Ark7
About the Company
Ark7 was founded by Andy Zhao, a former tech industry professional with experience at companies like Uber, LinkedIn, Google, and Twitter. The company’s mission is to democratize real estate investment, making it accessible to individuals who might not have the funds or time to manage property on their own. Ark7 operates by allowing users to invest in shares of real estate properties, which eliminates the need for large down payments or complex property management. The platform's properties are located in key markets such as Berkeley, Austin, and Seattle, and the company has attracted investors largely from the tech industry.
Idea Behind Company
Andy Zhao came up with the idea for Ark7 after facing the challenges of real estate investment while working at Uber. He found the traditional process of buying and managing property in high-cost markets like the Bay Area to be cumbersome and expensive. With the help of a friend and real estate expert, Jim Holt, Zhao decided to create a platform that would simplify the process of investing in real estate. The idea was to make property investment as easy as buying stocks, giving users more control and flexibility over their investments, while handling property management on their behalf.
Creating the Company
The creation of Ark7 involved extensive research into existing real estate investment models, such as REITs (Real Estate Investment Trusts) and crowdfunding platforms. Zhao and his team realized that these models often involved multiple intermediaries, reducing potential profits for investors. In contrast, Ark7 eliminates the need for financial advisors, sales teams, and asset managers, offering users more control and higher returns. With the expertise of co-founder Jim Holt, who has over 15 years of experience in real estate, the team developed a user-friendly platform where investors can easily track their properties, learn about market trends, and access important investment information.
Launching the Business
Ark7's journey began in 2018, but the company officially launched its platform in May 2020 after securing $2 million in seed funding. The first property, located in Berkeley, was purchased in 2019, and after a year of product development, the website went live. The launch was successful, quickly gaining traction with users, reaching $1 million in investments in just two months, and $3 million by the end of 2020. The company also benefited from its early promotion, where it waived property management fees during its first year. Since then, Ark7 has expanded to 4 properties and continues to grow its user base and investment portfolio.
Earnings
Ark7 generates its revenue through property management fees, though it waived these fees for the first year to attract new users. By managing each property and investing its own capital, Ark7 aligns its interests with those of its investors. The company has reached a total property value of $8.74 million and a total investment value of $5.5 million. As of 2021, Ark7 has successfully attracted 2,500 registered users and plans to expand further by launching properties in more cities and offering new investment features like IRA investments. The company is on track to achieve a user investment total of $20 million by the end of 2021.
