Ark7 Review 2026: The $20 Rental Shares, the Parent Behind Them, and How You Get Out
Ark7 sells fractional interests in individual rental homes for $20 to $100 through three Regulation A series LLCs, pays monthly distributions, and runs an in-house trading market after a minimum hold the app sets per property. Its annual reports show 48 property series, about $18 million raised, net losses at every issuer, $938,790 of distributions paid while aggregate net income plus depreciation was negative $276,356, and a going-concern paragraph on each one. AltStreet read every filing since 2020 to set the app against the record.
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What the data actually shows - TL;DR
Ark7 Inc. (Delaware, 2018; San Francisco; CEO Yizhen Zhao) has sold fractional interests in 48 rental properties through three Regulation A series LLCs: Ark7 Properties LLC (15 series with interests issued: 13 legacy houses sold privately for $9.0 million in 2019 to 2022 and re-offered publicly since December 2025, plus two added in 2026; a third post-qualification amendment filed October 13, 2026 adds a nineteenth series, a Royse City, Texas house at $20 a share), Ark7 Properties Plus LLC (18 houses, $5.93 million, fully sold) and Ark7 Properties Advance LLC (15 series, $3.49 million sold across the first 14 at May 2026, the fifteenth added June 2026). The parent lends each series its purchase price at 7% to 10%, is repaid from the offering, and takes up to 15% of free cash flow.
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In 2025 the three issuers earned $1,514,560 of rent, lost $925,954 after expenses, and distributed $938,790 while aggregate net income plus depreciation was negative $276,356. Each carries $7.1 million of third-party mortgages between them, a going-concern paragraph from a sole-practitioner auditor, and, on the oldest issuer, a $4,384,255 interest-free receivable from the parent. Exit is a property-specific minimum hold, 90 days to a year in the app against 12 months in the operating agreement, followed by an in-house order book.
The platform's own per-series data for 23 of the 48 series shows 31,681 investor positions, $632,842 of trailing-12-month dividends, $257,817 of cumulative trade volume and zero occupied units on the two Philadelphia series. No regulator has acted.
Distributions paid in 2025 across the three issuers against their aggregate net income plus depreciation (net loss $925,954, depreciation $649,598; AltStreet arithmetic from the filed statements). Filed operating cash flow: +$1,719,768, +$350,586 and -$1,135,599 by issuer.
FY2025 audit reports with an Emphasis of Matter paragraph on going concern, each signed by Norbie Gaerlan, CPA, a sole practitioner whose firm offers tax and bookkeeping services.
Owed to Ark7 Properties LLC by its parent at December 31, 2025, non-interest-bearing and due on demand: 31% of the issuer's $14.17 million of assets. The issuer owed the parent $2,609,256 the other way plus a $500,000 loan at 7%.
Interest the series pay Ark7 Inc. on the down-payment loans that fund every purchase: $17.0 million of principal disclosed across 45 loans since 2019. Consolidated interest expense in 2025: $298,404 (Properties), $289,693 (Plus), $30,631 (Advance).
Range of last trade versus offering price on the 13 property pages showing a trade on September 10, 2026; six below, seven above. Philadelphia-T1 at -58.5% and Philadelphia-D2 at -31.4%; Dallas-S9 at +17.0%.
AltStreet read of every EDGAR filing by the three Ark7 issuers (2020 to July 2026), the FY2025 annual reports and current offering circulars in full, a September 10, 2026 capture of ark7.com, FINRA ATS data via the North Capital review, and a legal and investor-record scan. September 2026.
AltStreet Weekly
Watch all three Ark7 issuers on EDGAR
AltStreet tracks the three Ark7 Properties CIKs and flags every 1-K, 1-SA, 1-U and post-qualification amendment the day it files: new series, parent-loan balances, the receivable from Ark7 Inc., going-concern language. Get notified before the app updates.
Free during beta. Filing-grounded data, no platform marketing.
What's Actually Happening
In plain English, here is how it works.
- 1Ark7 buys a rental home, puts it in its own numbered legal box (a series of a Delaware series LLC), and sells that box to the public in $20 or $100 pieces under Regulation A. Rent comes in, expenses go out, and what the manager calls free cash flow is paid to holders monthly, on the third of each month.
- 2Ark7 Inc., the company behind the app, is the manager of every box. It also lends the box the money to buy the house in the first place, at 7% to 10% interest, until enough pieces are sold to pay it back. It charges a 3% sourcing fee when it wants to, and up to 15% of free cash flow when a distribution is made.
- 3There are three boxes-of-boxes. The first, Ark7 Properties LLC, sold about $9 million of pieces privately from 2019 to 2022 and re-opened those same houses to the public in December 2025 at new prices. The second, Ark7 Properties Plus, sold $5.9 million across 18 houses in 2022 to 2024. The third, Ark7 Properties Advance, started in 2024 and had sold $3.5 million across 14 houses by May 2026, with a fifteenth added in June.
- 4In 2025 the three entities collected $1.5 million of rent, lost $926,000 after all expenses, and paid out $939,000. Their auditor, a sole-practitioner CPA in the Bay Area, signed each report with a paragraph saying there is doubt about the entity continuing as a going concern.
- 5After a minimum hold, 90 days on most houses in the app though the operating agreement says 12 months, you can list your pieces for sale on Ark7's own trading screen at any price you like, and wait for a buyer. Some houses have traded above their offering price and some far below. The company that runs the app does not file its own financial statements with the SEC.
Quick Verdict
Is this platform right for you?
Ark7 is a working fractional-rental platform with complete, on-time Regulation A reporting and a six-year monthly distribution record, and it is a platform whose every economic lever is held by a parent with no SEC filings: purchase financing at 7% to 10%, fees paid at its discretion, an interest-free receivable of $4.4 million, and $938,790 of 2025 distributions paid while net income plus depreciation was negative $276,356. The filings are candid about all of it, including the going-concern doubt on each issuer. This review is for three readers: current holders deciding whether to add or list, investors comparing Ark7 with Arrived and Roots, and anyone using the app's numbers without the 1-K beside them.
Best for
- Investors who want to choose the specific house and hold it for years, and who have read the related-party note
- Holders who want the FY2025 balance sheets, loan schedules and trading-market prices in one place
- Readers comparing series-LLC rental platforms who want the category's clearest example of parent-dependent economics
Avoid if
- You need a defined exit: there is no redemption program and no market maker, and the circulars say to be prepared to hold indefinitely
- You are relying on the app's fee page: the filed fee, the intercompany interest and the mortgage interest are three different things and only one is on the page
- You want an audit firm of the size that audits comparable platforms: every Ark7 report is signed by a sole-practitioner CPA
Top strengths
- Every issuer files audited annual and semiannual reports on time, with per-series rent, expenses, net income, reserves and loan tables
- No investor-side fees, $20 to $100 minimums, no broker commission on current offerings, and a distribution every month since 2020 by the company's account
- Conflicts, going-concern doubt, the parent loans and the arbitrarily determined prices are all stated in the filings in plain language
Key limitations
- Ark7 Inc., the manager, lender and fee recipient, files no financial statements with the SEC
- 2025 distributions of $938,790 were paid while aggregate net income plus depreciation was negative $276,356; reserves on most Plus series were $0 at year end; every issuer lost money
- Exit depends on another investor's bid after the minimum hold; last trades on two Philadelphia series were 31% and 59% below the offering price
Where It Fits
Where Ark7 sits relative to the alternatives.
A single house, direct issuer, no broker, in-house exit
If you want
Pick the property, pay no platform fee at purchase, hold for rent and appreciation
Use
Ark7, on the terms this review sets out: parent-financed, audited by a sole-practitioner CPA, exit by order book after a 90-day to one-year hold
A single house with a scheduled redemption window
If you want
The same fractional model with a defined path back to cash at a published price
Use
Arrived, whose quarterly redemption windows and debt fund are the category's most developed liquidity mechanism, with its own early-stage losses
A diversified rental portfolio at NAV
If you want
Exposure to many homes through one interest with quarterly repurchases
Use
Roots, a Reg A REIT with a published NAV series and a repurchase program
The category's failure case
If you want
To understand what happens when a series-LLC rental platform's financing breaks
Use
Landa, where lender default and court-ordered manager removal ended in near-total losses
Compare Before Deciding
How Ark7 compares
These are the venues an investor drawn to a $20 house share would weigh, and the failure case that frames what to check.
The same product with a redemption window
Arrived
Single-house interests and a debt fund, quarterly redemption windows, a regional-firm audit and a parent Form D history, with early-stage losses of its own.
The diversified alternative
Roots
A Regulation A rental REIT with a published NAV series and quarterly repurchases, priced and redeemable instead of bid-dependent.
The failure case
Landa
A series-LLC rental platform whose financing broke: lender default, manager removal, dissolutions near zero, and the diligence lessons that followed.
Quick Answers
What most investors want to know first
The highest-signal facts first: minimums, liquidity reality, K-1 timing, and whether distributions are actually part of the experience.
Minimum
One interest: $20 (most Texas houses and the 2022 series), $32 (Arizona City), $100 (condos and 2023-2025 houses), $5.55 to $120.80 on the Properties issuer's re-offering; Tier 2 limit of 10% of income or net worth for non-accredited investors
Liquidity
Thin. Market depth on September 10, 2026 for one Atlanta condo: one ask at $96, one bid at $84, on a $100 offering price; cumulative trade volume on that series about $30,700 against a $290,000 raise. Last trades on 13 listed properties ran from 59% below to 17% above the offering price. FINRA data shows Ark7 flow on North Capital's PPEX ATS at small average trade sizes. Reviewers in 2026 report six-month and one-year waits.
K-1 Timing
No K-1s (each series is a C corporation). Form 1099-DIV per series and 1099-B for sales, delivered through the account.
Distributions
Paid for the prior calendar month on the third of the following month; prorated by days held; the rate varies monthly with each property's rent, expenses and reserve decisions.
Overview
Platform Overview
A concise read on what the platform is, how the structure works, and where the practical friction shows up for real investors.
