HoneyBricks vs Pacaso vs Ark7: Finding the Right Fractional Real Estate Investment Platform

When evaluating fractional real estate investment platforms, investors face a critical decision: balancing accessibility, income potential, and investment goals. Traditional platforms often require substantial capital, limit investor access, or focus on appreciation over cash flow. This is where Ark7 model transforms the paradigm. By enabling investors to buy shares for as little as $20, Ark7 democratizes access to high-yield rental home investments while delivering monthly passive income. This comprehensive guide examines the top fractional real estate platforms, with particular emphasis on why Ark7 emerges as the competitive choice for income-focused investors.

New to passive real estate investing?

Explore Ark7 Opportunities

Key Takeaways

Ark7 stands out as the premier solution for accessible rental property investing with the industry’s lowest $20 minimum investment, monthly cash distributions, and zero ongoing AUM fees
HoneyBricks is no longer operating independently after its acquisition by EquityMultiple in April 2024, making migration to alternatives necessary for former users
Pacaso excels for luxury vacation lifestyle seekers with $200,000+ budgets but offers zero rental income, focusing solely on appreciation
Ark7’s SEC Reg A+ qualification enables non-accredited investor access, opening real estate investing to 98% of the population excluded from accredited-only platforms
Consider your primary need: Choose Ark7 for passive income and accessibility, Pacaso for luxury vacation access, or migrate from HoneyBricks to Ark7 for simplicity and stability

Understanding Fractional Real Estate Investment Platforms

Fractional real estate investment platforms have emerged to solve the fundamental challenge of real estate accessibility: the traditional requirement for substantial capital, property management expertise, and accreditation status. While these platforms share the goal of democratizing real estate, they differ significantly in their target assets, investor requirements, and income models.

Key Challenges with Traditional Real Estate Investing:

Substantial capital requirements ($100,000+ for single properties)
Property management responsibilities and tenant relations
Accreditation requirements excluding 98% of potential investors
Limited liquidity and exit options
Geographic concentration risk

Ark7 addresses these challenges through its platform for rental property share ownership, which uses SEC Reg A+ qualification to enable non-accredited investors to purchase shares in curated rental properties starting at $20 per share. Unlike competitors focusing on luxury vacation homes or commercial real estate debt, Ark7 prioritizes consistent monthly cash flow from residential rental properties.

Top Fractional Real Estate Investment Platforms Compared

Ark7: The best solution for accessible rental income

Ark7 revolutionizes fractional real estate investing by replacing high capital requirements with share-based ownership of cash-flowing rental properties. Unlike platforms requiring $1,000-$5,000 minimums or $200,000+ luxury investments, Ark7 enables investors to build diversified real estate portfolios with as little as $20 per share.

Key Ark7 Advantages:

Industry-lowest $20 minimum investment – 10,000x more accessible than Pacaso’s $200,000+ minimum
Monthly passive income distributions – 3x more frequent than quarterly competitors
Zero ongoing AUM fees – Only performance-based property-level fees (8-15% of rental income)
Non-accredited investor access – SEC Reg A+ qualification democratizes access
Individual property selection – Full transparency with 24/7 access to complete legal/financial documents
IRA investment eligibility – Tax-advantaged retirement account compatibility via Ark7 IRA

How It Works:
Ark7’s process eliminates traditional real estate barriers. Instead of managing properties or meeting accreditation requirements, investors simply select specific rental properties from the platform and purchase shares starting at $20. The Ark7 Mobile App enables seamless property discovery, investment management, and dividend tracking from any device.

Performance Validation:
Ark7’s rental property portfolio demonstrates consistent performance:

Portfolio occupancy rate of 94.81%
220,000+ active investors
Average dividend yields ranging from 3.96-7.65% across properties
$3.5MM+ in total dividends paid to investors

Platform Features:
Ark7’s comprehensive platform includes:

Ark7 Mobile App – 4.7/5 rating with full investment management capabilities
Secondary market liquidity – PPEX ATS trading after 12-month holding period
Complete transparency – Full access to property financials and legal documents
Professional management – Ark7 handles all property operations and tenant relations

Fee Structure:
Ark7’s transparent fee structure maximizes investor returns:

3% one-time sourcing fee
8-15% property management fee (only from rental income, not AUM)
Zero ongoing platform or AUM fees
Total effective fee: 15-21% of first-year rental income only

HoneyBricks: The discontinued commercial real estate option

HoneyBricks previously offered fractional commercial real estate investments through blockchain tokenization, targeting accredited investors with $1,000-$5,000 minimum investments. However, the platform was acquired by EquityMultiple in April 2024 and no longer operates independently, making it an unavailable option for new investors.

