Groundfloor vs Elevate.Money vs Ark7: Finding Your Best Estate Investment Path

When evaluating fractional real estate investment platforms, investors face a critical decision between fundamentally different models: debt-based lending, commercial REITs, and direct equity ownership in residential properties. Ark7 stands out by offering investors the ability to buy shares in curated high-yield rental properties nationwide, starting for as little as $20 per share. This comprehensive comparison examines how Groundfloor’s short-term debt loans, Elevate.Money’s commercial REIT structure, and Ark7’s transparent equity ownership model serve different investor needs—with Ark7 emerging as the superior choice for those seeking long-term wealth building through real estate.

Key Takeaways

• Ark7 provides direct equity ownership in specific residential rental properties with monthly cash distributions and appreciation potential, setting it apart from debt-based and commercial REIT alternatives
• With an industry-lowest $20 minimum investment, Ark7 enables unprecedented accessibility and diversification across residential real estate assets
• Ark7 charges zero ongoing platform fees, maximizing long-term returns compared to Elevate.Money’s ~6% annual management fee
• Only Ark7 offers a secondary market for share liquidity after a 1-year holding period, addressing real estate’s traditional illiquidity challenge
• Ark7 delivers complete 24/7 property-level financial transparency, unlike Elevate.Money’s limited disclosure and Groundfloor’s debt-only model

Understanding Fractional Real Estate Investing: A Quick Overview

Fractional real estate investing allows individuals to own a portion of income-generating properties without the responsibilities of direct landlordship. This investment approach democratizes access to real estate, traditionally limited to wealthy individuals or institutional investors. The three platforms examined here represent distinct approaches to fractional ownership:

Groundfloor operates as a debt-based lending platform where investors fund short-term real estate loans secured by properties, earning fixed interest returns without equity ownership.

Elevate.Money functions as a commercial real estate REIT where investors purchase shares in a pool of retail properties (primarily gas stations and dollar stores), receiving potential dividends subject to board approval.

Ark7 offers direct equity ownership in specific, curated residential rental properties (single-family homes, townhomes, and multifamily units), providing both monthly cash distributions and long-term appreciation potential.

Key Benefits of Fractional Real Estate Investing:

• Lower capital requirements compared to traditional property purchases
• Diversification across multiple properties and markets
• Professional property management eliminating landlord responsibilities
• Passive income through regular distributions
• Potential for long-term appreciation alongside income

Ark7: Invest in Rental Homes, Share by Share

Ark7 revolutionizes real estate investing by enabling investors to purchase shares in specific, high-yield residential rental properties across the United States. The platform’s core philosophy centers on making real estate investment accessible to everyone, with shares starting as low as $20.

How Ark7 Works

Ark7 acquires and manages individual rental properties in growth markets across the U.S., then offers fractional shares to investors through SEC Regulation A+ qualified offerings. Each property operates as its own series LLC, ensuring investor protection and clear ownership structure. The platform handles all aspects of property management—including tenant placement, maintenance, and financial reporting—while investors receive monthly cash distributions and benefit from potential long-term appreciation.

Key Features of Ark7 Investments:

• Direct property ownership in specific, vetted residential rental properties
• Monthly cash distributions providing consistent passive income (4.31-4.67% annualized) combined with appreciation potential
• Zero ongoing platform fees, with only property-level costs (3% acquisition fee, 8-15% property management from rental income)
• Secondary market after a 1-year holding period
• Professional property management with 94.81% portfolio occupancy rate
• Full operational transparency with 24/7 access to property financials and performance data

Ark7’s Mobile Platform and IRA Options

The Ark7 Mobile App enables investors to discover properties, purchase shares, track distributions, and manage their portfolio from anywhere. For retirement-focused investors, Ark7’s IRA offering allows Traditional and Roth IRA accounts to invest in real estate with a $0 platform fee to open and custodian fees of $100 per property annually (capped at $400 and waived for accounts with balances exceeding $100,000).

Groundfloor: Exploring Debt-Based Real Estate Crowdfunding

Groundfloor operates on a fundamentally different model than Ark7, offering investors the opportunity to fund short-term real estate loans rather than purchase equity in rental properties. Founded in 2013, the platform has facilitated over $1.8 billion in investment volume with 270,000+ registered users.

Understanding Groundfloor’s Investment Model

Groundfloor’s platform connects investors with real estate developers seeking short-term financing for fix-and-flip or construction projects. Investors purchase Loan Participation Interests (LROs) that function as debt instruments secured by the underlying property. Loan terms are typically 12 or 18 months with target returns between 7-14%.

