Contributor, Benzinga
October 13, 2023
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.)

Now open to all investors—Not just accredited investors!

Ark7 is a fractional real estate investing platform that aims to make it easier for individuals to invest in real estate without buying into a REIT or real estate ETF. When you invest through Ark7, you purchase fractional shares that represent your relative interest in an expert-selected investment property. Unlike investing through a real estate fund, you have control over the individual properties in your portfolio when you invest through Ark7. Ark7 is now available to both accredited and non-accredited investors.

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

Ark7 Customer Service
Ark7 Fees and Minimum Investments
Ark7 User Benefits
Ark7 User Experience
Ark7 Overall

Real Estate Investments from Ark7

Now open to all investors!

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 respond 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 of 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 of 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 their 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. 

Ark7 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 11am to 11pm 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

Ark7 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 10% of the rental income of the property. This fee is charged to cover the cost of maintaining the property and managing tenants.

Ark7 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 account 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 of 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. 

Ark7 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 platforms below.

Ark7 Overall

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

How do I become a real estate investor?

A

You can become a real estate investor in multiple ways. If you’re interested in active management of a property, you can purchase an investment property with a down payment and mortgage before renting it out to tenants. If you’re looking for a more hands-off way to invest in real estate, you can purchase shares of a REIT or invest through a platform like Ark7.

Q

Is real estate investing still worth it?

A

Real estate can still be a strong asset to add to your overall investment portfolio. This type of investment has a long history of holding its value and appreciating over time, which makes it a relatively stable asset. Real estate investments can also be used as a hedge against inflation.

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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