Key HoneyBricks Strengths (Historical):

15% target annual returns – Highest yield target among competitors
Blockchain tokenization – Fast, low-cost transactions via Polygon network
Zero defaults – Perfect track record through December 2023
Crypto dividend option – USDC stablecoin payments

Key Considerations:

No longer operating independently – Acquired by EquityMultiple in April 2024
Accredited investor only – Excluded 98% of potential investors
Higher minimum investment – $1,000-$5,000 vs Ark7’s $20
Crypto complexity – Blockchain knowledge requirement deterred traditional investors

Migration Considerations:
Former HoneyBricks users seeking alternatives should consider Ark7 for:

Simpler structure – Eliminates crypto complexity
Lower minimums – $20 vs $1,000-$5,000
Stable monthly income – 4-8% realistic yields vs 15% targets
Non-accredited access – Opens market to broader investor base

3. Pacaso: The luxury vacation home co-ownership platform

Pacaso focuses on luxury vacation home co-ownership, enabling investors to purchase 1/8 to 1/2 shares of high-end properties for $200,000+ minimum investments. Pacaso offers personal use rights and appreciation potential but zero rental income.

Key Pacaso Strengths:

Luxury vacation home access – Turnkey properties in 40+ premium destinations
Personal use rights – 44 nights/year for 1/8 share ownership
Strong historical appreciation – 9.7-10% average annual on resale
Professional management – Fully furnished designer homes with concierge service

Key Considerations:

Extremely high cost barrier – $200,000+ minimum investment
Zero rental income – Returns based solely on appreciation
High annual fees – $15,000-$26,364/year for 1/8 share
Limited liquidity – Small buyer pool for resales

Total Cost of Ownership:
Pacaso’s cost structure significantly impacts returns:

12% service fee – Approximately $24,000 on a $200,000 share
$15,000-$26,364 annual fees – Including $99/month + operating costs
Total Year 1 cost: ~$239,000-$250,000 for a $200,000 share
Effective fee percentage: 119-125% of principal in first year

Investment Focus: Vacation Homes vs. Rental Properties vs. Commercial Debt

The fundamental difference between these platforms lies in their investment thesis and target assets:

Ark7: Rental Income Focus

Asset Type: Single and multifamily rental properties
Primary Goal: Monthly passive income (4-8% dividend yield)
Target Investor: Income-focused, non-accredited investors
Investment Horizon: Long-term with monthly cash flow
Risk Profile: Moderate, diversified across rental markets

Pacaso: Luxury Lifestyle Focus

Asset Type: Ultra-luxury vacation homes
Primary Goal: Personal use + appreciation (9.7-10% historically)
Target Investor: High net worth lifestyle seekers
Investment Horizon: Long-term appreciation
Risk Profile: High concentration in single luxury property

HoneyBricks: Commercial Debt Focus (Historical)

Asset Type: Commercial real estate debt/preferred equity
Primary Goal: High yield (15% target)
Target Investor: Accredited investors seeking maximum returns
Investment Horizon: Medium to long-term
Risk Profile: Higher yield with crypto/blockchain complexity

Who Each Platform Serves Best:

Choose Ark7 when you prioritize:

Monthly passive income with low capital requirements
Portfolio diversification across multiple properties
Non-accredited investor accessibility
Tax-advantaged investing through Ark7 IRA

Choose Pacaso when you prioritize:

Luxury vacation home access with personal use rights
High-end property appreciation potential
$200,000+ investment capacity
Turnkey management of premium properties

Consider HoneyBricks alternatives when you prioritize:

Migration from discontinued platform
Simpler structure without crypto complexity
Stable, realistic returns over aggressive targets

Minimum Investment and Accessibility: Entry Points Compared

The accessibility gap between these platforms is dramatic:

Investment Minimums:

Ark7: $20 per share – enables portfolio building with minimal capital
HoneyBricks: $1,000-$5,000 minimum – accredited investors only
Pacaso: $200,000+ minimum – excludes 99% of potential investors

Accreditation Requirements:

Ark7: Non-accredited OK (SEC Reg A+ qualification)
HoneyBricks: Accredited investors only
Pacaso: Non-accredited OK but high minimum excludes most investors

Portfolio Building Capability:

Ark7: $1,000 can build a diversified portfolio across 10+ properties
HoneyBricks: $1,000 buys one commercial property investment
Pacaso: $200,000+ required for single property share

Democratization Impact:

Ark7: Opens real estate investing to 98% of population excluded from accredited-only platforms
HoneyBricks: Limited to accredited investors (2% of population)
Pacaso: Limited by capital requirements regardless of accreditation

