Willow Wealth vs Roofstock vs Ark7: Finding the Right Fractional Real Estate Platform

When evaluating fractional real estate investment platforms, investors face a critical challenge: balancing accessibility, transparency, and cost efficiency against potential returns. Traditional platforms often require high minimum investments, charge ongoing fees, and limit investor control over specific properties. This is where Ark7’s approach transforms the paradigm. By offering fractional shares in high-yield rental properties starting at just $20, with zero ongoing asset management fees and monthly cash distributions, Ark7 delivers accessible real estate investing without compromising control. This comprehensive guide examines the top fractional real estate platforms: Willow Wealth, Roofstock One, and Ark7, with particular emphasis on why Ark7 emerges as the competitive choice for modern investors seeking passive income through rental properties.

Key Takeaways

• Ark7 stands out as the premier solution for accessible fractional real estate investing with industry-lowest $20 minimum investments, zero ongoing AUM fees, and monthly cash distributions
• Willow Wealth requires $10,000 minimum investments and has faced performance challenges, with reports indicating over $208 million in investor losses across various offerings
• Roofstock offers established marketplace infrastructure but requires accredited investor status and higher minimum investments for its fractional offerings
• Ark7’s SEC Regulation A+ qualification democratizes access to 98% of the U.S. population, unlike accredited-only competitors
• Consider your primary needs: Choose Ark7 for accessibility, transparency, and cost efficiency; Roofstock for full property ownership pathways; evaluate Willow Wealth carefully due to reported performance issues

Understanding Fractional Real Estate Investing: A Quick Primer

Fractional real estate investing allows multiple investors to collectively own shares of rental properties, with each investor receiving a proportional share of rental income and potential appreciation. This model democratizes access to real estate investment, which traditionally required substantial capital for full property ownership.

Unlike traditional real estate investment trusts (REITs) that pool investor capital into diversified portfolios, direct fractional ownership platforms like Ark7 enable investors to select specific properties, providing greater transparency and control. Investors receive passive income through regular cash distributions while the platform handles property management, maintenance, and tenant relations.

Key Benefits of Fractional Real Estate Investing:

• Lower capital requirements compared to full property ownership
• Passive income through regular rental distributions
• Potential for property appreciation over time
• Diversification across multiple properties and markets
• Professional property management eliminating landlord responsibilities

For investors seeking hands-off real estate exposure with minimal capital, fractional ownership through a platform like Ark7 offers an accessible entry point into this historically exclusive asset class.

Ark7: Making High-Yield Rental Home Investment Accessible

Ark7 revolutionizes fractional real estate investing by replacing high barriers to entry with an accessible, transparent, and cost-efficient model. Unlike traditional platforms requiring thousands of dollars to start, Ark7 allows investors to purchase shares in curated high-yield rental properties nationwide for as little as $20 per share.

Key Ark7 Advantages

• Industry-lowest $20 minimum investment – Enables true portfolio diversification even with limited capital
• Zero ongoing AUM fees – Saves investors $35-200 annually compared to competitors charging 0.15-2.4% in annual fees
• Monthly cash distributions – 12 annual payouts enable faster compounding compared to quarterly competitors
• SEC Regulation A+ qualification – Open to all U.S. investors 18+, not just accredited investors
• Individual property selection – Choose specific rental homes rather than blind pooled funds
• 24/7 operational transparency – Full access to property financials, occupancy rates, and performance data
• PPEX ATS secondary market – Potential liquidity after 1-year holding period

How It Works

Ark7’s process eliminates traditional complexity in real estate investing. Instead of navigating complex underwriting requirements or managing tenant relations, investors simply select properties from Ark7’s curated inventory of rental homes in high-growth markets like Atlanta, Dallas, and Tampa. Each property is professionally managed by Ark7’s end-to-end team, handling everything from acquisition to maintenance, while investors receive monthly cash distributions directly to their accounts.

