Key Data

• Trading Name: Lofty.ai
• Legal Entity: Lofty AI, Inc
• Activities: Tokenization Platform for Real Estate 
• Location: USA
• Regulations: none
• Key People: Kathie B. N/Mark Keane/Jerry Chu/Max Ball
• Latest news: Lofty.ai
• Latest update: November , 2024

Lofty.ai is a blockchain-based platform that democratizes real estate investment, enabling individuals to purchase fractional shares of U.S. rental properties starting at $50. Built on the Algorand blockchain, it offers secure, transparent transactions, daily rental income, and property appreciation benefits. Tokens can be traded without lock-up periods, ensuring liquidity.

Offering

Lofty.ai offers investors the opportunity to purchase fractional ownership in U.S. rental properties through tokenization. Each property is divided into digital tokens, with each token representing a share of the property and priced at $50. These tokens are built on the Algorand blockchain, ensuring secure and transparent transactions. Investors can earn daily rental income proportional to their token holdings and benefit from potential property appreciation. Tokens can be bought and sold on Lofty’s marketplace, providing liquidity without lock-up periods. Additionally, token holders participate in key property decisions through a voting system, allowing for a democratic investment process. Lofty.ai provides detailed tools for conducting due diligence on properties. Each listing includes information on property details, financials, essential documents, and local market data. Investors can review items such as inspection reports, rental yields, projected returns, and market trends, enabling informed decision-making before purchasing fractional shares.

Regulation

Lofty.ai operates within the legal framework of the United States, specifically adhering to the regulations governing limited liability companies (LLCs). Each property listed on the platform is owned by a separate Delaware-based Decentralized Autonomous Organization Limited Liability Company (DAO LLC). Investors acquire membership interests in these DAO LLCs by purchasing tokens, which represent fractional ownership of the property. This structure ensures that investors have legal ownership rights, including entitlement to rental income and potential property appreciation. The DAO LLC framework provides a clear legal foundation for fractional property ownership, aligning with U.S. regulations governing limited liability companies.

Co-Ownership Model

Investments are structured through Delaware-based DAO LLCs, giving token holders legal ownership and voting rights. This structure aligns with U.S. regulations for limited liability companies.

SWAT Analyze

Strengths

• Low entry barrier and high liquidity.
• Transparent and regulated ownership structure.
• Secure blockchain technology.

Risks

• Regulatory uncertainty in blockchain and real estate sectors.
• Market performance dependency.

Funding and Key Players

Lofty.ai has secured over $5 million from notable investors like Y Combinator and Hustle Fund.

Key People

• Jerry Chu, Co-Founder and CEO: Holds a Bachelor of Science in Mathematics and Economics from the University of Southern California and a Master of Science in Financial Engineering from Claremont Graduate University. He is a self-taught programmer specializing in Python and R for data science applications.
• Max Ball, Co-Founder and COO: Oversees operations, ensuring seamless integration of technology and real estate processes.
• Mark Keane, Co-Founder and Data Scientist: Leads data analysis and AI development, enhancing property evaluation and investment strategies. Patrick Sears, Chief Technology Officer: Manages the technological infrastructure, focusing on platform scalability and security.
• Kathie B. N., Head of Asset Management: Oversees a multi-million dollar portfolio of single-family investment properties, analyzing market trends and collaborating with property managers to align investment strategies with investor goals.

Serving Industries

Lofty.ai serves individuals seeking affordable, accessible real estate investment. With a $50 minimum, they cater to both new and experienced investors looking for fractional ownership and passive income opportunities.

Customer Reviews

• Trustpilot: 3,9 Reviews with 50+ Reviews

Conclusion and Rating

Compliance Rating: Green

Overview
Lofty.ai democratizes real estate investment through tokenized fractional ownership of U.S. rental properties, starting at $50. Built on the Algorand blockchain, it offers secure transactions, daily rental income, and liquidity with no lock-up periods.

Co-Ownership Model
Each property is held by a Delaware-based DAO LLC, ensuring legal ownership and investor participation in key decisions, aligned with U.S. regulations.

Strengths

• Low entry barrier, high liquidity
• Transparent and regulated structure
• Blockchain security

Risks

• Regulatory uncertainties
• Market dependency

Conclusion
Lofty.ai provides a compliant, transparent, and secure investment model with manageable regulatory risks.