Fundrise vs Roofstock vs Ark7: Which is the Best Fractional Real Estate Platform?

When evaluating real estate investment platforms, investors face a critical decision between pooled fund approaches and direct property ownership. Fundrise offers diversified eREITs with quarterly distributions, Roofstock One provides fractional shares in single-family rentals (though the platform appears to be winding down), while Ark7 delivers a superior combination of individual property control, monthly cash flow, and zero annual AUM fees. This comprehensive comparison examines the key differences between these real estate platforms, with particular emphasis on why Ark7 emerges as the optimal choice for investors seeking transparency, frequent income, and cost efficiency in fractional real estate investing.

Key Takeaways

• Ark7 stands out as a leading solution for fractional real estate investing with zero annual AUM fees (though property management fees of 8-15% apply to rental income), saving investors $200-400 over 5 years compared to Fundrise’s 1% annual fee structure
• Monthly dividend distributions (12x annually) provide more frequent income than Fundrise’s quarterly payouts, enabling better cash flow management and reinvestment opportunities
• Individual property selection with complete financial transparency offers superior control compared to Fundrise’s pooled fund investing approach
• SEC-registered secondary market provides institutional-grade liquidity after a 12-month hold period, unlike Fundrise’s quarterly redemption program
• Lowest minimum investment for individual property ownership at just $20 per share makes real estate accessible to all investors, compared to $5,000+ minimums on Roofstock One

Understanding Real Estate Crowdfunding vs. Direct Property Investment

Real estate investment platforms generally fall into two categories: pooled fund models and direct property ownership. Fundrise operates primarily as a private equity REIT, pooling investor capital into diversified funds without individual property selection. In contrast, both Roofstock One and Ark7 offer fractional ownership in specific rental properties, allowing investors to choose which assets to include in their portfolios.

Key Structural Differences:

• Fundrise: Pooled eREITs and eFunds with no individual property selection
• Roofstock One: Fractional shares in specific single-family rental properties (platform activity limited as of December 2023)
• Ark7: Fractional shares in curated high-yield rental properties with complete financial transparency and property-level selection

Ark7’s approach combines the accessibility of crowdfunding with the control and transparency of direct ownership. Investors can review complete financial and legal disclosure for each property 24/7, making informed decisions based on specific asset characteristics rather than fund-level performance metrics.

Investment Accessibility and Minimums: Fundrise, Roofstock, and Ark7

Investment minimums and accessibility requirements vary significantly across these platforms, directly impacting who can participate and how easily investors can diversify their holdings.

Minimum Investment Requirements:

• Ark7: $20 per share for most properties, making it the lowest minimum for individual property ownership in the industry
• Fundrise: $10 for taxable accounts, $1,000 for IRA accounts, but investors cannot select specific properties
• Roofstock One: $5,000 per fractional share, creating a significant barrier to entry and diversification

Investor Accreditation Requirements:

• Ark7: Open to all U.S. investors 18+, with some properties available to accredited investors only
• Fundrise: Welcomes both accredited and non-accredited investors
• Roofstock One: Restricted to accredited investors only

Ark7’s $20 minimum represents a 250x lower entry point than Roofstock One and enables meaningful diversification across multiple properties with minimal capital. This accessibility aligns with Ark7’s mission to make real estate investment available to everyone, not just wealthy individuals. Investors can start building a diversified real estate portfolio through the Ark7 mobile app with the same ease as purchasing stocks.

Investment Models and Property Selection: A Comparative Look

The fundamental difference between these platforms lies in their investment models and the level of control they provide to investors.

Fundrise’s Pooled Fund Approach: Fundrise operates as a private equity REIT, automatically allocating investor capital across 300+ properties within diversified funds. While this provides maximum diversification, investors cannot select which specific properties their money supports. This approach means investors cannot align their investments with specific market preferences or property characteristics.

Roofstock One’s Fractional Model: Roofstock One historically offered fractional shares in specific single-family rental properties, similar to Ark7’s approach. However, the platform’s operational status has changed significantly as of December 31, 2023, with limited activity available for 2025.

Ark7’s Direct Property Selection: Ark7 provides investors with complete control over their real estate investments by offering shares in specific, curated properties. Each property listing includes comprehensive details about location, market dynamics, property characteristics, and financial projections. For example, investors can choose between properties like the Atlanta-T3 townhome in Jonesboro, GA, or the Dallas-S8 property in Mesquite, TX, based on their individual investment criteria.

This property-level selection, combined with 24/7 access to complete financial and legal disclosure, provides unprecedented transparency in fractional real estate investing. Investors can build portfolios aligned with their specific goals, risk tolerance, and market preferences.

