Lofty AI Review 2023
|By: Jeremy Biberdorf||Mar 09, 2023|
In a nutshell: Lofty (or lofty.ai) is an online platform that enables investors to purchase fractional and tokenized shares of a rental property. Investors then collect rent payments on their Lofty tokens.
With the goal of making real estate investing as easy as investing in stocks or crypto, Lofty has gained traction quickly. Along the way, it has also established a reputable track record.
But with many competitors in the online real estate investment space, is Lofty the best option for you? The comprehensive Lofty review below will cover everything you know so you can see for yourself if it aligns with your investing needs and preferences.
|6 to 10% listing fee on each property charged to the seller||0% fee on buy orders for|
new property listings
|2.5% fee to trade other marketplace properties (buy or sell)|
- Simplifies the real estate investment process
- Daily income stream
- Credit cards accepted (with a fee)
- Strong track record
- Few class A properties
- May not appeal to the crypto-averse
- No mobile app
Lofty Review 2023 | Is Lofty Right for Me?
Lofty is a tokenized real estate platform that aims to make it easy to invest in fractionalized real estate. The goal, as their CEO states, is to make it as simple as investing in stocks or crypto.
As such, the Lofty platform uses the Algorand blockchain to sell its tokens. While there are certainly issues with crypto and blockchain in general, Algorand uses proof-of-stake, which is less energy-demanding and also offers faster speeds than many other popular blockchains.
For the crypto-averse, that paragraph may leave you running for the hills. Many people are convinced of blockchain technology’s staying power, however, and so Lofty.ai may be particularly appealing to them.
Keep reading to learn more about how Lofty works, its top features, and more, so you can decide for yourself if it’s right for you.
How Does Lofty Work?
Lofty is a tokenized real estate platform that leverages the Algorand blockchain to sell its tokens. Each token represents a certain percentage of a given property. For example, a $750,000 property might be broken up into 10,000 $75 tokens, with each one equating to a 0.01% stake.
Investors simply scroll the Lofty.ai website to browse properties. Each property provides key information, including the anticipated CoC Return and the Projected IRR, key rental property investment metrics.
Once you’re set on a property, it’s just about as easy as clicking the purple “Invest” button. At the time of your first investment, Lofty will generate a unique wallet for you that allows you to store your Lofty tokens. From then on, you can collect rent on your tokens or sell them on Lofty’s secondhand market.
The major drawback of this, of course, is that your Lofty tokens won’t have value anywhere else besides on Lofty’s market.
Lofty.ai provides an array of unique features that help set it apart from other online real estate investment platforms, including the following:
- Tokenized real estate – Most online real estate investment platforms do allow fractional investing, but it isn’t tokenized. Crypto enthusiasts will appreciate this aspect of Lofty.
- Algorand blockchain – The Algorand blockchain hosts Lofty’s token offerings. According to the lofty.ai site, Algorand has smaller fees and faster transfer rates than other popular blockchains.
- Appreciation and daily dividends – Not only do Lofty investors get daily rental income, but they can withdraw it at any time. Plus, the property value can appreciate over time, which will be reflected in the value of your associated Lofty tokens.
- Liquidity – There’s no lock-up period with Lofty. You can list your ownership for sale on their marketplace at any time, plus you can withdraw your dividend income at any time.
- Convenience and accessibility – Finding a property to purchase and then manage takes a considerable amount of time, energy, expertise, and expenses. With Lofty, you can become an investor in fractional real estate in a matter of minutes.
Lofty does not offer any particular pricing or plans. Rather, it makes money through fees. There are three main types of fees:
- Token purchase fees
- Selling fees
- Listing fees
Listing fees are only if you want to list your own property on Lofty’s marketplace. Token purchase fees and selling fees are fairly self-explanatory, and they range from 0%-5% of the purchase value, plus $0-$0.30 per transaction.
Is Lofty Worth It?
Lofty.ai, or Lofty for short, may be an attractive investment option for people who want a simple way to invest directly in real estate through fractional, tokenized investing.
In particular, Lofty will likely appeal to younger investors and those interested in crypto and blockchain technology.
While Lofty does many things well, it also has a few drawbacks. One thing you can be sure of, however, is that Lofty is legitimate and not a scam. So far, it’s earned a 4.4 rating on Trustpilot.
Click here to check out Lofty for yourself and see if it aligns with what you’re looking for in an online real estate investment platform.