Performance Validation

Ark7’s track record demonstrates consistent performance:

• $3.5+ million in total distributions paid to investors
• Strong portfolio occupancy maintained across properties
• Ark7 reports $0 investor losses since its 2019 launch

Technical Integration

Ark7 seamlessly integrates with existing investment workflows through:

• Mobile app for iOS and Android (4.7/5 rating) enabling investment management on-the-go
• IRA integration through Inspira Financial Company for retirement investing
• PPEX ATS secondary trading platform for potential share liquidity after 1-year holding period
• Electronic share issuance with 24/7 account access

Property Selection Strategy

Ark7 focuses on high-yield single-family homes and townhomes in Sunbelt markets with strong economic fundamentals. Recent offerings include:

• Atlanta-T3: 3-bedroom townhome in Jonesboro, GA with modern amenities and strong rental demand
• Dallas-S8: 3-bedroom home in Mesquite, TX with +6.51% dividend yield
• Tampa-S10: 4-bedroom home in Land O Lakes, FL with fully occupied long-term lease

Ark7’s technology-driven sourcing combined with local market expertise ensures properties are selected based on cash flow potential, appreciation prospects, and risk mitigation.

Willow Wealth: An Overview

Willow Wealth (formerly Yieldstreet) operates as a multi-asset alternative investment platform offering exposure to real estate, private credit, art, and other alternative assets. While the platform boasts $6+ billion in invested capital and 500,000+ members, investors should carefully evaluate recent performance reports before investing.

Key Willow Wealth Characteristics

• High minimum investment – $10,000 per deal, excluding retail investors with limited capital
• Accredited investor requirement – Individual real estate deals require accreditation status
• Pooled fund structure – Investors cannot select specific properties, limiting transparency and control
• Quarterly distributions – Less frequent than monthly competitors, reducing compounding potential
• 1-2%+ annual AUM fees – Ongoing fees reduce net returns compared to fee-free competitors

Performance Considerations

Recent reports indicate the platform has faced performance challenges that investors should carefully review. One estimate cites over $208 million in total investor losses across various offerings. The firm also removed historical performance data from its website during its 2025 rebrand, including a chart that reportedly showed negative returns. Prospective investors should conduct thorough due diligence and review all available performance information before investing.

Investment Structure

Willow Wealth’s real estate offerings are structured as pooled funds rather than individual property shares, meaning investors have limited control over specific asset selection. This blind pool structure obscures property-level performance data and prevents investors from building targeted portfolios based on market preferences or property characteristics.

Roofstock: Direct Ownership and Portfolio Building

Roofstock operates as an established marketplace for single-family rental properties, offering both full property ownership and fractional shares through its Roofstock One platform. Founded in 2015, the platform provides access to vetted rental properties with professional management options.

Key Roofstock Characteristics:

• $5,000 minimum investment for fractional shares, higher than some competitors but lower than Willow Wealth
• Accredited investor requirement for Roofstock One fractional offerings
• Individual property selection – Investors can choose specific rental homes
• 0.5% annual AUM fees – Ongoing fees reduce net returns compared to zero-fee competitors
• Limited liquidity – No active secondary market for fractional shares

Marketplace Model

Roofstock’s strength lies in its established marketplace infrastructure for buying and selling entire rental properties. The platform provides comprehensive property details, tenant information, and projected returns, enabling informed investment decisions. However, full property ownership typically requires $50,000+ in capital, which may be prohibitive for many retail investors.

Fractional Offering Considerations

While Roofstock One offers fractional shares, the platform requires accredited investor status and $5,000 minimum investments, creating accessibility barriers. The 0.5% annual AUM fee further reduces net returns compared to Ark7’s zero-fee model. Additionally, Roofstock currently lacks an active secondary market for fractional shares, which may limit liquidity options for investors needing to access their capital.

Property Management

Roofstock provides professional property management through its network of local operators, handling tenant relations, maintenance, and day-to-day operations. This hands-off approach appeals to investors seeking passive income without landlord responsibilities, similar to Ark7’s end-to-end management model.

Comparing Investment Minimums and Accessibility

The minimum investment requirement is a critical factor determining which investors can access fractional real estate platforms and how effectively they can diversify their portfolios.

Investment Minimum Comparison:

• Ark7: $20 minimum investment, open to all U.S. investors 18+, enabling high diversification potential (can own shares in 500 properties with $10,000)
• Roofstock One: $5,000 minimum investment, accredited investors only, lower diversification potential (can own shares in 2 properties with $10,000)
• Willow Wealth: $10,000 minimum per deal, accredited investors only, very low diversification potential (can invest in 1 deal with $10,000)

Lowering the Barrier to Entry in Real Estate

Ark7’s $20 minimum investment represents a paradigm shift in real estate accessibility. This industry-lowest entry point enables investors with limited capital to build diversified portfolios across multiple properties, markets, and property types. For example, an investor with $1,000 can own shares in 50 different properties through Ark7, compared to being excluded entirely from competitors requiring $5,000-$10,000 minimums.