Fractional rental-home investing app operated by Ark7 Inc. (Delaware, incorporated June 26, 2018; 1 Ferry Building, San Francisco; CEO and co-founder Yizhen Zhao, CTO Yujian Weng, CCO Ling Yang; majority owner Yizhen Zhao). Each property is held by a numbered series of one of three Delaware series LLCs, Ark7 Properties LLC, Ark7 Properties Plus LLC and Ark7 Properties Advance LLC, each qualified under Regulation A Tier 2 and each managed by Ark7 Inc. as managing member and asset manager. Interests are sold at $20, $32 or $100 (and at per-series prices on the 2025 re-offering) directly through the app, in 2026 without a broker-dealer.
Ark7 Inc. funds each acquisition with a down-payment loan at 7% to 10%, is repaid from offering proceeds, may take a 3% sourcing fee, and takes up to 15% of free cash flow when distributions are paid. Distributions are monthly on the third. After a minimum hold the app sets per property (90 days to a year; the operating agreement requires 12 months), interests may be listed on the app's Trading Market. 48 series across Texas, Georgia, Arizona, California, Pennsylvania, Illinois, Florida, Virginia, Washington and Tennessee as of July 2026.
Twelve months after each purchase you may list the interests on the app's Trading Market at a price you set and wait for another investor's bid. Behind the screen, each house is a series of one of three Delaware series LLCs, all managed by Ark7 Inc., which fronted the purchase price as a loan, is repaid by the offering, and takes a share of free cash flow when it decides to. Since 2019 the three issuers have placed 48 properties and raised about $18.4 million. In 2025 they collected $1.5 million of rent, lost $926,000, paid $939,000 to holders while net income plus depreciation was about negative $276,000, and each received a going-concern paragraph from the same sole-practitioner auditor.
Operating Status
Selling: Ark7 Properties Advance LLC (new houses) and Ark7 Properties LLC (2025 re-offering of the 2019-2022 houses). Fully sold: Ark7 Properties Plus LLC (18 series). All three filing on schedule
Minimum Investment
One interest: $20 (most Texas houses and the 2022 series), $32 (Arizona City), $100 (condos and 2023-2025 houses), $5.55 to $120.80 on the Properties issuer's re-offering; Tier 2 limit of 10% of income or net worth for non-accredited investors
Investor Eligibility
US residents 18 and over; entities and IRAs (custodian Inspira Financial); select offerings accredited-only
Instrument
Series interests in a Delaware series LLC, each series taxed as a C corporation (1099-DIV), one vote per interest with limited voting rights; the series holds fee title, sometimes through a state LLC
Fees as filed
Sourcing fee up to 3% of the maximum offering (waivable; $8,250 paid on one Plus series in 2025); asset management fee 15% of free cash flow (10% on Properties LLC), paid only with a distribution ($0 shown on all Plus series in 2025); operating-expense reimbursement to the asset manager with interest at no less than the AFR; Dalmore 1% commission on six 2024 Plus series
Fees as marketed
'One-time sourcing fee, 3% of the Property Market Cap'; 'Asset Management Fee: monthly, 8-15% of the Rental Income'; 'No hidden fees'
Parent financing
Down-payment loans from Ark7 Inc. to each series at 7% to 9% (2019-2022) and 10% (2023-2025); $17,028,896 of principal disclosed across 45 loans; repaid from offering proceeds
Leverage
Third-party mortgages $7,079,835 at December 31, 2025 (Properties $5,268,477 at 2.95% to 6.625%; Plus $1,811,358); circulars describe 'moderate to no leverage'
Distributions
Monthly on the third; 85% of free cash flow to holders, 15% to Ark7 Inc. unless waived; 2025 paid $497,797 / $272,777 / $168,216 by issuer
Liquidity
Minimum hold per property (90 days to one year in the app; 12 months plus managing-member consent in the operating agreement); in-house Trading Market (bid/ask among investors); no redemption program; FINRA data shows Ark7 interests on PPEX
Audit and Reporting
Form 1-K (annual, audited) and 1-SA (semiannual) for each issuer; auditor Norbie Gaerlan, CPA (sole practitioner); Emphasis of Matter on going concern on every FY2025 report; FY2022 Plus audit by Flex-Tax, Inc.
Operator
Ark7 Inc., Delaware, incorporated June 26, 2018; 1 Ferry Building Ste 201, San Francisco; CEO Yizhen (Andy) Zhao (majority owner), CTO Yujian Weng, CCO Ling Yang; no SEC filings by the parent; acquired Robinland (a DeFi real estate platform) May 2023
Visual Summary
Ark7 vs. Fractional Rental Platforms With a Filing Record
How Ark7's structure compares with the series-LLC and REIT alternatives an investor drawn to a $20 house share would weigh.
What you buy
Ark7: series interest in one house, $20 to $100 · Arrived: series interest in one house or a debt fund, $100 · Roots: REIT shares at NAV · Landa: series interest in one house, $5 (non-operational)
Who finances the purchase
Ark7: parent loan at 7% to 10% until sold · Arrived: parent and third-party debt · Roots: REIT balance sheet · Landa: third-party bridge loans that defaulted
Exit
Ark7: 90-day to one-year hold, then in-house order book · Arrived: quarterly redemption windows with discounts · Roots: quarterly repurchase at NAV · Landa: none
2025 result
Ark7: net loss at all three issuers; $938,790 distributed · Arrived: SFR entities in loss, debt fund yielding · Roots: NAV series published · Landa: dissolutions returning near zero
Audit
Ark7: sole practitioner, going-concern paragraphs · Arrived: Stephano Slack (regional) · Roots: regional firm · Landa: delinquent since FY2022
Parent filings
Ark7: none · Arrived: Form D history · Roots: sponsor disclosed in circular · Landa: none
ASEconomic Positioning
- An Ark7 series is a leveraged rental at the moment it is sold to the public: the house is bought with the parent's loan at 7% to 10%, and the loan is repaid only as fast as investors buy. A house that sells out in weeks carries little interest; one that sells over a year, as several Advance series have, loses money before its first full year of rent. The parent earns interest either way.
- The management fee is the smaller of Ark7 Inc.'s two revenue lines from the series. On the Plus issuer it was $0 in 2025 while consolidated interest expense was $289,693; on the Properties issuer, interest expense was $298,404 against a $500,000 parent loan at 7% and $5.3 million of mortgages. Ark7 Inc.'s economics come from lending and sourcing, not from the 15% of free cash flow.
- The oldest issuer is a creditor of its parent. Ark7 Properties LLC's $4,384,255 receivable from Ark7 Inc. is larger than its cash, its receivables and its reserves combined, is non-interest-bearing, and is due on demand. Whether the parent can pay it on demand is not knowable from any filing.
Key Gaps & Non-Disclosures
- No parent financial statements; no disclosure of how Ark7 Inc. funds its down-payment loans.
- No investor counts, occupancy or per-series distribution yields in the filings.
- No explanation of the difference between distributions paid and cash earned in 2025.
- No filed description of the Trading Market's venue, pricing or settlement.
Platform Intelligence
Ark7 Milestones (AltStreet filing-tracked)
Key platform events, regulatory turns, liquidity stress points, and product launches that shape how the review should be read.
Ark7 Inc. incorporated in Delaware
Founded in San Francisco by Yizhen (Andy) Zhao with Yujian Weng and Ling Yang joining as co-founders in 2020. The first Berkeley multifamily series (#MHQNN, #KYLBE) borrow $750,000 each from the parent in July 2019 and take $756,250 mortgages at 3.5% in December 2019.
Ark7 Properties LLC files its Form D
Regulation D 506(c) offering of series interests, $3,660,000 initially offered; amendments through June 28, 2022 report $9,008,238 sold across 13 series in Berkeley, Austin, Chandler, Seattle, Philadelphia and Memphis.
Ark7 Properties Plus LLC qualified under Regulation A
Formed March 17, 2022; qualified July 26, 2022; 18 series added by post-qualification amendment through June 2024 at $20, $32 and $100 per interest; $5,927,200 raised and fully sold by May 2024. FY2022 audit by Flex-Tax, Inc. carries the first going-concern language.
Robinland acquisition; platform at $15 million of property
Ark7 acquires Robinland, a venture-backed DeFi real estate platform, on undisclosed terms and reports $15 million of property, $1.5 million of dividends and 30,000 registered investors. Series rates on new parent loans rise to 10%.
Ark7 Properties Advance LLC qualified; Dalmore engaged on the Plus series
Advance qualified June 18, 2024 with Atlanta, Chicago and Texas series at $100. The June 2024 Plus circular engages Dalmore Group for administrative and compliance functions at a 1% commission on six series.
Properties LLC re-offers the 2019-2022 houses under Regulation A
Qualified December 17, 2025; Regulation D interests converted; remaining interests priced per series from $5.55 (Cedar Park) to $120.80 (Philadelphia), described as arbitrarily determined; proceeds to include repayment of loans to the managing member. Chandler-S4 and S5 open in January and March 2026.
FY2025 annual reports: losses at every issuer, going-concern paragraphs, $938,790 distributed
1-Ks filed May 14 and May 26, 2026. Properties: revenue $799,804, net loss $457,685, receivable from parent $4,384,255. Plus: revenue $459,266, net loss $138,651, management fee paid $0. Advance: revenue $255,490, net loss $329,618. Each audit report by Norbie Gaerlan, CPA carries an Emphasis of Matter on going concern.
AltStreet review
Site capture: '300K+ active investors', '$30MM+ property value funded', 'No hidden fees', 'Flexible to sell'. Trading Market last trades from -58.5% to +17.0% versus offering price on 13 listed properties. No enforcement action found. Trustpilot 3.9 of 5 over 272 reviews; BBB A.
Mental Model
How an Ark7 share works, and where the money goes.
Ark7 Inc. buys the house with its own money and lends it to the series
The 1-Ks call these down-payment loans: $8.0 million across the first issuer's 13 series, $4.9 million across the second's 18, $4.2 million across the third's 14, at 7% to 9% before 2023 and 10% since. The series pays that interest until the offering fills. A series that sells slowly, like the Advance issuer's Denton houses with 10 interests sold of 22,500 and 24,000, carries the loan and the loss.
