Ember vs CrowdStreet vs Ark7

When evaluating fractional real estate investment platforms, investors face a critical choice between accessibility, liquidity, and purpose. Ember caters to luxury vacation seekers, CrowdStreet serves accredited investors in commercial real estate, and Ark7 democratizes residential rental income for everyone. This comprehensive guide examines these three platforms, with particular emphasis on why Ark7 emerges as the superior choice for building passive income through real estate without the landlord’s work.

Key Takeaways

• Ark7 stands out as the most accessible platform, with a $20 minimum investment that is 1,250x lower than CrowdStreet and 5,000-25,000x lower than Ember, making real estate investing available to everyday investors
• Ark7 is the only platform offering a regulated secondary market, providing liquidity through the PPEX ATS after just a 1-year hold, while CrowdStreet and Ember lock investors in for 3-5 years or require owner consensus
• Ark7 delivers consistent monthly passive income from residential rentals, whereas CrowdStreet offers deal-dependent distributions and Ember provides no passive income at all, focusing solely on personal use
• Ark7’s non-accredited investor access through SEC Reg A+ qualification opens the door to 98% of U.S. investors excluded from accredited-only platforms like CrowdStreet
• Ark7 simplifies tax reporting with 1099 forms, a stark contrast to the complex K-1 partnership returns from CrowdStreet, reducing accounting costs and complexity

Understanding the Fractional Real Estate Investment Landscape

Fractional real estate platforms have traditionally served narrow, high-net-worth segments. Ember focuses on co-owning luxury vacation homes for personal use, while CrowdStreet provides access to institutional commercial real estate deals for accredited investors. These models leave a significant gap in the market: a platform for everyday investors seeking to build wealth through passive income from residential rental properties.

Ark7 was founded to fill this gap, with a mission to make real estate investment accessible to everyone. By offering shares in curated, high-yield rental properties for as little as $20, Ark7 has created a new category of income-focused, democratized real estate investing. The platform’s end-to-end management, from acquisition to leasing and maintenance, ensures investors receive monthly cash distributions without the hassles of being a landlord.

Key Challenges with Traditional Fractional Real Estate:

• High entry barriers that exclude the majority of investors
• Complete illiquidity with no path to exit for years
• Complex ownership structures leading to difficult tax reporting
• Lack of consistent income from vacation or commercial properties
• Accreditation requirements limiting participation to the wealthy

Top Fractional Real Estate Investment Platforms Ranked

Ark7: The best platform for accessible, income-focused real estate investing

Ark7 revolutionizes fractional real estate by offering shares in professionally managed, cash-flowing single-family and multi-family rental properties across the U.S. With a minimum investment of just $20, Ark7 has opened the door for over 220,000 active investors to build wealth through real estate. The platform’s focus on monthly passive income, transparency, and liquidity sets it apart from competitors.

Key Ark7 Advantages:

• Industry-lowest $20 minimum investment – democratizes real estate for everyone
• Monthly cash distributions – provides consistent, predictable passive income
• SEC-registered secondary market (PPEX ATS) – offers liquidity after a 1-year hold
• Open to all U.S. investors 18+ – no accreditation requirements thanks to Reg A+ qualification
• Simplified 1099 tax reporting – easier and less expensive than K-1 forms
• Full operational transparency – complete legal and financial disclosure accessible 24/7
• Intuitive mobile app – 4.7/5 rating on the App Store for managing investments on the go

How It Works:
Ark7’s process is designed for simplicity and accessibility. Investors can browse a curated selection of properties in high-growth markets like the Sunbelt, review all financial and legal documents, and purchase shares for as little as $20. Ark7’s team handles all aspects of property management, from tenant placement to maintenance, ensuring stable occupancy and consistent cash flow. Monthly dividends are paid directly to the investor’s account, and after a 1-year holding period, shares can be sold on the PPEX ATS secondary market.

Performance Validation:
Ark7’s focus on execution and transparency is reflected in its performance metrics. The platform has paid over $3.5 million in cumulative dividends to investors and maintains a portfolio occupancy rate of 94.81%. 

Technology and Integration:
Investors can manage their entire portfolio through Ark7’s mobile app, which allows for property discovery, share purchase, investment tracking, and trading on the secondary market. The platform also supports IRA investing through a partnership with Inspira Financial Company, enabling tax-advantaged real estate investing with a $100 annual fee per property (capped at $400).

CrowdStreet

CrowdStreet is a veteran in the real estate crowdfunding space, founded in 2013, with over $4 billion invested in commercial real estate deals. The platform connects accredited investors with institutional-grade sponsors offering office, retail, and industrial properties. While it provides access to a large deal flow, it comes with significant barriers to entry and liquidity constraints.

