InvestBay vs Roots vs Ark7: Choosing the Right Estate Investment Choice

When evaluating fractional real estate investment platforms, US investors face a critical decision that impacts accessibility, liquidity, and control over their real estate portfolios. While InvestBay caters exclusively to European investors and Roots offers a pooled REIT structure, Ark7’s fractional real estate platform stands out by democratizing access to individual high-yield rental properties with industry-leading liquidity and monthly income distributions. This comprehensive comparison examines how these platforms differ and why Ark7 emerges as the superior choice for US investors seeking accessible, transparent, and flexible fractional real estate investment opportunities.

Key Takeaways

• Ark7 is the only viable option for US investors – InvestBay explicitly excludes American investors, while Roots and Ark7 both serve the US market
• Industry-lowest investment minimum – Ark7’s $20 minimum is 5x lower than Roots’ $100 requirement, dramatically lowering the barrier to real estate investing
• Superior liquidity with active secondary market – Ark7’s PPEX ATS trading platform ($61,662 monthly volume) provides better liquidity than Roots’ quarterly redemptions with 8% early withdrawal penalties
• Monthly vs quarterly income – Ark7 delivers passive income 12 times annually compared to Roots’ 4 quarterly distributions, enabling better cash flow management
• Individual property selection vs pooled REIT – Ark7 offers complete control over property selection across 10+ US markets, while Roots operates as a non-selectable pooled investment
• Zero AUM fees – Ark7 charges no annual management fees, unlike many competitors that take 1-2% annually

Understanding Fractional Real Estate Investing: A Primer

Fractional real estate investing allows investors to purchase shares of individual rental properties, receiving proportional rental income and potential appreciation without the responsibilities of direct property ownership. This investment approach democratizes access to real estate assets that would otherwise require substantial capital, while providing diversification benefits and passive income streams.

Traditional real estate investment requires significant upfront capital, property management expertise, and creates illiquid positions. Fractional platforms solve these challenges by:

• Lowering investment minimums to make real estate accessible to more investors
• Providing professional property management and tenant relations
• Creating potential liquidity through secondary markets or redemption programs
• Offering diversification across multiple properties and markets
• Delivering regular income distributions from rental cash flow

While fractional real estate shares similarities with Real Estate Investment Trusts (REITs), the key difference lies in direct ownership of specific properties versus pooled investments in a portfolio of assets. This distinction significantly impacts investor control, transparency, and potential returns.

InvestBay and Roots: Understanding the Competition

InvestBay: Not an Option for US Investors

InvestBay is not available to U.S. investors. The platform operates in Europe and focuses on properties in the Czech Republic, Spain, and Croatia. Because of its geographic scope and applicable regulatory requirements, U.S. citizens and U.S. residents are not eligible to participate.

InvestBay’s offerings include vacation and residential properties, with a stated minimum investment of €100. However, since the platform is not structured for U.S. investor access and is not regulated under the SEC framework, U.S.-based investors typically need to evaluate other platforms that accept U.S. participants, such as Ark7 and Roots.

Roots: The Pooled REIT Alternative

Roots Investment Community operates as a Reg A+ qualified REIT that pools investor capital across a concentrated portfolio of workforce housing properties primarily in four Southeast markets: Atlanta, Augusta, Oklahoma City, and Nashville. Founded in 2020, Roots has delivered strong historical performance with average annual returns exceeding 17% since inception.

Roots Key Characteristics:

• Pooled REIT structure – Investors cannot select individual properties
• $100 minimum investment – 5x higher than Ark7’s entry point
• Quarterly distributions – Less frequent income compared to monthly options
• Limited liquidity – Quarterly redemptions only, with 8% penalty for withdrawals before 1 year
• Geographic concentration – Focus on 4 Southeast US markets
• Social impact model – “Live In It Like You Own It®” program for tenant wealth-building

While Roots offers strong historical returns and a compelling social impact mission, its pooled structure limits investor control and flexibility compared to platforms offering individual property selection.

Ark7: Accessible and Transparent Fractional Real Estate Investing

Ark7 revolutionizes fractional real estate investing by offering US investors direct ownership shares in individual, cash-flowing rental properties across 10+ US markets. With over $20 million in property value funded, Ark7 has established itself as a leading accessible platform for fractional real estate investment.

Ark7’s Core Value Proposition:

• Share-by-share investment model – Buy specific shares of individual properties rather than pooled REIT units
• High-yield rental homes – Curated properties in growth markets with strong rental demand
• Passive monthly income – Distributions paid 12 times annually directly to investor accounts
• No hidden fees – Transparent fee structure with zero annual management (AUM) fees
• Operational transparency – Complete legal and financial disclosure accessible 24/7
• Professional end-to-end management – Ark7 handles acquisition, leasing, tenanting, and maintenance
• AI and data-driven underwriting – Technology-enhanced property selection and management

Ark7’s commitment to making real estate investment accessible to everyone is reflected in its $20 minimum investment threshold, which is the lowest in the industry. This democratization of real estate investing allows investors to build diversified portfolios with minimal capital while maintaining complete control over their property selections.