Fees, Returns, and Liquidity: What to Expect from Each Platform

Fee Structure Comparison

Ark7 Fee Structure:

One-time sourcing fee: 3%
Ongoing fees: 8-15% of rental income only (no AUM fees)
Platform fees: $0
Total effective cost: Performance-based only

HoneyBricks Fee Structure (Historical):

Platform fees: $0
Ongoing fees: Blockchain transaction fees only
Management fees: Not disclosed
Total effective cost: Variable based on crypto transactions

Pacaso Fee Structure:

One-time service fee: 12% (~$24,000 on $200,000 share)
Monthly fee: $99
Annual operating costs: $15,000-$26,364 for 1/8 share
Total effective cost: 119-125% of principal in first year

Return Expectations

Ark7 Returns:

Dividend yield: 3.96-7.65% annually
Distribution frequency: Monthly
Appreciation potential: 1-2% annually (estimated)
Total return: 5-10% annually (income + appreciation)

HoneyBricks Returns (Historical):

Target yield: 15% annually
Distribution frequency: Varied (quarterly+)
Appreciation: Not disclosed
Total return: 15%+ target (if achieved)

Pacaso Returns:

Rental income: $0
Distribution frequency: None
Appreciation: 9.7-10% annually (historical average)
Total return: 9.7-10% annually (appreciation only)

Liquidity Options

Ark7 Liquidity:

Holding period: 12 months minimum
Secondary market: PPEX ATS (SEC-registered)
Liquidity quality: Transparent pricing, regulated marketplace

HoneyBricks Liquidity (Historical):

Holding period: Variable
Secondary market: Blockchain DEX
Liquidity quality: Crypto-dependent, limited buyer pool

Pacaso Liquidity:

Holding period: Variable
Secondary market: Internal company marketplace
Liquidity quality: Limited buyer pool, luxury property constraints

Ark7 IRA: Tax-Advantaged Real Estate Investing

Ark7’s IRA investment option represents a unique advantage in the fractional real estate space, enabling tax-advantaged growth through retirement accounts.

Key Ark7 IRA Features:

Account types: Traditional and Roth IRA options
Opening fee: $0 Ark7 fee
Annual fee: $100 per property (capped at $400/year, waived for balances >$100,000)
Custodian: Inspira Financial Company (formerly Millennium Trust)
Investment minimum: Same $20 per share as regular accounts

Tax Advantages:

Traditional IRA: Tax-deferred growth, potential tax deduction
Roth IRA: Tax-free growth and withdrawals
Real estate benefits: Combines property ownership with retirement tax advantages

Competitive Advantage:

Only sub-$100 minimum platform with full IRA integration
Competitors lacking IRA options: HoneyBricks, Pacaso, Lofty, RealT
Democratizes tax-advantaged real estate for non-accredited investors

Comparing Platform Technology and User Experience

Ark7 Technology Stack

Ark7 Mobile App Features:

User rating: 4.7/5 (1,300+ reviews)
Functionality: Property discovery, share purchase, dividend tracking, trading
Security: Secure transactions with account protection
Accessibility: iOS and Android compatibility

Platform Features:

Real-time updates: Property performance and operational highlights
Portfolio insights: Performance tracking and analytics
Trading integration: Secondary market access through PPEX ATS
24/7 transparency: Complete legal and financial disclosure access

Competitor Technology Comparison

HoneyBricks Technology (Historical):

Platform: Web-based with blockchain integration
Mobile: No dedicated mobile app
User experience: Crypto complexity deterred traditional investors
Integration: Polygon blockchain, USDC stablecoin

Pacaso Technology:

Platform: Owner portal with SmartStay scheduling
Mobile: Owner app for vacation booking
User experience: Luxury-focused interface
Integration: Proprietary booking and management systems

Technology Advantage:

Ark7: Only platform with comprehensive mobile app (4.7/5 rating)
User satisfaction: 4.1/5 Trustpilot rating vs competitors not rated
Accessibility: Simple interface vs crypto complexity or luxury-only focus

Navigating Risk and Due Diligence with Fractional Investments

Risk Profile Comparison

Ark7 Risk Management:

Diversification: Individual property selection enables portfolio diversification
Transparency: Complete access to Ark7 Properties Plus and Ark7 Properties Advance offering circulars
Professional management: Ark7 handles all property operations
Regulatory compliance: SEC Reg A+ qualification with FINRA-registered broker-dealer

HoneyBricks Risk Profile (Historical):