Fee Structures and Transparency: What to Expect from Each Platform

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

Total Cost of Ownership Comparison (5-Year TCO on $10,000 Investment):

• Ark7: ~$300 total cost (3% one-time sourcing fee, $0 annual AUM fees)
• Fundrise: ~$500-700 total cost ($0 initial fee, ~1% annual AUM fees compounded)
• Roofstock One: ~$300-400 total cost (0.5% buying fee, 0.5% annual AUM fees)

Ark7’s zero annual AUM fees represent a significant cost advantage, saving investors $200-400 over 5 years compared to Fundrise’s 1% annual fee structure. These ongoing fees compound over time, meaning the cost difference grows larger with longer holding periods and larger investment amounts.

Additionally, Ark7 maintains complete fee transparency with no hidden costs. All fees are clearly disclosed upfront, and the platform promises “no hidden fees, no surprise ever” as part of its core brand commitment. This transparency extends to property-level financials, where investors can access complete operational details 24/7. Note that property management fees of 8-15% apply to rental income generated by the properties.

Passive Income and Returns: Evaluating Potential Payouts

Income frequency and distribution schedules vary dramatically between these platforms, directly impacting cash flow and reinvestment opportunities.

Distribution Frequency:

• Ark7: Monthly distributions paid on the 3rd of each month (12x annually)
• Fundrise: Quarterly distributions only (4x annually)
• Roofstock One: Variable by property, typically less frequent than monthly

Ark7’s monthly distribution schedule provides 3x more frequent income than Fundrise’s quarterly payouts. This enhanced cash flow frequency enables better financial planning and more frequent reinvestment opportunities, potentially accelerating compound growth over time.

Recent Performance Examples:

• Ark7: Dallas-S8 property achieved +6.51% dividend yield, while Urbana-S11 reached 7.65% annualized dividend yield based on historical performance
• Fundrise: Flagship fund reported 7.47% returns in 2024, but at the fund level only
• Roofstock One: Projected returns of 10.7%-12.2% include hypothetical 5-year sale assumptions and should be viewed with caution

Ark7’s returns represent stable, verified actual performance with consistent monthly distributions. The platform has paid over $3.5 million in total dividends to investors and maintains a 94.81% portfolio occupancy rate as of November 2024, demonstrating reliable cash flow generation.

Liquidity and Secondary Markets: Selling Your Real Estate Shares

Liquidity options vary significantly between platforms, with important implications for investors who may need to access their capital before typical real estate holding periods.

Secondary Market Comparison:

• Ark7: SEC-registered secondary trading platform available after 12-month minimum hold period, with $0 transaction fees
• Fundrise: Quarterly redemption program that can be suspended during market stress, with 1% early redemption fee if held less than 5 years
• Roofstock One: Liquidity options after 6 months, with possible 7.5% redemption fee

Ark7’s SEC-registered secondary market provides continuous trading opportunities after the 12-month hold period. This contrasts with Fundrise’s quarterly redemption program, which has been suspended during previous market downturns, effectively locking investors into their positions.

While Ark7 requires a 12-month minimum hold period (compared to Roofstock One’s historical 6-month period), this longer initial holding period helps ensure secondary market depth and stability. Investors should note that liquidity is not guaranteed, and they must be prepared to hold shares indefinitely, as per Ark7’s compliance requirements.

Investment Risks: What Investors Need to Know Before Committing

All real estate investments carry inherent risks that investors must carefully consider before committing capital. According to the SEC’s investor education resources, understanding investment risks is crucial before investing in any security.

Common Risks Across Platforms:

• Market fluctuations affecting property values and rental income
• Vacancy rates impacting cash flow
• Property damage and maintenance costs
• Economic downturns affecting tenant ability to pay rent
• Complete loss of capital in extreme scenarios

Investing in securities involves risk, including the possible loss of principal. Past performance does not guarantee future results. Investors may want to review the risks described in the applicable offering materials and consider consulting a financial advisor, accountant, and/or attorney when evaluating an offering.

IRA Investing Options: Building Real Estate Wealth for Retirement

All three platforms support IRA investing, but with different fee structures and minimum requirements.

IRA Investment Comparison:

• Ark7: $0 platform fee to open IRA; $100 annual fee per property invested (capped at $400/year, waived if account balance >$100,000) through Inspira Financial Company custodian
• Fundrise: $1,000 minimum investment for IRA accounts, with fees embedded in the 1% annual AUM structure
• Roofstock One: Available through self-directed IRA with custodian fees applying

Ark7’s IRA option allows investors to use retirement funds to purchase shares in specific rental properties, combining the tax advantages of IRAs with the control and transparency of direct property ownership. This approach enables investors to build real estate wealth for retirement while maintaining control over which specific assets their retirement funds support.

