Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in commercial real estate projects
Invest in rental homes
Minimum investment amounts on CrowdStreet start at $25,000, with the exact threshold varying by individual project.
Investing via CrowdStreet entails typical real estate risks such as market fluctuations and property-specific issues, with no guarantee of returns and potential for capital loss.
Investing on Ark7 carries risks such as market volatility, property value fluctuations, economic impacts, and potential liquidity challenges in the secondary market.
CrowdStreet investments are generally illiquid, with capital committed for several years until a potential liquidity event, such as a property sale or refinancing, without a secondary market for early exit.
Ark7 allows investors to sell their shares on a secondary market after a minimum holding period of one year, providing liquidity.
CrowdStreet has a historical 17.9% Realized IRR and a typical 3.1-year hold period for investments, with returns varying based on equity shares, debt interest, or hybrid terms, and property sales.
Ark7 offers annualized cash return rates between 3.22% to 6.96%, or $0.1 to $0.58 per share, based on past performance or estimates for newer properties.
CrowdStreet investments typically have a hold period of 3.1 years on average, with some ranging from 3-5 years and others up to 10 years, reflecting a long-term investment horizon.
Ark7 targets long-term investments in real estate for appreciation but allows selling shares after a minimum holding period for flexibility.
Individuals must be accredited U.S. residents with valid identification to invest on CrowdStreet, while entities need U.S. accreditation, taxation, and verification, subject to CrowdStreet's approval.
Ark7 is open to U.S. citizens or residents over 18 with an SSN or ITIN and a U.S. bank account. Select offerings are for accredited investors only.
Assets on CrowdStreet may experience volatility due to economic shifts, interest rate changes, and local market trends, affecting property values and investment returns.
Assets on Ark7 exhibit volatility influenced by real estate market shifts, economic conditions, and demand fluctuations. While real estate is generally stable, values and rental incomes can vary. Additionally, liquidity and market demand on the secondary market may affect share prices and selling ease.
CrowdStreet's offerings are regulated by the SEC and subject to regular audits for compliance, ensuring adherence to legal standards for securities and real estate investments. However, details on specific audits and regulations are not publicly disclosed.
Ark7 complies with SEC regulations, making necessary filings for transparency and undergoes regular independent audits for financial accuracy and operational compliance.
CrowdStreet's properties are typically insured against physical damage, but this does not cover market risks or guarantee full property value protection. Investors should note that insurance mitigates, but doesn't eliminate, all investment risks.
Ark7 secures comprehensive insurance for all properties, covering natural disasters, property damage, and liability, to protect investors' returns and mitigate financial risks.
CrowdStreet investors may receive distributions, typically on a quarterly basis, based on the cash flow and profitability of their investments, but these are not guaranteed and depend on the specifics of each project.
Ark7 offers returns through monthly cash distributions from rental income, after deducting operating expenses, and long-term property appreciation. Distributions are prorated based on shares owned and deposited monthly. Property appreciation potential comes from home value gains, with shares sellable on the secondary market after a holding period. Monthly distribution amounts may vary due to operational factors.
Investors on CrowdStreet typically receive their money back after a liquidity event like a property sale, based on the timeline of the specific project's business plan. Real estate investments are illiquid, so funds cannot be withdrawn on demand.
Investors can get their money back by selling their shares on Ark7's secondary market after a minimum one-year holding period or through property appreciation when they sell their shares.
CrowdStreet investments may include sponsor-determined fees such as acquisition, asset management, and property management fees, along with performance-based carried interest.
Ark7 charges a one-time 3% sourcing fee of the property market cap for acquiring and listing properties, and a monthly asset management fee of 8-15% of rental income for property and tenant management.
CrowdStreet issues Form K-1 or other relevant tax documents to investors for annual tax reporting, with the advice to consult a tax advisor for proper tax treatment of investments.
Ark7 issues Schedule K-1 forms for properties taxed as partnerships and plans to issue 1099-DIV for properties treated as REITs, aiming to transition as they open to the public. Tax documents are sent before March 15th, considering depreciation and expenses to potentially reduce taxable income for investors.