Key Characteristics of Groundfloor Investments:

• Debt-only structure providing fixed returns without equity upside
• Short-term investment horizon (12-18 months) compared to Ark7’s long-term equity approach
• No investor fees, with borrowers covering all platform costs
• Complete illiquidity until loan repayment, with no secondary market available
• Risk profile with a 4.71% uncured default rate and 0.84% historical loss rate

Risk Considerations with Groundfloor

While Groundfloor offers potentially higher yield targets than Ark7’s cash distributions, this comes with different risk characteristics. The platform’s 4.71% uncured default rate represents the nature of short-term debt investing, and investors face complete illiquidity until loan repayment. Unlike Ark7’s equity ownership model that benefits from property appreciation, Groundfloor investors receive only their contracted interest payments regardless of the property’s performance.

Elevate.Money: Equity-Based Commercial Real Estate Investments

Elevate.Money offers a third approach to fractional real estate through a commercial REIT structure focused primarily on retail properties like gas stations and dollar stores. Founded in 2020, the platform operates with a different level of transparency than Ark7.

How Elevate.Money Offers Commercial Real Estate

Elevate.Money structures investments as a REIT (Real Estate Investment Trust) where investors purchase shares in a pooled portfolio of commercial properties. Unlike Ark7’s model of direct ownership in specific properties, Elevate.Money operates as a pooled REIT where investors have limited visibility into individual assets.

Key Characteristics of Elevate.Money Investments:

• Commercial real estate focus on retail properties (gas stations, dollar stores)
• Pooled REIT structure with limited property disclosure (only 2 properties publicly identified)
• High ongoing fees of approximately 6% annually (0.5% monthly)
• Limited transparency with no disclosed historical return data
• Discretionary dividend payments subject to board approval rather than consistent monthly distributions

Transparency and Performance Considerations

Elevate.Money appears to provide less publicly available operational information than Ark7. With two properties disclosed and no historical performance data shown publicly, investors may have fewer inputs available for diligence compared with platforms that provide more frequent, property-level reporting. Ark7, for example, states that it offers ongoing property-level financial transparency.

User feedback also looks mixed: Elevate.Money has a Trustpilot rating of 2.5/5 based on 7 reviews, which is a small sample but may still be useful context when evaluating the platform.

Investment Accessibility: Minimums, Fees, and Investor Types

Accessibility represents a critical differentiator among these platforms, particularly for new or budget-conscious investors seeking to build diversified real estate portfolios.

Minimum Investment Requirements

• Ark7: $20 per share for most residential rental properties, enabling significant diversification even with modest capital
• Groundfloor: $10-$100 per loan, depending on the specific investment
• Elevate.Money: $100 minimum investment

Ark7’s $20 minimum stands as the industry’s lowest entry point for direct equity ownership in real estate, allowing investors to spread $1,000 across 50 different properties for maximum diversification.

Fee Structures Compared

• Ark7: 3% one-time acquisition fee + 8-15% property management (from rental income) + $0 ongoing platform fees
• Groundfloor: $0 investor fees (borrowers pay all costs)
• Elevate.Money: Approximately 6% annual management fee (0.5% monthly) + undisclosed acquisition costs

Over a 5-year period on a $10,000 investment, Ark7’s total costs range from $800-1,800, while Elevate.Money’s costs exceed $3,000 due to the substantial annual management fee. This fee difference significantly impacts long-term compounding returns.

Investor Requirements

All three platforms accept both accredited and non-accredited investors for their primary offerings, though Ark7 does restrict certain property types (multifamily, vacation rentals) to accredited investors only. Both Ark7 and Groundfloor offer IRA investment options, while Elevate.Money’s IRA availability remains undisclosed.

Evaluating Risk and Returns: A Comparative Analysis

Risk assessment is critical when comparing these fundamentally different investment models, as each carries distinct risk profiles and return characteristics.

Return Profiles

• Ark7: 4.31-4.67% annualized cash distributions + long-term appreciation potential through equity ownership
• Groundfloor: 9.88-10.60% overall returns through debt interest, with no equity upside
• Elevate.Money: Undisclosed historical returns, with dividends subject to board approval

Ark7’s returns combine consistent monthly cash flow with the potential for property appreciation, creating a dual-benefit investment structure. Groundfloor’s higher yield targets reflect the different nature of short-term debt investments with no participation in property appreciation.

Risk Factors

• Ark7: Illiquidity (1-year minimum hold), market risk, property-specific risks
• Groundfloor: Default risk (4.71% uncured default rate), complete illiquidity until repayment, borrower risk
• Elevate.Money: Limited transparency, pooled structure risk, high fees eroding returns

Ark7 mitigates risk through its focus on debt-free property acquisition (many properties purchased without mortgages), professional property management achieving 94.81% occupancy, and comprehensive property-level transparency enabling informed investment decisions.

Liquidity and Secondary Markets: Selling Your Shares

Liquidity represents one of real estate’s traditional challenges, with these platforms offering varying solutions to this fundamental issue.