The public buys interests at $20 or $100 and repays the parent
Use of proceeds for every series includes repayment of loans to the managing member, a sourcing fee of up to 3% of the maximum offering, offering expenses, and a reserve. On the Properties issuer's 2025 re-offering, the price per interest ranges from $5.55 to $120.80 and the circular says the prices were arbitrarily determined.
Rent minus expenses minus the parent's fee is paid monthly
Free cash flow, as the manager determines it, is split 85% to holders and 15% to Ark7 Inc. (10% on the first issuer), with Ark7 free to waive its share. The Plus issuer's table shows $0 of management fee paid on all 18 series in 2025 while $272,777 was distributed.
After the minimum hold you can sell on the Trading Market, if someone bids
The app sets the hold per property, 90 days or three months on most and one year on the Seattle building, while the operating agreement requires 12 months and the manager's consent. The app matches your ask against other investors' bids. There is no market maker and no redemption program. FINRA data shows Ark7 interests trading on North Capital's PPEX alternative trading system; the filings say no trading market exists. Last trades on 13 listed properties ranged from 59% below to 17% above the offering price.
Investor Operations
The practical questions investors actually care about: when tax documents arrive, how cash distributions work, and whether capital can be exited before the underlying asset is sold.
Tax Documents
K-1 Timing
What to expect
No K-1s (each series is a C corporation). Form 1099-DIV per series and 1099-B for sales, delivered through the account.
Confidence: High
Cash Flow
Distributions
Frequency
monthly on the third
Timing
Paid for the prior calendar month on the third of the following month; prorated by days held; the rate varies monthly with each property's rent, expenses and reserve decisions.
Consistency
The company reports 65 consecutive monthly payments as of May 2026 and the filings show rising annual distribution totals on each issuer (Plus: $154,768 in 2023, $249,038 in 2024, $272,777 in 2025). Consistency of payment is not the same as coverage: 2025 payouts exceeded net income plus depreciation at every issuer, and Advance paid in a year of negative operating cash flow.
Liquidity
Exit Reality
Holding period
Per property: 90 days or three months on most series and one year on Seattle-D1 in the app, varying by whether bought in the Open Offering or on the Trading Market; the operating agreement requires 12 months plus managing-member consent.
Exit options
- List interests on the app's Trading Market at an asking price after the minimum hold; the platform matches bids and asks among investors.
- No redemption program, no repurchase window and no market maker.
- Sale of the underlying property by the manager, with 100% of net liquidation proceeds to members; none has occurred in six years.
Secondary market
Thin. Market depth on September 10, 2026 for one Atlanta condo: one ask at $96, one bid at $84, on a $100 offering price; cumulative trade volume on that series about $30,700 against a $290,000 raise. Last trades on 13 listed properties ran from 59% below to 17% above the offering price. FINRA data shows Ark7 flow on North Capital's PPEX ATS at small average trade sizes. Reviewers in 2026 report six-month and one-year waits.
Confidence: Medium
Investment Structures
Ark7 Properties Advance LLC series (selling since June 2024)
15 series in the June 17, 2026 table: Atlanta condos at 215 Piedmont Ave NE (#ICBTL, #DJGLA, #HEEMV), Chicago condo (#TPVS2), Walnut Springs and Bonham, Texas houses (#ESMYO, #6MWZZ, #8S8XK, #IDUG0, #LOZV7), Menifee, California (#BULMO, $710,000 maximum), Jonesboro, Georgia (#NETKE), Forney, Denton and Melissa, Texas (#9WWAJ, #JVI51, #UZMTK, #PJI26). $100 per interest on the 2024-2025 series, $20 on the three 2025-2026 Texas houses. $3,490,600 sold at May 22, 2026; the Denton houses had sold 10 interests each. FY2025: revenue $255,490, net loss $329,618 (every series but one in loss), distributions $168,216, total assets $4,943,218, liabilities $1,038,243, going-concern paragraph.
Ark7 Properties Plus LLC series (fully sold, 2022 to 2024)
18 series: Mesquite, Texas houses (#0XYT6, #ZIE3T, #JTDXY at $20), Jonesboro, Georgia townhouses (#FTWDS, #P7FJ5), Land O Lakes, Florida (#WRA7O, $615,000), Arizona City (#WGI3Z at $32), Chicago, Urbana, Alexandria, Atlanta condos and Walnut Springs, Dublin and Waco, Texas houses at $100. $5,927,200 raised; 167,990 of 168,010 authorized interests issued. FY2025: revenue $459,266, net loss $138,651, distributions $272,777, total assets $6,237,971, mortgages $1,811,358, equity $4,374,040; asset management fee paid on every series: $0; going-concern paragraph. Series results ranged from +$18,484 (Urbana) to -$17,823 (Atlanta Unit 909).
Ark7 Properties LLC series (2019 to 2022 private sales, re-offered publicly since December 2025)
13 legacy series plus two new: three Berkeley multifamily buildings (#MHQNN, #KYLBE, #DJVWQ; purchased $1.54 million to $1.95 million per the site), Seattle (#XZQRZ), Pflugerville, Austin and Cedar Park (#PBIUH, #PFUNR, #8YFFL), Chandler (#SOYGJ, #RUSUU), Philadelphia (#TBQSK, #DTMEW, #EKPES) and Memphis (#KM1OU). $9,008,238 sold under Regulation D by June 2022. FY2025: revenue $799,804, net loss $457,685, distributions $497,797, total assets $14,173,349, mortgages $5,268,477, related-party receivable $4,384,255, related-party payables $2,609,256 plus a $500,000 loan, equity $3,824,753 (from $5,951,118), going-concern paragraph. Series #PFUNR shows 0 interests outstanding and a $267,128 mortgage.
Risk
Risk Structure
This is where the marketplace pitch gives way to the actual operating reality: delayed exits, limited disclosure, fee drag, and path-dependent outcomes.
One Counterparty on Every Side of the Series
Ark7 Inc. sources the house, lends the series the purchase price at 7% to 10%, is repaid from the offering, manages the property, sets free cash flow, decides whether to pay itself the sourcing and management fees, may sell the series a property at a premium, and is indemnified by the series. The 1-K states that none of these determinations are made at arm's length. There is no independent director, no trustee and no third-party administrator. The parent's own solvency is undisclosed.
Distributions Set by the Manager, Not Earned by the Properties
Free cash flow is defined by the managing member and includes working-capital changes and non-cash add-backs. In 2025 the three issuers distributed $938,790 against net losses of $925,954 and depreciation of $649,598. Reserves at year end were $0 on ten of the 18 Plus series and negative on two. The Advance auditor's paragraph attributes the reduced going-concern uncertainty to about $2 million of new capital raised, not to operations.
Going-Concern Paragraphs and a Sole-Practitioner Audit
Every FY2025 report carries an Emphasis of Matter on going concern after recurring operating losses. The reports are signed by a sole practitioner whose firm's public business is tax and bookkeeping. Regulation A requires an audit by an independent accountant, not a PCAOB-registered firm, and imposes no capital or reserve requirement on the issuer.
Exit by Order Book After a Minimum Hold
The operating agreements require 12 months of holding and the managing member's consent for any transfer; the app shows 90 days on most properties. The circulars say no trading market exists. The app's Trading Market matches investor bids and asks with no market maker; on September 10, 2026, the market depth on one Atlanta condo was one ask at $96 against one bid at $84 on a $100 offering price. Reviewers report waits of six months to a year.
Parent Cannot Fund or Repay
Ark7 Inc. finances every acquisition and owes the Properties issuer $4,384,255 on demand; it has never disclosed its own finances.
Why it matters
If the parent cannot keep lending, new series stall with interest accruing to the parent; if it cannot repay the receivable, the oldest issuer's largest current asset is impaired. Landa's series-LLC platform failed on exactly this hinge, though on third-party rather than parent debt.
Mitigation / verification
Read Note 4 (related parties) in each 1-K on EDGAR under CIKs 0001815395, 0001923734 and 0002025051, watch the receivable balance year to year, and treat any 1-U about the parent's financing as material.
Distribution Cut or Suspension
2025 payouts of $938,790 were made while net income plus depreciation was negative $276,356; Advance paid distributions in a year of negative operating cash flow; reserves are near zero on most Plus series; the manager has sole discretion over distributions.
Why it matters
The monthly payment is the product's core promise. Where a distribution is paid in a year of negative operating cash flow, as at Advance in 2025, it depends on offering proceeds and borrowing continuing, with no notice requirement beyond the next 1-SA.
Mitigation / verification
Compare each issuer's distributions to net income plus depreciation in the 1-K; track the series' reserve balance; expect the payment to be a policy, not a yield.
Selling Below the Offering Price, or Not at All
Six of 13 listed properties last traded below their offering price; two Philadelphia series were down 31% and 59%; 2026 reviewers report waits of six months to a year.
Why it matters
There is no redemption program, no market maker and no price floor. A holder who needs cash sells at the best bid, which can be far below what the house is worth on paper.
Mitigation / verification
Check the market depth on the property page before buying; assume a multi-year hold; size the position so that a 30% to 60% discount at exit is survivable.
Fee and Broker Statements That Do Not Match the Filings
The site describes a monthly fee of 8% to 15% of rent, a Dalmore-facilitated offering and 'no hidden fees'; the filings describe a fee on free cash flow, a direct offering with no broker-dealer, and 7% to 10% interest to the parent.
Why it matters
An investor budgeting from the fee page will misjudge both the fee and the leverage. The larger cost, intercompany interest, is not presented as a fee anywhere.
Mitigation / verification
Use the 1-K's compensation section and Note 4 as the fee schedule; ignore the help-center figure until the two agree.
Biggest Misconceptions & What Actually Happens
- Ark7 is not Landa: its issuers are current on every filing, its distributions have continued, and no lender has moved against any series. The comparison is structural, not an outcome.
- The going-concern paragraphs are Emphasis of Matter paragraphs on unqualified opinions, not adverse opinions; they are the issuers' own disclosure, not a regulator's finding.
- No regulator has acted against any Ark7 entity or officer on the public record as of September 10, 2026. The Arkansas Securities Department order that appears in name searches concerns an unrelated forex site.
- The 'Trading Market' is Ark7's name for its bid/ask screen. FINRA's data shows Ark7 interests changing hands on North Capital's PPEX ATS; the filings themselves do not describe the venue.
