Lofty vs Fundrise vs Ark7: Finding the Best Fractional Real Estate Platform for You

When evaluating fractional real estate platforms, investors face a critical choice between accessibility, control, and cost. Traditional crowdfunding platforms often lock investors into pooled funds with recurring fees, while newer blockchain-based models introduce cryptocurrency complexity. Ark7 cuts through this noise by offering direct ownership in individual, high-yield rental properties with a minimum investment of just $20 per share, making it easy to buy shares in rental properties without hidden fees. This comprehensive guide compares Ark7, Lofty, and Fundrise to help you identify the platform that best aligns with your investment goals, with a clear focus on why Ark7 delivers the optimal balance of control, income, and affordability.

Key Takeaways

• Ark7 is the best choice for investors seeking individual property control, monthly passive income in USD, and the lowest long-term costs with 0% annual AUM fees
• Fundrise suits hands-off beginners who prioritize the absolute lowest entry point ($10) and automatic diversification across a large portfolio, but sacrifices property selection and charges 1% annual fees
• Lofty appeals to crypto-comfortable investors who need instant liquidity and daily income, but requires managing cryptocurrency wallets and incurs 3% trading fees
• Ark7’s $20 minimum is the lowest for individual property selection, offering a unique blend of accessibility and control not found in pooled funds
• Over a 5-year horizon, Ark7’s 0% annual fees can save investors $500-$1,000+ on a $10,000 investment compared to traditional fee-based models

Understanding the Fractional Real Estate Investment Landscape

Fractional real estate platforms democratize access to rental property ownership, but their models differ significantly. Fundrise operates a pooled fund model, where your investment is spread across a portfolio of 300+ properties, offering diversification but no control over specific assets. Lofty leverages blockchain technology to tokenize real estate, enabling instant trading and daily income in USDC stablecoin, but requires cryptocurrency knowledge. Ark7, in contrast, lets you invest directly in individual, professionally managed rental homes across the U.S. share by share, providing transparency and control over your specific assets with a simple, traditional USD structure.

Core Investment Models:

• Pooled Funds (Fundrise): Your capital is bundled with others into a fund, offering diversification but no say in which properties are purchased.
• Tokenized Real Estate (Lofty): Properties are represented as digital tokens on a blockchain, enabling high liquidity but introducing crypto complexity.
• Direct Property Shares (Ark7): You own a specific equity stake in a single, physical rental property, with all operational details and financials disclosed upfront.

Top Fractional Real Estate Platforms Compared

Ark7: The best for direct property control and low long-term fees

Ark7 stands out by enabling investors to purchase shares in specific, high-yield rental properties, not blind pooled funds. With a minimum investment of just $20 per share, Ark7 makes it possible to build a diversified portfolio of individual assets at a low cost. The platform’s commitment to a hassle-free experience is evident in its intuitive mobile app and a fee structure that includes 0% annual AUM fees, saving investors significantly over time.

Key Ark7 Advantages:

• Individual Property Selection: Choose specific rental homes in markets like Atlanta, Tampa, and Dallas, rather than investing in an opaque fund.
• 0% Annual AUM Fees: Ark7 charges no recurring fees on your invested capital, a major cost savings versus competitors.
• Monthly Passive Income: Receive cash distributions in USD on the 3rd of each month, providing consistent and frequent income.
• Low Minimum Investment: Start with just $20 per share, the lowest barrier to entry for individual property ownership.
• Free Secondary Market: Sell your shares on the PPEX ATS after a 1-year holding period with $0 transaction fees.
• Debt-Free Options: Many properties are offered without mortgage debt, reducing risk for conservative investors.
• Skin in the Game: Ark7 holds a 1%-20% equity stake in each property, aligning its interests directly with yours.

Performance & Reliability: Ark7’s portfolio has demonstrated strong operational health, with a 94.81% occupancy rate as of November 2026. In 2026, the portfolio delivered an average annualized dividend yield of 4.36%, with top-performing properties like Urbana-S11 yielding as high as 6.89%. The platform has distributed over $3.5 million in lifetime dividends to its 230,000+ active investors.

IRA Integration: Ark7 offers a straightforward path to invest with your IRA, with a $100 annual fee per property (capped at $400 per year, and waived for accounts with a balance over $100,000), which is lower than many competitors’ IRA minimums.