Democratization Through SEC Regulation A+

Ark7’s SEC Regulation A+ qualification is a critical differentiator that democratizes access to real estate investing. While competitors restrict fractional offerings to accredited investors (approximately 2% of the U.S. population), Ark7’s Reg A+ qualification opens access to all U.S. investors 18 and older. This regulatory advantage aligns with Ark7’s mission of making real estate investment accessible to everyone.

Fractional Shares and Portfolio Building

The ability to purchase fractional shares enables strategic portfolio construction based on individual risk tolerance, investment goals, and market preferences. Ark7 investors can:

• Diversify across geographic markets (Atlanta, Dallas, Tampa, etc.)
• Mix property types (single-family homes, townhomes)
• Balance cash flow properties with appreciation-focused assets
• Adjust allocations based on changing market conditions

This flexibility is unavailable to investors restricted by high minimums or pooled fund structures that obscure individual property performance.

Liquidity Options: Secondary Markets and Share Sales

Liquidity is a critical consideration for real estate investors, as traditional property ownership typically requires years-long holding periods with limited exit options.

Selling Your Real Estate Investment Shares

Ark7 provides potential liquidity through the PPEX ATS (Alternative Trading System), an SEC-registered secondary market enabling peer-to-peer share sales after a 1-year holding period. While there can be no assurance that an active market will develop or that shares can be sold at desired prices, this option provides flexibility compared to some competitors.

Understanding Market Availability for Resales

Willow Wealth offers limited redemption options with typical 5-15 year lockup periods, while Roofstock One currently lacks an active secondary market for fractional shares. Ark7’s 1-year minimum holding period followed by PPEX ATS access represents a flexible liquidity option among major fractional platforms.

Illiquidity Risk Considerations

All fractional real estate investments carry illiquidity risk, and investors must be prepared to hold shares indefinitely. Ark7’s compliance documentation clearly states: “Investors must be prepared to hold their Shares indefinitely” and “there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform.” This transparent risk disclosure ensures investors understand potential liquidity limitations.

Diversification and Property Selection Strategies

Effective diversification requires access to multiple properties across different markets, property types, and investment strategies.

Building a Balanced Real Estate Portfolio

Ark7’s low minimum investment enables strategic diversification that may be challenging with higher-minimum competitors. An investor with $5,000 can build a portfolio including:

• Income-focused properties in stable markets (e.g., Dallas-S8 with +6.51% dividend yield)
• Growth-oriented assets in high-appreciation markets (e.g., Atlanta properties benefiting from strong population growth)
• Mix of single-family homes and townhomes with different tenant profiles

How Platforms Source and Select Properties

Ark7 employs a technology-driven approach combining AI-driven property sourcing with local market expertise. Properties are selected based on:

• Cash flow potential and rental yield
• Market fundamentals (job growth, population trends, economic indicators)
• Property condition and maintenance requirements
• Tenant demand and occupancy stability
• Appreciation potential

This data-driven selection process demonstrates effective property underwriting and market analysis.

Geographic and Property Type Diversification

Ark7’s expanding inventory across 10+ markets enables geographic diversification, reducing concentration risk in any single market. Property types include single-family homes and townhomes, providing exposure to different rental market segments and tenant demographics.

IRA Investing: Real Estate for Retirement Accounts

Real estate investing through retirement accounts offers potential tax advantages and portfolio diversification benefits.

Leveraging Retirement Funds for Real Estate

Ark7’s IRA offering enables investors to use retirement funds for fractional real estate investments, facilitated by Inspira Financial Company as the qualified custodian. This option is available for both Traditional and Roth IRAs, with the same $20 minimum investment as taxable accounts.