- Interest counts and prices in this review are as of the FY2025 1-Ks (May 2026) and the offering tables of June and July 2026; the app's live figures will differ.
Regulatory & Legal Posture
Security Status
Regulation A Tier 2 Series Interests Sold Directly by Affiliated Series LLCs; Parent Unregistered and Unfiled; No Broker-Dealer on Current Offerings
Each of the three issuers is a Delaware series LLC with its own Form 1-A qualification: Ark7 Properties Plus LLC (qualified July 26, 2022, with post-qualification amendments adding series through June 2024), Ark7 Properties Advance LLC (June 18, 2024, amendments through June 26, 2026) and Ark7 Properties LLC (December 17, 2025 for series first sold under Regulation D 506(c) from 2019 to 2022, amended through July 20, 2026). Tier 2 requires audited annual reports (1-K), semiannual reports (1-SA) and current reports (1-U); all three issuers have filed 1-Ks and 1-SAs on schedule and none has filed a 1-U. Interests are sold by Ark7 Inc.'s associated persons through the app; the 2026 circulars state no broker-dealer is engaged, while the 2024 Plus circular engaged Dalmore Group for administrative and compliance services and the site footer still names Dalmore.
Ark7 Inc. is not registered as a broker-dealer, funding portal or investment adviser and has never filed with the SEC. Investors receive the Tier 2 investment limit and the disclosure; there is no trustee, reserve requirement, redemption obligation or independent administrator. AltStreet's scan found no SEC litigation release or administrative proceeding, FINRA action, state securities action, receivership or class action involving Ark7 Inc., any Ark7 Properties entity, Yizhen Zhao, Yujian Weng or Ling Yang as of September 10, 2026. BBB: A rating, accredited since May 2022, seven complaints.
Disclosure Quality
Complete in the filings, inconsistent on the site. The 1-Ks state the going-concern doubt, the parent loans and their rates, the related-party balances, the conflicts and the per-series results in whole dollars, and the circulars say the re-offering prices are arbitrary and that no trading market exists. Against that: the help center's fee description does not match the operating agreements, the footer's broker-dealer statement does not match the 2026 circulars, the homepage's leverage-free and liquidity language does not match the balance sheets and transfer restrictions, and investor counts are marketed but never filed. Some 1-K note templates mislabel years.
Custody Model
Series Interests Held on Ark7's Books + Property Title in Each Series (or Its State LLC) + Investor Cash in Ark7-Controlled Accounts; No Escrow, Trustee or Independent Administrator
Regulatory Backing
An Ark7 interest is a membership interest in one series, issued in electronic form and recorded by the company (the API references a transfer agent flag; the filings name none). The series holds title to the house, sometimes through a state LLC, subject to any mortgage. Offering proceeds are 'held in a segregated account controlled by the company' with closings every seven business days and no escrow agent.
Cash deposited to the app before purchase sits with Ark7. Delaware series-LLC law separates each series' liabilities from the others', which the circulars note has limited judicial testing. No SIPC or FDIC coverage applies to interests.
Tax Treatment
Reporting
Form 1099-DIV per series (each series is taxed as a C corporation); Form 1099-B on Trading Market sales
The help center says tax forms are delivered through the account. Because each series is a C corporation, distributions are dividends to the extent of the series' earnings and profits and return of capital beyond that; the 1-Ks do not publish earnings-and-profits figures, and in a loss year a large share of the distribution is likely return of capital. This review does not establish the split for any series or year.
Income Character
Dividend Income and Return of Capital (C-corporation series); Capital Gain or Loss on Sale of Interests
Holders receive dividends, not rental income, and cannot deduct depreciation or pass through losses; the series pays entity-level tax on any profit. Distributions in excess of earnings and profits reduce basis and become capital gain once basis is exhausted. A Trading Market sale is a capital transaction against adjusted basis, which for a holder of a Philadelphia series sold at 59% below the offering price after several years of return-of-capital distributions may show a larger loss or smaller gain than the price alone suggests.
Limitation
The 1-Ks state that a series may elect REIT status or partnership treatment (Schedule K-1) if beneficial; none has done so on the record. State treatment follows the holder's residence, not the property's. This review establishes no state conclusions and no per-series earnings-and-profits figures.
Special Considerations
- Return-of-capital distributions reduce basis; keep every year's 1099-DIV box 3 figure.
- Interest paid by the series to Ark7 Inc. and on mortgages is a series-level expense; it does not pass through to holders.
- Trading Market sales produce 1099-B reporting; holding-period rules apply from the purchase date of each lot.
- IRA accounts through Inspira Financial carry custodian fees the site references but does not quantify on the IRA page.
- Nothing in the filings indicates a REIT election, so no Section 199A treatment applies.
Account Suitability
Taxable
Where most Ark7 positions sit. The bookkeeping burden is basis tracking across many small lots and series, each with its own dividend and return-of-capital split.
Roth IRA
Available through the app's IRA program with Inspira Financial as custodian; the illiquidity and the minimum hold matter more than the tax treatment.
Traditional IRA
Same as above; required distributions from an account holding illiquid series interests can be awkward.
HSA
Not offered.
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AltStreet Data Layer
What the data actually shows
AltStreet parsed all 48 Ark7 property series from the offering tables and the FY2025 annual reports, read the related-party, loan and audit notes in full, and set the app's claims against them. Read together, the findings describe a platform whose disclosure is complete and whose economics depend on a company with no SEC filings of its own.
2025 distributions were paid while net income plus depreciation was negative, at every issuer
Properties LLC paid $497,797 against a net loss of $457,685 and depreciation of $383,770; Plus paid $272,777 against a net loss of $138,651 and depreciation of $162,061; Advance paid $168,216 against a net loss of $329,618 and depreciation of $103,767. Combined: $938,790 paid against net income plus depreciation of -$276,356, an excess of $1,215,146. Filed operating cash flow: Properties LLC +$1,719,768 (including a $1,908,305 related-party receivable movement), Plus +$350,586 (including a $1,645,218 receivable collection and a $1,661,135 payable reduction), Advance -$1,135,599. Ten of the 18 Plus series ended the year with $0 in reserve and two with negative cash.
What this means
Property income did not cover the payout at any issuer in 2025. The cash-flow statements show the difference bridged by related-party and working-capital movements at the two older issuers and by $2.48 million of offering proceeds and $1.02 million of new debt at Advance, whose auditor credits about $2 million of new capital, not operations, for the reduced going-concern uncertainty. A slowdown in new raises or in the flows between the series and the parent reaches the distribution directly.
The oldest issuer has lent 31% of its assets to the parent, interest-free and on demand
Ark7 Properties LLC's related-party receivable from Ark7 Inc. was $4,384,255 at December 31, 2025, up from $2,510,689, against total assets of $14,173,349; it owed the parent $2,609,256 (from $689,739) plus a $500,000 loan at 7%. Members' equity fell from $8,098,747 to $6,430,068 and total equity from $5,951,118 to $3,824,753 during the year. No SEC financial statements for the parent exist.
What this means
On a net basis the issuer is a creditor of its manager by about $1.3 million, and its single largest current asset is a claim on a company whose ability to pay is undisclosed. The 2026 re-offering's use of proceeds, 'repayment of loans to the company's Managing Member', moves cash the other way. The direction of money between series and parent is the balance sheet fact that matters most and is the least explained.
Ark7 Inc. earns more from lending to the series than from managing them
The asset management fee, 15% of free cash flow paid only with a distribution, shows as $0 on every Plus series in 2025. The sourcing fee was paid on one Plus series ($8,250). Meanwhile 45 down-payment loans totaling $17,028,896 have carried 7% to 10% interest since 2019, and consolidated 2025 interest expense was $298,404 (Properties), $289,693 (Plus) and $30,631 (Advance).
What this means
The fee page describes the smaller revenue line. The parent's return comes from financing acquisitions at rates above the properties' cap rates (the API shows 3.1% to 5.1%) until investors buy it out, so a slow-selling series is profitable to Ark7 Inc. and loss-making to its holders at the same time. The three newest Texas houses, with 10, 10 and 823 interests sold, are in that state now.
Every audit report carries a going-concern paragraph, from a sole practitioner
The FY2025 reports of all three issuers are unqualified with an Emphasis of Matter on going concern after 'recurring operating losses', signed by Norbie Gaerlan, CPA. Public profiles describe the signer's practice as tax preparation, bookkeeping and outsourced-CFO services for small businesses. The FY2022 Plus audit was by Flex-Tax, Inc.
What this means
Regulation A requires an independent accountant, not an audit firm, and Ark7 has complied. The reader's question is what assurance a sole practitioner's opinion gives on three real estate issuers with $25 million of assets, $7 million of mortgages and $17 million of parent loans, and the answer is the one the reader assigns. The going-concern language itself is not in dispute.
The app's fee, liquidity, leverage and broker statements each differ from the filings
Fee: 'Asset Management Fee: Monthly, 8-15% of the Rental Income' (site) versus 15% of free cash flow, paid only with a distribution, $0 in 2025 on Plus (1-K). Liquidity: 'full flexibility to sell the shares after a minimum holding period' (site) versus 'no trading market ... prepared to hold their Shares indefinitely' (circular). Leverage: 'moderate to no leverage' (circular) versus $7.1 million of mortgages.
Broker: 'facilitated through Dalmore Group LLC' (footer) versus 'without the benefit of the services of an SEC-registered broker-dealer' (2026 circulars). Scale: '300K+ active investors' (site) versus about $18.4 million raised.
What this means
None of the five is a hidden fact; each is on the record in one place and described differently in another. An investor who reads the app and not EDGAR gets a cheaper, more liquid, less leveraged and larger platform than the one that files. The direction of every gap favors the app.
The Trading Market prices the exit, and it prices some houses far below cost
Of 20 property pages captured, 13 showed a last trade: seven above the offering price (Dallas-S9 +16.95%, Atlanta-T4 +12.00%, Chandler-S4 +4.24%) and six below (Philadelphia-T1 -58.53%, Philadelphia-D2 -31.35%, Berkeley-M2 -9.02%). One Atlanta condo's market depth on the capture date was a single ask at $96 against a single bid at $84 on a $100 interest, with $30,710 of cumulative trade volume on a $290,000 raise. The platform's per-series data for 23 series shows $257,817 of cumulative trade volume against about $18.5 million of interests, and zero occupied units on both Philadelphia series.
