Roofstock vs DiversyFund vs Ark7: Finding Your Ideal Real Estate Investment Platform

When evaluating real estate investment platforms, investors face a critical decision between accessibility, income generation, and long-term growth potential. Traditional platforms often require significant capital, restrict access to accredited investors, or lock funds for years without cash flow. This is where Ark7’s fractional real estate model transforms the paradigm. By offering shares in individual, cash-flowing rental properties with minimums as low as $20, Ark7 democratizes real estate investing for everyone. This comprehensive guide examines Roofstock, DiversyFund, and Ark7 to help you understand their key differences and why Ark7 emerges as the superior choice for most investors seeking accessible, income-generating real estate exposure.

Key Takeaways

• Ark7 stands out as the most accessible platform with the industry’s lowest $20 minimum investment, enabling true portfolio diversification across multiple properties
• Monthly cash distributions from Ark7 provide 4x more frequent income than quarterly competitors, with recent distributions of $71,448.14 in July 2024
• Zero annual AUM fees with Ark7 save investors $500-1,000+ over 5 years compared to competitors charging 0.5-2% annual fees
• Ark7’s secondary market offers liquidity after just 1 year versus 5-7 year lockups with competitors
• Non-accredited investors can access Ark7 through SEC Reg A+ qualification, while Roofstock One remains restricted to accredited investors only

Understanding Real Estate Crowdfunding Platforms

Real estate crowdfunding platforms have revolutionized how individuals access rental property investments. Traditionally, real estate investing required significant capital for full property ownership, active management responsibilities, and illiquid positions. Today’s platforms offer varying approaches: direct property marketplaces (Roofstock), blind REIT structures (DiversyFund), and fractional ownership in specific properties (Ark7).

The fundamental difference lies in control, accessibility, and cash flow. While some platforms prioritize long-term appreciation through illiquid investments, others focus on immediate income generation with flexible exit options. Understanding these distinctions is crucial for aligning your investment choice with your financial goals and risk tolerance. Platforms like Ark7 operate under SEC Regulation A+, which allows both accredited and non-accredited investors to participate.

Key Considerations When Choosing a Platform:

• Minimum investment requirements and accreditation status
• Frequency and reliability of cash distributions
• Liquidity options and secondary market availability
• Fee structures and total cost of ownership
• Level of control over property selection
• Property management responsibilities

Exploring Ark7’s Fractional Investment Model

Ark7 revolutionizes real estate investing by offering fractional shares in individual, cash-flowing rental properties across the U.S. Unlike blind REITs or high-barrier platforms, Ark7 enables investors to invest in rental homes with minimums as low as $20 per share. This approach combines the benefits of direct property ownership with the accessibility of stock-like investing.

Key Ark7 Advantages:

• Industry-lowest minimum investment – Start with as little as $20 per share, enabling diversification across multiple properties
• Monthly cash distributions – Receive passive income on the 3rd of every month
• Zero annual AUM fees – No percentage-of-portfolio fees, only 8-15% property management from rental income
• Active secondary market – Trade shares on PPEX ATS with $0 fees after 12-month hold period
• Non-accredited investor access – SEC Reg A+ qualification opens investment to all U.S. investors 18+
• Property selection control – Choose specific assets rather than investing in blind REITs

How Ark7 Works

Ark7 sources, acquires, and professionally manages high-yield rental properties across 10+ U.S. markets. Investors purchase fractional shares in specific properties, receiving proportional monthly cash distributions from rental income. The platform’s end-to-end management eliminates landlord responsibilities while maintaining full operational transparency with 24/7 access to financial and legal documentation.

Performance Validation

Ark7’s consistent performance demonstrates the effectiveness of its model:

• July 2024: 4.68% annualized return, $71,448.14 distributed
• Property-specific yields range from 4.3% to 8.18%
• Dallas-S8 property achieved +6.51% dividend yield as of June 2025

Technology Integration

Ark7’s mobile app enables investors to track monthly dividends from anywhere, with features including property discovery, investment tracking, and secondary market trading. The platform supports both taxable accounts and IRA investing for tax-advantaged growth.

Roofstock: Investing in Entire Rental Properties

Roofstock operates primarily as a marketplace for purchasing entire rental properties, with a secondary offering called Roofstock One for fractional investments. The main Roofstock marketplace caters to investors seeking full property ownership with direct title and control.

