Buy shares in vacation rental properties
Invest in rental homes
Investments
$100
Fundhomes sets its minimum investment threshold at $100, with shares available at $10.
Moderate Risk
3/5
Investing in Fundhomes carries risks such as potential loss of capital, market fluctuations, and regulatory changes affecting profitability. Investments are generally illiquid with a long-term exit strategy, and early withdrawal may result in penalties. A secondary market to improve liquidity is under consideration but not guaranteed.
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
Fundhomes offers liquidity options including automatic share sales when properties are sold (5-10 years), a secondary market for selling shares to other investors, and a buyback program, with potential early sale penalties within the first year.
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
11.36 %
Investors in Fundhomes can expect cash dividends from rental income, projected at a hypothetical rate of 6.62% per year, and property appreciation, estimated at 4.74% per year, upon sale within 5-10 years. This totals a hypothetical annual return of 11.36%.
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
5-10 years
The investment time horizon at Fundhomes is typically 5 to 10 years, focusing on long-term gains from rental income and property appreciation.
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
To invest in Fundhomes, one must be a U.S. Citizen or a resident of the U.S. with a valid Social Security Number.
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
Fundhomes' vacation rental properties face real estate market volatility, with valuations influenced by economic shifts, interest rates, and regulatory changes.
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
Fundhomes utilizes Regulation A for public offerings, enabling investors to buy shares in Series LLCs that each own a vacation rental property. This approach grants investors partial ownership in a property, with all details outlined in SEC-filed offering circulars.
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
Fundhomes insures its properties against physical damage, but this doesn't cover market risks or regulatory changes affecting property values. Insurance limits may also not match property market values.
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
Dividends
Investors in Fundhomes receive quarterly dividends derived from the net rental income of vacation rental properties, after deducting operational expenses. These dividends reflect a portion of the property's profitability but are not guaranteed and can fluctuate based on occupancy rates and market conditions.
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 Fundhomes can receive their investment back when the property is sold, usually within 5-10 years, or by selling their shares earlier on a secondary market, depending on demand.
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
Fundhomes earns through fees for property and asset management. This includes handling vacation rental operations like maintenance and guest services, as well as overseeing investment strategies and performance.
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
Fundhomes provides K-1 Tax Forms for each investment property, detailing investors' share of income, deductions, and credits. Typically, these forms are issued by March 15th each year, with an IRS extension deadline of September 15th if needed.
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.