Lofty AI has made real estate investing much more accessible to the majority of people. Imagine if instead of having to spend hundreds of thousands of dollars to purchase a rental property, you could buy a percentage of a property for much less. With Lofty AI, you can start receiving rental income with just $50! Lofty.ai is a platform on the Algorand blockchain used for buying and selling tokenized real estate. Not sure what half of the words in that sentence mean? Don’t worry! Keep reading this Lofty AI review to find out all about tokenized real estate on Lofty.ai.
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How does Lofty AI Work?
Lofty AI is a platform for buying and selling tokenized real estate on the Algorand blockchain. You can buy, manage, receive rent from, and sell shares of rental properties directly from your Algorand wallet! Not only is Lofty.ai a groundbreaking platform for the Algorand ecosystem, it’s actually the first tokenized real estate platform on the Algorand blockchain!
There are a variety of different properties across 10 different cities available on Lofty and each is split into multiple individual shares in a process called tokenized real estate. Rather than having to buy an entire property to earn rental income, you can buy a single token, or share, of a property for just $50!
Don’t worry about having to manage your new property either as property management and upkeep is handled entirely by third party managers hired by Lofty.ai. These property managers will also collect rent for you, making owning a share of tokenized real estate a very hands-off process. Unfortunately, the hands-off nature of tokenized real estate also means that you can’t show up to the property and expect to stay the night!
Remember, you are buying a share of a property alongside many other people in a process called tokenized real estate. Speaking of tokenized real estate.
What is Tokenized Real Estate?
Tokenized real estate is basically a share in a property represented on the blockchain as a token. The concept of being able to purchase, own, and receive rent from shares of properties entirely through a blockchain is a novel concept that is fresh to the scene. This Lofty.ai review wouldn’t be complete without touching on tokenized real estate!
Tokenized real estate is somewhat similar to REITs, or Real Estate Investment Trusts, where you can also invest in property without having to purchase an entire property yourself. One main difference between tokenized real estate and REITs is that you are investing in an individual property with tokenized real estate whereas with REITs you are purchasing a share of a trust investing in a variety of different properties. The most obvious distinction between REITs and Lofty.ai is that your ownership of a share of a property is verified as a token on a blockchain with tokenized real estate, as the name implies.
There is also one more unique feature of tokenized real estate in that token holders can actively vote on measures for your property in a system called governance.
Lofty AI Governance System
Like mentioned above, the governance system on Lofty AI allows all of the token holders of a property to vote on important matters relevant to your shared rental property. Some matters you can vote on alongside other token holders for a property on Lofty.ai include changing the price of rent, selling the property, evicting tenants, and more. After voting has completed, the decision that gets at least 60% of the votes will be sent to the property manager to be enacted. You will be notified by email both when a vote becomes active and once the winning vote has been cast.
When the property requires upkeep but doesn’t require a vote, you will also receive updates by email letting you know of any maintenance. Some of these decisions that are handled by the property manager and don’t require a vote include matters like fixing a leak, painting, repairing drywall, or other minor tasks.
To make sure that governance of a property isn’t dominated by a single individual, you can only buy 10% of the available shares of a given property. If a property is listed for longer than 3 days, you can buy up to 15% of the shares.
What Kind of Properties are on Lofty AI?
The majority of properties listed on Lofty AI are residential properties, although there are some commercial properties available every now and then. There are single family residential homes as well as multi family residential properties. There are currently 10 different cities with property you can buy tokenized real estate of on Lofty.ai.
The areas on Lofty.ai where you can invest in tokenized real estate include
- Akron, Ohio
- Chicago, Illinois
- Cincinnati, Ohio
- Cleveland, Ohio
- Detroit, Michigan
- Dallas – Fort Worth, Texas
- Memphis, Tennessee
- Pittsburgh, Pennsylvania
- Quad Cities, Iowa and Illinois
- St. Louis, Missouri
You won’t always be able to find a property you like or even a property at all in every city sometimes. Properties are being bought and new properties are being listed all the time on Lofty, so keep your eye out if you have a certain location in mind!
How to Buy Tokenized Real Estate on Lofty AI
The first thing that you’ll need to purchase tokenized real estate on Lofty AI is an Algorand wallet. There are a wide variety of Algorand Wallets available. Two popular Algorand Wallets include the official Algorand Wallet called ‘Pera Wallet‘ on mobile devices and the browser-based ‘MyAlgoWallet‘ Algorand Wallet.
Secondly, you have to create your account for Lofty.ai. You will have to complete a basic KYC, or know your customer, form with details including your name, address, and tax information.
Finally, you can start browsing the marketplace to find a property you want to buy a share of! Tokenized real estate on Lofty.ai typically starts at $50 a piece. After selecting the property you want to buy a token of, you choose how many tokens you’d like to buy up to 10% of the available shares for a property. Payment methods for tokenized real estate on Lofty AI include bank payments, credit card, debit card, and cryptocurrencies like Algorand and USDCa (United States Dollar Coin on Algorand Blockchain). Your payment should be confirmed and your newly bought tokens should arrive in your Algorand wallet within 3-5 days.
Receiving Rent from Lofty.ai
Rental income from your tokenized real estate held in your Algorand wallet is sent to your account on Lofty.ai every single day. This daily rental income can make for a nice source of passive income on the Algorand blockchain.
There are currently 6 different withdrawal methods on Lofty.ai, including:
- Bank Transfer
- Algorand (ALGO)
- United States Dollar Coin on Algorand (USDCa)
- Algofi Stable Coin (STBL)
- Donate your Rental Income to Charity
Tokenized real estate can be sold back to Lofty.ai as well for a 5% fee. This can be done by emailing the Lofty support team. It is planned for users to be able to sell tokenized real estate on a secondary market on Lofty AI as well. This secondary market is projected to be launched in September of 2022.
Is Lofty.ai Legit?
Yes, at least from what we can tell, Lofty,ai seems to be legit. From property procurement to property management, Lofty AI is very transparent about the entire tokenized real estate process. While not every property on Lofty is a great investment, tokenized real estate purchased on Lofty.ai consistently delivers rental income directly to your account every day. Lofty AI is a legit way to buy tokenized real estate and to start earning income from rental properties with only $50.
Further cementing the legitimacy of Lofty.ai, the Algorand Foundation has actually given Lofty the honor of an official Algorand Foundation Grant Award. The Algorand Foundation often gives monetary grants to promising projects like Lofty.ai hosted on the Algorand blockchain.
The only problem we’ve had with Lofty.ai is that we can’t seem to login on some browsers! That being said, Lofty.ai is a legit platform on the Algorand blockchain for buying and selling tokenized real estate.
Lofty.ai is a great platform built on the Algorand blockchain that has made real estate investing more accessible for the average person through tokenized real estate. You can start investing in real estate and receiving rental income with just $50 and an Algorand wallet! With no need to worry about upkeep, maintenance, or repairs yourself, all you have to do is wait for your rental income to hit your Algorand wallet while the property manager handles the rest! Receiving passive income from owning a percentage of a property represented on the blockchain is a novel concept that you can find on Lofty AI.