Ark7: Platform Profile

Overview

Ark7 lets eligible investors buy low-dollar interests tied to individual rental properties.

Current Regulation A offerings can start with a single share around $20.

That makes Ark7 one of the lowest-minimum individual-property real-estate platforms in the ROIStreet review set.

As with Arrived, the investor does not receive personally deeded fractional ownership.

The investor buys a security in a series entity that owns the underlying property.

Current economic features include:

• no accreditation requirement for Regulation A offerings;
• property-specific securities;
• monthly distributions where available;
• a 3% sourcing fee at the series/property level;
• an asset-management fee based on distributable free cash flow;
• access to PPEX ATS secondary trading after a current 12-month holding period.

May fit better for

• investors who want low-minimum rental-property exposure;
• non-accredited investors;
• investors who prefer selecting individual properties;
• investors wanting monthly income potential;
• investors willing to use private-security secondary liquidity rather than a public exchange.

May fit less well for

• investors requiring guaranteed liquidity;
• investors who want personally deeded property;
• investors who dislike sponsor-affiliate fees;
• investors seeking a diversified fund rather than individual-property selection;
• investors who assume "no AUM fee" means no ongoing manager compensation.

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Regulation A structure

Current Ark7 offerings use Regulation A Tier 2 series structures.

• Regulation a: Yes
• Non accredited access: Yes

The investor buys Series Interests.

The property is owned by the applicable series/entity.

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Current minimum

Current 2026 offering documents show property-series shares around:

• Minimum share: 20

The actual share price is series-specific.

Use "$20 current starting-share reference" rather than implying every future property will always be priced at exactly $20.

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Primary offering broker structure changed

Current 2026 SEC offering documents describe a direct offering structure rather than requiring a registered broker-dealer to sell every primary Series Interest.

• Current primary offering broker required: No

If a future offering uses a broker, update from that offering's own circular.

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Sourcing fee

Current 2026 SEC offering documents disclose a sponsor-related sourcing fee of:

• Sourcing fee: no greater than 3% of maximum offering size

Current example Series #PJI26 uses a 3% sourcing fee.

This is a series-level use-of-proceeds cost.

It is not necessarily an extra 3% checkout charge added to the investor's purchase screen.

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Sourcing fee example

If a property series raises $500,000 and the sourcing fee is 3%:

$500,000 × 3% = $15,000

That amount is paid at the series level under the offering terms.

It reduces the capital available for the investment compared with a structure that had no sourcing fee.

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Ongoing "Asset Management Fee"

Ark7 marketing often emphasizes that it does not charge a conventional percentage-of-AUM annual fee.

That needs context.

Current SEC offering documents define an Asset Management Fee based on distributable Free Cash Flow.

For current Series #PJI26:

• Asset management fee:
• Basis: Free Cash Flows available for distribution
• Current series rate: 15%
• Percentage of AUM: No

The offering documents state the fee may be up to 15% and the manager set the current series at 15%.

"Ark7 has no management fee."

A more accurate statement is:

Ark7 does not currently use a conventional annual percentage-of-assets fee on the series, but it can receive up to 15% of distributable free cash flow under current offering terms.

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Cash-flow fee math

Suppose a property series has $1,000 of Free Cash Flow available for distribution before the current 15% manager fee.

Manager fee:

$1,000 × 15% = $150

Remaining free cash flow:

$850

before any other applicable allocation/reserve mechanics.

This is a series-level illustration.

It is not a 15% fee on the investor's original capital.

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Property-management expenses

Ark7's current platform materials also reference property-management expenses in ranges such as:

• Long term property management: approximately 8% of rental income
• Short term property management: up to approximately 15%

These are property-level costs.

Actual expenses are property/manager-specific.

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Monthly distributions

Ark7 currently describes monthly property distributions, generally around the third day of the month where the series has distributable cash.

• Distribution frequency: monthly

Distributions depend on:

• rent received;
• vacancies;
• repairs;
• reserves;
• property expenses;
• manager fees.

Monthly cadence does not mean a fixed monthly amount.

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Property selection

Ark7 lets users review individual property offerings.

Potential property types can include:

• single-family rentals;
• condominiums;
• small multifamily/residential assets.

Each property should be evaluated separately.

A platform with 20 properties does not make one individual-property investment diversified.

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Secondary Market

Ark7 provides secondary trading through the PPEX alternative trading system.

PPEX is operated by:

• Secondary market operator: North Capital Private Securities Corporation
• Secondary market system: PPEX ATS
• Operator CRD: 154559

Current Ark7 guidance uses a:

• Secondary market holding period: 12 months

before shares become eligible for secondary trading.

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ATS liquidity is not public-stock liquidity

After the required hold, an investor may be able to offer eligible shares on PPEX.

That does not guarantee:

• a buyer;
• a particular price;
• immediate settlement;
• full exit.

• Secondary market: Yes
• ATS: Yes
• Guaranteed liquidity: No

Private real-estate shares can trade at a discount to the investor's original price or current property-value estimate.

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Primary security vs secondary broker protection

North Capital is a FINRA/SIPC broker-dealer.

SIPC does not insure:

• rental income;
• property value;
• secondary-market price;
• investment losses.

The underlying Ark7 Series Interest remains a private real-estate security.

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Valuation

Ark7 property/series values do not have continuous public-market quotes.

Relevant valuation inputs can include:

• property purchase price;
• appraisals;
• comparable sales;
• operating performance;
• liabilities;
• cash reserves;
• market conditions.

The price on an ATS can differ from a sponsor valuation.

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IRA compatibility

Current Ark7 materials state eligible property shares can be used through Traditional or Roth IRA structures via current retirement-custody relationships.

• IRA compatible: Yes
• Traditional IRA possible: Yes
• Roth IRA possible: Yes

Ark7 is not itself the IRA custodian.

Custodian fees and prohibited-transaction rules can apply separately.

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Non-accredited access

Regulation A makes the principal retail property offerings available to eligible non-accredited investors.

Non-accredited investors remain subject to applicable Regulation A investment limits.

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Risks specific to individual rental properties

Individual-property returns can be affected by:

• vacancy;
• tenant default;
• repairs;
• taxes;
• insurance;
• local regulation;
• financing;
• neighborhood change;
• property damage;
• natural disasters;
• sale timing.

Fractional ownership reduces the amount required to participate.

It does not fractionalize away the property's operating risk.

Assessment

Ark7's strongest proposition is the combination of:

• low starting share price;
• individual-property selection;
• non-accredited access;
• current monthly cash-distribution model;
• an ATS exit path after the holding period.

The fee structure requires more care than the phrase "zero AUM fees" suggests.

Ark7 does not currently charge a traditional annual percentage of assets, but current offering documents give the manager 15% of free cash flow available for distribution on the cited series and include a 3% sourcing fee at acquisition.

The PPEX secondary market is useful, but it should be treated as optional liquidity rather than an assured exit.