Investment Accessibility and Minimums: How Ark7 Compares

The minimum investment requirement is a critical factor determining which investors can participate in fractional real estate opportunities. Ark7’s industry-leading $20 minimum dramatically lowers the barrier to entry compared to competitors.

Minimum Investment Comparison:

• Ark7: $20 per share – enabling true micro-investing and portfolio diversification
• Roots: $100 minimum – 5x higher barrier to entry
• InvestBay: €100 (~$109) – not available to US investors

This accessibility difference is transformative for investors with limited capital. With Ark7’s $20 minimum, an investor with $100 can diversify across 5 different properties in various markets, while the same amount would only purchase a single position in Roots’ pooled REIT.

The lower minimum also enables dollar-cost averaging strategies and gradual portfolio building, making real estate investment feasible for younger investors, those just starting their investment journey, or anyone seeking to allocate small amounts to real estate without committing substantial capital upfront.

Fees and Transparency: Navigating the Costs with Ark7

Fee structures significantly impact long-term investment returns, making transparency and competitive pricing essential considerations for fractional real estate investors.

Ark7’s Fee Structure:

• 3% sourcing fee – One-time fee on initial investment
• 8-15% property management fee – Charged against rental income (before investor distributions)
• $0 annual management (AUM) fees – No ongoing percentage-based fees
• $0 secondary market trading fees – Free share trading after minimum holding period

Roots’ Fee Structure:

• $5 one-time transaction fee
• $3 recurring investment fee
• Embedded management fees – Not separately disclosed in pooled REIT structure
• 8% early withdrawal penalty – For redemptions before 1-year holding period

Ark7’s transparent fee disclosure allows investors to clearly understand costs, while the absence of annual AUM fees saves approximately $100-200 annually on a $10,000 investment compared to platforms charging 1-2% AUM fees. This cost efficiency compounds over time, contributing to better net returns despite potentially lower gross yields.

The commitment to “no hidden fees” and complete operational transparency, with 24/7 access to legal and financial documents, empowers investors to make informed decisions based on full information rather than obscured cost structures.

Diversifying Your Portfolio with Ark7 IRA Investments

Ark7’s IRA investments enable tax-advantaged real estate investing through both Traditional and Roth IRA accounts. This integration with retirement planning provides significant benefits for long-term wealth building.

Ark7 IRA Features:

• $0 Ark7 platform fee to open an IRA account
• $100 annual custodian fee per property (capped at $400 annually, waived for accounts with >$100,000 average balance)
• Same $20 minimum investment as standard accounts
• Professional property management – No landlord responsibilities within IRA
• Monthly income distributions – Accumulate within IRA account for tax-deferred or tax-free growth

The ability to invest IRA funds in individual rental properties rather than pooled REITs provides greater control over retirement portfolio composition. Investors can select specific properties in desired markets, creating a more intentional real estate allocation within their retirement accounts.

This IRA integration, combined with Ark7’s low minimum investment, makes real estate accessible within retirement accounts even for investors with modest IRA balances, democratizing an asset class that has traditionally been difficult to access through retirement accounts.

Mobile Convenience and Portfolio Management with Ark7

Ark7’s mobile app provides complete investment management capabilities from iOS and Android devices, with strong user ratings (4.7/5 on Apple App Store, 4.2/5 on Google Play).

Ark7 Mobile App Features:

• Property discovery – Browse and research available investment properties
• Share purchasing – Invest in properties directly from mobile device
• Portfolio tracking – Monitor property performance and account value
• Dividend management – Track monthly income distributions
• Secondary market trading – Buy and sell shares through PPEX ATS
• Real-time updates – Receive property and market notifications
• Secure transactions – Bank-level security for all investment activities

The mobile-first approach enables investors to manage their real estate portfolios as conveniently as stock investments, aligning with Ark7’s mission to make real estate investing “as easy as a stock investment.” This accessibility supports active portfolio management and timely investment decisions based on market opportunities.

Secondary Market Liquidity: Selling Shares on Ark7

Liquidity is a critical consideration for real estate investments, which are traditionally illiquid assets. Ark7’s secondary market solution through the PPEX ATS (Alternative Trading System) provides unprecedented liquidity for fractional real estate investors.

Ark7 Secondary Market Features:

• Active trading platform – $61,662 monthly trading volume
• 70% of properties actively trading – High market participation across portfolio
• 1-3 business day fulfillment – Efficient transaction processing
• No trading fees – $0 cost to buy or sell shares
• Minimum 1-year holding period – Required before shares can be traded

Roots Liquidity Limitations:

• Quarterly redemptions only – Limited exit opportunities
• 8% early withdrawal penalty – Significant cost for liquidity before 1 year
• No active trading market – Redemption-based liquidity only

This liquidity advantage is transformative for real estate investors who may need to rebalance portfolios, access capital, or adjust investment strategies. While real estate remains a long-term investment, Ark7’s secondary market provides flexibility unavailable through traditional real estate or most fractional platforms.

Diverse Property Offerings: Ark7’s Investment Inventory

Ark7’s curated portfolio spans 10+ US markets, primarily in high-growth Sunbelt regions, providing geographic diversification that mitigates regional economic risks.

