Contributor, Benzinga
January 28, 2025
ark7
Overall Rating:
securely through ark7's website

Ark7 makes money by charging a sourcing fee and an asset management fee on its investments. Its sourcing fee is equal to 3% of the property market cap (determined by the property’s net operating income and dividing it by its value.)

Ark7 is a real estate investment platform that offers fractional ownership in rental properties, allowing investors to earn passive income and build wealth without the challenges of property management. By purchasing shares of individual properties, users can diversify their real estate portfolios with a low minimum investment. Ark7 focuses on transparency, providing detailed financial data, property performance updates, and projected returns to help investors make informed decisions.

As an emerging option for real estate investing, Ark7 caters to both seasoned investors seeking diversification and beginners looking to enter the real estate market in a cost-effective and straightforward way.

Pros
  • Allows accredited and non-accredited investors to choose individual properties to include in their portfolio
  • No minimum investment required
  • Does not charge commissions when buying or selling shares
Cons
  • Sourcing fee may seem a bit high

ark7 Ratings at a Glance

Customer Service
Fees and Minimum Investments
User Benefits
User Experience
Overall Rating

Real Estate Investments from Ark7

If you’ve ever delved into the realm of real estate investing as an individual, you already know what an intensive undertaking it can be to buy and rent out a home. Some of the steps that you’ll need to go through when you purchase an investment property include:  

  • Researching property availability in your area
  • Determining which properties will make a good investment
  • Securing a loan for the mortgage on the property
  • Finding suitable tenants to live in the space
  • Collecting rent every month from tenants and responding to maintenance requests in a timely manner
  • Continually monitor local housing values and make upgrades to the property as needed

For most individual investors, the amount of work required to maintain a personally owned investment property is too high to justify the return. Enter Ark7, a fractional real estate investing platform that handles all the time-consuming tasks associated with owning a portfolio of investment properties. Ark7 uses a complex, streamlined property evaluation and purchase method to ensure that its users only have access to high-yield investment projects.

Before Ark7 lists an investment opportunity on its platform, it goes through multiple research and management processes before a property is offered to investors. Ark7 takes the following steps to provide more manageable real estate investment options through fractional real estate investments.

  • Strategic Property Acquisition: Ark7’s in-house investment evaluation team first identifies undervalued properties located in high-yield real estate markets. After investing in the property and taking it over, Ark7 takes steps to improve the property and make strategic upgrades in order to maximize rent potential.
  • Fractionalize the Property into Shares: After a property with potential has been identified, purchased, and renovated for upcoming tenants, Ark7 splits the property into fractional shares. These fractional shares are similar to shares of stocks — and they’re just as easy to purchase online through Ark7’s platform. Properties are listed on Ark7 to investors alongside a wealth of financial, legal, and geographical information. These due diligence documents allow you to evaluate each property available through Ark7 on an individual basis, after which you can craft your own portfolio of investments by purchasing shares.
  • Continuing In-house Management: Ark7 handles all the day-to-day tasks that come with maintaining an investment property, including finding tenants for the space, managing the property, and keeping up with maintenance requests. Ark7 attempts to provide the most enjoyable experience possible for its tenants, which results in long-term, consistent monthly dividends. 

Ark7 is not a real estate crowdfunding platform — when you invest through the Ark7 investing platform, you are not purchasing shares of a fund or ETF. Instead, you purchase fractional shares of each investment that appeals to you. Unlike investing in a real estate investment fund and hoping the company issuing the fund makes smart investments, you can individually pick and choose shares from properties that appeal to you. This provides you with a higher level of control over your investments, which can provide real estate investors with a mix of convenience and flexibility. 

Customer Service

Ark7 provides multiple methods that you can use to contact its customer service team.

  • By phone: You can get in touch with Ark7 by phone by calling 415-275-0701. Customer support monitors the phone line from 11 am to 11 pm EST, Monday through Friday.
  • By email: To contact Ark7’s customer service team via email, send a message to support@ark7.com. 
  • Connecting live with a representative: If you’d prefer to speak directly with an Ark7 representative in real time before opening an account, you can set up a meeting for a web conference with a member of the company’s team. To book your one-on-one meeting, use the chat function on the Ark7 website or request a meeting via email at support@ark7.com.

