Fundrise vs RealtyMogul vs Ark7

When evaluating real estate investment platforms, investors face a critical choice between pooled funds and direct property ownership. Fundrise offers pooled eREITs with the lowest absolute entry point, RealtyMogul specializes in commercial real estate with institutional-grade offerings, while Ark7 provides fractional ownership in individual residential rental properties with the lowest barrier to direct property control. This comprehensive guide examines these three leading platforms, highlighting why Ark7’s unique combination of individual property selection, monthly distributions, and zero annual AUM fees makes it the superior choice for investors seeking true ownership and frequent passive income.

Key Takeaways

• Ark7 stands out as the only platform offering both individual property selection and monthly distributions, enabling direct control over investments with the most frequent income payouts in the industry
• Zero annual AUM fees at Ark7 create significant long-term savings compared to Fundrise’s ~1% and RealtyMogul’s 1-1.25% annual fees, preserving more capital for compounding
• Ark7’s PPEX ATS secondary market provides true liquidity after a 1-year holding period, offering more flexible exit options than Fundrise’s quarterly redemptions or RealtyMogul’s restricted repurchase program
• With a $20 minimum investment, Ark7 offers the lowest entry point for direct property ownership, allowing for greater diversification across multiple properties compared to RealtyMogul’s $5,000+ minimums
• Fundrise excels for completely hands-off investors seeking the absolute lowest entry ($10) and automatic diversification, while RealtyMogul is best for accredited investors seeking commercial real estate or 1031 exchange options

Understanding Real Estate Crowdfunding Platforms

Real estate crowdfunding platforms have democratized access to property investment, allowing individuals to build wealth through real estate without the hassles of traditional landlord responsibilities. These platforms generally fall into two categories: pooled investment vehicles (like REITs or eREITs) and direct fractional ownership of individual properties.

Pooled investment models, used by Fundrise and RealtyMogul’s REIT offerings, aggregate investor capital into diversified funds that own multiple properties. Investors receive proportional shares of the fund’s income and appreciation without control over specific assets. This approach provides automatic diversification but limits transparency and control.

Direct fractional ownership, as offered by Ark7, allows investors to purchase shares in specific, individual properties. This model provides complete transparency into the underlying asset, enabling investors to make informed decisions based on property location, tenant quality, rental income, and market dynamics. With Ark7’s fractional investing, investors become partial owners of real rental properties, receiving their share of monthly rental income and potential appreciation.

Key Differences in Investment Structure:

• Ownership Type: Pooled funds vs. direct property ownership
• Control Level: No property selection vs. individual property choice
• Transparency: Fund-level reporting vs. property-specific financials
• Diversification: Automatic across multiple properties vs. investor-directed
• Income Frequency: Quarterly (Fundrise) vs. monthly (Ark7)

Fundrise vs. RealtyMogul: A Head-to-Head Comparison

Fundrise: The Pooled Fund Pioneer

Fundrise, founded in 2012, pioneered the eREIT model for non-accredited investors with a $10 minimum investment. The platform offers several investment plans (Income, Growth, Balanced, and Innovation) that automatically allocate capital across residential, industrial, and commercial properties.

Fundrise Key Features:

• Minimum Investment: $10 for funds
• Investment Type: Pooled eREITs and eFunds
• Distributions: Quarterly
• Annual Fees: ~1% (0.15% advisory + 0.85-1.85% fund fees)
• Liquidity: Quarterly redemptions (not guaranteed, with potential pauses)
• Track Record: 14 years operating with over $7B in total real estate transacted and approximately $2.9B in assets under management

Fundrise’s strength lies in its hands-off approach and automatic diversification. The platform’s Innovation Fund also provides exposure to pre-IPO tech companies like OpenAI and Stripe, offering a unique hybrid of real estate and venture capital.

RealtyMogul: The Commercial Real Estate Specialist

RealtyMogul, also founded in 2012, focuses on commercial real estate investments including office, retail, industrial, and multifamily properties. The platform offers both REITs for all investors and private placement deals for accredited investors.

