RealtyMogul vs EquityMultiple vs Ark7: Finding the Best Fractional Real Estate Platform

When evaluating fractional real estate investing platforms, investors face a critical choice between accessibility, fees, and control. Traditional platforms like RealtyMogul and EquityMultiple have established track records but come with significant barriers to entry, including high minimum investments and complex fee structures. Ark7 transforms this paradigm by offering fractional ownership in high-yield rental properties with minimum investments as low as $20 per share, a competitive fee structure with a 15% asset management fee on distributable cash flow, and monthly cash distributions. This comprehensive comparison examines the three leading platforms to help investors make an informed decision based on their specific needs and investment goals.

Key Takeaways

• Ark7 stands out as the most accessible platform with a $20 minimum investment and monthly cash distributions, making real estate investing available to everyday investors
• RealtyMogul requires $5,000 minimum investments and charges 1-1.25% annual AUM fees, while limiting non-accredited investors to pooled REITs without property selection
• EquityMultiple excludes non-accredited investors entirely and charges 0.5-1.5% annual fees, takes 10% of profits upon exit, and offers no secondary market liquidity
• Ark7’s secondary market allows share sales after a 1-year holding period, providing liquidity 2-6 years earlier than competitors’ typical 3-7 year lockups
• For investors seeking direct property selection, monthly income, and competitive fee efficiency, Ark7 presents a compelling option for building real estate wealth

Understanding Fractional Real Estate Investing Platforms

Fractional real estate investing platforms have democratized access to real estate wealth building by allowing investors to purchase shares in income-producing properties without the burdens of direct ownership. These platforms handle property acquisition, tenant management, maintenance, and financial reporting, enabling investors to earn passive income through rental distributions and potential appreciation.

The core value proposition varies significantly between platforms:

• Accessibility: Minimum investment thresholds and investor accreditation requirements
• Control: Ability to select specific properties versus pooled fund allocation
• Costs: Fee structures including acquisition, management, and administrative fees
• Liquidity: Options for selling shares or exiting investments
• Income: Distribution frequency and tax reporting complexity

Ark7 was founded on the principle that real estate investment should be accessible to everyone, not just accredited investors with substantial capital. By leveraging SEC Regulation A+ offerings and a series LLC structure, Ark7 enables investors to purchase shares in individual rental properties with transparency and operational simplicity.

Ark7: Accessible & Transparent Rental Home Investment

Ark7 redefines fractional real estate investing through its commitment to accessibility, transparency, and investor-friendly features. Unlike traditional platforms that cater primarily to accredited investors, Ark7 welcomes all investors with minimum investments starting at just $20 per share.

How Ark7 Works

Ark7 sources, acquires, and manages high-yield rental properties across growing U.S. markets, then offers shares in these properties through SEC-qualified offerings. Investors can browse available properties, review detailed financial projections and property information, and purchase shares directly through the platform or Ark7 mobile app.

Key features that distinguish Ark7 include:

• $20 minimum investment – 250x more accessible than RealtyMogul’s $5,000 minimum
• Competitive fee structure – 15% asset management fee on distributable cash flow plus a 3% one-time sourcing fee
• Monthly cash distributions – Consistent monthly income versus quarterly distributions elsewhere
• Property selection control – Choose specific properties rather than blind fund allocation
• Secondary market liquidity – Sell shares after 1-year holding period through PPEX ATS
• Flexible tax reporting – Tax reporting may come via 1099 or K-1, depending on how each property series is structured

Investment Opportunities with Ark7

Ark7 focuses exclusively on residential rental properties in high-growth Sunbelt markets, including Dallas, Tampa, and Atlanta. Current offerings include properties like the Dallas-S9 home in Mesquite, TX, and the Atlanta-T3 townhome in Jonesboro, GA.

Each property undergoes rigorous underwriting, with detailed market analysis, rental projections, and expense estimates provided to investors. Ark7 maintains a 1-20% equity stake in each property, aligning its interests with investors.

Ark7’s Fee Structure and Transparency

Ark7’s fee structure is designed to align with investor success:

• 3% one-time sourcing fee – Charged at purchase
• 15% asset management fee – Calculated on distributable cash flow when distributions are made
• 8-15% property management fee – Deducted from rental income, standard for professional management
• $100 annual custodian fee – For Ark7 IRA accounts, waived for balances over $100,000

This transparent approach provides competitive value for investors. The platform’s 4.0/5 Trustpilot rating and 4.7/5 App Store rating reflect investor satisfaction with this transparent model.