Ark7 has also created a useful and easy-to-navigate FAQ page for users, which you can access here

Fees and Minimum Investments

In order to keep its services accessible to as many investors as possible, Ark7 doesn’t charge you any type of commission when you buy or sell shares on its platform. Account minimums are also exceptionally low as well. So long as you have at least $5.40 (the lowest-priced share on the platform) to deposit into your account, you can get started investing with Ark7. Both the platform and the app are completely free to use and download. 

Ark7 makes money by charging a sourcing fee and an asset management fee on its investments. Its sourcing fee is equal to 3% of the property market cap (determined by the property’s net operating income and dividing it by its value). Ark7 charges this fee to cover the costs of identifying the property and preparing it for tenants. The asset management fee is charged monthly and is equal to 8% to 15% of the rental income of the property. This fee is charged to cover the cost of maintaining the property and managing tenants.

User Benefits

If you’re searching for a way to build a passive income stream through real estate investing, Ark7 might be the right platform for you. After creating an account and getting started, you’ll enjoy the following user benefits.

  • Stable Assets: Real estate has a history of being one of the most stable assets you can invest in. This means that if you already have a portfolio of higher-risk investments, adding professionally chosen real estate investments can provide you with a level of diversification. Real estate investing has also long been used as a hedge against inflation, which can be a benefit for anyone looking to protect their net worth.
  • Get Started Instantly: Opening an account with Ark7 is simple. Most users will be able to create their accounts in as little as a few minutes. The investment opportunities you’ll find through Ark7 have already been reviewed by real estate investing professionals, and you can begin reviewing information on each property immediately. Ark7 handles all the maintenance and management of these properties — all you need to do is click and invest.
  • More Control: Investing through Ark7 is unique because you get to individually choose which properties you want to invest in after reviewing each option. Since Ark7 is not a real estate crowdfunding platform, you also won’t need to worry about waiting for fundraising to close or bidding on your shares. Start investing with a few clicks after your account is verified. 

User Experience

Ark7 uses a straightforward and streamlined platform to help make real estate investing exceptionally easy for anyone. You’ll be able to easily find due diligence documents with legal and financial information on each investment being offered through the platform. You can also rest with the peace of mind that comes with knowing that no matter which investment you choose, it has passed reviews by real estate professionals.

Ark7’s format is unique because you can begin investing quickly after your account is verified. Instead of spending hours reading through the individual investments included with a REIT or ETF, you get to handpick investment opportunities that appeal to you to customize your portfolio. With virtually no minimum account balance required, Ark7 makes it exceptionally easy for users to get started. 

Ark7 vs. Competitors

Ark7 is one of many options that you have when you invest in real estate online. Benzinga offers reviews and insights on the following service providers. You may want to begin your search for the right platform by comparing the following below.

Overall Rating

Ark7 can be a viable choice for accredited or non-accredited investors looking for more control over their real estate investments while also enjoying the convenience of outsourcing property management and selection processes. Unlike most real estate investing options, Ark7 allows you to individually pick and choose which investment properties you want to include in your portfolio. You can easily review legal, financial, and location data curated by Ark7’s team of professionals before you decide to invest.

Fractional share investing also sets Ark7 apart from the crowd, allowing users to invest in major real estate endeavors with just a few dollars. This low minimum allows you to allot your investing resources as you see fit.

Frequently Asked Questions

Q

Is Ark7 reputable?

A

Yes, Ark7 is generally considered reputable. It is a legitimate real estate investment platform offering SEC-qualified fractional ownership in rental properties. The platform emphasizes transparency, provides detailed property data, and simplifies passive income generation. However, like any investment, it carries risks, so thorough research is recommended.

Q

How much money can you make from Ark7?

A

The amount you can make from Ark7 depends on factors like the number of property shares you own, rental income, property appreciation, and market conditions. Typical annual returns, combining rental income and appreciation, range between 6% and 12%, but they vary by property and market performance. As with any investment, returns are not guaranteed.

Q

Does Ark7 pay monthly?

A

Yes, Ark7 pays monthly. Investors receive distributions from rental income on a monthly basis, which are deposited into their Ark7 accounts. These payments reflect the property’s performance and the number of shares owned.

User Reviews

Yudy

How do you use this product to boost your finances?

Love the concept! Great way to diversify my portfolio and earn passive income.

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