Is Ark7 Legit?

Ark7 is a new crowdfunded real estate investment platform that enables investors to gain access to premium properties with as little as $20. The start-up was launched in 2019 and since then, has been a standout in the field. With the emergence of several crowdfunded investment platforms in the market today, it can be a chore to determine which ones are legit and which ones are not. In this blog post, we will give you an overview of Ark7 and answer the question: is Ark7 legit?

This article is largely based on my arguably limited six month investing experience with the platform, as well as my brief conversation with the founder and their staff.

About Ark7

Ark7 is a real estate investment company that enables investors to invest in residential and commercial real estate assets through a crowdfunding platform. With Ark7, you can select properties that align with your investment goals, budget, risk tolerance, and preference. Ark7 basically acts like an acquirer and manager, ensuring that investors have access to a wide range of properties.  What makes Ark7 a “crowdfunded” platform is the fact that they get thousands of small investors into the platform, e.g. a “crowd’, instead of getting funds from bigger angel or institutional investors.

The low minimums are especially appealing to younger or cash constrained investors who don’t have the capital needed to outright purchase real estate on their own.

So, is Ark7 legit and how do we know?

Ark7 Has Insurance And Is SEC Registered

One of the primary concerns of investors is trust. It’s important to evaluate if an investing platform has security measures in place to protect investors’ funds. In this case, Ark7 is basically trustworthy. They use industry-standard security protocols to ensure that investors’ data is safe. The platform also provides a comprehensive insurance coverage plan that protects investors’ money and properties against damage or theft.

Additionally, Ark7 is registered with the Securities and Exchange Commission (SEC), meaning that it operates under regulatory standards to protect investor interests.  Here is listing of all their SEC filings since 2020.

Source: SEC.gov.

Overall 11% Performance Since Inception

Another aspect of trust and legitimacy is return.  If a company makes money and shares it with its investors, it means they are basically doing their job.

Ark7 has a good performance track record as it has provided investors with an average return of 11% since inception. The platform’s management team is composed of experienced real estate professionals who vet the properties to ensure that they meet investment criteria.  And by and large they seem to be doing a good job selecting properties. Ark7 also provides investors with regular email updates on their investments, ensuring transparency and accountability.

Here are a couple of their listings from my mobile app:

These listings are good quality houses in good neighborhoods, so their selection staff are doing a good job picking properties.

Note: I’m only getting 5% pretax from the platform, but that’s better than some other crowdfunded real estate apps, so I’m happy.

Fees and Costs – Abut 6%

As a rule, fees and costs eat into investing returns.  Ark7 charges a 1% annual management fee and a 5% acquisition fee. These fees are relatively low compared to traditional investment platforms. Additionally, investors may incur property management fees, which are dependent on the property’s performance. Before investing, it’s crucial to read and understand the fee structure to avoid any surprises.  Although, their won’t be too many with Ark7 – it’s basically transparent.

For more on their fees and costs you can read a comprehensive review here.

Risk – Real, But You Can Diversify

Investing in real estate comes with real risks. Ark7 partially mitigates these risks by providing investors with a detailed analysis of the properties’ investment potential. Additionally, investors can diversify their portfolio by investing in multiple properties to spread risks.  And, if you’re so inclined, you can also get into commercial real estate through their platform.

Yes, Ark7 Is a Legitimate Investment Platform

So, is Ark7 legitimate?

Yes, it is a legitimate investment platform that offers investors access to premium properties with as little as $20. The platform uses industry-standard security protocols, is SEC registerd, provides comprehensive insurance coverage plans, has a good performance track record, and has a low fee structure.

If you like Ark7 and you want to check out their app, you can get more information here, or click on the button below:

For More On This: 

Ark7: A Comprehensive Review (Updated for 2023)

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