Lofty vs Realbricks vs Ark7: Finding the Best Fractional Real Estate Platform

When evaluating fractional real estate investment platforms, investors face a critical choice between different approaches and models. While Lofty leverages blockchain technology and Realbricks focuses on debt-free properties, Ark7 delivers the optimal balance of accessibility, income frequency, and cost efficiency for mainstream investors seeking monthly passive income without ongoing fees. This comprehensive comparison examines the key differentiators across these platforms, with particular emphasis on why Ark7 emerges as the superior choice for most investors.

Key Takeaways

• Ark7 stands out as the premier solution for monthly passive income with zero ongoing AUM fees, saving investors $1,440 over 5 years compared to Realbricks on a $10,000 investment
• Accessibility meets control: Ark7 offers the lowest practical minimum investment ($20) for individual property selection, enabling micro-diversification unavailable on most competing platforms
• Traditional simplicity wins: Ark7 provides full USD transactions without cryptocurrency complexity, making real estate investing accessible to investors unfamiliar with blockchain technology
• Mobile-first experience: Ark7 delivers complete investment functionality through highly-rated iOS (4.7/5) and Android (4.2/5) apps, while the Lofty investment platform does not offer a mobile app for investors
• IRA accessibility: Ark7 enables retirement account investing with a $20 minimum and reasonable $100 annual custodial fee per property (capped at $400), compared to $1,000+ minimums elsewhere

Understanding Fractional Real Estate Investing Platforms

Fractional real estate investing has democratized access to rental property ownership, allowing investors to purchase shares in individual properties rather than entire assets. This model provides exposure to real estate’s dual return potential—rental income and property appreciation—without the landlord responsibilities of property management, tenant relations, or maintenance.

While all three platforms offer fractional ownership, their approaches differ significantly in execution, accessibility, and investor experience. Lofty utilizes blockchain tokenization on the Algorand network, Realbricks focuses exclusively on 100% debt-free properties, and Ark7 emphasizes operational transparency, monthly income distributions, and cost efficiency through zero ongoing asset management fees.

Why Platform Choice Matters:

• Fee structures significantly impact long-term returns, with ongoing AUM fees compounding against investor gains
• Income frequency affects cash flow management and compounding opportunities
• Liquidity terms determine how quickly investors can access their capital
• Regulatory frameworks provide varying levels of investor protection and clarity
• Minimum investments influence portfolio diversification potential with limited capital

Key Features and Offerings: Lofty, Realbricks, and Ark7 Compared

Investment Approaches and Property Selection

The three platforms differ fundamentally in how they structure investments and provide property selection options.

Ark7 offers investors the ability to select individual rental properties across 10+ U.S. markets, including Dallas, Tampa, and Atlanta. Each property is held in a series LLC structure with SEC Regulation A+ qualification, providing clear legal separation between assets.

Lofty tokenizes individual properties on the Algorand blockchain, allowing investors to purchase fractional ownership through cryptocurrency transactions. This provides transparent on-chain records while requiring familiarity with blockchain technology.

Realbricks focuses exclusively on 100% debt-free properties, initially concentrated in Omaha with expansion plans. This eliminates mortgage and interest rate risk but limits geographic diversification compared to Ark7’s national presence.

Minimum Investment Requirements

Accessibility is a critical factor for new investors, and the platforms vary significantly in entry requirements:

• Ark7: $20 per share minimum, enabling micro-diversification across multiple properties
• Lofty: $50 per token minimum
• Realbricks: $100 minimum investment ($10 per share)
• Fundrise: $10 minimum (but fund-only model with no property selection)

Ark7’s $20 minimum represents the lowest practical entry point for investors seeking individual property control. With $100, an investor could diversify across 5 different Ark7 properties versus being limited to a single property on Realbricks or Lofty.

Accessibility and Minimum Investment: Who Can Invest?

Lowering the Barrier to Entry for Real Estate Investment

Ark7’s mission to make real estate investment accessible to everyone is reflected in its industry-leading $20 minimum investment. This approach enables investors with limited capital to build diversified portfolios across multiple properties and markets.

While Fundrise offers a lower $10 minimum, investors sacrifice property-level control for fund-based exposure. Lofty and Realbricks require 2.5x and 5x more capital respectively to make a single investment, creating higher barriers for beginners.

