Intro — Ark7's History
Founded in 2018 and based in San Francisco, Ark7 is an up-and-coming real estate investing platform that has vaulted from obscurity in recent years.
Ark7 was founded by CEO Andy Zhao, an ex-Google engineer, and Jim Holt, a real estate expert. Unlike traditional platforms that require large capital commitments, Ark7 allows investors to buy fractional shares of rental properties with as little as $20. This low entry point may seem appealing, but a low minimum doesn’t necessarily mean a good platform.
A unique aspect of Ark7 is its focus on residential rental properties, including single-family homes, multi-family units, and short-term Airbnb rentals — this puts it in the same category as Groundfloor, Landa, and Arrived. If you're accustomed to investing in multifamily, office, or retail properties on a platform like RealtyMogul or EquityMultiple, Ark7 offers a new way to diversify your portfolio with various types of residential rental units. However, Ark7 is also limited due to its narrow focus on residential real estate — there’s no commercial real estate on offer. This could make it challenging for investors to build a diversified portfolio if they stick solely to Ark7.
The platform operates as a “marketplace” where investors can browse available properties, purchase shares, and earn rental income through monthly distributions. Ark7 handles all aspects of property management, making it a fully passive investment. That said, reliance on Ark7’s internal management means investors have little control over decision-making, and returns may be subject to volatile property performance and occupancy rates.
Is Ark7 really “hassle-free”, as they state in their marketing materials — or is it actually full of hassles? Let’s find out.
(Pictured: Ark7 CEO Andy Zhao.)
Key Features
Ark7 specializes in fractional ownership of rental properties, allowing investors to own shares in income-generating residential real estate. The platform streamlines the investment process by managing the properties and distributing rental income to shareholders.
Here's how their model works: Ark7 acquires rental properties, divides them into fractional shares, and lists them on the platform. Investors can purchase shares starting with as little as $20. Ark7 manages the properties, collecting rent and handling maintenance, while investors receive monthly distributions from the rental income.
Ark7’s properties are spread across various U.S. markets, providing geographic diversification. However, the availability of properties may vary, and investors may need to monitor the platform for new opportunities to achieve desired diversification. Additionally, as with any rental property investment, income is not guaranteed — if a unit remains vacant for an extended period, investors may see lower or no returns.
You don’t have to be an accredited investor to use Ark7. As their website states, “It is designed for investors of all backgrounds, regardless of experience level or income status.” It’s worth noting, though, that accessibility doesn’t guarantee quality.
Investment Opportunities
Ark7 offers investments in rental properties located in various cities across the United States. Unlike many real estate crowdfunding platforms, Ark7 does not require investors to be accredited, making real estate investment accessible to a broader audience. However, the limited property selection (there are just three open offerings on the platform as of April 2025) and high demand mean that investors may not always find available properties to invest in when they want.
Fee Structure
Ark7 charges a one-time sourcing fee of 3% of the property's market value and a property management fee ranging from 8% to 15% of the monthly rental income. Compared to competitors like Fundrise or Arrived, Ark7’s fee structure can be relatively high, which may impact overall investor returns. The property management fee is particularly staggering.
Minimum Investment
The minimum investment starts at just $20, making it one of the most accessible real estate investing platforms on the market. However, while this low entry barrier is attractive, it's important to consider the platform’s fee structure and the potential impact on net returns. Consider performing a calculation for each investment.
User Experience
The platform provides detailed information about each investment opportunity, including:
- Property location and details
- Rental income projections
- Historical occupancy rates
The interface is fairly sleek and user-friendly, with both desktop and mobile app options that allow investors to track their investments and earnings easily. However, as with any platform, user experiences may vary, and it's advisable to review the platform thoroughly before investing.
Customer Support
Customer support is available via email and scheduled web conferences. Reviews suggest that there have been mixed experiences, with some investors reporting dismissive and unsatisfying responses from support staff. As with any service, individual experiences may vary.
Investor Testimonials
Common Praise
- Ease of use ("I soon discovered that Ark7 effectively addressed pain points associated with remote property investment, expanding my investment portfolio”)
Common Complaints
- Poor, misleading communication (“The shares of some properties cannot be sold even after the holding period has passed. I've raised this to their customer support and basically they say ‘nah we're keeping your money for now and we don't know when we're going to let you withdraw it. Suck it up!’”)
- Bad returns (“Avoid this company like the plague! Your return for your investment is a joke!! You have to be a millionaire already to invest enough money to create enough passive income to live on! Their rate of return is pathetic!”)
- Lack of liquidity (“The liquidity of the transaction is too poor”)
(Some comments from disenchanted investors on Reddit.)
Similar Real Estate Crowdfunding Platform Comparison
Ark7 vs. Fundrise
Ark7 and Fundrise are very similar in some respects — they’re both open to both accredited and non-accredited investors — but there are some crucial differences as well. Fundrise has expanded its offerings to also include venture capital, whereas Ark7 focuses solely on real estate. Additionally, Fundrise’s investment minimum is even lower than Ark7’s at $10.
Ark7 vs. AcreTrader
The differences here are pretty clear: AcreTrader focuses on farmland investments, whereas Ark7 focuses on rental homes. Moreover, access to AcreTrader investments is limited to accredited investors only.
Scoring Ark7
Platform Details
- Years in Operation: 6 (since 2018)
- Minimum Investment: $20
- Types of Investments Offered: Fractional equity in residential rental properties
- Accreditation Requirement: No
User Experience
- Ease of Use: 3.5 Stars ... Sleek interface, but cosmetic polish doesn’t compensate for deeper platform issues and inconsistent investor outcomes
- Account Setup: 4 Stars ... Simple to join with no accreditation needed, but little onboarding guidance for new investors
- Customer Support: 2.5 Stars ... Mixed reviews; support appears responsive in theory, but numerous reports cite vague or dismissive responses and unresolved concerns
Investment Experience
- Investment Options: 2.5 Stars ... Limited property selection, with just a few offerings live at a time; lack of scale makes true diversification hard
- Returns: 2.5 Stars ... Disappointing dividend yields; some investors report negligible returns after fees and occasional negative cash flow
- Risk Management: 2.5 Stars ... Fully passive, but investors are entirely dependent on Ark7’s internal management of dubious quality
Platform Transparency
- Disclosure of Information: 3 Stars ... Property-level details provided, but inconsistent updates, limited financial performance disclosures, and murky resale/liquidity policies erode trust
- Fee Structure: 2 Stars ... 3% sourcing fee upfront and 8–15% property management fee — significantly higher than many competitors, eating into returns that are sometimes already weak
Overall Rating — 2.5 Stars ★★½☆☆
- Summary: Like other platforms that aren't exclusive to accredited investors, Ark7 provides an accessible way for ordinary retail investors to gain fractional ownership in rental properties with a low minimum investment. The platform’s hands-off approach and mobile-friendly interface make it appealing, but the fee structure may eventually pose major problems.
- Pros: Low barrier to entry, no accreditation requirement, passive real estate income potential, professional management, geographical diversification options
- Cons: Limited property availability, high fees relative to competitors, poor communication
- Would Recommend? Only for new investors wanting to try out real estate investing with low minimums
Conclusion
Ark7 may be accessible and well-branded, but ease of entry doesn’t mean quality. With limited property availability, high fees, inconsistent returns, and questionable communication practices, the platform struggles to deliver on its promise of “hassle-free” passive real estate income. Investors are largely in the dark when it comes to liquidity and long-term exit strategies, even if certain individual investments offer solid returns.
(A video from 2024 in which Ark7 unveils its new "Marketplace" for investments.)