Lofty makes it beyond simple to sell a portion of your equity on our marketplace at a high valuation, for just a 3% fee.
This process lets you avoid dealing with banks, high interest rates, or selling your property outright for less than its worth and paying high commissions and closing costs.
What is Lofty?
Lofty is the world’s largest fractional real estate marketplace, with over $65 million in transaction volume and 34k+ registered investors. People from all over the world come to our website to invest in 150 different properties starting at just $50.
Lofty has raised $8M in venture capital from top investors including Y Combinator, Hustle Fund, Rebel Fund, Jason Calacanis, the founders of Instacart & Reddit, and more.
How to Sell Equity on Lofty
The process to start selling your equity on Lofty is extremely simple.
We will set up an inspection and appraisal. You can list your property on Lofty up to 5% above the appraised value, plus add any costs of furniture if you own a short-term rental.
Your deed is transferred to a new Wyoming LLC we've already created via FirstTitle, using a Quitclaim deed. All properties on Lofty are owned by individual Wyoming LLCs with the exact same structure. You will then own 100% of the WY LLC that owns your property.
Your LLC is then fractionalized into $50 fractions, which represent legal ownership in the LLC. You can then go to your custom property page on our marketplace, click the "Sell" button, and list as many fractions for sale as you'd like, at any price you'd like. The property's rent and expenses, including repairs, are split proportionally based on the amount of equity you sell, e.g., if you sell 20% of your equity, you receive 80% of the rent.
The only fee you ever pay is 3% whenever you sell equity. We do not charge upfront fees or take a portion of the rent. There is the ability to regain your equity in the property in the future, and sell the property outright.
Case Studies
1. Jordan Bentley, a tech CEO, sold 20% of his equity in his Vacation Rental in Ogden, Utah. Jordan now owns 80% of his property, collects 80% of the rent, and charges investors a management fee for managing the property as a Superhost on Airbnb.
2. Arrio Granum sold $110k worth of equity in his 8-unit mixed use property in one week at an average of $55-60/fraction (a 10-20% increase over the appraised value of $50/fraction). His fractions are now trading at $77/fraction (as of 11/11).
3. Tristan Huerta, the former Head of Short Term Rentals at Investment.com, initially sold $20k of equity in his property at $50/fraction. His equity sold in just minutes, so he listed the remaining $80k in equity he wanted to sell at $55-$60/fraction. This equity sold in the next few hours. His fractions are now trading around $52, and have traded as high as $74/fraction in the past.
4. Miriam Jones sold $150k of equity in her primary residence, a horse ranch in Acton, CA. She is paying investors a 15% yield, and buying back her equity in 3 years.
Benefits of selling your equity on Lofty
✅ Easily sell a portion of your equity at a high valuation, for just a 3% fee. We do not charge any upfront fees or take a portion of the rent
✅ Avoid dealing with banks and high interest rates
✅ Avoid selling your property outright for less than it's worth, due to the market environment, and paying a 6% commission + closing costs
✅ Ability to regain your equity in the property in the future, and sell the property outright
✅ Tap into the significant equity you’ve built without relinquishing complete ownership
✅ No closing process means no more dealing with agents, lenders, buyers, and title companies
✅ Adjust your sales price anytime with just a few clicks
FAQ
Can I sell my property if I currently have a loan?
Can I sell my property if I currently have a loan?
Yes. The majority of properties listed have existing loans.
How do I determine the price my property is listed for on the marketplace?
How do I determine the price my property is listed for on the marketplace?
The price you choose must be within 5% of the appraised value. E.g., If the appraised value of your property is $95,000, you could list your property for up to $100,000. You would then receive 2,000 fractions at $50 each to your Lofty account.
Can I sell my entire property on the Lofty Marketplace?
Can I sell my entire property on the Lofty Marketplace?
No. You must maintain at least 10% equity in your property.
Who handles bookkeeping and taxes?
Who handles bookkeeping and taxes?
You’ll benefit from the same experience as users investing in properties in the Lofty Marketplace. Bookkeeping is handled for you, and you'll receive a filled out 1099 at the end of the year with depreciation factored in.
How much does it cost to sell my property on Lofty?
How much does it cost to sell my property on Lofty?
The only fee is a 3% marketplace fee whenever you sell equity in your property. E.g., If you sell 100 property fractions for $5,000, you would receive $4,850. You can then withdraw these funds directly to your bank account for no additional fee.
Can I buy back my equity?
Can I buy back my equity?
Yes, there is the option to buy back your equity and regain ownership in your property.
Can I continue to manage my property?
Can I continue to manage my property?
Yes, you can continue to manage your property and you can even charge investors a management fee.