Democratizing Real Estate Through Technology

Ark7 leverages technology to simplify the complex process of real estate investing, making it as accessible as stock investing. The platform’s intuitive interface, combined with comprehensive property information and transparent fee structures, empowers investors to make informed decisions without real estate expertise.

The ability to invest as little as $20 per share aligns with Ark7’s core philosophy that wealth-building through real estate should be available to everyone, not just accredited investors or those with substantial capital.

Earning Passive Income: Dividends, Appreciation, and Tax Benefits

Monthly Cash Distributions: Ark7’s Key Differentiator

Ark7 stands alone among major fractional real estate platforms in delivering consistent monthly cash distributions to investors. This provides 12 annual income payments versus the quarterly distributions (4 per year) offered by Realbricks, Fundrise, and most competitors.

Lofty offers daily distributions paid in USDC stablecoin, which requires cryptocurrency wallet management and conversions. Ark7’s monthly USD payments provide practical, spendable income without blockchain technology requirements.

According to Ark7’s performance updates, the portfolio-wide annualized dividend return rate was 3.96% as reported in their November 2025 portfolio update.

Property Appreciation and Long-Term Growth

While rental income provides immediate returns, property appreciation offers long-term wealth-building potential. Ark7’s strategy focuses on acquiring properties in high-growth Sunbelt markets with strong job and population growth, including Dallas, Tampa, and Atlanta.

Properties like the Dallas-S8 shares have demonstrated strong performance, with a 6.51% dividend yield reported in a mid-year performance update. The platform’s data-driven approach to property selection targets markets with favorable economic fundamentals and rental demand.

Tax Benefits and IRA Compatibility

Ark7 supports both Traditional and Roth IRA accounts through its partnership with Inspira Financial Company. Investors can open an IRA with no Ark7 platform fee and benefit from tax-advantaged growth, with annual custodian fees of $100 per property (capped at $400 annually, waived for account balances over $100,000).

This IRA accessibility is particularly valuable for retirement-focused investors, as it combines real estate’s tangible asset benefits with tax-deferred or tax-free growth potential. For more information on retirement investing options, explore Ark7’s IRA offerings.

Transparency, Fees, and Management: What’s Under the Hood?

Zero Ongoing AUM Fees: Ark7’s Structural Advantage

Ark7’s most significant cost advantage is its zero ongoing asset management fees. While Realbricks charges 0.75% quarterly (approximately 3% annually) and Fundrise charges a combined 1.0% annual fee (0.85% management fee plus 0.15% advisory fee), Ark7 eliminates these recurring fees entirely.

This structural difference creates substantial long-term savings:

• $10,000 investment over 5 years: $1,440 saved vs Realbricks
• $50,000 portfolio over 5 years: $6,250 saved vs Realbricks

These savings compound significantly over time, with Ark7’s fee structure delivering 2.4x higher net returns than Realbricks on modest 5% gross returns over a 5-year period.

Fee Structure Comparison

Minimum Investment

• Ark7: $20 per share
• Lofty: $50 per token
• Realbricks: $100 minimum ($10 per share)

Sourcing / Acquisition Fees

• Ark7: 3% one-time fee
• Lofty: 3.5% per transaction
• Realbricks: Not disclosed

Ongoing AUM Fees

• Ark7: $0 (0%)
• Lofty: Varies by property
• Realbricks: 0.75% quarterly

Property Management Fees

• Ark7: 8–15% of rental income
• Lofty: Included in platform structure
• Realbricks: Monthly fee per property

Operational Transparency and Property Management

Ark7 prides itself on full operational transparency, providing complete legal and financial disclosure accessible 24/7 through its platform. The company holds a minority ownership stake (1%-20%) in each property, aligning its interests with investors by sharing both profits and losses.

Properties are professionally sourced, acquired, and managed by Ark7’s team, eliminating landlord responsibilities for investors. The platform’s AI-driven property sourcing combines technology with local market expertise to identify high-yield opportunities in growing markets.

