HoneyBricks vs Ark7 Comparison

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

Invest in multifamily real estate

Invest in rental homes

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Investments
$5,000

The minimum investment amount on HoneyBricks typically starts at $5,000, although some specific projects may require higher minimums.

Investments
$20

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


Moderate Risk
3/5

Investing in HoneyBricks involves various risks inherent to real estate and investment platforms, including market volatility, liquidity challenges, regulatory changes, operational uncertainties, economic fluctuations, and technology-related vulnerabilities.

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.


Moderate Liquidity
2/5

HoneyBricks offers a Secondary Market for liquidity, allowing investors to buy and sell assets after a 12-month hold via SPVs and blockchain technology.

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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High Return
15 %

HoneyBricks targets over 15% annual returns and aims for a cash-on-cash return of over 5% from its real estate investments. These returns are projections based on conservative reviews and are derived from property appreciation and reliable cash flows from high-occupancy assets.

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
1-5 years

The investment time horizon on HoneyBricks is inherently long-term, with the expectation that investors may hold their investments for several years to fully realize the potential appreciation and sustained cash flows from multifamily real estate assets. While a secondary market exists to provide liquidity after a 12-month holding period, immediate or short-term exit opportunities may be limited.

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
International

HoneyBricks is available to accredited US investors and to non-US investors without accreditation requirements.

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

The assets on HoneyBricks, like any real estate investments, are subject to market volatility influenced by economic conditions, interest rates, and local market trends. These fluctuations can impact property valuations, posing risks particularly for those seeking short-term gains.

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

HoneyBricks adheres to regulations set by the SEC and undergoes necessary audits to ensure transparency and investor protection. Its investment offerings require SEC filings and provide detailed offering circulars to investors.

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

HoneyBricks ensures its properties are insured against physical damages and losses, offering a layer of protection for investments. However, this insurance does not cover market volatility, economic downturns, or fraudulent activities that might affect property values. Additionally, coverage limits may not fully reflect current market valuations.

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

HoneyBricks investors receive dividends from the net rental income of properties after expenses and reserves. These regular cash distributions aim to provide a predictable passive income stream from high-occupancy multifamily real estate investments. The exact amount of dividends may vary with the performance of the assets.

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 on HoneyBricks can potentially get their money back by selling their shares on the platform's Secondary Market after a 12-month holding period, subject to market demand. The timing and success of the sale depend on market conditions, and while there are no HoneyBricks fees for the transfer, blockchain network fees may apply.

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
No

HoneyBricks charges no fees for initial investments or for transfers on the Secondary Market. Investors may only incur blockchain network fees for transactions executed on the platform.

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

HoneyBricks offers tax-advantaged investing and provides necessary tax documentation to support investors in reporting their investment income.

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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