Ark7 Review: Best Fractional Real Estate Investment Platform?
In the ever-evolving landscape of investment, Ark7 has carved out a noteworthy niche.
Revolutionizing the way individuals invest in real estate, Ark7 has made it not only accessible but also affordable for a broader audience, now including both non-accredited and accredited investors.
This comprehensive Ark7 review delves into the details, providing an in-depth analysis of its features, benefits, and potential drawbacks.
We’ll look at the pros, the cons, the people behind the company, how to use the platform, and more.
In just 8-10 minutes, you’ll know if this investment is right for you.
Let’s dive in.
Ark7 Review: Overview
Ark7 is a web and app platform that facilitates fractional real estate investment, a concept that breaks down the traditional barriers to entry in the real estate market.
The platform operates on a simple yet innovative premise: it allows individuals to invest in rental properties, not as a whole, but share by share.
Ark7’s mission is to democratize real estate investment. It aims to make real estate investment accessible to everyone – not just the wealthy.
By breaking down the financial barriers that often deter individuals from investing in real estate, Ark7 is making this traditionally high-barrier market accessible to many.
The platform is also backed by a team of experienced professionals – under the guidance of Andy Zhao – who are committed to making real estate investment a feasible option for all.
Who Is Andy Zhao?
With a decade-long experience at tech giants like Google, Uber, LinkedIn, and Twitter, Andy has a deep understanding of technology and its potential to transform traditional industries.
Andy’s journey into real estate investment was born out of personal necessity. While working at Uber, he realized the challenges of investing in real estate, particularly in the Bay Area.
The high entry barriers, both in terms of time and money, were significant hurdles for potential investors. This realization sparked the idea of Ark7, a platform designed to make real estate investments as simple as buying stocks.
Andy’s vision for Ark7 was to eliminate the inefficiencies he observed in traditional property investment pathways, such as Real Estate Investment Trusts (REITs) and crowdfunding platforms.
He wanted to give people complete control over their capital – a facet often lacking in traditional investment methods.
Under Andy’s leadership, Ark7 has grown significantly since its inception. From an initial seed investment of $2 million in July 2019, Ark7’s user investment reached $1 million just two months after the launch of its website in May 2020.
Andy’s journey is a testament to his ability to identify a gap in the market and create a solution that benefits many.
Ark7 Review: How Does It Work?
Imagine the thrill of owning a piece of a rental property without the hassle of managing it. That’s the magic Ark7 brings to your fingertips.
Ark7 is a platform that revolutionizes the way you invest in real estate. It operates on the fractional real estate investment principle, a concept allowing you to own a portion of a property rather than the whole thing.
Fractional real estate investment is the process of buying shares in a property. Each share represents a fraction of the property, and as a shareholder, you are entitled to a proportionate share of the property’s rental income and potential appreciation.
Ark7 makes this process simple and accessible via its website and app.
The platform lists a variety of properties, each broken down into shares. You can browse through these properties and buy shares in the ones that align with your investment goals.
The number of shares you own in a property determines your stake. The more shares you own, the larger your stake.
This means you’ll potentially receive a larger portion of the property’s rental income and stand to potentially gain more from its appreciation.
Ark7 Review: Key Features
Ark7 has reshaped the landscape of property acquisition.
They offer a multitude of choices and a simple-to-use platform. Its wide-ranging options and a seamless interface have made it a top pick for property enthusiasts.
- Distinct Opportunities: Ark7’s offerings include a variety of property types, from standalone houses to large apartment complexes. This wide variety ensures a perfect fit for every individual’s specific objectives and risk comfort levels.
- Effortless Real Estate Access: With Ark7, property enthusiasts can acquire assets across the nation from the comfort of their homes. The platform provides all necessary details about each property, including visuals, geographic location, and financial estimates.
- Diversification Made Easy: Ark7 allows for fractional ownership in multiple properties, an excellent choice for those seeking to diversify their property portfolio. This fractional ownership model allows individuals to distribute their assets across various properties, thereby reducing exposure to any single asset or geographic area.
- Intuitive Design: The design of the Ark7 platform is intuitive and easy to navigate, making it accessible to a broad audience. Detailed information about each property and its potential is presented in a clear, concise manner.
- Secure and Trustworthy: Ark7 places a high priority on security, utilizing advanced encryption to safeguard personal and asset-related data. Every listed property undergoes rigorous vetting, ensuring only the highest-quality options are available.
Ark7 Review: How To Use It?