Investment Choices: Comparing Property Types and Strategies

The type of real estate investments offered by each platform significantly impacts risk, return potential, and investor control.

Residential vs. Commercial Real Estate

Ark7 focuses exclusively on residential rental properties, including single-family homes, townhomes, and small multifamily properties in high-growth markets. This strategy targets stable rental income and long-term appreciation in areas with strong population and job growth.

RealtyMogul and EquityMultiple primarily focus on commercial real estate, including office buildings, retail centers, industrial properties, and large multifamily complexes. While these assets can offer higher returns, they typically require larger minimum investments and longer holding periods.

For investors seeking stable, predictable cash flow from residential rentals, Ark7’s specialized focus provides a more targeted approach than the commercial-heavy portfolios of competitors.

Exploring Income vs. Growth Strategies

Ark7’s properties are selected for their dual potential: immediate cash flow through monthly rental distributions and long-term appreciation. The platform provides consistent performance updates showing occupancy rates and dividend payments across properties.

RealtyMogul offers separate REITs for income (6% annualized distribution) and growth strategies, but non-accredited investors cannot select specific properties. EquityMultiple’s deals vary by opportunity, typically offering 8-12% target returns but with 3-7 year lockups and no secondary market.

Ark7’s approach enables investors to build a diversified portfolio across multiple properties with as little as $20 per share, creating a custom income and growth strategy rather than accepting a one-size-fits-all fund allocation.

Accessibility and Investor Requirements: Who Can Invest?

Accessibility is a critical differentiator between platforms, with significant implications for who can participate in real estate wealth building.

Accredited vs. Non-Accredited Investor Requirements

Ark7 welcomes all investors through SEC Regulation A+ offerings, requiring no accreditation status. This democratizes access to real estate investing for the 99% of Americans who don’t meet accredited investor thresholds.

RealtyMogul offers REITs to non-accredited investors but requires $5,000 minimum investments and provides no property selection. Accredited investors gain access to private placements with different terms.

EquityMultiple restricts all investments to accredited investors only, excluding the vast majority of retail investors. Accredited status requires $1 million net worth (excluding primary residence) or $200,000 annual income ($300,000 joint).

This accessibility gap is substantial: Ark7’s $20 minimum enables participation for investors with limited capital, while EquityMultiple’s accredited-only requirement and RealtyMogul’s $5,000 minimum create significant barriers to entry.

Minimum Investment Thresholds

The minimum investment requirements reveal stark differences in platform accessibility:

• Ark7: $20 per share for most properties
• RealtyMogul: $5,000 for REITs
• EquityMultiple: $5,000-$30,000 depending on the deal
• Fundrise: $10 for funds (no property selection)

Ark7’s low minimum enables true micro-diversification—investors can spread $500 across 25 different properties rather than committing to a single $5,000 investment. This approach reduces concentration risk while maintaining direct property ownership benefits.

Fees and Transparency: Understanding the Costs Involved

Fee structures significantly impact long-term returns, making transparency and cost efficiency critical evaluation criteria.

Diving into Platform Fee Structures

Ark7’s Competitive Fee Structure

Ark7 employs a fee structure designed to align with investor returns. The platform charges:

• 3% one-time sourcing fee at purchase
• 15% asset management fee on distributable cash flow
• 8-15% property management fee from rental income
• $100 annual IRA custodian fee (waived for balances >$100,000)

Competitor Fee Structures

• RealtyMogul: 1-1.25% annual AUM fees plus embedded acquisition costs
• EquityMultiple: 0.5-1.5% annual fees and typically takes 10% of profits upon exit
• Fundrise: ~1% annual fees (0.15% advisory + 0.85% management)

This fee transparency enables investors to make informed comparisons and understand the total cost of ownership across different platforms.

Hidden Costs to Watch Out For

Beyond explicit fees, investors should consider:

• Tax preparation costs: Tax reporting complexity can vary by platform and property structure
• Liquidity costs: Competitors’ lack of secondary markets may force investors to hold through entire terms regardless of changing circumstances
• Opportunity costs: High minimums prevent diversification across multiple properties, increasing concentration risk

Ark7’s transparent fee structure and 24/7 access to legal and financial documents through the platform ensure investors understand all costs before committing capital.