Roofstock Marketplace Strengths:

• Extensive inventory – $5B+ in transactions across 70+ U.S. markets
• Full property ownership – Direct title versus fractional shares
• Established track record – Operating since 2015 with major transaction volume
• 1031 exchange eligibility – Tax-deferred exchanges for full properties

Target Investor Profile

Roofstock Marketplace best serves investors with substantial capital seeking direct property ownership and willing to manage or arrange property management services. Roofstock One targets accredited investors with $5,000+ to invest who accept limited liquidity and transparency in exchange for professional property management.

DiversyFund: Reg A+ REIT for Growth Investments

DiversyFund operates as a non-traded REIT focusing on multifamily properties with a growth-oriented strategy. Unlike platforms offering immediate cash flow, DiversyFund reinvests all income for 5-7 years before liquidation, prioritizing long-term appreciation over current income.

DiversyFund Characteristics:

• Blind REIT structure – No investor control over property selection
• Complete illiquidity – 5-7+ year lockup with no early exit options
• Zero interim cash flow – No distributions until final liquidation
• 2% annual AUM fee – $1,000 in fees over 5 years on a $10,000 investment
• Historical performance – 6.1% return on 2022 distribution (REIT I), with no distributions in 2023-2024

Investor Experience Considerations

Some investors have described concerns related to customer service responsiveness and the timeliness of communications. In addition, because DiversyFund’s structure generally does not provide interim cash distributions and investments are typically illiquid, it may be a better fit for investors who are comfortable prioritizing potential long-term appreciation over near-term income or liquidity.

Target Investor Profile

DiversyFund suits investors prioritizing long-term appreciation over current income, willing to accept complete illiquidity for 5-7 years, and comfortable with blind REIT investing without property selection control.

Minimum Investment and Accessibility: Ark7 vs. Competitors

The barrier to entry varies dramatically across these platforms, significantly impacting investor accessibility and portfolio diversification potential.

Minimum Investment Comparison:

• Ark7: $20 per share – industry’s lowest minimum
• Roofstock Marketplace: No minimum (but full property purchases typically require $100,000+)
• Roofstock One: $5,000 minimum (accredited investors only)
• DiversyFund: $500 minimum

Investor Accessibility:

• Ark7: Open to all U.S. investors 18+ through SEC Reg A+ qualification
• Roofstock Marketplace: Open to all investors
• Roofstock One: Accredited investors only (income/net worth requirements)
• DiversyFund: Open to all investors

Portfolio Diversification Impact:

Ark7’s $20 minimum enables genuine diversification that competitors cannot match. With $100, an Ark7 investor can purchase shares in 5 different properties across various markets, significantly reducing concentration risk. In contrast, Roofstock One’s $5,000 minimum limits diversification to investors with substantial capital, while DiversyFund’s blind REIT structure provides no diversification control.

This democratization of real estate investing has attracted over 220,000 active investors to Ark7’s platform, demonstrating the market demand for accessible, low-barrier real estate exposure.

Passive Income Potential and Management

Cash flow frequency and property management responsibilities significantly impact the passive income experience across these platforms.

Cash Distribution Frequency:

• Ark7: Monthly distributions (3rd of every month) – most frequent in the industry
• Roofstock One: Quarterly distributions
• DiversyFund: Zero distributions until liquidation (5-7 years)

Property Management Approach:

• Ark7: Full end-to-end management included (8-15% of rental income)
• Roofstock Marketplace: Third-party management arranged by investor
• Roofstock One: Professional management included
• DiversyFund: Professional management included

Income Reliability

Ark7’s monthly distributions provide predictable cash flow that aligns with typical expense cycles, enabling better budget planning and reinvestment opportunities. Recent monthly distributions have consistently demonstrated the platform’s ability to generate reliable income from its property portfolio.

The hands-off nature of Ark7’s management eliminates landlord responsibilities while maintaining no hidden fees, ensuring investors receive passive income without operational headaches.

Liquidity and Secondary Market Options

Liquidity constraints represent a critical differentiator among real estate investment platforms, significantly impacting investor flexibility and risk management.

Liquidity Timeline Comparison:

• Ark7: Secondary market available after 12 months with $0 trading fees
• Roofstock Marketplace: Property sales typically take weeks to months
• Roofstock One: 5-year minimum hold with limited liquidity options
• DiversyFund: 5-7 year lockup with no secondary market

Secondary Market Activity

Ark7’s PPEX ATS secondary market demonstrates active trading, with 70% of properties available for resale after the 1-year holding period. This liquidity provides investors with portfolio flexibility and the ability to reallocate capital based on changing financial circumstances or investment goals.

In contrast, both Roofstock One and DiversyFund impose extended lockup periods that eliminate near-term liquidity options, creating potential challenges for investors facing unexpected capital needs.