Secondary Market Availability

• Ark7: Secondary market through Dalmore Group LLC after a 1-year holding period
• Groundfloor: No secondary market; complete illiquidity until loan repayment (12-18 months)
• Elevate.Money: Limited discretionary repurchase program subject to board approval

Ark7 stands alone among these platforms in offering a structured secondary trading system, providing investors with a potential exit strategy after the minimum holding period. This addresses one of real estate’s most significant drawbacks—illiquidity—while maintaining the long-term investment horizon necessary for property appreciation.

Liquidity Implications

The absence of secondary markets on Groundfloor and Elevate.Money means investors must be prepared to hold their investments until loan repayment or potentially indefinitely. Ark7’s secondary market option, while not guaranteeing liquidity, provides a structured pathway for investors needing to access their capital after the initial holding period.

Ark7’s Commitment to Transparency and Technology

Transparency and technology form the foundation of Ark7’s competitive advantage, directly addressing the information asymmetry that has historically plagued real estate investing.

Operational Transparency

Ark7 provides 24/7 access to comprehensive property financials, including occupancy rates, rental income, operating expenses, and distribution history. This contrasts with Elevate.Money’s limited disclosure and Groundfloor’s pre-investment-only loan details. Investors can monitor their properties in real-time through the Ark7 Mobile App, receiving operational updates and performance insights.

Technology-Driven Property Sourcing

Ark7 leverages data analytics and local market expertise to identify high-potential properties in growth markets across the United States. The platform’s systematic approach combines quantitative analysis with qualitative local knowledge, focusing on markets with strong employment growth, population expansion, and favorable rental demand dynamics.

Regulatory Compliance and Security

Ark7’s offerings are qualified under SEC Regulation A+, with Dalmore Group LLC serving as the FINRA/SIPC registered broker-dealer of record. All securities are issued electronically with comprehensive offering documents available for investor review. This regulatory framework provides investor protections for alternative investment platforms.

Case Study: Investing in Ark7 Properties

Ark7’s portfolio spans multiple high-growth markets, with specific properties illustrating the platform’s investment thesis and potential returns.

Atlanta: Sunbelt Growth and Stable Income

Ark7’s Atlanta properties, including the Atlanta-T3 and Atlanta-T4 townhomes in Jonesboro, GA, exemplify the platform’s focus on Sunbelt markets with strong fundamentals. These newly built (2020) townhomes benefit from 15% population growth over the past decade, proximity to major employers, and stable rental demand in the Southeast region.

Dallas: Job Growth and Appreciation

Ark7’s Dallas-S9 property in Mesquite, TX showcases investment potential in markets driven by job growth and corporate expansion. With 23 Fortune 500 companies in the Dallas area and rental rates up 41.4% over five years, this upgraded 1992 single-family home benefits from strong population trends and rental demand in the Southwest Sunbelt region.

Frequently Asked Questions

What is the difference between debt-based and equity-based real estate crowdfunding?

Debt-based platforms like Groundfloor provide investors with fixed returns through interest payments on real estate loans, without equity ownership or participation in property appreciation. Equity-based platforms like Ark7 offer direct ownership in specific properties, providing both cash distributions from rental income and potential long-term appreciation. Elevate.Money operates as a commercial REIT, offering equity exposure but with a pooled structure where investors have limited visibility into individual property selection. 

Do I need to be an accredited investor to use these platforms?

All three platforms accept non-accredited investors for their primary offerings, making real estate investment accessible to a broad range of individuals. Ark7 requires accreditation only for certain specialized property types like multifamily and vacation rentals, while their core single-family home offerings are available to all investors. Groundfloor and Elevate.Money’s main offerings are similarly open to both accredited and non-accredited investors. This democratization of real estate investing represents a significant shift from traditional real estate opportunities that were historically limited to wealthy or institutional investors.

How liquid are investments made through Groundfloor, Elevate.Money, and Ark7?

Groundfloor investments are completely illiquid until loan repayment (typically 12-18 months) with no secondary market available for trading. Elevate.Money offers only a discretionary repurchase program subject to board approval, providing no guaranteed liquidity. Ark7 provides the most structured liquidity option through its secondary market facilitated by Dalmore Group LLC after a 1-year holding period, though investors should be prepared to hold shares for the long term as an active market isn’t guaranteed. Real estate remains an inherently illiquid asset class, and all platforms reflect this fundamental characteristic to varying degrees.

How do these platforms source and manage their properties?

Ark7 employs a technology-driven approach combining data analytics with local market expertise to source residential rental properties in high-growth markets, managing all aspects of property operations including tenant placement, maintenance, and financial reporting. Groundfloor doesn’t own or manage properties but rather provides debt financing to real estate developers for fix-and-flip projects, with borrowers responsible for property execution. Elevate.Money manages a pooled portfolio of commercial retail properties with limited operational transparency disclosed to investors about individual asset management practices.