Owner-Proposed Governance Vote for 14018 Arcadia Road NE:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 252 shares in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

This proposal requests formal authorization from token holders to list and sell the real estate property located at 14018 Arcadia Road NE, Albuquerque, New Mexico, to halt further cash-on-cash yield erosion and protect operating reserves.

Additionally, this proposal grants Tristan H. full authorization and discretion to manage all aspects of the sale—including selecting the listing broker, negotiating contract terms, and executing necessary closing documentation—to secure the highest possible sale price and maximize net returns for token holders.

Upon settlement, 100% of net sales proceeds and remaining operating reserves allocated to this asset will be distributed pro-rata to token holders, fully winding down the membership.

Key Drivers for Strategic Exit

Impending Shift in Operational Expenses: Tristan has personally absorbed the majority of recent operational costs to buffer member returns. Moving forward, these expenses must fully shift onto the DAO. Without this subsidization, net operating income (NOI) will drop significantly, triggering an immediate and severe drop in cash-on-cash yield for token holders.

Severe Operational Impact from Recent Break-ins: The property has suffered two separate break-in incidents recently. Beyond immediate repair and security upgrade costs, these events can lead to guest cancellations, refund payouts, bad reviews, and listing de-prioritization on booking channels—directly threatening top-line revenue.

Broader Citywide Short-Term Rental Decline: Albuquerque's STR market faces heavy saturation, lower occupancy rates, and compressed Average Daily Rates (ADR). The property is no longer generating the revenue required to cover its true, unsubsidized holding costs (insurance, utilities, maintenance, and elevated security).

Protecting the Operating Reserve (~$8,749.22): The property currently holds approximately $8,749.22 in Operating Reserves (OR). Selling the property now preserves this capital, allowing the full amount to be added directly to the final distribution payout. Continuing to hold the asset means this reserve will quickly be drained by upcoming mandatory repairs, security upgrades, and ongoing maintenance—capital that would otherwise go straight back to token holders.

Escalating Fixed Overhead: Property taxes and insurance escrow increased by ~$500 last month, placing immediate additional pressure on fixed carrying costs and further compressing cash flows.

Overcoming Sunk Cost Bias: Preserving Capital Over Illusion

Holding an underperforming asset in hopes of recovering past investments is a textbook trap known as the sunk cost fallacy. Money already spent on acquisition, platform overhead, or past security fixes cannot be recovered by holding out hope in a weakening market. Every month we continue to hold this asset under changing operational realities and market saturation, we are actively burning liquid capital that currently belongs to token holders. Refusing to sell because of where prices were in the past only guarantees that future distributions will shrink as reserves bleed out. Exiting now locks in existing home equity, salvages the operating reserve, and maximizes the real dollar payout returned to token holders today.

Why Exiting Makes Sense Now

Holding this asset while transitioning full operational expenses to the DAO will quickly turn cash flow negative and burn through remaining operating reserves. Selling now eliminates ongoing liability, cuts unrecoverable losses, and returns remaining capital to token holders before yields erode any further.

Option A: YES – Authorize Asset Sale & Member Liquidation

Approve listing the property for sale, granting Tristan H. full authority to execute the sale process, paying off outstanding debt obligations, distributing 100% of net proceeds and remaining operating reserves pro-rata to token holders, and fully winding down membership.

Option B: NO – Remain Status Quo & Shift Expenses to DAO

Reject the proposal to sell the property. Token holders agree to maintain ownership under current market conditions and authorize the DAO to fully pay its portion of all ongoing operational, maintenance, tax, and carrying expenses moving forward.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, September 1st, once the voting period ends.