Key CrowdStreet Strengths:

• Large deal volume – 18 open investments were available during a recent sampling period
• No investor-facing platform fees – fees are paid by the deal sponsors
• Institutional-quality commercial deals – access to a segment of the market typically reserved for large funds

Key Considerations:

• Accredited investors only – excludes 98% of U.S. investors
• High minimum investment – $25,000 per deal
• No secondary market – illiquid 3-5 year hold periods with no guaranteed exit
• Complex K-1 tax reporting – requires more expensive and complex tax preparation
• Sponsor vetting issues – user reviews have criticized the platform for “poor job qualifying sponsors”
• Deal performance concerns – a Wall Street Journal investigation raised concerns about deal performance on the platform

Target Audience:
CrowdStreet is best suited for high-net-worth, accredited investors seeking exposure to commercial real estate with a higher risk/return profile. It is not a viable option for the vast majority of investors looking to build passive income with limited capital.

Ember

Ember offers a fundamentally different value proposition: co-ownership of luxury vacation homes. The platform allows investors to purchase shares in properties valued between $1.5 million and $5 million, with the primary benefit being personal use rights rather than passive income. Ember is a lifestyle product, not an income investment.

Key Ember Features:

• Personal use rights – 6+ weeks of annual vacation time for a 1/8 share ownership
• Luxury property access – high-end homes in desirable locations
• Full-service management – concierge and property management at cost

Key Considerations:

• No passive income – zero dividend distributions
• Extremely high minimums – $100,000 to $500,000 per share
• Limited liquidity – requires a 75% owner vote to sell the property
• High-net-worth only – serves a niche market of affluent individuals

Target Audience:
Ember is ideal for ultra-high-net-worth individuals seeking a luxury vacation ownership experience. It is not relevant for investors whose primary goal is to generate passive income from their real estate investments.

Why Ark7 Stands Out for Passive Income Investors

Ark7’s dominance in the accessible, income-focused real estate segment stems from its commitment to its core mission: making real estate investment accessible to everyone. While CrowdStreet and Ember serve their specific niches, Ark7 has built a platform that addresses the fundamental needs of the everyday investor.

Democratized Access:
The $20 minimum investment is not just a marketing gimmick; it’s a philosophical stance. This low barrier to entry allows investors to start building a real estate portfolio with minimal capital and to diversify across multiple properties. For example, with $500, an investor can own shares in 10-25 different properties, a level of diversification impossible on platforms with much higher minimums.

Superior Liquidity:
Real estate is traditionally an illiquid asset, but Ark7’s integration with the PPEX ATS, an SEC-registered alternative trading system, provides a unique path to liquidity. After a 1-year holding period, investors can sell their shares on this regulated market, a feature completely absent from both CrowdStreet and Ember. This flexibility is crucial for investors who may need to access their capital.

Consistent Monthly Income:
Ark7’s focus on residential rental properties in high-demand markets ensures a steady stream of monthly cash distributions. This contrasts sharply with CrowdStreet’s deal-dependent quarterly distributions and Ember’s complete lack of passive income. The platform’s 94.81% occupancy rate demonstrates the stability of this income model.

Simplified Ownership and Tax Reporting:
By issuing securities under Regulation A+, Ark7 provides a clear, legally compliant ownership structure. Furthermore, the use of 1099 tax forms, rather than the complex K-1s from partnership structures, significantly simplifies the tax filing process for investors, reducing both time and cost.

Specific Use Cases Where Each Platform Excels

Choose Ark7 when:

• You are a first-time real estate investor with limited capital
• Your primary goal is to generate consistent monthly passive income
• You need some level of liquidity and don’t want to be locked in for 5+ years
• You are a non-accredited investor seeking real estate exposure
• You want to simplify your tax filing with 1099 reporting
• You are looking to invest in residential rental properties in high-growth markets

Choose CrowdStreet when:

• You are an accredited investor with $25,000+ to deploy per deal
• You are seeking exposure to commercial real estate (office, retail, industrial)
• You have a high risk tolerance and are comfortable with a 3-5 year illiquid lockup
• You are comfortable with complex K-1 tax reporting
• You are looking for a higher potential return (17% realized IRR as of Sept. 2022) with higher risk

Choose Ember when:

• You are an ultra-high-net-worth individual with $100,000+ to invest
• Your primary goal is personal vacation home access, not passive income
• You are interested in co-owning a luxury property ($1.5M-$5M)
• You are comfortable with a long-term, illiquid ownership structure
• You value concierge services and full property management

Fees and Transparency

A platform’s fee structure is a critical factor in long-term returns. Ark7’s commitment to transparency is evident in its straightforward fee model.