Liquidity Options: Selling Your Fractional Real Estate Shares

Secondary Market Access and Holding Periods

Liquidity represents a significant differentiator among fractional real estate platforms:

• Ark7: Shares can be sold on the PPEX ATS secondary trading platform after a 12-month holding period
• Lofty: Blockchain-based trading with no holding period requirements
• Realbricks: Secondary market launching in 2026 with no personal lockup periods
• Fundrise: Quarterly redemptions with penalties and restrictions

While Lofty offers more immediate liquidity, Ark7’s regulated PPEX ATS secondary market provides institutional-grade liquidity infrastructure with SEC oversight, representing a balanced approach between accessibility and regulatory compliance.

The Importance of an Exit Strategy

Real estate investments are inherently less liquid than stocks or bonds, and investors should approach fractional ownership with a long-term perspective. Ark7’s 12-month holding period encourages buy-and-hold investing while still providing eventual exit opportunities through the regulated secondary market.

The PPEX ATS platform, operated by North Capital and registered with the SEC, provides a venue for share resale subject to federal and state securities laws. However, investors should be prepared to hold shares indefinitely, as there’s no guarantee of an active market developing.

IRA Investing: Building Your Retirement Wealth with Real Estate

Leveraging IRAs for Real Estate Investments

Ark7’s IRA offering enables investors to use retirement funds for real estate investing, combining the benefits of tangible assets with tax-advantaged growth. This is particularly valuable for investors seeking to diversify beyond traditional stocks and bonds in their retirement portfolios.

The platform supports both Traditional and Roth IRAs, with funding available through transfers from existing IRAs or annual contributions within IRS limits. The $100 annual custodian fee per property (capped at $400) represents reasonable costs compared to alternatives, especially considering the $20 minimum investment threshold.

Platform Support for Retirement Accounts

Ark7’s IRA platform provides the same user-friendly experience as its standard accounts, with full portfolio tracking, distribution monitoring, and property management features. Investors can manage both taxable and retirement accounts through the same interface, simplifying overall portfolio oversight.

The ability to invest retirement funds in individual properties rather than funds provides greater control and transparency over retirement assets. Investors can select specific properties based on their risk tolerance, income needs, and growth objectives.

Mobile Investing: Accessibility and Convenience On-The-Go

Platform Mobile App Functionalities

Ark7 delivers a complete mobile investing experience through its iOS and Android applications, with impressive user ratings of 4.7/5 on the App Store (1,300+ reviews) and 4.2/5 on Google Play.

The Ark7 Mobile App enables investors to:

• Discover and invest in curated rental properties nationwide
• Manage shares and track monthly dividends in one secure place
• Sell shares on the trading market (subject to availability)
• Receive real-time offer updates and operational highlights
• Access portfolio insights and performance tracking
• Execute secure transactions from anywhere

In contrast, the Lofty investment platform does not offer a mobile app for investors, requiring them to use the web platform for all activities. Realbricks offers mobile apps but with a more limited property selection focused primarily on Omaha.

Investing and Managing Properties from Your Phone

The mobile-first approach reflects Ark7’s commitment to making real estate investing as convenient as stock investing. The ability to monitor distributions, review property performance, and execute transactions from a smartphone empowers investors to stay connected to their portfolios regardless of location.

This mobile functionality is particularly valuable for busy professionals, frequent travelers, or anyone preferring to manage investments on-the-go rather than being tied to a desktop computer.

Investor Protection and Regulation: What You Need to Know

Regulatory Compliance in Real Estate Crowdfunding

Ark7’s offerings are SEC Regulation A+ qualified, providing clear regulatory oversight and investor protections. Dalmore Group LLC serves as the FINRA and SIPC registered broker-dealer of record, ensuring compliance with securities regulations. The SEC’s Regulation A+ framework allows companies to raise capital from both accredited and non-accredited investors with specific disclosure requirements.

This regulatory framework contrasts with Lofty’s DAO LLC structure, which operates in an evolving blockchain regulatory environment. Realbricks and Fundrise also maintain SEC-regulated structures, but Ark7’s combination of regulatory clarity with monthly income and zero ongoing fees creates a unique value proposition.

