Lofty.ai

Lofty.ai offers fractional US real estate on Algorand — sub-cent transactions, a $50 minimum, and per-property ASA (Algorand Standard Asset) governance. Daily rental yield is distributed in USDC.

Algorand-based fractional real estate with $50 minimums and per-property ASA governance; daily USDC rental yield.

- Property DAO LLC: Each property is held by a dedicated US limited liability company (structured as a DAO LLC) that takes title to the home; token holders are the members and collectively own and govern the property. - Algorand Standard Asset (ASA) tokens: Ownership units are minted as Algorand Standard Assets, priced at $50 each at launch. Each token represents a fractional membership interest in the property's LLC. - Primary marketplace: Lofty's storefront where newly listed, AI- and locally-vetted rental properties are offered to investors, who buy tokens from as little as $50 with no accreditation requirement. - Secondary marketplace / PMM & liquidity pools: An on-platform exchange (marketed as the 'NASDAQ for real estate') with a Proactive Market Maker and liquidity pools that let holders buy and sell property tokens with near-instant liquidity and no lockup. - Daily rent distribution: Net rental income is streamed to token holders daily (deposited nightly, proportional to ownership), payable to the Lofty account, bank/PayPal, or as Algorand-based assets such as USDCa. - Managed Algorand wallets: The app auto-creates and custodies an Algorand wallet for each user so non-crypto investors can transact without handling keys or learning blockchain mechanics. - Governance voting: Token holders vote on property-level decisions such as repairs, appliance replacement, rent changes, tenant issues, and whether to sell the property.

- Regulatory: Tokens are structured as LLC membership interests and Lofty asserts they are not securities, but under the SEC's Howey test tokenized real estate promising passive rental income can be deemed investment contracts. An adverse SEC determination could force registration, restrict trading, or halt the marketplace. - Counterparty: Each property is held in a per-property DAO LLC administered by Lofty. Investors depend on Lofty AI, Inc. and its property managers for title custody, rent collection, maintenance and record-keeping; company insolvency, mismanagement, fraud, or a title/deed defect at the LLC level could impair the underlying asset and holders' claims. - Systemic: Secondary-market liquidity is thin and platform-dependent. Despite the PMM and liquidity pools, tokens for a given property can be hard to exit at fair value; in a downturn or platform stress holders may face wide spreads, no buyers, or effective illiquidity. - Smart Contract: Ownership, transfers and rent distribution rely on Algorand Standard Assets and Lofty's on-chain logic and custodial wallets. Bugs, mispriced AMM/PMM pools, or a compromise of the managed-wallet infrastructure could cause loss of tokens or funds. - Collateral: Returns depend entirely on single, concentrated US residential properties. Vacancy, non-paying tenants, unexpected repairs, local market declines, or property damage directly cut rental yield and token value, with no diversification within a single property token.

- Single rental property (direct landlord ownership): similar — Investors gain direct fractional exposure to a specific, identifiable US rental house and receive its rental cash flow plus any appreciation, just like owning a rental outright.; differs — Entry is $50 instead of a full down payment; ownership is fractional via LLC tokens; rent is paid daily and automatically; property management is handled for holders; and stakes can be sold in minutes on the secondary market rather than via a months-long sale. - REIT (Real Estate Investment Trust): similar — Pools many investors into professionally managed income-producing real estate and distributes rental income; accessible to non-accredited investors.; differs — Lofty lets investors pick individual properties (not a blind pooled portfolio), pays rent daily rather than quarterly dividends, is settled on-chain on Algorand, and gives holders direct governance votes on each property; it is not an SEC-registered '40 Act fund and offers property-level rather than diversified exposure.