Investing with and using Ark7 is straightforward:
- Ark7 purchases rental properties and, once qualified by the SEC, lists shares on its platform, retaining a small percentage of itself
- The shares you buy represent fractional ownership of an LLC holding the property title
- You’re entitled to a part of the monthly property income after Ark7’s operating expenses
- Ark7’s diverse portfolio includes properties across various cities
- Once logged in, you’ll see trending properties and share costs
- You can also check the marketplace for shares from other investors
- Each property listing provides additional information to help you make educated selections.
How to Open An Account on Ark7?
Setting up an account with Ark7 is a breeze. You can either use your email or your Google account to register, making the process quick and convenient.
Website or Mobile App
You have the flexibility to choose between the desktop version or the Ark7 mobile app. Both platforms offer a seamless user experience, allowing you to manage your investments wherever you are.
Free Sign Up
Signing up on Ark7 is completely free. This means you can start exploring the platform and its features without any upfront costs.
Low Minimum Investment
One of the standout features of Ark7 is the low minimum investment requirement. You can start your investment journey with as little as $20, making it accessible for a wide range of investors.
Once your account is set up and funded, you’re ready to start investing. Browse through the available properties and select the ones that align with your investment strategy. With Ark7, investing in real estate has never been easier.
How to Choose Properties on Ark7?
Choosing properties to invest in on Ark7 is a process that combines your personal preferences with the platform’s wealth of information. Here’s how you can navigate this process:
- Explore the Property Listings: Start by browsing through the property listings on Ark7.
- Review Property Details: Each property comes with a wealth of information. You can review details such as the property’s size, number of rooms, amenities, and more. This helps you understand the property’s potential for rental income and appreciation.
- Check the Financials: Ark7 provides comprehensive financial information for each property. This includes: the purchase price, the total monthly rental income, the percentage of the distribution to you and how many other people are fractional shareholders of the property.
- Use Filters: To narrow down your options, use the platform’s filters. You can filter properties based on location, price, size, and more. This helps you focus on properties that meet your specific criteria.
- Read the Property Reports: Each property comes with a detailed report. You have the ability to examine specifics like the number of bedrooms and bathrooms a property possesses, its construction date, the purchase price paid by Ark7 and their rationale for buying it.
- Make Your Decision: Once you’ve gathered all the necessary information, it’s time to make your decision. Choose the properties that correspond the most with your financial goals and risk tolerance.
Remember to take your time, do your research, and make choices that suit your financial risk appetite.
Ark7, understanding the challenges of rental real estate investment, sets a minimum one-year holding period for Regulation D offerings to ensure medium-term commitment.
Properties that achieve full funding during the initial offering will be gradually transitioned to the secondary market. For the release plan and detailed schedule, please consult Ark7’s news updates.
The market is a place where you can connect with like-minded investors, selling your shares directly to others who appreciate the value of a good property investment.
How to Invest with IRA on Ark7?
Ark7 goes beyond offering fractional real estate investment opportunities. It also provides a platform for individual retirement accounts (IRAs). You can choose to open a Roth or a traditional IRA with Ark7, using your account to invest in rental properties and secure your future.
It’s essential to note that the funds you invest in your Ark7 IRA are included in your total annual contribution limit. Every investment you make through your Ark7 IRA is part of your yearly contribution quota.
This is an important consideration when planning your investment strategy. By keeping track of your contributions, you can ensure that you’re maximizing your investment potential while staying within the guidelines set by the IRS.
Ark7 Review: Is It Legit?
“Is Ark7 legitimate?” It’s a question that many prospective investors ask, and the answer is a resounding yes.
Ark7 is a bona fide platform for real estate investment, and its legitimacy is cemented by its registration with the Securities and Exchange Commission (SEC).
The SEC is a federal agency responsible for protecting investors and maintaining fair, orderly, and efficient markets.
Registration with the SEC is a significant indicator of a company’s legitimacy, as it means the company has met specific regulatory requirements and is subject to ongoing oversight.
Ark7’s registration with the SEC is a testament to its commitment to transparency and adherence to regulations. It’s a sign that the company is legitimate and dedicated to maintaining high standards of conduct and operation.
Ark7 Review: Pros & Cons
Every investment platform has its strengths and weaknesses. Let’s delve into some of the pros and cons of Ark7:
- Completely free to sign up for the platform
- Available to a broad audience, now including both non-accredited and accredited investors
- Affordable investment entry point of just $20
- Wide range of curated properties
- Potentially monthly passive income
- Flexibility to sell shares after a minimum holding period
- Ark7 manages the rental properties for you
- The platform was built by two industry veterans who have decades of experience between them
- Sourcing fees could potentially be higher than other alternatives
- The platform – for now at least – lacks REIT or commercial real estate options
Ark7 Customer Support
The platform is always on hand to answer your questions, with three options.
