ProptechReal Estate

Ark7 to allow users to dip into IRAs for fractional property investment

Ark7, a full-service real estate investment platform where you can buy, hold and sell fractional shares of real estate properties, has launched a new product offering that will allow users to leverage funds in their Individual Retirement Accounts (IRAs) to invest in Ark7 properties.

Available for both traditional and Roth IRAs, Ark7 claims property shares held in these accounts generate immediate passive income and have the potential for long-term appreciation.

The new offering builds on the San Francisco-based startups proprietary investment strategy that allows investors to customize their portfolios by picking and choosing from vetted properties. Unlike private equity funds, Ark7 doesn’t have a required minimum investment amount. Leaning on a more inclusive business model, potential investors can buy in for as low as $5.40/share.

When you’re ready to call it quits on a property, you can then turn around and sell your shares to others.

Like other real estate investing platforms, Ark7 also offers a hands-off approach as the company manages the properties for its users, which includes handling all leasing, financing, legal and reporting responsibilities.

Its markets span anywhere from Austin, Texas, to Berkley, California, and include both single and multifamily units.

For its newest offering, Ark7 partnered with Millennium Trust, a financial services provider that offers rollover solutions, alternative asset custody, private fund custody and advisor support services.

“The option to invest in Ark7’s properties through IRAs further encourages self-motivated investors to achieve real portfolio diversification by adding another layer of asset allocation beyond the traditional vehicles such as stocks, bonds and mutual funds offered by most financial institutions,” said Andy Zhao, co-founder and CEO of Ark7.

A former engineer with Google, Zhao noticed the vast amount of time and money required to invest in real estate upon his first attempt to do so. In turn, Zhao founded Ark7 as a means of making the process more streamlined – about as easy as it would be buying a stock on say Robinhood.

Since its founding in 2019, Ark7 has entered a competitive market in terms of fraction real estate investment tech. Crowdstreet, Fundrise and RealtyMogul have snagged a good amount of investors looking to buy into returns on property investments.

However, Ark7 does offer more portfolio flexibility than some of the bigger players. The amount of money down invites a larger crowd to the space aside from the typical accredited investor many of these companies look for.

Alongside its latest investment option launch, Ark7 has also revealed its new mobile app to give investors access to their portfolios on the go. Through the application, users can explore potential properties, purchase shares and manage and track distributions.

The app also includes a virtual Marketplace, with real-time individual property information such as pictures and videos, location and neighborhood information, market capitalization, and legal documentation. Through the app, users are immediately notified of account activity, such as order and transfer completions and dividend distributions, via push notifications.

“Underscoring Ark7’s commitment to democratizing real estate investing, our new app provides novice and experienced real estate investors alike with the best tools and best experience possible,” said Zhao.

The Ark7 mobile app is currently available for all iOS devices at the App Store and is scheduled for availability on Android devices in the second half of 2022.

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