Performance and Returns: What Investors Can Expect

Performance expectations vary significantly between platforms due to different asset types, strategies, and fee structures.

Evaluating Cash Flow Potential

Ark7 distributes rental income monthly, with properties showing dividend yields that vary based on property performance and market conditions. Recent property updates have shown competitive yields reflecting strong rental performance in growing markets.

RealtyMogul’s Income REIT has delivered 6% annualized distributions for 109+ consecutive months, but this represents pooled commercial real estate rather than direct property ownership.

EquityMultiple targets 8-12% returns across its Earn strategy, but these are projections rather than guaranteed distributions, and actual returns vary by deal.

Ark7’s monthly distribution frequency provides 3x more cash flow events than quarterly competitors, enabling better reinvestment timing and compounding opportunities.

Understanding Property Appreciation

While cash flow provides immediate returns, property appreciation offers long-term wealth building potential. Ark7’s focus on high-growth Sunbelt markets targets both income and appreciation:

• Dallas: Strong median sale price appreciation trends
• Tampa: Strong population growth and rental demand
• Atlanta: Consistent population growth over multiple years

The platform’s property-level transparency allows investors to track individual property performance rather than relying on pooled fund reports, enabling informed decisions about holding or selling shares.

Liquidity Options and Secondary Markets

Real estate’s traditional illiquidity has been a significant barrier to investor adoption, but platforms are addressing this challenge differently.

The Challenge of Real Estate Liquidity

Traditional real estate investments require 5-10 year commitments with no exit options. Even fractional platforms often maintain this illiquidity:

• EquityMultiple: No secondary market; investors must hold until deal exit (3-7+ years)
• RealtyMogul: Limited redemption programs with restrictions and potential fees
• Fundrise: Quarterly redemptions not guaranteed and subject to liquidity constraints

How Secondary Markets Help

Ark7’s secondary market through PPEX ATS provides a significant liquidity advantage. After a 1-year minimum holding period, investors can sell shares through the regulated trading platform. The platform maintains an active secondary marketplace for a majority of its properties.

This liquidity option provides investors with control over their exit timing and pricing, rather than being forced to hold through entire terms regardless of changing financial circumstances or market conditions.

While there’s no guarantee of an active market for all shares, the availability of a regulated secondary trading platform represents a meaningful improvement over competitors’ illiquid structures.

Technology and User Experience: Platform Interface and Tools

The user experience significantly impacts investor satisfaction and platform adoption, with mobile accessibility becoming increasingly important.

Navigating the Investment Dashboard

Ark7’s Full-Featured Platform

Ark7 offers a comprehensive investment experience through both web and mobile platforms:

• Property discovery: Browse detailed property listings with financial projections
• Investment management: Track portfolio performance and dividend history
• Secondary market trading: Buy and sell shares through the integrated trading platform
• Document access: 24/7 access to offering circulars, financial statements, and legal documents
• Real-time updates: Receive notifications about property performance and market developments

The platform’s 4.7/5 rating from 1,300+ reviews reflects strong user satisfaction with the mobile experience.

Mobile Investing on the Go

Ark7’s mobile app enables complete investment management from iOS and Android devices, including:

• Property research and investment
• Dividend tracking and portfolio monitoring
• Secondary market trading
• Document access and performance reporting

This mobile-first approach contrasts sharply with RealtyMogul and EquityMultiple, which offer web-only platforms without mobile apps, limiting investor convenience and accessibility.

Risk Factors in Real Estate Crowdfunding Explained

All real estate investments carry inherent risks that investors must understand before committing capital.

Understanding the Potential for Loss

Key risks include:

• Illiquidity: Despite secondary market options, there’s no guarantee of finding buyers for shares
• Loss of capital: Real estate values can decline, and rental income may not cover expenses
• Lack of diversification: Investing in individual properties creates concentration risk
• Market fluctuations: Economic downturns can impact occupancy rates and property values
• Property management risk: Tenant issues, maintenance problems, or management failures can affect returns

Mitigating Common Real Estate Risks

Ark7 addresses these risks through:

• Property diversification: Low minimums enable spreading investments across multiple properties
• Professional management: Experienced property managers handle day-to-day operations
• Market selection: Focus on high-growth Sunbelt markets with strong fundamentals
• Platform co-investment: Ark7’s 1-20% equity stake aligns interests with investors
• Transparent reporting: Regular performance updates enable informed decision-making

Investors should carefully review the offering circular for Ark7 Properties Plus and consult with financial advisors before investing.