You can browse the very detailed and searchable database of FAQs:
You can also opt for a one-on-one web chat with a member of their customer care team:
Or you can ask their AI-driven chatbot – Ark7 GPT – some questions:
We would recommend trying the database of FAQs first – it’s very thorough in covering most topics. The second choice would be their AI-driven chatbot that can tell you about the platform’s history and more.
If you still need some answers after trying both those methods, they’ll happily arrange live one-to-one support.
Ark7 Review: Is It Right for Me?
The platform is designed for many users, from new to real estate investors to veteran investors.
The minimum investment required by the platform is quite low, with shares in curated properties starting as low as $20.00 per share. This makes it an affordable option for those looking to get started in real estate investment.
Ark7 Reviews: What Do Customers Say?
Ark 7 is rated excellent by the users of Trustpilot – with several five-star reviews.
Here’s what some of the customers had to say:
“Ark7 continues to impress.
I’ve made several investments on the Ark7 platform over the past two years. Navigating the app or through a browser works equally as well. Their platform is smartly thought out, and very user-friendly. Communication and processing orders have been top-notch!”
“Good app – Easy to use
The app is very intuitive and seems like an easy way to make passive income.
Ease of use and openness of the business model are the reasons I decided to buy shares.”
“Real estate investing made easy
So far a very exciting place to invest. Unlike a REIT you can invest in a single or multiple properties of your choosing and feel like you have a real ownership interest in the homes. A great way to invest in real estate without the huge cost as a barrier to entry or the headache of property management.”
An excellent way to expand your portfolio or to build one, there’s space for everyone from the novice to the beginner”
Ark7 Review: How Much Does It Cost?
Regarding the cost of using Ark7, the platform and app are free. This means that anyone can access Ark7’s services without paying a membership or subscription fee.
However, Ark7 does apply certain fees for the services they provide. One such fee is a one-time sourcing fee.
This fee, which equates to 3% of the Property Market Cap, is charged when Ark7 sources and acquires a property and lists it on its platform as sellable shares.
This sourcing fee is an important consideration when calculating potential returns on your investment. While it is a one-time charge, it impacts your investment’s initial cost.
In addition to the sourcing fee, Ark7 also charges a monthly asset management fee. This fee is approximately 10% of the Rental Income from the property, which is Ark7’s charge for maintaining the property and managing tenants.
This asset management fee is another factor to consider when calculating potential returns. While it does reduce the monthly income from the property, it also covers the essential services Ark7 provides, ensuring the property is well-maintained, and tenants are effectively managed.
How Much Can I Earn With Ark7?
Investing with Ark7 offers two primary avenues for potential earnings: monthly distributions and potential share appreciation. This dual-earning approach provides investors with a steady income stream and the possibility of capital gains.
Monthly distributions are a result of the rental income generated by the properties. As of July 2022, Ark7 has seen an average annualized distribution of 6% from monthly rental income. This is a significant return, especially when compared to other investment options.
For instance, gold, often considered a safe haven investment, only offers a return of around 0.8%. Similarly, bonds, another traditionally safe investment, offer a return of around 1.6%. In comparison, Ark7’s 6% average annualized distribution is a compelling return.
However, it’s not just about the monthly distributions. The potential for share appreciation also offers an opportunity for capital gains. As the value of the properties increases, so does the value of your shares, providing another avenue for potential earnings.
Traditional real estate investment involves high upfront costs, ongoing maintenance, tenant management, and many other responsibilities. In contrast, Ark7’s fractional real estate investment model simplifies the process, allowing investors to earn from real estate without the associated headaches.
Ark7 Review: Is It Worth It?
With free signup and a minimum investment of just $20, Ark7 breaks down the barriers to real estate investment. It’s an opportunity to get involved in the real estate market without needing significant capital.
Ark7’s legitimacy is underscored by its registration with the SEC, which assures investors that they’re dealing with a credible and regulated platform. It’s a testament to Ark7’s commitment to transparency and regulatory compliance.
Overall, Ark7 offers a unique and compelling investment opportunity. With its low entry point, potential for returns, and commitment to transparency, it’s a platform that’s certainly worth exploring.
In 2023, $20 isn’t a lot of money to risk and try a potentially rewarding investment. So, why not take the leap and start your real estate investment journey with Ark7 today?