Lofty: Platform Profile

Overview

Lofty is a fractional real-estate platform built around property-specific LLC ownership and blockchain-based ownership records.

Investors can buy small interests in individual rental properties rather than buying shares in one pooled real-estate fund.

Current characteristics include:

• individual-property selection;
• shares often priced around $50 or less;
• daily rental-income distributions;
• property-specific voting rights;
• a 24/7 exchange/order-book model;
• U.S. and many international investors;
• no stated minimum holding period;
• 2.5% purchase fees;
• 3% sale fees.

The most important legal distinction is that Lofty is not a registered broker-dealer or investment adviser.

The platform also uses blockchain infrastructure, but that does not make Lofty a cryptocurrency exchange for ROIStreet category purposes.

May fit better for

• investors seeking individual residential-property exposure;
• investors starting with small amounts;
• investors who want daily rental distributions;
• investors who want property-level voting;
• investors comfortable with blockchain-recorded ownership;
• investors who value the ability to place secondary sell orders without a multi-year contractual holding period.

May fit less well for

• investors who want a diversified pooled real-estate fund;
• investors who want a registered adviser selecting properties for them;
• investors who need guaranteed secondary liquidity;
• investors who want direct deeded title in their own name;
• investors sensitive to round-trip transaction costs;
• investors who assume tokenization makes a private real-estate investment liquid like a listed stock.

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Legal and regulatory status

Current Lofty disclosures state:

• Platform operator: Lofty AI, Inc.
• Registered broker dealer: No
• Registered investment adviser: No
• Investment advice provided: No

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What the investor owns

Each property is held in a separate property-specific LLC.

Current Lofty materials describe the investor as holding fractional membership ownership in that LLC.

The distinction matters.

An investor does not receive a personally recorded fractional deed to the house simply because the investment is described as fractional property ownership.

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Tokenization does not change the underlying risk

Lofty uses public-blockchain infrastructure, including Algorand in current legal materials.

The blockchain record can help support:

• ownership records;
• transfers;
• exchange functionality;
• voting workflows.

It does not remove:

• vacancy risk;
• maintenance costs;
• property-value risk;
• local-market risk;
• tenant risk;
• insurance risk;
• liquidity risk.

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Current entry price

Current Lofty materials state:

• Share price: varies by property; often around $50 or less
• Marketing entry: $50

Current marketplace examples can trade materially above or below $50.

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Purchase and sale fees

Current pricing:

• Purchase fee: 2.5%
• Sale fee: 3%
• AUM fee: $0
• Early withdrawal penalty: $0

Current Lofty materials also state there is no separate property-management fee billed directly to investors.

That does not mean properties operate without property-level expenses.

Property operating costs can still reduce distributable rental cash.

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Round-trip fee example

Assume an investor buys $1,000 of shares and later sells $1,000 of shares before considering any price change.

Purchase fee:

$1,000 × 2.5% = $25

Sale fee:

$1,000 × 3% = $30

Simple combined transaction-cost disclosures show:

$55

or 5.5% of the assumed $1,000 principal.

Actual sale proceeds can differ because the share price can change and the sell order may not execute.

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Market orders vs limit orders

Current Lofty help distinguishes:

• Market order:
• Pricing: best available price
• Current purchase fee: 2.5%
• Execution: subject to current market availability
• Limit order:
• Investor sets price: Yes
• Fill requires match: Yes

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Daily rent

Current platform materials state:

• Rental income distribution frequency: daily
• Typical processing: around midnight UTC

Daily distribution frequency does not guarantee a specific yield.

Rent depends on property-level economics.

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Yield

Current Lofty marketing publishes marketplace-average rental-yield statistics.

Yield is an update trigger.

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Secondary exchange

Current Lofty materials market a 24/7 exchange and no minimum holding period.

Some property pages can have trading not yet open.

"Every Lofty investment can always be sold instantly."

The ability to list or place an order is not the same as guaranteed execution.

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Ownership cap

Current platform materials state:

• Maximum single property ownership: 15%

This is designed in part to limit concentration of voting control in one investor.

Keep it as an update trigger.

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Voting

Current Lofty materials provide property-level voting on certain matters.

Examples can include:

• significant repairs;
• rent decisions;
• whole-property sale proposals.

Voting rights are governed by the LLC documents.

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Investor eligibility

Current Lofty materials:

• Minimum age: 18
• Identity verification: Yes
• US investors: Yes
• International investors: many jurisdictions
• Sanctioned country restrictions: Yes

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Taxes

Current Lofty materials reference property-level 1099 reporting.

Tax treatment can differ for:

• U.S. investors;
• non-U.S. investors;
• rental income;
• share sales;
• depreciation.

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Company-failure structure

Lofty states that each property LLC is a separate legal entity.

That structure is relevant.

Use:

• Property LLC separate legal entity: Yes
• Absolute bankruptcy remote guarantee: No

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Protection

Lofty property interests are not bank deposits.

Assessment

Lofty is structurally different from a pooled private REIT.

The investor chooses a specific property and holds a membership interest in the LLC that owns it.

That gives the investor more property-level control and concentration at the same time.

The current exchange model is also unusually flexible for private real estate, but its wording needs precision.

No required holding period does not mean guaranteed liquidity.

The fee structure is equally direct:

• 2.5% to buy;
• 3% to sell;
• no AUM fee.

Those transaction fees matter most for investors who trade frequently.