Making Your Choice: RealtyMogul, EquityMultiple, or Ark7?

The optimal platform depends on your specific investment goals, capital availability, and risk tolerance.

Matching Platforms to Your Investment Profile

Choose Ark7 when you:

• Have limited capital ($20-$5,000) to invest
• Seek monthly passive income rather than quarterly distributions
• Want direct control over property selection
• Prefer a competitive fee structure to maximize returns
• Need potential liquidity after 1 year rather than 3-7 year lockups
• Are a non-accredited investor seeking real estate exposure
• Value property-level transparency and reporting

Consider RealtyMogul when you:

• Are an accredited investor seeking commercial real estate exposure
• Have $5,000+ minimum capital available
• Prefer pooled REIT diversification over direct property selection
• Can accept 1-1.25% annual AUM fees
• Don’t require monthly income (quarterly distributions acceptable)

Consider EquityMultiple when you:

• Are an accredited investor with $5,000-$30,000 minimum capital
• Seek institutional-quality commercial real estate deals
• Can accept 3-7 year illiquid lockups
• Are comfortable with variable fee structures including profit sharing
• Don’t require secondary market liquidity

Key Questions to Ask Before Investing

• What is my minimum investment capacity?
• Do I need monthly income or can I accept quarterly distributions?
• How important is direct property selection versus pooled fund allocation?
• What fees am I willing to pay, and how will they impact long-term returns?
• How critical is liquidity, and what holding period can I commit to?
• Am I an accredited investor, and does this limit my platform options?

For most retail investors seeking accessible, transparent, and cost-efficient real estate investing, Ark7 presents a compelling combination of low barriers to entry, monthly income, and investor-friendly features.

Frequently Asked Questions

What is the minimum investment required for Ark7?

Ark7 offers fractional ownership in rental properties with minimum investments starting at just $20 per share for most properties. This low barrier enables investors to build diversified portfolios with limited capital. Unlike competitors requiring $5,000-$30,000 minimums, Ark7 makes real estate investing accessible to everyday investors. The $20 minimum allows true micro-diversification across multiple properties.

Can non-accredited investors use Ark7?

Yes, Ark7 welcomes all investors through SEC Regulation A+ qualified offerings, regardless of accreditation status. This democratizes access to real estate investing for the 99% of Americans who don’t meet accredited investor thresholds. EquityMultiple restricts all investments to accredited investors only, while RealtyMogul limits non-accredited investors to pooled REITs without property selection. Ark7’s inclusive approach enables anyone to participate in real estate wealth building.

How does Ark7 ensure transparency for investors?

Ark7 provides complete operational transparency through 24/7 access to all legal and financial documents on the platform. Investors receive monthly property performance reports showing occupancy rates and rental income. Each property listing includes detailed market analysis and financial projections before purchase. The platform’s 4.0/5 Trustpilot rating reflects investor satisfaction with this transparent approach and accessible information.

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

Ark7 charges a 3% one-time sourcing fee at purchase and a 15% asset management fee on distributable cash flow when distributions are made. Property management fees of 8-15% are deducted from rental income. For IRA accounts, there’s a $100 annual custodian fee, waived for balances over $100,000. This transparent fee structure enables investors to understand total costs upfront.

Is there a secondary market for selling Ark7 shares?

Yes, Ark7 offers a secondary market through PPEX ATS where investors can sell shares after a 1-year minimum holding period. The platform maintains an active secondary marketplace for a majority of its properties. This provides liquidity 2-6 years earlier than competitors’ typical 3-7 year lockups. While there’s no guarantee of finding buyers, the regulated trading platform offers meaningful flexibility compared to competitors’ illiquid structures.

Does Ark7 offer IRA investment options?

Yes, Ark7 supports both Traditional and Roth IRA investments through Inspira Financial Company as custodian. The platform charges no fee to open an IRA account. There’s a $100 annual custodian fee per property, capped at $400 per year, which is waived for account balances over $100,000. Learn more about investing with IRA to build tax-advantaged real estate wealth.