Ark7 Fee Structure:

• Acquisition Fee: 3% of the property’s market cap
• Ongoing Management Fee: 8-15% of rental income, which covers all property management costs
• Platform Fee: $0
• IRA Annual Fee: $100 per property (capped at $400 annually, waived for balances over $100,000)

Ark7 explicitly states “No hidden fees, no surprise ever.” All fees are disclosed upfront in the offering circular, and the platform provides full operational and financial transparency 24/7.

In contrast, CrowdStreet’s fees are “sponsor-dependent,” meaning they can vary significantly from deal to deal and are often buried in lengthy private placement memorandums. Ember’s fee structure is not publicly disclosed, adding a layer of opacity for potential investors.

Property Selection and Sourcing

Ark7’s investment thesis is focused and clear: high-yield, single-family and multi-family rental properties in high-growth markets, primarily in the Sunbelt region. Properties like Sunbelt properties are selected for their strong rental demand, job growth, and appreciation potential. This curation process, powered by both data and local expertise, ensures a consistent quality of investment.

CrowdStreet offers a diverse range of commercial properties, but the quality is dependent on the individual sponsor. The platform acts as a marketplace, and its vetting process has been criticized by users.

Ember’s selection is based on luxury and location, not cash flow or yield, as its model is not income-focused.

IRA Investing and Tax Implications

Ark7’s support for IRA investing is a significant advantage for long-term wealth builders. Through its partnership with Inspira Financial Company, an IRS-approved custodian, investors can use their Traditional or Roth IRA funds to purchase shares in real estate. This allows for tax-deferred or tax-free growth of real estate assets, a powerful wealth-building strategy.

The simplified 1099 tax reporting from Ark7 is another major benefit. Unlike the K-1 forms from CrowdStreet, which report a share of the partnership’s income, deductions, and credits, the 1099 is a simple statement of income received. This makes tax season much easier and less expensive for Ark7 investors.

Frequently Asked Questions

What is the minimum investment for Ark7, Ember, and CrowdStreet?

The minimum investment for Ark7 is just $20 per share, making it the most accessible platform by far. In contrast, CrowdStreet requires a minimum of $25,000 per deal, and Ember’s minimums range from $100,000 to $500,000 per share. This massive difference in entry barriers makes Ark7 the only viable option for most investors.

Are fractional real estate investments liquid, and how can I sell shares?

Ark7 is the only platform of the three that offers a regulated secondary market through the PPEX ATS, an SEC-registered alternative trading system. After a 1-year holding period, investors can sell their shares on this regulated market, providing crucial flexibility for those who may need to access their capital. CrowdStreet has no secondary market, locking investors in for the full 3-5 year life of the deal, and Ember requires a 75% owner vote to sell the property, making liquidity highly uncertain.

Can I invest in real estate through an IRA on these platforms?

Yes, Ark7 offers IRA investing through a partnership with Inspira Financial Company, an IRS-approved custodian. This allows you to use your Traditional or Roth IRA funds to buy shares in real estate, benefiting from tax-advantaged growth. Information on IRA availability for CrowdStreet and Ember is not clearly disclosed, but their high minimums make it a less practical option for most retirement accounts.

What kind of fees should I expect when investing with Ark7?

Ark7’s fee structure is designed for transparency with a 3% acquisition fee on the property’s market cap and an ongoing management fee of 8-15% of rental income that covers all property management services. There is no annual platform fee, and the company promises “No hidden fees, no surprise ever.” All fees are detailed in the offering circular for each property, making it easy to understand your total investment costs upfront.

Is Ark7 only for accredited investors, or can anyone invest?

One of Ark7’s core advantages is that it is open to all U.S. investors who are 18 years or older, with no accreditation requirements. This is possible because its offerings are qualified under SEC Regulation A+, which allows both accredited and non-accredited investors to participate. This is a stark contrast to CrowdStreet, which is restricted to accredited investors only, excluding an estimated 98% of the U.S. population.

How does property selection work on Ark7, and where are the properties located?

Ark7’s team uses a combination of data-driven analysis and local market expertise to curate a portfolio of high-yield rental properties focused on single-family and multi-family homes in high-growth markets, particularly in the Sunbelt region of the U.S. Properties are selected based on factors like strong job growth, population trends, and rental demand to ensure stable income and long-term appreciation potential. Investors can browse the complete selection and review all financial and legal documents before purchasing shares.