What this means
The exit is an order book with a handful of orders. A holder who needs to sell takes the best bid, and on the Philadelphia series that has meant less than half the offering price. The company's 'Flexible to sell' describes the mechanism, not the price.
The Properties issuer re-priced its own houses on the way back to the public
The December 2025 re-offering converted the 2019-2022 Regulation D interests and set per-series prices from $5.55 (Cedar Park, #8YFFL) to $120.80 (Philadelphia, #DTMEW), with Berkeley-M3 (#DJVWQ) at $29.85 and Berkeley-M1 (#MHQNN) at $97.05. The circular states the prices 'have been arbitrarily determined ... and bear no relationship to the company's assets, book value, earnings or other generally accepted criteria of value'. Use of proceeds for each series includes repayment of loans to the managing member.
What this means
New public investors are buying into six-year-old series at prices the issuer says are arbitrary, alongside converted private holders, with part of the money going back to the parent. Whether those prices reflect the houses' value or the parent's cash need is not knowable from the filing.
No regulator has acted, and the filings are on time
AltStreet's scan found no SEC, FINRA, state or court action involving any Ark7 entity or officer as of September 10, 2026. All three issuers have filed every 1-K and 1-SA due; none has filed a 1-U. BBB rates the company A with seven complaints; Trustpilot averages 3.9 of 5 with 11% one-star reviews centered on selling.
What this means
Regulation A's compliance model is disclosure, and Ark7 has met it. The going-concern paragraphs, the parent receivable, the fee tables and the arbitrary prices are all in the issuers' own filings, which is what made this review possible and what makes the gap with the app's language a reader's problem rather than a regulator's finding.
Data as of 2026-09-10 . AltStreet review evidence layer . Public-source analysis
Full datasetAltStreet Weekly
Take the three checks to every series-LLC platform
The related-party note, the cash flow statement and the auditor's name: the same filing database behind this review covers Arrived, Landa, Roots and 100+ other platforms, series by series, where the answers can still change a decision.
So What?
What to do differently because of this.
What this means
On a series-LLC platform, the parent's balance sheet is the risk you cannot see
What to do
Search EDGAR for the parent's own filings. If there are none, as with Ark7 Inc., read the related-party note in each issuer's 1-K for what the series owe to and are owed by the parent, and treat an interest-free receivable from the parent as capital at risk.
What this means
A monthly distribution is a management decision until the income statement shows it is earned
What to do
Compare the year's distributions with net income plus depreciation for the issuer that holds your series. If payouts exceed that figure, read the cash-flow statement for where the difference came from before adding.
What this means
Read the auditor's name, not just the opinion
What to do
A sole practitioner's unqualified opinion with a going-concern paragraph is a different assurance from a regional firm's. Both are disclosed; only the reader weighs them.
Decision Fit
Investor Fit
Who this works for, who it does not, and what level of patience and complexity tolerance the platform really demands.
Current Ark7 Holders
The position is a long hold in one house with a manager-set payout. Read the FY2025 1-K for the issuer that holds your series, compare its distributions with net income plus depreciation, note the reserve on your series, and check the Trading Market depth before deciding whether to add or list. A Properties issuer holder should watch the $4.4 million receivable from the parent.
Investors Choosing Between Ark7 and Arrived
Arrived's redemption windows, regional-firm audit and parent Form D history are each a step Ark7 has not taken. Ark7's advantage is the absence of purchase fees and the $20 entry; its cost is parent-dependent economics, a parent with no SEC filings, and a going-concern paragraph on every issuer.
Income Investors Seeking a Monthly Yield
The yield on equity raised was about 4.6% to 5.5% in 2025 by issuer (computed), paid from free cash flow the manager defines while every issuer lost money. A dated note or a NAV-based REIT with a repurchase program offers a payout the issuer can show it earned.
Investors Who Want to Own a Specific Address
This is the one thing Ark7 does that a REIT does not: the series holds the house you picked, with its rent and expenses reported by series. The price is a multi-year hold, an exit at another investor's bid, and a manager on every side of the transaction.
Tradeoffs
Key Tradeoffs
The attraction of pre-IPO access is real, but every benefit comes bundled with a corresponding liquidity, transparency, or pricing cost.
No Purchase Fee vs. Parent Interest
Nothing is charged to the investor at purchase and no broker takes a commission on current offerings. The series pays the parent 7% to 10% on the purchase price until the raise completes, so the cost of a slow offering is borne by the holders as a loss and collected by Ark7 Inc. as interest.
Monthly Payment vs. Earned Income
A payment every month for six years is a real operating record. In 2025 the three issuers paid $938,790 while net income plus depreciation was negative $276,356, which makes it a decision the manager renews each month rather than a return the assets have produced.
Series-Level Transparency vs. Parent Opacity
The 1-Ks report each house's rent, expenses, reserve, loan and net income. The company that lends to, manages and collects from every house files nothing with the SEC, so the most important balance sheet in the structure is the one no investor can read.
Choose the House vs. Exit on Someone Else's Bid
Picking the property is the product's appeal. Selling it means finding another Ark7 investor willing to pay your price after the minimum hold, with no floor and, on two Philadelphia series, last trades 31% and 59% below the offering price.
Avoid
Who This Is Not For
This section should be read as a filter, not an afterthought. If you need income, simplicity, or near-term access to capital, the structure is working against you.
Anyone Who May Need the Money Within Three Years
A minimum hold, then an order book with documented waits of six months to a year and no price floor.
Investors Relying on the App's Fee Page or Headline Figures
The filed fee, the parent interest and the leverage differ from the site's descriptions; investor counts and property value are company-reported and unfiled.
Investors Who Require a Recognized Audit Firm
Every report is signed by a sole-practitioner CPA; Arrived, Roots and Groundfloor are audited by regional firms.
Editorial View
AltStreet Perspective
The compressed version of the review: what matters, what marketing tends to obscure, and how we would frame the platform for a serious allocator.
Verdict
Ark7 is what a fractional-rental platform looks like when the parent is the whole machine. Ark7 Inc. finds the house, lends the money, sells the pieces, manages the tenant, defines the cash flow, pays the distribution and decides its own fee, and the three issuers it runs report all of that in whole dollars every May and November. What the record shows, six years in, is a platform that has never sold a house, whose issuers have never earned a profit, whose 2025 distributions of $938,790 were paid while net income plus depreciation was negative $276,356, whose oldest issuer has lent 31% of its assets back to the parent for nothing, and whose auditor, a sole practitioner, writes the same going-concern paragraph on each report. The houses are real and the disclosure is candid. The question every 1-K poses and none answers is whether Ark7 Inc. can keep funding the structure that funds the distributions.
Positioning
This review uses Ark7 to answer a question every series-LLC platform raises: what does the investor own when the manager is also the lender, the fee recipient and the counterparty? The answer is in the related-party note, the cash flow statement and the auditor's name. Take the same three checks to Arrived, Landa's remains and any $20 house share, where they can still change a decision.
The Bottom Line
A $20 rental-share app with complete, candid filings and a six-year monthly payment record, whose economics run through a parent with no SEC filings, whose 2025 payouts of $938,790 were made while net income plus depreciation was negative $276,356, and whose sole-practitioner auditor writes a going-concern paragraph on every issuer.
Action
Next Steps
If you still want to engage after reading the review, these are the practical next moves that reduce avoidable mistakes.
If you hold Ark7 interests: read the FY2025 Form 1-K for your issuer on EDGAR (CIK 0001815395, 0001923734 or 0002025051), find your series in the rent, net income and reserve tables, and compare the issuer's distributions with its net income plus depreciation.
If you hold a Properties LLC series: watch the related-party note for the $4,384,255 receivable from Ark7 Inc. and the use of the 2026 re-offering proceeds.
Before buying: open the property page's market depth and note the best bid; assume that is your exit price for the next several years.
Before trusting a fee figure: use the 1-K compensation section (sourcing fee, asset management fee, operating-expense reimbursement) and Note 4 (parent loans and rates), not the help center.
If you are comparing platforms: read the Arrived review for redemption windows, the Roots review for a NAV-based REIT with repurchases, and the Landa review for how a series-LLC platform fails.
For any fractional-rental platform: find the parent's own filings first; if there are none, read the related-party note as the parent's balance sheet by proxy.
Final Answer
What this means for your decision.
Finding
You are buying an interest in one house, managed and financed by a company whose own finances are not on the public record
Meaning
Each property sits in a numbered series of a Delaware series LLC. Ark7 Inc. is the managing member, the asset manager, the lender that fronts every purchase at 7% to 10% interest, and the party that decides whether to pay itself the sourcing fee and the management fee. The annual reports say none of those decisions are made at arm's length.
Action
Read the conflicts section of the 1-K before the property page. The property is real; the counterparty on every economic decision is the same company.
Finding
Distributions have been paid every month, and in 2025 the three issuers paid $938,790 while aggregate net income plus depreciation was negative $276,356
Meaning
The three issuers paid $938,790 in 2025 while reporting a combined net loss of $925,954 and aggregate net income plus depreciation of negative $276,356. The filed cash-flow statements show where the year's cash came from: positive operating cash flow at Properties LLC and Plus, driven largely by related-party and working-capital movements, and at Advance $2.48 million of offering proceeds and $1.02 million of new borrowing against negative operating cash flow. Reserves stood at zero on most Plus series at year end.
Action
Treat the monthly payment as a policy the manager sets from free cash flow it defines, not as a yield the properties have demonstrated they can fund.
Finding
Every issuer carries a going-concern paragraph, and the auditor is a sole practitioner
Meaning
All three FY2025 audit reports include an Emphasis of Matter on the company's ability to continue as a going concern. The audits are signed by Norbie Gaerlan, CPA, a sole practitioner whose firm offers tax preparation, bookkeeping and outsourced-CFO services.
Action
Weight the audited numbers as audited, but by a practice unlike the firms that audit comparable platforms. The going-concern language is the issuers' own.
