A "Lofty" Primer

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Yesterday I shared a specific property that I was currently investing in on #Lofty (@lofty_ai), so today I thought I would share some more general information about Lofty and how it works. Please note that this is a high level overview and is by no means comprehensive!

I've tried to cover the basics, while being concise and providing the best synopsis of what Lofty is to the best ability and knowledge. If I missed anything (or got something plain wrong) please don't hesitate to comment and for more information defer to the Lofty website or app.

So what is Lofty? Lofty is a #marketplace (like Amazon) that consists of buyers (token investors) and sellers (property sellers). Sellers submit their properties for sale on the Lofty platform (before they are listed on Lofty properties are vetted).

Once approved, the property is put under contract by a newly formed DAO LLC. The DAO LLC is then #tokenized into individual $50 tokens on the @Algorand #blockchain.

Once the property is fully funded, the DAO LLC will close on the property with the title company, and the deed will be transferred to the new DAO LLC. As a token holder you are entitled to a percentage of the properties #rental #profits after expenses and fees.

Profits (#rents) are distributed to token holders daily, and stored in your wallet for withdrawal or #reinvestment. Lofty also features a secondary #market where tokens for sold out properties can be bought and sold between Lofty members, which adds #liquidity to the platform.

In addition to rents, properties may also #appreciate (or depreciate). The amount a token appreciates is determined by using the HouseCanary Automated Valuation Model. Please note that properties may lose value and all investment comes with risk.

Each property is operated on a #governance system where token owners vote on all decisions for the properties they own. The winning decision is decided by a 60% super-majority. The winning vote is then sent to the Property Manager who carries out the decision.

All Lofty properties are managed by professional property management companies, which are paid for by rents collected prior to distribution of rents to token holders. Please note that this is one of the expenses and fees discussed previously.

Property Managers take care of sourcing tenants, collecting rents, and managing repairs. All repairs are paid for out of each properties Maintenance Reserve (another one of those pesky expenses).

Overall I'm very happy with the Lofty platform and the #fractional #investment opportunity it provides. Lofty has become one tool in my #toolbox that I use to #diversify my investment portfolio.

If you found any of this information helpful, please consider using my #referrallink - bit.ly/3vQHZZU. Naturally, I may receive a #bonus for referring users to the Lofty platform. :-)

Please note that this is not financial advice and that you should always perform due diligence before making #investments. I have tried to be as accurate as possible, but I assume no liability for errors or omissions, nor do I endorse individual properties pictured.