RealtyMogul Key Features:

• Minimum Investment: $5,000 for REITs, $25,000+ for individual properties
• Investment Type: REITs (pooled) or direct commercial deals
• Distributions: Monthly (Income REIT) or quarterly (Growth REIT)
• Annual Fees: 1.0-1.25% for REITs
• Liquidity: Share repurchase program with restrictions
• Track Record: 18.1% realized IRR on 228 completed deals

RealtyMogul excels in commercial real estate access and offers 1031 exchange options through its DST marketplace, making it ideal for accredited investors seeking tax-deferred exchanges and institutional-quality commercial properties.

Deciphering Ark7: Fractional Real Estate Investment

Ark7 redefines real estate investing by offering fractional ownership in individual, cash-flowing rental properties with shares starting as low as $20. Unlike pooled funds, Ark7’s model provides direct ownership in specific properties, giving investors complete control and transparency.

Direct Property Ownership with Individual Selection

Ark7’s core differentiator is its focus on individual property ownership. Rather than investing in blind pools, investors can review detailed financials, property photos, neighborhood data, and tenant information before purchasing shares in specific properties. This transparency empowers investors to make informed decisions based on their own research and risk tolerance.

For example, investors can choose between properties like the Dallas-S9 single-family home in Mesquite, TX, or the Tampa-S10 property in Land O Lakes, FL, evaluating each based on location, rental yield, and market dynamics.

Monthly Distributions and Zero AUM Fees

Ark7 is the only major platform offering monthly distributions, providing 12 income payments per year compared to the quarterly (4x/year) standard of competitors. This frequent cash flow enables faster reinvestment and better cash flow management for investors.

Additionally, Ark7 charges zero annual AUM fees, unlike Fundrise’s ~1% and RealtyMogul’s 1-1.25% annual fees. This fee structure ensures more capital compounds over time, with Ark7 charging only a transparent 3% sourcing fee and standard 8-15% property management fees from gross rents.

Secondary Market Liquidity

Ark7 provides true liquidity through the PPEX ATS, an SEC-registered alternative trading system. After a 1-year holding period, investors can sell shares to other investors through this continuous trading platform, offering more flexible exit options than competitors’ restricted redemption programs.

Technology-Driven Platform

Ark7’s mobile app (rated 4.7★ on iOS) enables investors to discover, purchase, and manage property shares from their mobile devices. The platform’s intuitive design makes real estate investing super convenient, with real-time updates, portfolio tracking, and secure transactions all accessible through the app.

IRA Investing Options

Investors can also use their retirement accounts to invest in Ark7 properties through the Ark7 IRA program. This option supports both Traditional and Roth IRAs with no Ark7 platform fee to open, enabling tax-advantaged real estate investing with the same property selection and monthly distribution benefits.

Investment Strategies and Property Types: Fundrise, RealtyMogul, and Ark7

Property Focus and Investment Approach

Ark7 specializes in residential rental properties, primarily single-family homes and townhomes in growing Sunbelt markets. Properties are typically acquired with existing tenants and stable rental income, providing immediate cash flow to investors. The platform’s focus on residential real estate offers exposure to the largest and most stable segment of the real estate market.

Fundrise offers broader diversification across residential, industrial, and commercial properties through its pooled funds. The platform’s eREITs automatically allocate capital across multiple property types and geographies, providing hands-off diversification but without property-level control.

RealtyMogul focuses primarily on commercial real estate, including office buildings, retail centers, industrial warehouses, and multifamily complexes. This commercial focus provides exposure to different market dynamics and potentially higher returns, but with increased complexity and risk compared to residential properties.

Geographic Diversification

Ark7’s properties are concentrated in high-growth Sunbelt markets like Atlanta, Dallas, and Tampa, where population growth, job creation, and favorable economic policies drive rental demand and property appreciation. While these markets have experienced significant appreciation and rental demand in recent years, they are also subject to market fluctuations. Investors should review the specific data for each property’s market.