Fees, Transparency, and Investment Risks

Fee structures and transparency significantly impact long-term returns and investor confidence across these platforms.

Fee Structure Comparison:

• Ark7: 3% sourcing fee (one-time), zero annual AUM fees
• Roofstock One: No upfront fees, 0.5% annual AUM fee
• DiversyFund: No upfront fees, 2% annual AUM fee

Total Cost of Ownership (5-Year Example: $10,000 Investment):

• Ark7: $300 total fees, $9,700 net capital working
• Roofstock One: $250 total fees, $9,750 net capital working
• DiversyFund: $1,000 total fees, $9,000 net capital working

Transparency Standards

Ark7 maintains full operational transparency with 24/7 access to complete legal and financial documentation for each property. This transparency extends to monthly performance updates and detailed property information, enabling informed investment decisions.

Investment Risks

All real estate securities involve substantial risks, including illiquidity, lack of diversification, and potential complete loss of capital. Ark7’s fractional ownership model actually reduces some risks through property-level diversification, while competitors’ higher minimums or blind REIT structures may increase concentration risk.

Important Compliance Notes

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results. Investments such as those on the Ark7 platform are speculative and involve substantial risks to consider before investing. Ark7 doesn’t offer refunds after an investment has been made. An investment in an offering constitutes only an investment in a particular series and not in Ark7 or any of the underlying asset(s).

IRA Investing Options with Real Estate

Tax-advantaged investing through IRAs provides significant benefits for long-term real estate investors across all three platforms.

IRA Eligibility:

• Ark7: Supports both Traditional and Roth IRAs with IRA custodian Inspira Financial
• Roofstock: IRA eligible through self-directed IRA providers
• DiversyFund: IRA eligible through self-directed IRA providers

Ark7 IRA Specifics:

• $0 Ark7 fee to open IRA account
• $100 annual custodian fee per property (capped at $400/year)
• Fee waived for account balances exceeding $100,000
• Ability to access IRA rental property investing for long-term appreciation

Tax Benefits

Real estate IRA investing provides tax-deferred or tax-free growth depending on account type, with additional benefits from depreciation and cash flow. Ark7’s monthly distributions can be reinvested within the IRA for compound growth, while the platform’s transparency ensures proper tax reporting through 1099 forms (simpler than K-1s required by some competitors).

Choosing the Right Platform for Your Investment Goals

Selecting the optimal platform depends on your specific financial objectives, risk tolerance, and investment constraints.

Choose Ark7 when you:

• Need the industry’s lowest barrier to entry ($20 minimum)
• Prioritize monthly passive income over long-term appreciation
• Require near-term liquidity options (after 1 year)
• Want control over property selection rather than blind REIT investing
• Are a non-accredited investor seeking real estate exposure
• Value transparency and zero ongoing AUM fees

Choose Roofstock Marketplace when you:

• Seek full property ownership with direct title
• Have substantial capital for individual property purchases
• Want 1031 exchange eligibility for tax deferral
• Prefer to arrange your own property management

Choose Roofstock One when you:

• Are an accredited investor with $5,000+ to invest
• Accept 5-year minimum hold periods
• Prefer fractional SFR portfolios over individual property selection

Choose DiversyFund when you:

• Prioritize long-term appreciation over current income
• Can accept complete illiquidity for 5-7 years
• Are comfortable with blind REIT investing
• Don’t require interim cash distributions

Frequently Asked Questions

Can I invest in these platforms if I’m not an accredited investor?

Ark7 and DiversyFund accept non-accredited investors through SEC Reg A+ qualification. Roofstock’s main marketplace is open to all investors for full property purchases, but Roofstock One is restricted to accredited investors only. Ark7’s $20 minimum makes it the most accessible option for non-accredited investors seeking fractional real estate exposure without large capital requirements.

How liquid are investments made through Ark7, Roofstock, or DiversyFund?

Ark7 offers the best liquidity with secondary market trading available after 12 months with zero transaction fees. Roofstock Marketplace liquidity depends on property sale timelines, typically taking weeks to months. Both Roofstock One and DiversyFund impose 5-7 year lockup periods with no guaranteed early exit options, making them significantly less liquid than Ark7’s secondary market.

Is it possible to use an IRA to invest in real estate through these services?

Yes, all three platforms support IRA investing through self-directed IRA providers. Ark7 partners with Inspira Financial as its IRA custodian, charging $0 to open an IRA and $100 annually per property, capped at $400 and waived for balances over $100,000. This enables tax-advantaged real estate investing with the same high-yield rental property investment opportunities available in taxable accounts.