Risks Associated with Fractional Real Estate Investments

All fractional real estate investments involve substantial risks, including:

• Illiquidity (limited ability to sell shares quickly)
• Lack of diversification (concentration in individual properties)
• Complete loss of capital (property value decline or tenant issues)
• Market risk (economic downturns affecting rental demand)
• Interest rate risk (for leveraged properties)

Ark7 addresses these risks through professional property management, careful market selection, and transparent disclosure of all material information in offering circulars. However, investors should carefully review all risk factors and consider their risk tolerance before investing.

Ark7’s Community Focus and Data-Driven Approach

The Role of Technology in Ark7’s Strategy

Ark7’s mission emphasizes the marriage of artificial intelligence and human calibration to modernize real estate investment decision-making. The platform’s data-driven approach combines technology with local market expertise to identify high-yield opportunities in growing markets.

This hybrid model leverages AI for initial property screening and market analysis while incorporating human judgment for final investment decisions. The result is a curated selection of properties that balance yield potential with risk management.

Building a Mutually Beneficial Investment Model

Ark7’s community focus is reflected in its commitment to transparency, regular communication, and investor feedback. The company holds minority ownership stakes in each property, ensuring alignment between platform and investor interests.

With over 230,000 active investors and $23+ million in property value funded, Ark7 has demonstrated the viability of its community-driven approach. The platform’s 4.2/5 Trustpilot rating (243 reviews) reflects investor satisfaction with its combination of accessibility, transparency, and performance.

Making the Right Choice for Your Investment Goals

The optimal fractional real estate platform depends on individual investor priorities, risk tolerance, and investment objectives.

Choose Ark7 when you prioritize:

• Monthly passive income in USD without cryptocurrency requirements
• Zero ongoing AUM fees to maximize long-term returns
• Low $20 minimum investment with individual property selection
• SEC-regulated structure with clear investor protections
• Mobile-first investing experience with complete functionality
• IRA compatibility with reasonable fees and low minimums

Consider Lofty if you:

• Are comfortable with cryptocurrency and blockchain technology
• Value blockchain-based trading capabilities
• Prefer daily income distributions in stablecoin format
• Are interested in blockchain innovation and on-chain transparency

Evaluate Realbricks if you:

• Prioritize 100% debt-free properties to eliminate interest rate risk
• Are comfortable with quarterly AUM fees
• Prefer quarterly over monthly income distributions
• Are interested in Omaha-focused real estate exposure

For most mainstream investors seeking practical, cost-efficient access to fractional real estate with monthly income and regulatory clarity, Ark7 represents the superior choice.

Frequently Asked Questions

What is fractional real estate investing?

Fractional real estate investing allows multiple investors to purchase shares in individual rental properties, providing access to real estate’s dual return potential—rental income and property appreciation—without landlord responsibilities. Platforms like Ark7 enable investments starting as low as $20 per share in SEC-qualified offerings. Professional property management handles all operational aspects including tenant relations, maintenance, and rent collection. This approach democratizes real estate investing for individuals who may not have capital to purchase entire properties.

Can I sell my Ark7 shares easily if I need to access my funds?

Ark7 shares can be sold on the PPEX ATS secondary trading platform after a 12-month holding period, subject to buyer availability and regulatory restrictions. This regulated marketplace provides institutional-grade liquidity infrastructure with SEC oversight. While less immediate than blockchain-based trading, it balances accessibility with regulatory compliance for traditional investors. Investors should be prepared to hold shares indefinitely, as there’s no guarantee of active secondary market trading.

Are fractional real estate investments suitable for retirement accounts?

Yes, Ark7 supports both Traditional and Roth IRA accounts through its partnership with Inspira Financial Company, enabling tax-advantaged real estate investing. Investors can open an IRA with no Ark7 platform fee and invest as little as $20 per property. Annual custodian fees are $100 per property (capped at $400, waived for balances over $100,000), which is competitive compared to alternatives requiring $1,000+ minimums. This provides retirement investors greater control over individual property selection versus fund-based exposure.

What are the main risks associated with investing on platforms like Ark7?

Fractional real estate investments involve substantial risks including illiquidity, lack of diversification, complete loss of capital, market risk, and interest rate risk for leveraged properties. Property values can decline, tenants may default, and economic downturns can affect rental demand. Ark7 addresses these through professional management and careful property selection, but investors should review all risk factors in offering circulars before investing. Past performance is no guarantee of future results, and there’s always potential for losing money when investing in securities.