Fundrise provides automatic geographic diversification across its portfolio, spreading risk across multiple markets without investor input. RealtyMogul’s commercial properties are located in major metropolitan areas across the U.S., with specific locations varying by investment offering.

Risk Profiles and Investment Horizons

Ark7’s residential focus offers relatively stable, predictable cash flows with moderate appreciation potential. The platform’s properties are typically held long-term for appreciation, with monthly distributions providing steady income.

Fundrise’s diversified approach spreads risk across multiple property types and markets, potentially reducing volatility but also limiting upside potential from individual high-performing assets.

RealtyMogul’s commercial focus offers higher potential returns but with increased risk and complexity. Commercial properties are more sensitive to economic cycles and tenant concentration risk, requiring more sophisticated analysis and longer investment horizons.

Accessibility and Minimum Investments: Where Do They Stand?

Minimum Investment Requirements

Ark7: $20 per share for individual property ownership

• This represents the lowest entry point for direct property selection in the industry, enabling maximum diversification across multiple properties regardless of capital constraints.

Fundrise: $10 for pooled funds

• The absolute lowest entry point in the industry, but without property selection capability. Investors must accept the fund’s allocation without control over specific assets.

RealtyMogul: $5,000 for REITs, $25,000+ for individual properties

• Significantly higher minimums limit accessibility for smaller investors and reduce diversification potential due to capital constraints.

Accreditation Requirements

All three platforms accept non-accredited investors for their primary offerings:

• Ark7: No accreditation required for any property shares
• Fundrise: No accreditation required for eREITs and eFunds
• RealtyMogul: No accreditation required for REITs, but most attractive individual deals require accredited investor status

This accessibility ensures that real estate investing remains available to a broad range of investors, regardless of income or net worth qualifications.

Investment Flexibility

Ark7’s $20 minimum enables investors to build diversified portfolios across multiple properties with relatively small amounts of capital. For example, an investor with $500 could purchase shares in 25 different properties, spreading risk while maintaining control over each selection.

Fundrise’s $10 minimum allows for small recurring investments, but the pooled nature means investors cannot tailor their exposure to specific markets or property types.

RealtyMogul’s high minimums require significant capital commitment, limiting diversification for most investors and effectively restricting individual property access to accredited investors with substantial capital.

Fees and Returns: A Cost-Benefit Analysis for Investors

Fee Structure Comparison

Ark7 Fee Structure:

• Sourcing Fee: 3% one-time (disclosed upfront)
• Annual AUM Fee: 0%
• Property Management: 8-15% of gross rents (paid from rental income before distributions)
• IRA Fees: $100 per property annually (capped at $400, waived for balances >$100,000)

Fundrise Fee Structure:

• Advisory Fee: 0.15% annually
• Fund Fees: 0.85-1.85% annually
• Total Annual Fees: ~1%
• Early Withdrawal Penalty: 1% if held less than 5 years

RealtyMogul Fee Structure:

• REIT Annual Fee: 1.0-1.25% annually
• Acquisition Fees: Vary by deal (embedded in structure)
• Disposition Fees: Vary by deal (embedded in structure)

Total Cost of Ownership Analysis

On a $10,000 investment over 10 years, the fee difference is substantial:

• Ark7: $300 total (3% sourcing fee only)
• Fundrise: $1,000+ total (~1% annually)
• RealtyMogul: $1,300 total (1-1.25% annually plus embedded fees)

This $700-$1,000 difference represents significant compounding potential that remains in the investor’s pocket with Ark7’s zero AUM fee structure.