Benefits of an Ark7 Real Estate IRA

• Tangible asset ownership – Real estate provides inflation protection and tangible value
• Passive income – Monthly rental distributions contribute to retirement income
• Tax advantages – Potential for tax-deferred or tax-free growth depending on IRA type
• Low minimum investment – $20 minimum enables diversification within retirement accounts
• Professional management – No landlord responsibilities for retirement investors

Custodian Services and Compliance

Inspira Financial Company serves as the qualified custodian for Ark7 IRA accounts, ensuring IRS compliance and proper account administration. The $100 annual fee per property (capped at $400) is waived for accounts with average balances exceeding $100,000, making real estate IRA investing cost-effective for larger retirement portfolios.

User Experience and Platform Technology: App vs. Web

Platform technology significantly impacts the investment experience, from property discovery to portfolio management.

Navigating Your Investments: Web Portals & Mobile Apps

Ark7’s mobile app provides a seamless investment experience, allowing users to:

• Discover and invest in rental properties from their mobile device
• Track monthly dividends and portfolio performance
• Sell shares on the trading market (subject to availability)
• Access real-time property updates and operational highlights

The app’s 4.7/5 rating reflects user satisfaction with its intuitive interface and comprehensive functionality.

Ease of Use in Fractional Investing

Ark7’s “invest in rental homes – share by share” approach simplifies the complicated process of real estate investing. The platform’s clean interface, transparent property details, and straightforward investment process make fractional real estate accessible to investors without real estate expertise.

Security and Account Management

Ark7 prioritizes security through encrypted transactions, secure account access, and electronic share issuance. The platform’s integration with Dalmore Group LLC, a FINRA and SIPC registered broker-dealer, ensures regulatory compliance and investor protection.

Regulatory Compliance and Investor Protections

Regulatory compliance and investor protections are critical considerations when evaluating fractional real estate platforms.

Ensuring Safe and Compliant Real Estate Investments

Ark7’s offerings are qualified under SEC Regulation A+, providing regulatory oversight and investor protections. Dalmore Group LLC serves as the FINRA and SIPC registered broker-dealer of record, ensuring compliance with securities regulations.

Understanding the Risks Involved

All fractional real estate investments carry substantial risks, including:

• Illiquidity – Shares may not be easily sold; investors must be prepared to hold indefinitely
• Lack of diversification – Individual property investments concentrate risk
• Complete loss of capital – Real estate values can decline; properties may lose value
• Market risks – Economic conditions, interest rates, and local market factors affect performance

Ark7’s compliance documentation clearly states: “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.”

Investor Advisement Requirements

Neither Ark7 nor Dalmore Group LLC provides investment advice or recommendations. Investors are advised to “speak with your financial advisor, accountant and/or attorney when evaluating any offering” and to carefully review the complete offering circular for comprehensive risk disclosure.

Frequently Asked Questions

How do these platforms handle property management and maintenance?

All three platforms provide professional property management to handle day-to-day operations. Ark7 manages everything from acquisition and leasing to tenant relations and maintenance, with property management fees ranging from 8-15% of rental income. Roofstock uses a network of local property managers with variable fee structures, while Willow Wealth’s pooled fund structure includes management as part of the overall fee structure.

Do these platforms offer IRA investment options for real estate?

Yes, all three platforms offer IRA investment options for retirement investing. Ark7’s real estate IRA charges a $100 annual custodian fee per property (capped at $400, waived for balances over $100,000) and maintains the same $20 minimum investment as taxable accounts. Both Roofstock and Willow Wealth also offer IRA options, though typically with higher minimum investment requirements that may limit diversification for smaller retirement accounts.

What kind of properties can I expect to invest in on each platform?

Ark7 focuses on high-yield single-family homes and townhomes in Sunbelt markets like Atlanta, Dallas, and Tampa, with properties typically built between 1992-2020 and selected for cash flow potential. Roofstock offers similar single-family rental properties through its marketplace, providing detailed information about each property’s characteristics and tenant status. Willow Wealth’s pooled fund structure prevents investors from selecting specific properties, instead investing capital across multiple assets determined by the fund manager.

Are there significant tax benefits to investing in real estate through these platforms?

Real estate investments can provide tax benefits through depreciation deductions and potential 1031 exchange opportunities, though these benefits vary by investment structure and individual circumstances. Ark7 provides simple 1099 tax reporting (rather than complex K-1 forms), making tax filing easier and compatible with standard tax software. Investors should consult with tax professionals to understand specific tax implications for their situation and how fractional real estate ownership may impact their overall tax strategy.