Project Concept
Lofty is a fractional real estate marketplace that allows people from around the world to invest in commercial and residential properties across the United States, starting from just $50. The platform is available at https://www.lofty.ai/marketplace.
The listing process on Lofty is straightforward:
- An inspection and appraisal are arranged for your property.
- You can list your property on Lofty at up to 5% above the appraised value, plus any costs for furniture if it’s a short-term rental.
- Ownership is transferred to a dedicated Wyoming LLC via FirstTitle using a Quitclaim deed. Every property on Lofty is owned by a separate Wyoming LLC with the same legal structure. You, the owner, initially hold 100% of the LLC.
- This LLC is then tokenized into $50 fractional shares, each representing legal ownership in the property.
- You can go to your property page on Lofty, click “Sell,” and list as many fractions as you’d like, at any price.
Rental income and expenses are split proportionally. For example, if you sell 20% of your equity, you receive 80% of the rent.
Lofty charges only a 3% fee when equity is sold—there are no upfront fees or rent cuts. Property owners can also regain full equity in the future or sell the entire property.
Investor Opportunities
- Purchase tokenized property shares using USDC (on Algorand), ALGO, or credit cards.
- Earn daily rental income and benefit from annual property appreciation.
- Vote on key property decisions as a token holder.
- Lend your property tokens to earn additional USDC yields—note that in this case, tokens may be purchased by others.
Team, Community, and Marketing
Team
Lofty was founded by Jerry Chu and Max Ball, experts in both technology and real estate. Backed by Y Combinator, Lofty is built on a foundation of innovation and rapid growth.
Community
Lofty has an active presence on social media and is growing its community engagement:
Recently, the company started community calls to directly interact with users and gather feedback.
Marketing
As a marketplace, Lofty’s marketing focuses on simplifying the listing and investment process. The platform aims to make it easy for both property owners and investors to engage in real estate transactions with minimal friction.
Conclusion
Lofty offers an investment opportunity through fractional ownership, providing returns via rental income, property appreciation, and token staking. Each property listing includes projected returns and detailed documentation, including photos and legal records, to help investors make informed decisions.