Finding
The exit is a minimum hold, then an order book where the last trades run from 59% below the offering price to 17% above
Meaning
The circulars say there is currently no trading market and that investors must be prepared to hold indefinitely. The app runs a bid-and-ask market after a minimum hold; of 13 property pages showing a last trade in September 2026, six were below the offering price and two Philadelphia series were down 31% and 59%. Reviewers in 2026 report six-month and one-year waits to sell. The hold itself is stated two ways: 12 months in the operating agreement, 90 days on most properties in the app. The platform's own data shows zero occupied units on the two Philadelphia series that trade at the deepest discounts.
Action
Size the position as a multi-year hold with an uncertain exit price. The trading market is a convenience, not a redemption right.
If you read nothing else
Ark7 is a small, candidly reported platform: 48 property series, about $18 million of equity, audited annual and semiannual reports filed on time, and a six-year record of monthly payments. It is also a platform whose economics flow through its unfiled parent, whose 2025 payouts of $938,790 were made while net income plus depreciation was negative $276,356, whose oldest issuer has advanced 31% of its assets to that parent interest-free, and whose auditor writes a going-concern paragraph on every entity. The filings are complete. Read them before the app.
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Deal Intelligence →Appendix
Sources, Disclosures, and Supporting Context
The lower section is structured like a report appendix: relationship context first, adjacent reading second, and evidence last.
Report Appendix
Disclosure
Relationship and compensation context
+
Report Appendix
Disclosure
Relationship and compensation context
Report Appendix
Comparison Guides
Head-to-head guides featuring Ark7
+
Report Appendix
Comparison Guides
Head-to-head guides featuring Ark7
Report Appendix
Related Resources
Adjacent platform comparisons, frameworks, and category links
+
Report Appendix
Related Resources
Adjacent platform comparisons, frameworks, and category links
Further Reading
Related Resources
Adjacent frameworks and reviews that help place the platform in a broader allocation or due-diligence context.
Fund Landscape
Similar Platform Reviews
- Arrived
The category's largest fractional-rental platform, with quarterly redemption windows, a regional-firm audit and a filed parent history: the mechanisms Ark7 lacks, with its own early-stage losses.
- Landa
The series-LLC rental platform that failed: lender default, court-ordered manager removal and dissolutions returning near zero, the outcome Ark7's structure shares a shape with and has not suffered.
- Roots
A Regulation A rental REIT with a published NAV series and quarterly repurchases: diversified, priced and redeemable, at the cost of choosing the house.
Report Appendix
Related Coverage
AltStreet newsroom articles on Ark7 filings and disclosures
+
Report Appendix
Related Coverage
AltStreet newsroom articles on Ark7 filings and disclosures
- Ark7 Properties Plus Added $987K of Debt as Operating Cash Flow Fell to Negative $435K and Distributions Held FlatOct 9, 2026
The semiannual report filed October 8 for Ark7's 18-series Regulation A issuer shows operating activities using $434,784 against $296,856 generated a year earlier, $987,238 of new mortgage proceeds lifting the loan balance by 53%, distributions held at $142,187, related-party obligations reduced by $598,100, interest expense up 43% after refinancing, and a first-half loss that doubled to $64,389. Sixteen of the 18 property series were profitable; the consolidated loss arises at the company level.
Report Appendix
Tracked Offerings
1 Ark7 offerings with disclosed terms in the AltStreet database
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Report Appendix
Tracked Offerings
1 Ark7 offerings with disclosed terms in the AltStreet database
Report Appendix
SEC Filers Behind Ark7
The largest issuers linked to Ark7 on EDGAR, by total reported sold; each page carries the filing record and the related persons
+
Report Appendix
SEC Filers Behind Ark7
The largest issuers linked to Ark7 on EDGAR, by total reported sold; each page carries the filing record and the related persons
Report Appendix
Evidence & Methodology
51 cited passages on file; sources, scope, and how the review was assembled
+
Report Appendix
Evidence & Methodology
51 cited passages on file; sources, scope, and how the review was assembled
Evidence on file
51 supporting passages on file for Ark7 and its offerings from 3 source documents, 2 discrepancies flagged. Each passage records the metric it supports, the value read from the document, the page, and the verbatim text where the document has it. Terminal subscribers read the passages; open them in the terminal.
- Cited passages
- 51
- Source documents
- 3
- Analyst verified
- 0
- Discrepancies flagged
- 2
ASReview Evidence
Methodology
Four primary sources. (1) SEC EDGAR: every filing by Ark7 Properties LLC (CIK 0001815395; Form D June 30, 2020 and eight amendments to June 28, 2022; 1-A December 5, 2025; 1-A POS July 1 and 15, 2026; 1-K May 26, 2026), Ark7 Properties Plus LLC (0001923734; 1-A April 27, 2022; qualifications July 26, 2022 through June 14, 2024; 253G2 July 27, 2022 and May 10, 2023; 1-Ks May 24, 2023, April 29, 2024, June 30, 2025, May 14, 2026; 1-SAs 2023 to 2025) and Ark7 Properties Advance LLC (0002025051; 1-A June 5, 2024; qualifications June 18, 2024 through June 26, 2026; 1-Ks June 26, 2025 and May 26, 2026; 1-SAs 2024 and 2025). The three FY2025 1-Ks (Part II, exhibits, consolidating statements) and the three current offering circulars were read in full; series tables were parsed from them. (2) ark7.com, 91 pages captured September 10, 2026: home, About, IRA, 40 help-center answers, 20 property pages with last-trade prices. (3) FINRA OTC ATS transparency data for H1 2026 as analyzed in AltStreet's North Capital review. (4) Legal and enforcement scan of SEC litigation releases and administrative proceedings, FINRA actions, state actions and court dockets; investor record from the Better Business Bureau (A, seven complaints) and Trustpilot (3.9 of 5, 272 reviews); press releases (Robinland, May 2023); third-party reviews used only for company-reported figures and labeled as such. Figures are as filed in whole dollars; site figures are company-reported.
Scope
Issuer-level filings and the operator's own statements. Ark7 Inc.'s finances are NOT filed and are not estimated. Investor counts are not filed; the site's '300K+' is carried as a company claim. Occupancy is not filed. Free cash flow by series is not reproduced; the comparison of distributions with net income plus depreciation is AltStreet arithmetic from the filed statements and is labeled as such; operating, investing and financing cash flows are quoted as filed. Trading Market prices are the property pages' 'since IPO' figures on the capture date and are not a complete record of trades.
Key Findings
- *Issuers and raises (as filed): Ark7 Properties LLC, Form D 506(c) June 30, 2020, $3,660,000 offered; D/A June 28, 2022: $12,644,000 offered, $9,008,238 sold, investors not reported; Reg A qualified December 17, 2025 (1-A POS July 15, 2026: 15 series, maximum $6,504,258 at $5.55 to $120.80 per interest; 229,211 of 345,435 interests issued at May 25, 2026). Ark7 Properties Plus LLC: formed March 17, 2022; qualified July 26, 2022; 18 series; 167,990 of 168,010 interests issued; $5,927,200 at $20 (seven Texas, Georgia and Florida houses), $32 (Arizona City) and $100 (ten condos and houses). Ark7 Properties Advance LLC: formed October 12, 2023; qualified June 18, 2024; 15 series; 34,922 of 85,120 interests issued at May 22, 2026, $3,490,600; #UZMTK (San Lucas Ln, Denton, bought $390,220 August 11, 2025) 10 of 22,500 sold, #JVI51 (Big Horn Pass, Denton) 10 of 24,000, #LOZV7 (Bonham) 823 of 2,500, #IDUG0 1,986 of 2,500, #9WWAJ (Forney) 2,973 of 4,500; #PJI26 (Willow Ln, Melissa, bought $430,550 January 7, 2026) added June 2026.
- *FY2025 results (1-Ks filed May 14 and 26, 2026): Ark7 Properties LLC revenue $799,804 (2024: $785,481), operating expenses including depreciation $383,770, interest expense $298,404, net loss $457,685; total assets $14,173,349 (property cost $11,421,546, accumulated depreciation $1,829,634, related-party receivables $4,384,255); liabilities $10,348,595 (mortgage $5,268,477, related-party payables $4,981,711); members' equity $6,430,068 from $8,098,747; accumulated deficit $2,605,314; distributions $497,797 (2024: $537,614). Ark7 Properties Plus LLC revenue $459,266 (2024: $384,568), G&A $188,732, depreciation $162,061, property tax $118,356, interest expense $289,693 (2024: $76,127), other income $160,926, net loss $138,651 (2024: $227,904); total assets $6,237,971; mortgage $1,811,358; equity $4,374,040; distributions $272,777 (2024: $249,038; 2023: $154,768); asset management fee paid: '-' on all 18 series; sourcing fee paid: $8,250 (#ET8BV). Ark7 Properties Advance LLC revenue $255,490 (2024: $50,052), depreciation $103,767, interest expense $30,631, net loss $329,618 (2024: $63,807); total assets $4,943,218; liabilities $1,038,243; equity $3,904,975; distributions $168,216 (2024: $24,694); 13 of 14 series in loss.
- *Parent loans (1-K notes, 'Down Payment Loan Payables'): 'The Parent Company provide initial funding required for property acquisitions and structured this as a down payment loan to [the LLC] and its series. Borrowers are authorized to use the Parent Company's bank checking account for property acquisition purpose.' Properties LLC: 13 loans, $8,010,000, 7% (2019-2020) and 8% (2021-2022), e.g., #XZQRZ $1,160,000 at 8% (March 26, 2021, maturity March 25, 2027), #DJVWQ $850,000 at 7%, #TBQSK $810,000 at 8%. Plus: 18 loans, $4,853,896, 9% (2022) and 10% (2023-2024), all repaid by 2024; 2024 interest $56,758. Advance: 14 loans, $4,165,000 at 10% (2023-2025), e.g., #BULMO $640,000, #JVI51 $430,000 (July 30, 2025), #UZMTK $420,000 (August 11, 2025). Compensation section: 'a Series will be required to pay interest to Ark7 of at least 3.0% of the loan amount, and potentially up to 9.0%, depending on how much is prepaid' or 'up to 10.0%' where prepayment is not permitted.