Fundrise: The best for hands-off diversification and a long track record

Fundrise is a pioneer in the real estate crowdfunding space, founded in 2012, and manages over $7 billion in assets. It caters to investors who want a “set-it-and-forget-it” approach by investing in eREITs or eFunds, which are diversified portfolios of properties. This model is ideal for beginners or those who prefer not to research individual assets.

Key Fundrise Strengths:

• Absolute Lowest Entry: A $10 minimum for taxable accounts makes it the most accessible platform by entry cost.
• Extensive Diversification: Your investment is spread across a large portfolio of 300+ properties, reducing single-asset risk.
• Long Operational History: Over a decade of experience provides a strong track record for investors seeking stability.
• Hands-Off Management: The platform’s team manages the entire portfolio, requiring no effort from the investor.

Key Considerations:

• No Property Selection: Investors have no control over which specific properties are in their portfolio.
• 1% Annual AUM Fees: This recurring fee can significantly erode returns over time, costing an estimated $500-$600 over five years on a $10,000 investment.
• Quarterly Distributions: Income is paid only four times a year, less frequently than monthly platforms like Ark7.
• Limited Liquidity: Redemptions are processed quarterly and are subject to caps and a 1% penalty if requested before a 5-year holding period.

Performance: Fundrise’s performance has been mixed, with its 2024 flagship fund reporting net returns of 7.47-8.30%, while its flagship fund experienced negative returns in 2023. This volatility highlights the risk of a pooled fund model where you cannot adjust your holdings based on individual property performance.

Lofty: The best for crypto-native investors and instant liquidity

Lofty is a blockchain-based platform that tokenizes real estate, allowing investors to buy and sell fractions of properties instantly on its marketplace. It appeals to a tech-savvy, crypto-comfortable audience who prioritize liquidity and daily income over traditional investment structures.

Key Lofty Strengths:

• Daily Income Distributions: Rental income is paid out in USDC stablecoin every day, offering the highest frequency in the industry.
• Instant Liquidity: There is no mandatory holding period; you can trade your tokens on Lofty’s marketplace at any time.
• Blockchain Transparency: Property ownership is recorded on the Algorand blockchain, providing an immutable and transparent ledger.
• Individual Property Selection: Like Ark7, you can choose specific properties to invest in.

Key Considerations:

• Cryptocurrency Complexity: Requires a crypto wallet, USDC, and an understanding of blockchain transactions, creating a barrier for traditional investors.
• High Transaction Fees: Lofty charges a 3% fee on all trades, plus additional 2.9-3.9% fees for depositing and withdrawing funds, which can significantly eat into profits.
• No Mobile App: The platform is web-only, lacking the convenience of a dedicated mobile application.
• Regulatory Uncertainty: The tokenization of real estate is a new and evolving area, facing potential future regulatory scrutiny from the SEC.
• Limited User Base: Lofty reports approximately 7,000 monthly users.

A Detailed Feature Breakdown

Investment Minimums and Accessibility

The entry cost is a critical factor for new investors.

• Fundrise: $10 for taxable accounts, but $1,000 for an IRA. This is the absolute lowest entry point, but you are locked into a pooled fund.
• Lofty: $50 per token. You can select individual properties, but you must navigate the crypto ecosystem.
• Ark7: $20 per share. This is the lowest minimum for investing in specific, individual properties, providing a unique combination of accessibility and control. You can start building your own real estate portfolio with the price of a movie ticket.

Fees and Total Cost of Ownership (TCO)

Fees are the silent killer of long-term investment returns. A comparison of a $10,000 investment over 5 years reveals stark differences:

• Fundrise: Costs approximately $500-$700 in recurring 1% annual AUM fees. This is a guaranteed cost that compounds over time.
• Lofty: Costs are variable but can total $500-$1,000+ due to 3% trading fees and crypto conversion costs, especially if you trade frequently.
• Ark7: Costs are a one-time 3% acquisition fee (~$300) with 0% annual AUM fees. This makes Ark7 the most cost-efficient platform for long-term holdings, potentially saving you $500-$1,000+ over a 5-year period.

Passive Income and Liquidity

How and when you get paid, and how easily you can access your capital, are key considerations.