Historical Returns and Performance

Fundrise Performance:

• 8.76% average annual return over the last 5 years
• 5.75% net total return in 2023
• 6.87% average annual return from 2018-2023

RealtyMogul Performance:

• 18.1% realized IRR on 228 completed deals
• ~6% annualized distribution for Income REIT
• ~4.5% annualized return for Apartment Growth REIT since January 2018
• 12% average return over the last 5 years

Ark7 Performance:

• 2.5-6.4% dividend yield range
• Properties typically fully occupied with stable rental income
• 94.81% occupancy rate 

While historical returns provide context, investors should focus on fee structures and investment philosophy alignment rather than past performance, as future results may differ significantly.

Liquidity Options: Selling Your Real Estate Shares

Ark7’s PPEX ATS Secondary Market

Ark7 provides the most flexible liquidity option through the PPEX ATS, an SEC-registered alternative trading system. After a 1-year holding period, investors can sell shares to other investors through this continuous trading platform, potentially providing liquidity 2-6 years earlier than competitors.

The secondary market operates independently of Ark7, with share prices determined by supply and demand rather than property appraisals. This market-driven pricing provides real-time valuation and exit opportunities without waiting for quarterly redemption windows.

Fundrise’s Quarterly Redemption Program

Fundrise offers quarterly redemptions, but these are not guaranteed and can be paused during market stress. The platform has historically suspended redemptions during volatile periods, leaving investors without access to their capital when they might need it most.

Additionally, Fundrise charges a 1% early withdrawal penalty if shares are redeemed within 5 years, further reducing liquidity and potential returns.

RealtyMogul’s Share Repurchase Program

RealtyMogul’s share repurchase program is subject to availability and often involves discounts to NAV (Net Asset Value). The program operates on a restricted basis, with limited repurchase capacity and potential suspensions during market volatility.

For private placement deals, liquidity is even more limited, typically requiring holding until property sale or refinancing, which can take 5-7 years or longer.

Risk Factors and Due Diligence in Real Estate Investing

Platform-Specific Risks

Ark7 Risks:

• Individual property concentration risk (mitigated by investor diversification)
• Limited track record (founded in 2018, approximately 6 years operating vs. 12-14 years for competitors)
• Secondary market liquidity dependent on buyer demand
• Property-specific risks (tenant turnover, maintenance issues)

Fundrise Risks:

• Blind pool investment without property selection
• Fee drag from 1% annual charges
• Limited liquidity with potential redemption suspensions
• Fund-level concentration in specific property types

RealtyMogul Risks:

• Commercial real estate sensitivity to economic cycles
• High minimum investments limiting diversification
• Complex fee structures varying by deal
• Limited liquidity with restricted repurchase programs

Ark7’s Technology-Driven Approach to Real Estate

Mobile-First Investing Experience

Ark7’s mobile app sets it apart from competitors, particularly RealtyMogul which lacks a mobile platform entirely. The app enables investors to:

• Discover and research new property offerings
• Purchase shares with secure transactions
• Track monthly distributions and portfolio performance
• Sell shares through the secondary market
• Access real-time property updates and financial reports

This mobile-first approach makes real estate investing super convenient, allowing investors to manage their portfolios from anywhere at any time.

AI-Driven Property Sourcing

Ark7 leverages technology and AI for property sourcing, combined with local market expertise to identify high-yield rental properties in growing markets. This data-driven approach helps ensure properties meet strict underwriting criteria for cash flow stability and appreciation potential.

The platform’s focus on modern, well-maintained properties in desirable neighborhoods helps minimize tenant turnover and maintenance issues, supporting consistent rental income for investors.

Operational Transparency

Ark7’s commitment to “no hidden fees, no surprise ever” extends to complete operational transparency. Investors have 24/7 access to legal and financial documents, property performance data, and distribution histories through the platform.

This transparency empowers investors to make informed decisions and monitor their investments effectively, building trust and confidence in the platform’s operations.

