary market liquidity is not guaranteed and depends on buyer demand. As stated in Ark7’s compliance documentation, “there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform… investors must be prepared to hold their Shares indefinitely.”

Risk Considerations: All fractional real estate investments involve substantial risks including illiquidity, lack of diversification, and complete loss of capital. Ark7’s individual property structure creates concentration risk if investors don’t diversify across multiple properties, while pooled funds like Concreit provide automatic diversification but don’t offer individual property control.

Using Your IRA to Invest in Real Estate with Ark7 and Others

Retirement account investing provides significant tax advantages for real estate investments, but platform capabilities vary considerably.

IRA Investment Capabilities:

• Ark7: Supports both Traditional and Roth IRAs through Inspira Financial Company with $0 Ark7 fee to open
• Concreit: No IRA investing capabilities
• 1031 Crowdfunding: Limited IRA options for accredited investors
• Fundrise: Supports self-directed IRAs with $1,000 minimum

Ark7 IRA Advantages: Ark7’s IRA investment option enables investors to use retirement funds to purchase shares in individual rental properties, combining the tax advantages of retirement accounts with direct real estate ownership. The annual custodian fee is $100 per property (capped at $400 annually) and is waived for accounts with average balances exceeding $100,000.

This capability is particularly valuable for investors seeking to diversify retirement portfolios beyond traditional stocks and bonds while maintaining exposure to tangible real estate assets with both income and appreciation potential.

Ark7’s Technology: Making Investing Super Convenient

Ark7’s technology platform enhances the investment experience through intuitive design, real-time data, and seamless functionality.

Key Technology Features:

• Ark7 Mobile App with 4.7/5 rating on Apple App Store (1,300+ reviews)
• Real-time portfolio tracking with property-level performance metrics
• Integrated secondary market trading through PPEX ATS
• AI-driven property sourcing combined with local market expertise
• Secure transaction processing with electronic share issuance

Mobile Experience: The Ark7 Mobile App enables investors to discover properties, purchase shares, track dividends, and manage portfolios from anywhere. The intuitive interface simplifies complex real estate investing, making it as convenient as stock investing while providing the tangible asset backing and cash flow benefits of rental properties.

Property Discovery and Analysis: Ark7’s platform provides comprehensive property information including market data, comparable sales, rental projections, and detailed financial models. Investors can evaluate properties across multiple markets including Atlanta, Tampa, and Dallas, with current offerings like Atlanta-T3 Property Shares and Tampa-S10 Property Shares.

Investor Reviews and Reputation: What the Community Says

User satisfaction provides valuable insights into platform reliability and service quality.

Review Score Comparison:

• Ark7: 4.7/5 on Apple Store (1,300+ reviews), 4.2/5 on Trustpilot (243 reviews)
• Concreit: 4.2/5 on Apple App Store
• 1031 Crowdfunding: No mobile app, limited review data available

Common Ark7 Praise Points:

• Low entry barrier with property selection – “5% returns consistently, easy to use”
• Transparency and detailed disclosure – “Full access to property financials”
• Secondary market liquidity option – “Can sell shares after 1 year, unlike competitors”
• Professional property management – “No landlord headaches, steady monthly income”

Areas for Improvement: Some Ark7 users note challenges with secondary market liquidity, including occasional delays in listing shares or selling at desired prices. The platform’s relatively recent founding in 2018 (compared to competitors like Fundrise founded in 2012) means it has a shorter operational track record, though its $23 million+ in property value funded and 220,000+ active investors demonstrate strong market validation.

Specific Use Cases Where Each Solution Excels

Choose Ark7 when:

• You want individual property selection with full transparency and control
• You seek both monthly rental income and long-term appreciation potential
• You need secondary market liquidity after a 12-month hold period
• You want to avoid ongoing AUM fees that reduce long-term returns
• You’re investing through a retirement account (Traditional or Roth IRA)
• You prefer simple 1099 tax reporting over complex K-1 forms

Choose Concreit when:

• You need the absolute lowest minimum investment ($1)
• You prefer completely hands-off, pooled fund investing
• You want weekly dividend distributions
• You’re focused solely on fixed income without appreciation potential
• You don’t need IRA investing capabilities

Choose 1031 Crowdfunding when:

• You’re completing a 1031 like-kind exchange and need DST qualification
• You’re an accredited investor with $25,000+ to invest
• You’re comfortable with 7-10 year illiquid holding periods
• You need tax deferral on real estate sale proceeds
• You’re willing to pay 5-7% embedded fees for specialized services

Frequently Asked Questions

What is the core difference between investing with Concreit, 1031 Crowdfunding, and Ark7?

The fundamental difference lies in investment structure and control. Concreit offers a pooled debt fund with no property selection, providing fixed income but no appreciation potential. 1031 Crowdfunding specializes in Delaware Statutory Trusts for accredited investors needing tax-deferred exchanges, with high minimums and fees. Ark7 provides direct equity ownership in individual rental properties with full transparency, dual return engines combining income and appreciation, and secondary market liquidity after 12 months.

Can non-accredited investors participate in all three platforms?

Ark7 and Concreit are open to both accredited and non-accredited investors, with minimum investments of $20 and $1 respectively. However, 1031 Crowdfunding requires accredited investor status and has minimum investments of $25,000+, which limits accessibility for many retail investors. This makes Ark7 and Concreit more accessible options for investors who don’t meet accredited investor requirements.

How does a 1031 exchange or 721 exchange work with crowdfunding platforms like 1031 Crowdfunding?

1031 Crowdfunding facilitates like-kind exchanges under Section 1031 of the Internal Revenue Code by offering Delaware Statutory Trusts (DSTs) as qualified replacement properties. Investors selling appreciated real estate can defer 20-30% capital gains taxes by reinvesting proceeds into these DSTs within strict timeline requirements (45 days to identify, 180 days to close). The 721 exchange (UPREIT) allows investors to contribute properties directly to a REIT in exchange for shares, though this is less commonly offered through crowdfunding platforms.

Is my investment illiquid on these platforms, and how can I sell my shares if needed?

Liquidity varies significantly across platforms. Ark7 offers secondary market trading through PPEX ATS after a 12-month hold period, though active markets aren’t guaranteed. Concreit allows redemption requests anytime with penalties if under 1 year, but processing can take up to 30 days. 1031 Crowdfunding investments typically require 7-10 year holding periods with no secondary market option. Ark7 provides the most flexible liquidity option among the three platforms.