Homeownership seems like an unlikely reality for many millennials and Gen Zers. Members of both generations, however, are not giving up on the idea of generating wealth through real estate.
Instead of saving large amounts of capital to purchase and maintain a single property like their parents did, many younger investors are turning to fractional real estate. Investors can purchase shares of a property and receive monthly dividends just as they would with a traditional rental investment.
It’s a model that’s caught the attention of entrepreneurs like Amazon Inc. founder Jeff Bezos and Salesforce CEO Marc Benioff.
Ark7 makes these types of real estate investments available for every type of investor.
There’s no accreditation required, shares start at just $20, and monthly dividends are paid on the third of every month. Users can get started by connecting their bank account or IRA.
Only Invest In Properties You Want
Unlike REITs or many real estate crowdfunding platforms, investors can pick the specific property they want to own shares of from a list of curated rental properties across 20 U.S. markets.
With fractional real estate, you can become a landlord without having to worry about building maintenance or managing tenants. Ark7 handles that for each property.
What’s more, the company says its Trading Market provides a level of liquidity rarely found in fractional real estate investing. Instead of waiting years for a fund or property exit, investors can sell their shares after a minimum holding period that typically ranges from 3-6 months, depending on the property.
Track Record
Ark7 was founded in 2018 by CEO Andy Zhao, an ex-Google engineer, after he found that there was no optimal way to invest in real estate in the Bay Area.
Since then, the company reports that it’s achieved:
- $30M+ in property value funded across 20 U.S. markets
- $4M in dividends distributed
- 300,000+ investors
Ark7 offers a diversified solution to real estate investment by combining properties in long-term, mid-term and short-term Airbnb rentals. Investors can invest in single-family homes, townhomes, multi-family homes and condos through a single platform, allowing for an expanded and diversified portfolio. This strategic mix can help optimize rental income opportunities.
A Platform For Modern Investors
Ark7 is a mobile-first experience rated 4.7/5 on the Apple App Store, with full transparency into each property’s financials, opening statements and market data.
The app allows users to search for properties, manage their accounts and track dividends in one place, and trade shares with ease.
Clear And Competitive Fee Structure
Users can search for and access complete legal and financial disclosure documents 24/7. The app and platform are free to download and use.
Ark7 charges a one-time sourcing fee equal to 3% of a property's value, along with a monthly asset management fee ranging from 8% to 15% of rental income, depending on the property. The company says there are no hidden fees or surprises.
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