Making the Right Choice for Your Investment Goals

Choose Ark7 When You:

• Want direct ownership of individual properties with complete transparency
• Prefer monthly distributions for frequent passive income
• Seek to minimize fees with zero annual AUM charges
• Value liquidity through a true secondary market
• Want to build a diversified portfolio with a $20 minimum per property
• Prefer residential real estate exposure in growing Sunbelt markets

Choose Fundrise When You:

• Want the absolute lowest entry point ($10)
• Prefer completely hands-off, automatic diversification
• Are comfortable with pooled fund investments without property selection
• Want exposure to both real estate and venture capital (Innovation Fund)
• Prioritize the longest track record (14 years) over property control

Choose RealtyMogul When You:

• Are an accredited investor seeking commercial real estate exposure
• Need 1031 exchange options for tax-deferred exchanges
• Have substantial capital ($25,000+) for individual deals
• Prefer institutional-grade commercial properties
• Are comfortable with higher minimum investments and complex fee structures

Frequently Asked Questions

What is the difference between investing in an eREIT (like Fundrise) and individual property shares (like Ark7)?

eREITs like Fundrise’s offerings pool investor capital into diversified funds that own multiple properties, providing automatic diversification but without control over specific assets. Individual property shares like Ark7’s offerings provide direct ownership in specific, identifiable properties, giving investors complete transparency and control over their selections. With Ark7, you know exactly which property you own shares in, while with Fundrise, you own shares in a blind pool of properties. This fundamental difference affects transparency, control, and how you can make investment decisions based on specific property characteristics.

Are real estate crowdfunding investments liquid, and how can I sell my shares on platforms like Ark7?

Real estate crowdfunding investments are generally illiquid compared to stocks, but Ark7 provides more liquidity options than competitors through the PPEX ATS secondary market. After a 1-year holding period, Ark7 investors can sell shares to other investors through this SEC-registered alternative trading system with continuous trading. Fundrise offers quarterly redemptions that are not guaranteed and can be paused, while RealtyMogul has a restricted share repurchase program. Ark7’s market-driven pricing and continuous trading platform offer more flexible liquidity than competitors’ redemption windows.

Do I need to be an accredited investor to use Fundrise, RealtyMogul, or Ark7?

No accreditation is required for Ark7’s property shares or Fundrise’s eREITs and eFunds, making them accessible to all investors. RealtyMogul accepts non-accredited investors for its REIT offerings, but most attractive individual property deals require accredited investor status with higher income and net worth qualifications. This makes both Ark7 and Fundrise accessible to a broader range of investors regardless of their accreditation status. All three platforms operate under SEC regulations that allow non-accredited participation in certain investment types.

What kind of fees should I expect when investing with these platforms?

Ark7 charges a 3% one-time sourcing fee and zero annual AUM fees, with property management fees of 8-15% of gross rents paid before distributions. Fundrise charges approximately 1% annually (0.15% advisory plus 0.85-1.85% fund fees) with no separate sourcing fee. RealtyMogul charges 1.0-1.25% annually for REITs with additional fees embedded in deal structures. Over 10 years on a $10,000 investment, these fee differences can amount to $700-$1,000+ in additional costs, significantly impacting long-term compounding returns.

How does Ark7 ensure transparency and professional management of its properties?

Ark7 provides 24/7 access to complete legal and financial disclosure for each property, including detailed financial statements, property condition reports, and lease agreements. The platform professionally sources, acquires, and manages each property end-to-end, handling leasing, tenanting, and maintenance so investors receive rental distributions without landlord responsibilities. Ark7 also holds a minority ownership stake (1%-20%) in each property, directly aligning its interests with investors by sharing in both profits and losses. This co-investment structure ensures Ark7 is incentivized to select quality properties and manage them effectively.

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

Yes, all three platforms support IRA investing for tax-advantaged real estate exposure. Ark7’s IRA program works with Inspira Financial Company as custodian, with no Ark7 platform fee to open and annual custodian fees of $100 per property (capped at $400, waived for balances over $100,000). Fundrise requires a $1,000 minimum for IRA accounts, while RealtyMogul also supports IRA investing through third-party custodians. This enables investors to use retirement accounts for real estate investing with the same benefits as taxable accounts, including property selection and monthly distributions with Ark7.