What is Lofty? Lofty is a Marketplace built on Blockchain Algorand, it is similar to Airbnb, Amazon, eBay, however Lofty allows investors to invest in real estate in the US with a capital of only $50. Lofty Marketplace includes buyers (Token Investors) and parties wishing to sell real estate.
So what’s special about Lofty? Let’s find out through the analysis below.
Lofty Overview
What is Lofty?
Lofty is not an investment fund, Lofty does not buy and resell real estate. Lofty is a marketplace built on Algorand’s network and is a bridge between buyers (token investors) and sellers. The properties listed on Lofty are provided by real estate agents, wholesalers, and people who want to sell houses.
Investors will buy Property tokens and it represents partial ownership of the house. Investors will enjoy profits from house rental and this profit can be claimed daily.
What is Lofty?
Before a house or real estate is listed on Lofty, they must go through the process of appraisal, inspection, signed sales contract… and all this data is displayed publicly.
Mechanism of action
To proceed with purchasing Property tokens, users must conduct KYC and fill in personal information. Lofty partnered with Berbix for this mission. For customers located outside the US, Passport should be a priority during the KYC process.
Lofty generates revenue in two ways:
- 2.5% fee for asset sale orders on Lofty Marketplace.
- 2.5% fee for asset purchase orders on Lofty Marketplace.
To be able to post properties for sale on Lofty, users need to take the following steps:
- Step 1: Sellers need to present a menu with information about the property they want to sell. Lofty will have the right to accept or reject items based on conditions such as usage status, geographical location, rental history…
- Step 2: If approved, the property will enter into a contract with DAO LLC (limited liability company). DAO LLC will then tokenize the value of the house into individual Property tokens worth $50 on the Algorand blockchain. For example: A $100,000 house will be divided into 2000 Property tokens worth $50. This allows investors to easily invest in real estate with a minimum amount of $50.
- Step 3: There will be a unit specializing in evaluating and providing general inspection results about the condition of the house and hotel to Lofty.
- Step 4: Properties listed on Lofty. After selling all Property tokens, DAO LLC will close and documents will be transferred to the new DAO LLC.
Points to note
Property tokens can be traded on the marketplace and will cost other investors a 2.5% fee. Of course, someone also needs to buy back your tokens because Lofty is just a Marketplace. So there will be cases where many Propery tokens are traded under $50 because users want to speed up the token sale process.
Each Property token will represent each respective real estate property. And Property token holders will have the right to vote on changes to the house such as increasing rent and repairing the house. The maximum amount of Property tokens that each person can buy is 15% per apartment.
Each house will have a reserve to use for repairs. This amount is equivalent to 5% of the value of the apartment. Repairs will be handled by the property’s manager.
In case users are hacked or are victims of attacks that cause loss of Property tokens, users can get them back when Governance 2.0 launches. This will call on other investors (who invested in the same house as the victim who lost their tokens) to vote for burning the hacked tokens and reissuing them to the victim.
Development Roadmap
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Investor
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Core Team
Jerry Chu: CEO & Co-Founder
- He graduated with a bachelor’s degree in Science from the University of Southern California. He received his doctorate in financial engineering sciences from Claremont Graduate University.
- He interned at J&M Chemical for 2 months, he worked as a manager at J&M Chemical for 2 years and 6 months. In May 2015, he interned in data analysis at LA Luxury Leasing. He worked as a treasury manager and risk analyst at Barclays for 3 months.
- May 2018 He started his business with the Lofty AI project.
Max Ball: Co-Founder
- He studied AI at the University of Southern California. He used to work as a recruiter at The Select Group. In June 2014, he started working at Blu Digital as Business Development.
- September 2015 – December 2017, Tuong worked as Co-Founder at a Hashtap project. In May 2018, he and his colleagues founded Lofty AI until now.
Patrick Sears: CTO
- In 2004, he received a bachelor’s degree in mechanical engineering from the University of California. He used to work as Platfotm Engineer at Casoony.com. In October 2017, he ended his job as a software engineer at Wizeline.
- October 2017 – June 2019 he worked as Principal Software Eginner at realtor.com. He worked as CTO at Egineer Apart for 5 years and 9 months. Currently, he has been CTO at Lofty for 3 years and 3 months.
Mark Kane: Chief Data Scientist
- He graduated with a bachelor’s degree from UC San Diego. He worked as a research assistant at UC San Diego for 1 year. In September 2018, he started working at Lofty AI as Chief Data Scientist.
Tokenomics
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Exchanges
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Project Information Channel
- Twitter: https://twitter.com/lofty_ai
- Website:
Summary
Lofty is one of the Real World Assets projects at the forefront of tokenizing real estate to bring it to the blockchain very early with the technology of the Algorand network. Hopefully through the article, everyone has got the necessary information about what Lofty is.
