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 investors) and sellers (people who want to sell their properties).
Lofty properties are listed by multiple parties that source deals to our marketplace. These parties include real estate agents, turnkey providers, wholesalers, and home flippers.
Before a property can be listed on the Lofty marketplace, it must have an inspection report, appraisal, signed purchase agreement, and much more. All of this data can be viewed publicly in the "Documents" tab of each property page. Example: https://asset.lofty.ai/LFTY0218
As a marketplace, Lofty looks to list properties from multiple sources and provides resources for any seller to list properties on our platform. Sellers can submit a request for their property to be sold on our platform using the Sell my property link on our homepage.
How our property listing process 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, location, rental history, and more.
Step 2: Once approved, the property is put under contract by a newly formed DAO LLC. The DAO 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 an inspection report. Oftentimes, the seller will make repairs before closing or provide a credit to the DAO LLC.
Step 4: The property is listed on the Lofty marketplace. Once the property is fully funded, the DAO LLC will close on the property with the Title Company and the deed will be transferred to the new DAO LLC.