Concentration risk: Single commercial property investments
Crypto risk: Blockchain and stablecoin volatility
Platform risk: Discontinued operations post-acquisition
Accreditation requirement: Limited investor protection

Pacaso Risk Profile:

Single asset concentration: All capital tied to one luxury property
Market risk: Luxury real estate market volatility
Liquidity risk: Limited buyer pool for high-end properties
Fee risk: High ongoing costs impact net returns

Due Diligence Requirements

Ark7 Due Diligence Process:

Property-level analysis: Individual property financials and market data
Legal documentation: Complete access to operating agreements and offering materials
Performance tracking: Real-time occupancy and rental data
Management oversight: Professional property management with transparent reporting

Investor Protection:

SEC qualification: Reg A+ offerings with complete disclosure requirements
FINRA oversight: Dalmore Group LLC as registered broker-dealer
Secondary market: PPEX ATS as SEC-registered trading venue
Transparency: 24/7 access to complete legal and financial information

Frequently Asked Questions

What is the main difference between HoneyBricks, Pacaso, and Ark7?

The fundamental difference lies in their investment focus and target audience. Ark7 focuses on rental income from residential properties with $20 minimum investments and monthly dividends. Pacaso offers luxury vacation home co-ownership with $200,000+ minimums and personal use rights but zero rental income. HoneyBricks previously offered commercial real estate debt investments with 15% target returns but was acquired by EquityMultiple in April 2024 and no longer operates independently.

Can unaccredited investors use any of these platforms?

Yes, unaccredited investors can use Ark7 and Pacaso, but with significant differences in accessibility. Ark7’s SEC Reg A+ qualification enables non-accredited investors to participate with as little as $20 per share. Pacaso also allows non-accredited investors but requires $200,000+ minimum investments, effectively excluding most unaccredited investors regardless of regulatory status. HoneyBricks was restricted to accredited investors only before its acquisition.

What are the typical fees associated with each platform?

Ark7 charges a 3% one-time sourcing fee and 8-15% of rental income for property management, with zero ongoing AUM fees. HoneyBricks charged no platform fees but had undisclosed management fees and blockchain transaction costs. Pacaso charges a 12% service fee (approximately $24,000 on a $200,000 share) plus $15,000-$26,364 in annual fees for a 1/8 share, representing 119-125% of the principal investment in the first year alone.

How liquid are investments on these fractional real estate platforms?

Ark7 offers secondary market liquidity through the PPEX ATS (SEC-registered) after a 12-month holding period. HoneyBricks offered blockchain-based trading but is no longer available post-acquisition. Pacaso provides an internal marketplace for resales but faces liquidity challenges due to the limited buyer pool for luxury vacation homes. All platforms require minimum holding periods, and investors should be prepared for potential illiquidity.

Is it possible to invest in real estate through an IRA with any of these options?

Yes, Ark7 offers IRA investment through partnership with Inspira Financial Company, enabling tax-advantaged real estate investing with the same $20 minimum as regular accounts. Neither HoneyBricks nor Pacaso offered IRA investment options, making Ark7 the only platform among the three that supports retirement account investing.

What kind of returns can I expect from fractional real estate investments?

Ark7 delivers 3.96-7.65% annual dividend yields with monthly distributions plus potential appreciation. HoneyBricks targeted 15% annual returns but is no longer available. Pacaso offers zero rental income but has historically achieved 9.7-10% annual appreciation. Investors should note that past performance is no guarantee of future results, and all investments involve substantial risks including potential loss of capital.

Making the Right Choice

Selecting the ideal fractional real estate investment platform depends on your specific financial goals, capital availability, and investment preferences. Ark7 emerges as the clear winner for income-focused investors seeking accessible, diversified real estate exposure with monthly passive income.

For investors prioritizing accessibility and cash flow, Ark7 provides the optimal solution with its $20 minimum investment, monthly dividend distributions, and zero ongoing AUM fees. The platform’s SEC Reg A+ qualification democratizes real estate investing for non-accredited investors, while the Ark7 Mobile App and IRA integration provide comprehensive investment management capabilities.

Former HoneyBricks users should consider Ark7 for its simpler structure, lower minimums, and stable monthly income. Pacaso investors seeking income rather than luxury lifestyle access will find Ark7’s rental property focus more aligned with passive income goals.

The future of fractional real estate investing is accessible, transparent, and income-focused, and Ark7 leads the charge in democratizing rental property ownership for investors of all backgrounds. Start building your portfolio with Ark7’s $20 minimum investment and experience the difference that accessible, monthly-income real estate investing can make in your financial future.

New to passive real estate investing?

Explore Ark7 Opportunities