- *Related parties (Properties LLC Note 4): 'Loan Receivable - due from affiliate: The APL pays the Parent Company for covering administrative costs ... These advances are non-interest bearing and are due on demand. The outstanding balance due from the affiliate as of December 31, 2025 and 2024 was $4,384,255 and $2,510,689'; 'Loan Payable - due to affiliate ... $2,609,255.74 and $689,739'; 'Related party loan ... structured as a down payment loan with a 7% interest rate and has an outstanding balance of $500,000. The interest expense incurred in 2025 and 2024 was $0 and $35,000'. Plus and Advance report $0 due from and to the affiliate at December 31, 2025 (Plus 2024: $358,895 due to the affiliate).
- *Mortgages (Properties LLC Note 3, 'Loan Agreement Secured by the Deed of Trust'): #MHQNN and #KYLBE $756,250 each at 3.5% to November 30, 2049 (balances $663,237 each); #DJVWQ $1,169,400 at 2.95% to September 30, 2050 ($1,028,43x); #PBIUH $184,500 at 4.25%; #PFUNR $300,000 at 4.875% ($267,128); #8YFFL $270,000 at 4.875% ($239,977); #XZQRZ $690,000 at 5.125% ($626,883); #DTMEW $105,500 at 4.5% ($92,766); #SOYGJ $270,000 at 3.5% ($235,311); #RUSUU $268,200 at 3.5% ($233,390); #KM1OU $483,000 at 6.625% ($443,856). Plus balance sheet: mortgage payable $1,796,093 noncurrent plus $15,265 current (2024: $1,515,950). Circulars: 'Value Growth: Fostering long-term capital appreciation through strategies that employ moderate to no leverage' and 'Selective Leverage: We utilize leverage to amplify cash on cash returns while maintaining a conservative debt profile'.
- *Fees and conflicts (1-K Items 3 and 5; circulars): 'The Asset Manager will be entitled to an annual asset management fee from each series, calculated as 15% of any Free Cash Flows available for distribution' (10% on Properties LLC), 'paid at the same time as, and only if, a distribution is made'; Sourcing Fee '3.0% (of the maximum offering amount)' 'to the extent not waived by the Managing Member in its sole discretion'; Free Cash Flow split '85% by way of distribution to the members ... 15% to the Asset Manager'; Operating Expenses Reimbursement to the Asset Manager 'together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate)'. Item 5: 'None of the responsibilities and determinations listed above will be made at arm's length and all of these decisions may unjustly financially reward Ark7 to the detriment of each Series and the investors.' Conflicts: the Managing Member 'may acquire, repair, and improve properties before reselling them to a series at a price determined by the manager or its affiliate, possibly at a premium'; 'conducts promotions allowing investors to rent series properties at reduced rates'.
- *Audit reports (FY2025): 'Emphasis of Matter. The accompanying financial statements have been prepared assuming that [APL / APPL] will continue as a going concern. As discussed in Note 1 to the financial statements, [it] has experienced recurring operating losses. However, the current year's loss is significantly lower than in the prior year ... Our opinion is not modified with respect to this matter. /s/ Norbie Gaerlan, CPA'. Advance: 'While these conditions previously raised concerns about Ark7 Properties Advance LLC's (APAL) ability to continue as a going concern, management has since successfully raised approximately $2 million in new capital ... However, the recurring operating losses remain an area that require attention.' Plus Note 1: 'APPL has experienced recurring operating losses, which in prior years raised concerns about its ability to sustain operations without additional financial support.' Plus 2025 reserves: $0 on #DIVTU, #ET8BV, #EYPIR, #NHMOP, #OJXLW, #ORHOF, #RPFUV, #SOV9W, #ZAUH4 and #ZIE3T ($142); negative on #FTWDS (-$287) and #JTDXY (-$6,490); 'An additional $0 of cash is held by Ark7 Properties Plus LLC that is not assigned to a specific series.' Advance and Properties 1-K notes carry the same $0 unassigned-cash statement.
- *Distribution and transfer terms: 2026 circulars, 'This Offering is being conducted by the company as a direct public offering (i.e., without the benefit of the services of an SEC-registered broker-dealer) on a best efforts basis in a Tier 2 Regulation A offering by associated persons of our Managing Member'; 'The company has not engaged commissioned sales agents or broker-dealers'; 'No escrow account administered by an escrow agent has been established ... Funds tendered by investors will be held in a segregated account controlled by the company ... a close every 7 business days'. 2024 Plus circular: Dalmore Group 'to perform administrative and compliance related functions ... but not for underwriting or placement agent services. This includes the 1% commission' ($3,050 #DIVTU, $2,600 #OJXLW, $2,400 #ZAUH4, $2,600 #EYPIR, $2,750 #5VCTK, $2,750 #ET8BV), plus $5,000 expense allowance and $20,000 consulting fees. Restrictions on Transfer: 12-month hold and Managing Member written consent; 'There is currently no public trading market for any Series Interests'.
- *Trading Market (site, September 10, 2026): property pages show 'Last trade price ... Since IPO' for 13 of 20 listed properties: Chandler-S4 +4.24% (IPO January 2026, purchased $450,000), Chandler-S5 +2.46% (March 2026, $447,000), Philadelphia-T2 -0.27% (May 2022, $392,000), Philadelphia-T1 -58.53% (October 2021, $172,000), Philadelphia-D2 -31.35% (July 2022, $780,000), Berkeley-M2 -9.02% (May 2020, $1,475,000), Austin-S1 +1.52% (January 2021, $322,000), Berkeley-M1 -1.05% (May 2020, $1,542,000), Austin-S3 +0.54% (February 2021, $465,000), Dallas-S9 +16.95% (September 2022, $338,000), Atlanta-T4 +12.00% (December 2022, $220,000), Dallas-S7 +0.30% (September 2022, $360,000), Berkeley-M3 -1.27% (September 2020, $1,949,000). Platform API snapshot for Atlanta-C9 (#HEEMV): 2,900 interests, 717 investors, last price $87.84 against $100, average monthly dividend $1,076, cumulative trade volume $30,710, market depth one ask at $96 and one bid at $84.
- *Platform API (anonymous carrier payloads for 23 of 48 series, September 10, 2026, company-reported): investors per series from 81 (Philadelphia-T1) to 4,133 (Tampa-S10), 31,681 positions in total; trailing-12-month dividends $632,842 across the 23; cumulative trade volume $257,817; app holding period 90 days or three months on 21 series and one year on Seattle-D1; occupied units 0 on Philadelphia-T1 (last trade $50.10 vs $120.80 original) and Philadelphia-T2 (rental status shown as pre-market); standard management fee field 0 on every series; brokerage fee $2,500 to $6,150 on each Plus series and $5,500 and $9,670 on two Properties series; cash reserved from $363 (Atlanta-C5) to $119,713 (Berkeley-M3); loan payable equal to the mortgage on each Properties series.
- *Investor record: Trustpilot 3.9 of 5, 272 reviews (59% five-star, 19% four, 9% three, 2% two, 11% one). 2026 one-star reviews: 'Very hard to sell shares. I've been waiting to sell my last share for over 6 months' (June 18); 'Waited over a year to sell my property and they won't let me' and 'received $75 per share after paying $100' (February 20); 'It is nearly impossible to get your money out' (January 8). A $5,000 deposit dispute (June 2025, updated August 2026) answered by the company on April 30, 2026 as a failed transaction. BBB: A rating, accredited May 13, 2022, seven complaints; the displayed complaint: 'This company does not tell you how risky and illiquid buying shares are.'
- *Legal and enforcement scan (September 10, 2026): no SEC litigation release or administrative proceeding, FINRA disciplinary action, state securities action, receivership or class action found naming Ark7 Inc., Ark7 Properties LLC, Ark7 Properties Plus LLC, Ark7 Properties Advance LLC, Yizhen Zhao, Yujian Weng or Ling Yang. The Arkansas Securities Department cease-and-desist of February 11, 2026 (C-25-0047) that appears in name searches names Etorort.com, unrelated. Ark7 Inc. holds no broker-dealer, funding-portal or adviser registration and has no EDGAR filings of its own.
AltStreet Data Layer
AltStreet EDGAR read of three Reg A series LLCs, 48 property series, and the site capture (2026-09-10)
AltStreet's Ark7 dataset is the complete EDGAR record of the three issuers (2020 to July 2026) parsed to the series level: 48 property series with address, price, maximum offering, interests issued, 2025 and 2024 rent and net income, mortgage and parent-loan terms, plus a same-day site capture and one platform API snapshot. It is not an occupancy or investor-count ledger: neither is filed. No series has been liquidated, so no realized outcome exists.
- Issuers: 3 (Properties LLC 2019, Plus 2022, Advance 2024) · series: 48 (15 + 18 + 15) · states: TX, GA, AZ, CA, PA, IL, FL, VA, WA, TN
- Equity raised: Properties $9,008,238 (Reg D, to 2022-06) + 2026 re-offering (undisclosed) · Plus $5,927,200 (fully sold) · Advance $3,490,600 (at 2026-05-22) · about $18.4M
- Property at cost 2025-12-31: $20,658,954 · mortgages $7,079,835 · parent down-payment loans since 2019: 45 loans, $17,028,896 at 7% to 10%
- FY2025 aggregate: revenue $1,514,560 · net loss $925,954 · depreciation $649,598 · distributions $938,790 · excess over net income plus depreciation $1,215,146 · filed operating cash flow +$1,719,768 / +$350,586 / -$1,135,599
- Related party (Properties LLC): due from Ark7 Inc. $4,384,255 (non-interest, on demand) · due to $2,609,256 · parent loan $500,000 at 7%
- Fees paid 2025 (Plus): asset management $0 on 18 series · sourcing $8,250 on one series · consolidated interest expense $289,693
- Going concern: Emphasis of Matter on 3 of 3 FY2025 reports · auditor Norbie Gaerlan, CPA (sole practitioner) · FY2022 Plus: Flex-Tax, Inc.