Ark7 Property Examples:

Atlanta Market Properties

Ark7’s Atlanta properties include modern townhomes in Jonesboro, GA, featuring:

• 3-bedroom, 2.5-bathroom layouts (1,454-1,683 sqft)
• 2020 construction with modern amenities
• Strong rental demand near major employers and highways
• 15% population growth over 10 years

Tampa Area Opportunities

The Tampa-S10 property in Land O Lakes, FL offers:

• 4-bedroom, 2.5-bathroom single-family home (2,775 sqft)
• Built in 2020 with modern design
• Located near A-rated schools and top employers
• Fully occupied with long-term lease for stable returns

Dallas Market Performance

Dallas properties like the Dallas-S8 have demonstrated strong performance:

• 3-4 bedroom single-family homes (2,313-2,323 sqft)
• Established neighborhoods with strong rental demand
• 23 Fortune 500 companies in Dallas area driving job growth
• Dallas-S8 has achieved +6.51% dividend yield

This geographic and property-type diversification allows investors to build balanced portfolios across different markets, property types, and risk profiles, while maintaining individual property selection control that pooled REITs like Roots cannot offer.

Ark7’s Stringent Compliance and Risk Disclosure

Ark7 operates under strict regulatory oversight, providing investor protection through SEC Regulation A+ qualification and FINRA-registered broker-dealer relationships.

Compliance Framework:

• SEC Regulation A+ qualified offerings – Investor protections through SEC oversight
• Dalmore Group LLC – FINRA and SIPC registered broker-dealer of record
• Complete offering circulars – Detailed risk disclosures and business terms
• Trustpilot rating – 4.6/5 based on over 300 reviews demonstrating customer satisfaction

Important Risk Disclosures:

• Investments are speculative and involve substantial risks including illiquidity, lack of diversification, and complete loss of capital
• Past performance is no guarantee of future results
• Shares are not listed on any securities exchange and liquidity is not guaranteed
• Investors must be prepared to hold shares indefinitely
• Neither Ark7 nor Dalmore provides investment advice or recommendations

This regulatory compliance and transparent risk disclosure framework ensures that investors have complete information to make informed decisions while benefiting from regulatory protections.

Making the Right Choice for Your Investment Goals

The choice between fractional real estate platforms depends on your specific investment objectives, risk tolerance, and preferences for control versus simplicity.

Choose Ark7 when you prioritize:

• Accessibility – $20 minimum investment for broad participation
• Control – Individual property selection across diverse markets
• Liquidity – Active secondary market with no trading fees
• Income frequency – Monthly distributions for better cash flow management
• Transparency – Complete fee disclosure and property-level performance data
• Geographic diversification – 10+ US markets vs concentrated portfolios

Consider Roots when you prefer:

• Simplified investing – Pooled REIT requires no property selection decisions
• Strong historical returns – Average annual returns exceeding 17% since inception
• Social impact – “Live In It Like You Own It®” tenant wealth-building program

InvestBay is not available for US investors due to regulatory restrictions.

For most US investors seeking accessible, transparent, and flexible fractional real estate investment with industry-leading liquidity and control, Ark7 emerges as a compelling choice. The platform’s combination of low minimums, monthly income, individual property selection, and active secondary market creates a distinctive value proposition in the fractional real estate landscape.

Frequently Asked Questions

How does Ark7 ensure transparency in its real estate investments?

Ark7 provides complete operational transparency through 24/7 access to all legal and financial documents, including detailed offering circulars for each property. The platform discloses all fees upfront with no hidden costs, and investors receive property-level performance data rather than pooled REIT metrics. This transparency enables informed decision-making based on complete information. All investments are SEC Regulation A+ qualified, providing additional regulatory oversight and investor protection.

Can I sell my shares on Ark7, and how does the secondary market work?

Yes, Ark7 offers an active secondary market through the PPEX ATS (Alternative Trading System) where investors can buy and sell shares after a 1-year minimum holding period. The platform has demonstrated $61,662 in monthly trading volume with 70% of properties actively trading, providing industry-leading liquidity with no trading fees. Transactions typically fulfill in 1-3 business days. This contrasts with competitors like Roots that only offer quarterly redemptions with 8% early withdrawal penalties.

What are the fees associated with investing in real estate through Ark7?

Ark7’s fee structure includes a 3% one-time sourcing fee on initial investments and 8-15% property management fees charged against rental income before investor distributions. Crucially, Ark7 charges zero annual management (AUM) fees, which saves investors approximately $100-200 annually on a $10,000 investment compared to platforms charging 1-2% AUM fees. There are also no secondary market trading fees, making share transactions completely free after the minimum holding period.

Does Ark7 offer options for investing retirement funds (IRA) in real estate?

Yes, Ark7 offers both Traditional and Roth IRA investment options with the same $20 minimum investment as standard accounts. The platform charges $0 to open an IRA account, with only a $100 annual custodian fee per property, capped at $400 annually and waived for accounts with over $100,000 average balance. This enables tax-advantaged real estate investing with the same accessibility and individual property selection control as standard accounts, making it easier to incorporate real estate into retirement portfolios.