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How does the Lofty Marketplace work?
Lofty is not a fund. We do not purchase properties, flip them, and then sell them on our website.
Instead, we are a marketplace like Airbnb, eBay, or Amazon.
The Lofty marketplace consists of buyers (token holders) and sellers (people who want to sell their properties). Currently, there are less than 5 sellers who are permitted to list properties on the Lofty marketplace. These sellers have years of experience rehabbing and selling turnkey properties with a great track record.
Here is how our marketplace works:
Step 1: A seller submits their property to be sold on the Lofty marketplace. The property is either approved or denied based on factors like occupancy status, condition, location, rental history, and more.
Step 2: Once approved, the property is put under contract by a newly formed LLC. The LLC is then tokenized into individual $50 tokens on the Algorand blockchain.
Step 3: A professional property inspection company will inspect the property and provide a report. If repairs are needed, the seller will make the repairs before closing or provide a credit to the LLC.
Step 4: The property is listed on the Lofty marketplace. Once the property is fully funded, the LLC will close on the property with the Title Company and the deed will be transferred to the new LLC.