DiversyFund vs Ark7 Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in multifamily rental properties

Invest in rental homes

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Investments
$500

DiversyFund's minimum investment amounts differ by investment type. It's $500 for Growth REITs targeting multifamily properties. For accredited investors, Premier Direct SPVs require a $50,000 minimum, while the Premier Opportunity Fund has a $25,000 minimum.

Investments
$20

The minimum investment amount required on Ark7 is $20 per share.


Moderate Risk
3/5

Investing in DiversyFund carries risks such as market changes, economic factors, and specific property risks, and there's always the potential for loss, including the initial investment.

Moderate Risk
3/5

Investing on Ark7 carries risks such as market volatility, property value fluctuations, economic impacts, and potential liquidity challenges in the secondary market.


Minimum Liquidity
1/5

DiversyFund investments are illiquid, with capital committed for approximately 5 to 7 years. There is no secondary market or immediate option for investors to sell their shares prior to the end of the investment term.

Moderate Liquidity
2/5

Ark7 allows investors to sell their shares on a secondary market after a minimum holding period of one year, providing liquidity.

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Moderate Return
11-18 %

DiversyFund has historically reported annual returns between 11% and 18%, but future returns can vary and are not guaranteed.

Low Return
3.22-6.96 %

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.


Long-term Investment
5-7 years

DiversyFund's REIT I has an investment term of 5-7 years, and the company is using the full term to maximize property values before sale and subsequent investor disbursements.

Long-term Investment
1+ year

Ark7 targets long-term investments in real estate for appreciation but allows selling shares after a minimum holding period for flexibility.


Who can invest
United States

DiversyFund's Growth Offerings are accessible to all investors, while its Premier Offerings are restricted to accredited investors only.

Who can invest
United States

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.


Moderate Volatility
3/5

Real estate assets on DiversyFund can experience volatility due to market conditions, interest rates, and local economic trends, potentially impacting property values and investment performance.

Moderate Volatility
3/5

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.


Regulation and audits
SEC Regulated

DiversyFund is subject to SEC regulations and conducts regular audits to ensure financial transparency. These audits and disclosures are available for investor review as part of the company's compliance with regulatory standards.

Regulation and audits
SEC Regulated

Ark7 complies with SEC regulations, making necessary filings for transparency and undergoes regular independent audits for financial accuracy and operational compliance.


Insurance
Yes

DiversyFund's properties are generally insured against physical damage, but this insurance does not cover market-related losses or economic downturns, and it may not fully cover the properties' market value.

Insurance
Yes

Ark7 secures comprehensive insurance for all properties, covering natural disasters, property damage, and liability, to protect investors' returns and mitigate financial risks.


Payouts
No Recurring Payouts

DiversyFund generally reinvests dividends into property renovations rather than distributing them, supporting a strategy aimed at long-term asset appreciation.

Payouts
Dividends

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.


Withdrawals

Investors in DiversyFund can receive their money back after the properties are sold, typically at the end of a 5 to 7-year investment term, without an early withdrawal option.

Withdrawals

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.


Extra Fees
Yes

DiversyFund collects asset management fees and transaction fees, and may also earn a promote interest from net profits after investors receive their returns.

Extra Fees
Yes

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.


Taxes
Tax Form

DiversyFund provides Form 1099-DIV and/or Form K-1 for tax reporting, accessible online, with dividends taxed as ordinary income and end-of-term distributions potentially as capital gains.

Taxes
Tax Form

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.

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