• Fundrise: Quarterly distributions in USD. Liquidity is limited to a quarterly redemption program with penalties and caps.
• Lofty: Daily distributions in USDC. Offers instant liquidity on its blockchain marketplace, but with a 3% trading fee.
• Ark7: Monthly distributions in USD on the 3rd of each month. After a 12-month holding period, you can sell your shares on the PPEX ATS, a SEC-registered alternative trading system, with $0 transaction fees. This provides a balanced approach of frequent income and a clear, low-cost path to liquidity.

Diversifying Your Portfolio with Specific Properties

For investors who want to build a portfolio of specific assets, Ark7 offers a curated selection of properties in high-growth Sunbelt markets. You can invest in a modern townhome in Atlanta-T3 Property Shares, or a family-friendly home in a strong Tampa rental market with the Tampa-S10 Property Shares. This level of control is simply not available with Fundrise’s pooled funds.

Investing for Your Future with an IRA

For long-term wealth building, using an IRA can be a powerful strategy. Ark7’s IRA offering is particularly attractive, with a $100 annual fee per property (capped at $400) and a waiver for accounts over $100,000. This is more accessible than Fundrise’s $1,000 IRA minimum, and far simpler than navigating the crypto complexities of using Lofty for retirement savings.

Why Ark7 is the Superior Choice for Most Investors

Ark7’s model is designed for the modern, savvy investor who wants more than just a blind bet on a fund. By offering direct ownership in tangible, income-producing assets, Ark7 provides a level of transparency and control that is unmatched. The platform’s commitment to low costs is evident in its 0% annual AUM fees, a feature that directly benefits your bottom line over the long term. The monthly cash distributions in traditional USD provide a reliable and frequent income stream, perfect for investors seeking to build passive income without the hassle of being a landlord.

Furthermore, Ark7’s alignment with its investors is clear: the company holds a 1%-20% equity stake in every property it offers, meaning it shares in both the profits and the losses. This “skin in the game” ensures that Ark7’s interests are perfectly aligned with yours. The platform’s operational transparency, with detailed financial information available in its SEC filings, and its strong user satisfaction, reflected in its 4.1/5 Trustpilot rating, solidify its position as the leading choice for fractional real estate investing.

Frequently Asked Questions

What is the minimum investment for Ark7, Lofty, and Fundrise?

Ark7 has a minimum investment of $20 per share for individual properties. Lofty requires a minimum of $50 per token. Fundrise has the lowest absolute entry at $10, but this is for a pooled fund, not a specific property. For IRA accounts, Ark7’s fee is $100 per property, while Fundrise requires a $1,000 minimum.

How do I earn passive income through Ark7?

Ark7 investors earn passive income through monthly cash distributions paid on the 3rd of each month from the rental income generated by the specific property you have invested in. The platform handles all aspects of property management, including leasing, tenanting, and maintenance, so you can earn income without any landlord work. You simply invest in shares and receive your proportional share of the rental income directly to your account.

Can I invest in real estate through an IRA with Ark7?

Yes, you can open an IRA with Ark7 to invest in real estate. The platform partners with Inspira Financial Company as the custodian, with an annual fee of $100 per property (capped at $400 per year). This fee is waived if your account’s average balance exceeds $100,000. This allows you to use tax-advantaged retirement funds to build long-term wealth through tangible real estate assets.

What are the fees associated with investing on Ark7?

Ark7’s fee structure is designed for transparency and low cost with a one-time 3% acquisition fee on your investment and 0% annual AUM fees on your invested capital. Property management fees (8-15% of rental income) are deducted from the rental revenue before distributions are calculated. There are no fees for selling your shares on the secondary market after the 1-year holding period.

How does the secondary trading market work for Ark7 shares?

After a 12-month holding period, you can sell your Ark7 shares on the PPEX ATS, a SEC-registered alternative trading system. Ark7 does not charge any transaction fees for these sales, providing a clear and low-cost path to liquidity. However, it’s important to note that there is no guarantee an active market will exist, and you must be prepared to hold your shares indefinitely.

What are the risks of investing in real estate crowdfunding platforms?

Investing in real estate crowdfunding platforms like Ark7, Lofty, and Fundrise is speculative and involves substantial risks including illiquidity, lack of diversification (especially when investing in a single property), and the potential for a complete loss of your capital. The value of your investment is subject to market conditions, property performance, and tenant issues, and past performance is no guarantee of future results. Always review the full offering materials and consult your financial advisor before investing.