The annual fee structure is transparent and capped, with the waiver for larger accounts providing cost efficiency for serious investors. Investors can open both Traditional and Roth IRA accounts and fund them through transfers from existing IRAs or annual contributions within IRS limits.

Technology and User Experience: Comparing Investment Platforms

User experience and platform technology significantly impact the investment process and ongoing portfolio management.

Mobile App and Platform Experience:

• Ark7: Highly rated mobile app (4.7/5 on iOS, 4.2/5 on Android) with intuitive property discovery, investment tracking, and secondary market trading capabilities
• Fundrise: Well-established mobile app (4.8/5 on iOS, 4.7/5 on Android) focused on fund performance tracking and account management
• Roofstock One: Limited or no dedicated mobile app functionality

Ark7’s mobile app enables investors to discover and invest in curated rental properties, manage shares, track monthly dividends, and sell shares on the secondary market directly from their mobile devices. The platform’s user experience has contributed to a 3.9/5 Trustpilot rating based on 257 reviews, reflecting strong user satisfaction with the platform’s ease of use and functionality.

The intuitive design aligns with Ark7’s brand promise to “simplify the complicated” and make real estate investing “as easy as a stock investment.” Investors can manage their entire real estate portfolio through the Ark7 mobile app, whether they’re at home or on the go.

Who Should Invest with Fundrise, Roofstock, or Ark7?

The optimal platform choice depends on individual investor priorities, experience level, and investment goals.

Choose Ark7 when you:

• Want individual property selection with complete financial transparency
• Prioritize monthly cash distributions for consistent income
• Seek to eliminate ongoing AUM fees to maximize long-term returns
• Prefer accessible entry points with property-level control ($20 minimum)
• Value secondary market liquidity through an SEC-registered trading platform

Choose Fundrise when you:

• Prefer completely hands-off investing with maximum automatic diversification
• Want the absolute lowest minimum investment ($10, though for funds only)
• Prioritize the longest proven track record (12+ years since 2012)
• Don’t mind quarterly distributions and 1% annual AUM fees
• Have no interest in selecting specific properties or markets

Consider Roofstock One only if:

• The platform is still operational (verify current status given operational changes)
• You’re an accredited investor comfortable with higher minimum investments
• You specifically want fractional single-family rental exposure
• You prefer the historical 6-month hold period (though this may no longer be available)

For most investors seeking the optimal balance of control, transparency, cost efficiency, and income frequency, Ark7 emerges as a strong choice. The platform’s combination of zero annual AUM fees, monthly distributions, individual property selection, and SEC-registered secondary market provides significant value in the fractional real estate space.

Frequently Asked Questions

Can non-accredited investors participate in all three platforms?

Non-accredited investors can participate in both Ark7 and Fundrise, making them accessible to a broader range of investors. Roofstock One was restricted to accredited investors only, creating a significant barrier to entry for many potential investors. Ark7’s commitment to accessibility is reflected in its $20 minimum investment, which is among the lowest in the industry for individual property ownership.

How does the secondary market work for selling shares on Ark7 compared to other platforms?

Ark7 offers access to an SEC-registered secondary trading platform after a 12-month minimum hold period with $0 transaction fees, providing continuous trading opportunities. This contrasts with Fundrise’s quarterly redemption program, which can be suspended during market stress and charges a 1% early redemption fee for holdings under 5 years. Roofstock One offered liquidity options after 6 months but with possible 7.5% redemption fees. Investors should note that secondary market liquidity is not guaranteed, and they must be prepared to hold shares indefinitely.

Is investing in real estate through these platforms considered a liquid investment?

Real estate investments through these platforms are generally illiquid compared to traditional securities. Ark7 requires a 12-month minimum hold period before secondary market access, Fundrise operates a quarterly redemption program that can be suspended, and Roofstock One historically required a 6-month hold period. None of these platforms offer the immediate liquidity of stock trading, and investors must be prepared to hold their investments for extended periods.

How do tax implications differ when investing with an IRA through Ark7 versus other methods?

Investing through an Ark7 IRA provides the standard tax advantages of Traditional or Roth IRAs while allowing investment in specific rental properties. The annual fee is $100 per property (capped at $400/year, waived for balances >$100,000) through Inspira Financial Company as custodian. This differs from taxable accounts where investors receive monthly distributions that may be subject to ordinary income tax rates. IRA investing can provide tax-deferred or tax-free growth depending on the IRA type, but investors should consult with tax professionals to understand specific implications for their situation.