Sellers Can Now List Portions of Their Properties on Lofty

Co-Own Properties With the Seller

Now property owners can sell a portion of their property on the Lofty Marketplace.

This allows buyers and sellers to co-own properties together, aligning incentives and leading to higher returns and less property issues.

Investors on Lofty now get to invest alongside the property owner, and reap the benefits of their intimate knowledge and experience owning and managing the property.

Property owners get to sell equity in their property for a low fee, without having to go through a traditional closing process or a HELOC.

It's a win-win for both sides.

Benefits for buyers:

• Co-Own properties alongside the property owner, who has intimate knowledge and experience owning and managing the property
• Property owner pays a portion of all repair costs, based on their ownership stake at the time the repair occurred
• Take advantage of leverage if the property has an existing loan
• Become an owner instantly (and get daily rent) after investing, because the property is already owned by the Wyoming LLC, and does not need to go through a traditional closing process.
• Property owner can make recommendations for governance votes, based on their own experience
• Directly ask the property owner questions about the property in their properties specific Lofty Discord Channel

Benefits for sellers:

• Sell equity in their property for a low fee of 2.5%, without having to go through a traditional closing process or a HELOC
• No closing process means no more dealing with agents, lenders, buyers, and title companies
• Adjust the sales price anytime with just a few clicks
• Leverage institutional property management companies & insurance providers with lower fees to improve the profitability of the property
• Utilize vendors to appeal Property Taxes for lower rates

Examples of Partial Ownership Listings

Luxury Vacation Rental in Atlanta, Georgia

This property, located at 75 Boulevard NE Unit 1, is a luxury Townhome built in 2021.

The owner of this property, Prosper N., is an existing Lofty user, and wants to pull equity out of his property and put those funds towards the purchase of a new property.

Prosper’s goal is to sell 40% - 50% of his equity in his property on the Lofty Marketplace.

On top of being the owner of this property, Prosper has also been the Property Manager for over a year. He is a Superhost on Airbnb with a rating of 4.93 / 5 stars.

After he sells a portion of his equity, he will continue to manage the property and charge a management fee of 20% of gross rental income.

Because Prosper will still maintain 50% - 60% of his equity after he sells a portion, he has a strong incentive to make sure the property continues to perform well.

Prosper has owned this property since June, 2022, and on top of managing the property, he was also involved with the interior design, furniture layout, and listing of the property on short-term rental websites like Airbnb, VRBO, and booking.com.

Prosper has intimate knowledge of this property that only the owner & manager would have. Now, investors on Lofty have the opportunity to invest alongside Prosper and reap the rewards of his hard work & dedication to get his property where it is today, while Prosper can now pull equity out of his property, for a low fee, to purchase another property. It’s a win-win for both sides.

This property also has an existing loan with a balance of $560,000. This loan was attained by Prosper before listing his property on the Lofty marketplace. As a result, investors on Lofty get the advantages of leverage when they invest, without having to make monthly loan payments, which are paid in full by Prosper.

The Lofty Discord group has a specific channel for this property, where Prosper is available to answer questions.

12615 Jackson Ave, Grandview, MO 64030

This property is a fully renovated, 10-unit Apartment Complex located in Kansas City, Missouri.

The owner of this property, Mackaylee Beach, completed all of the renovations and leased all of the units in-house.

Mackaylee is also the Property Manager, and will continue to serve as the Property Manager of the property for the foreseeable future.

Mackaylee has extensive experience purchasing, renovating and managing properties in the Kansas City market.

Now, investors in Lofty have the opportunity to invest alongside her in a 10-unit property that was fully renovated and managed by Mackaylee, herself.

Mackaylee plans to keep 70% ownership of the property after selling a portion of her equity.

She outlined her plan to investors in her properties specific Discord channel, which can be viewed below:

• "I intend to keep 70% ownership of the property. To cover the costs of the extensive renovations, I plan to complete the refinance and sell 30% of the equity. Recently, the property was appraised at $1,400,000. Although there have been some maintenance costs that were publicly disclosed, that is expected when new tenants first move in. We do have warranties in place for the HVAC systems, roofing, hot water tanks, and appliances. Out of the current tenants, 7 out of 8 are Section 8 recipients, the government covers most of their rent. Every tenant has gone through a thorough screening process, and we've turned down over 50 applicants who didn't meet our criteria. All tenants have also paid a security deposit of $1,000.The Section 8 payment standards are updated annually. In 2024, 2-bedroom vouchers will likely increase by nearly $100 a month. Although this doesn't guarantee rent increases for us, we may be able to apply for increased rents at the end of current leases. This could enhance the overall value of the property and increase the return on investment for all."

Mackaylee's property before her team's renovations:

Mackaylee's property after her team's renovations:

Just like with 75 Boulevard NE, This property also has an existing loan of $800,000. This loan is currently being refinanced to a new loan of $910,000, with a lower interest rate, via a recent Governance Vote on the property taken by all of the owners.

Mackaylee has chosen to not have investors on Lofty pay a portion of the debt payments. By doing so, she is able to offer her equity with a yield of 20.3%, after the refinance is completed.

By offering a higher yield, Mackaylee is able to sell her equity faster due to increased demand.

Mackaylee gets to pull equity out of her property and only pay a 2.5% fee to do so, and investors on Lofty get to invest alongside an experienced investor & property manager with skin in the game. Another win-win.

By allowing property owners & buyers to invest alongside each other in our new Co-Ownership model, incentives are more aligned as both parties have skin in the game and an incentive for the property to continue to perform well.