- Distribution: direct, no broker-dealer (2026 circulars) · Dalmore 1% on six 2024 Plus series · no escrow · closings every 7 business days
- API (23 of 48 series, company-reported, 2026-09-10): investor positions 81 to 4,133 per series (31,681 total) · trailing-12m dividends $632,842 · trade volume $257,817 · occupied units 0 on Philadelphia-T1 and T2 · app holding period 90 days to 1 year
- Exit: minimum hold (app 90 days to 1 year; operating agreement 12 months) + manager consent · in-house Trading Market · last trades on 13 properties from -58.5% to +17.0% vs offering price (6 below, 7 above) · FINRA data: Ark7 flow on PPEX
- Site (2026-09-10): '300K+ active investors' · '$30MM+ property value funded' · '$4MM+ cash dividends paid' · 'No hidden fees' · 'Flexible to sell' · fee page '8-15% of rental income'
- Regulatory: 3 Reg A Tier 2 qualified issuers · no broker-dealer, funding-portal or adviser registration · no enforcement action found · BBB A (7 complaints) · Trustpilot 3.9/5 (272)
Source: SEC EDGAR (CIKs 0001815395, 0001923734, 0002025051) + ark7.com capture and API snapshot + FINRA ATS data via the North Capital review + investor record, September 2026
Primary Source Pages
Comparable Platforms
- Arrived
Same product, larger scale, with redemption windows, a regional-firm audit and a parent that has filed Form Ds.
- Landa
The series-LLC rental platform whose financing broke; the structural cousin and the cautionary outcome.
- Roots
A Regulation A rental REIT with a NAV series and quarterly repurchases instead of an order book.
FAQ
Frequently Asked Questions
High-intent search questions answered directly, without making users hunt through the full review.
What is Ark7, and how does it work?
Ark7 is a San Francisco app, run by Ark7 Inc., that sells fractional interests in individual rental homes for $20 to $100 each. Each house is held by a numbered series of one of three Delaware series LLCs (Ark7 Properties LLC, Ark7 Properties Plus LLC and Ark7 Properties Advance LLC), all qualified under Regulation A Tier 2 and all managed by Ark7 Inc. Ark7 Inc. buys the house with a loan to the series at 7% to 10% interest, is repaid as investors buy interests, manages the property, and pays the series' free cash flow to holders monthly on the third, keeping up to 15% as its fee. After a minimum hold set per property, interests can be listed on the app's Trading Market for other investors to bid on. Since 2019 the three issuers have placed 48 properties and raised about $18.4 million.
Is Ark7 legit, or a scam?
The filings do not support calling it a scam. All three issuers are qualified Regulation A companies that file audited annual reports and semiannual reports on time, disclose their parent loans, related-party balances, conflicts and going-concern doubt in plain language, and have paid distributions every month since 2020 by the company's account. AltStreet found no SEC, FINRA, state or court action against any Ark7 entity or officer as of September 2026. What the record does show is a platform whose economics depend on a parent with no SEC filings, whose 2025 distributions of $938,790 were paid while net income plus depreciation was negative $276,356, and whose every audit report carries a going-concern paragraph from a sole-practitioner auditor.
What fees does Ark7 charge?
As filed: a sourcing fee of up to 3% of the maximum offering amount, which Ark7 may waive (paid on one of 18 Plus series in 2025), and an asset management fee of 15% of free cash flow (10% on the oldest issuer), paid only when a distribution is made (shown as $0 on every Plus series in 2025), plus reimbursement of operating expenses to Ark7 with interest. As marketed on the help center: a 3% sourcing fee and 'a monthly asset management fee of 8-15% of the rental income'. The cost investors most clearly bear, interest of 7% to 10% paid by each series to Ark7 Inc. on the loan that funded the purchase, and mortgage interest on the leveraged series, appears on no fee page. Consolidated interest expense in 2025 was $298,404, $289,693 and $30,631 for the three issuers.
How much does Ark7 pay in dividends, and are they sustainable?
The three issuers paid $938,790 in 2025: $497,797 (Properties LLC), $272,777 (Plus) and $168,216 (Advance). Against equity raised, that is roughly 4.6% to 5.5% by issuer (AltStreet computation); the site reports a 4.36% average yield as of May 2026. The same year the issuers reported a combined net loss of $925,954. Adding back $649,598 of depreciation leaves aggregate net income plus depreciation of negative $276,356 against the $938,790 paid. The filed cash-flow statements show operating cash flow of +$1,719,768 at Properties LLC and +$350,586 at Plus, both driven largely by related-party and working-capital movements, and -$1,135,599 at Advance, which paid its distributions in a year funded by $2,475,820 of offering proceeds and $1,020,067 of new borrowing. Ten of the 18 Plus series ended 2025 with no reserve. Distributions are set by the manager from free cash flow it defines; the record shows they have been paid, not that they have been earned.
Can I sell my Ark7 shares? How does the secondary market work?
After a minimum holding period, set per property and shown in the app as 90 days on most houses and one year on the Seattle building (the operating agreement requires 12 months), you can list interests on Ark7's Trading Market at an asking price and wait for another investor's bid; the platform matches orders. There is no redemption program, no repurchase window and no market maker, and transfers require the managing member's consent. The offering circulars state that no trading market exists and that investors must be prepared to hold indefinitely. On September 10, 2026, 13 listed properties showed a last trade from 59% below to 17% above the offering price, and one Atlanta condo's order book held a single ask at $96 and a single bid at $84 on a $100 interest. 2026 reviewers report waits of six months to a year. FINRA data shows Ark7 interests trading on North Capital's PPEX alternative trading system.
Who audits Ark7, and what does the going-concern language mean?
The FY2023 to FY2025 reports of all three issuers are audited by Norbie Gaerlan, CPA, a sole practitioner in Union City, California whose firm, Taxulo, offers tax preparation, bookkeeping and outsourced-CFO services; the FY2022 Plus audit was by Flex-Tax, Inc. Each FY2025 opinion is unqualified but includes an Emphasis of Matter paragraph stating the financial statements were prepared assuming the issuer will continue as a going concern after recurring operating losses, with management's plans described in Note 1. The Advance report adds that management raised about $2 million of new capital, which reduced the uncertainty. It is the issuers' own disclosure that their continuation depends on outside support, not a regulator's finding.
What is the relationship between Ark7 Inc. and the Ark7 Properties LLCs?
Ark7 Inc. owns 100% of the membership interest in each LLC, is the managing member and asset manager of every series, lends each series the money to buy its house at 7% to 10%, decides whether to pay itself the sourcing and management fees, and is indemnified by the series. The oldest issuer, Ark7 Properties LLC, also carried a $4,384,255 non-interest-bearing receivable from Ark7 Inc. at December 31, 2025, due on demand, equal to 31% of its assets, while owing the parent $2,609,256 plus a $500,000 loan at 7%. Ark7 Inc. has never filed financial statements or a Form D with the SEC, so its capacity to keep lending and to repay what it owes the series cannot be read from any public document.
Ark7 vs Arrived vs Roots: what is the difference?
All three sell retail interests in rental housing under Regulation A. Arrived sells interests in individual houses and a debt fund at $100, offers quarterly redemption windows at published discounts, is audited by a regional firm, and its parent has a Form D history. Roots is a REIT: one interest across many homes, a published NAV and quarterly repurchases. Ark7 sells single-house interests at $20 to $100 with no purchase fee, no broker on current offerings, a per-property minimum hold and an in-house order book as the only exit, financing from a parent with no SEC filings, and a going-concern paragraph on every issuer. Ark7's advantages are entry price and choosing the address; its costs are liquidity and parent dependence.
Is Ark7 like Landa?
Structurally, yes: both are series-LLC rental platforms where each house is a numbered series managed by a parent that does not file. In outcome, no: Landa's third-party bridge lenders defaulted it in 2024, a court removed it as manager, its app went dark and its dissolutions returned near zero, while Ark7's issuers are current on every filing, have no lender action against them, and continue paying monthly. The shared shape is why Ark7's parent receivable, parent loans and going-concern paragraphs deserve attention now rather than later.
How are Ark7 dividends taxed?
Each series is taxed as a C corporation, so holders receive Form 1099-DIV, not rental income or a K-1, and cannot deduct depreciation or pass through losses. Distributions are dividends to the extent of the series' earnings and profits and return of capital beyond that, reducing basis; in a loss year a large share is likely return of capital, though the filings do not publish the split. Sales on the Trading Market are capital transactions reported on Form 1099-B. The filings say a series may elect REIT or partnership treatment if beneficial; none has. IRAs are available through Inspira Financial as custodian. This review establishes no per-series figures or state conclusions.
I hold Ark7 shares. What should I check?
Find your issuer's FY2025 Form 1-K on EDGAR (Ark7 Properties LLC CIK 0001815395, Plus 0001923734, Advance 0002025051) and locate your series in the rent, net income and reserve tables. Compare the issuer's distributions in the cash flow statement with its net income plus depreciation. Read Note 4 for what the series owes to and is owed by Ark7 Inc. Then open your property page's market depth and note the best bid, which is your realistic exit price. If you hold a Properties LLC series, watch the $4.4 million receivable from the parent and the use of the 2026 re-offering proceeds in the next 1-SA.
Update History
What's changed in this Ark7 review
New data, new findings, corrections, and confirmations as they emerge. Most recent updates appear first.
- New data
Semiannual figures from accession 0001815395-26-000005: rental income $410,133 (H1 2025: $414,375), net loss $323,959 ($189,113), distributions $271,798 ($256,907), interest expense $154,909 ($150,691), cash $261,528 ($73,538 at December 31, 2025), total assets $14,987,590 ($14,178,946), total liabilities $9,609,000 ($10,351,989), mortgage payable $5,117,693 ($5,167,645). Post-Qualification Amendment No. 3 (accession 0001815395-26-000006, October 13, 2026): Series #3EXWW added, 19,000 interests at $20.00, $380,000 maximum, 1949 Indian Grass Dr, Royse City, TX 75189, submitted for qualification.
- New finding
The oldest issuer's half-year loss grew 71 percent on flat rent while distributions rose, so the gap between payouts and earnings the review describes widened in 2026. The new series is the first the issuer has added since the two of early 2026. Score inputs unchanged.