• Property Update (04/11/2026):

• Sale Update:

• Property SOLD - Closing completed October 1-3, 2025

• Sale documents on file: General Warranty Deed, Closing Disclosure, Seller Closing Packet

• Distribution monitoring in progress

• Status: SOLD - Awaiting final distribution reconciliation

• Property Update (08/27/2025):

• Owner-Proposed Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed votes:

• The first winning vote is:

• Accept – Approve Earl Vanze Co of ECO Systems LLC to accept the offer at $450,000 under the buyer’s current terms, pending an addendum to adjust seller-paid buyer agent commission from 3% to 2.5% per listing agent agreement. Buyer may ask for more off the price during inspections, even though the offer is “AS-IS”.

• This voting option received 5,277 / 5,622 token votes which is equal to 94% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 3185893650

• The second winning vote is:

• Approve Capital Call – Approve retroactive 1.5% per month of interest on $5,000 of incurred expenses beginning the month they were incurred to compensate for the property’s ongoing holding costs and extended time to close on a sale, to be paid at closing.

• This voting option received 4,763 / 5,622 token votes which is equal to 85% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 3185895777

• Property Update (08/27/2025):

• Owner-Proposed Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed votes:

• The first winning vote is:

• Accept – Approve Earl Vanze Co of ECO Systems LLC to accept the offer at $450,000 under the buyer's current terms, pending an addendum to adjust seller-paid buyer agent commission from 3% to 2.5% per listing agent agreement. Buyer may ask for more off the price during inspections, even though the offer is "AS-IS".

• This voting option received 5,277 / 5,622 token votes which is equal to 94% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 3185893650

• The second winning vote is:

• Approve Capital Call – Approve retroactive 1.5% per month of interest on $5,000 of incurred expenses beginning the month they were incurred to compensate for the property's ongoing holding costs and extended time to close on a sale, to be paid at closing.

• This voting option received 4,763 / 5,622 token votes which is equal to 85% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 3185895777

• Property Update (08/26/2025):

• Owner-Proposed Governance Vote for 5401 Odom Ave:

• The owner-elected DAO Representative, Earl Co of ECO Systems LLC, with the following wallet address is proposing a governance vote.

• This owner holds 226 tokens in this property.

• Due to the urgency of the offer, the results will be determined tomorrow, August 27th.

• 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.

• Fellow Odom owners,

• We have received a “final offer" from a conditionally pre-qualified buyer to purchase 5401 Odom Avenue, Fort Worth, TX 76114. We are bringing this to a vote with three options: Accept, Counter, or Reject.

• Background

• DAO Debts: (~$10,885 and rising) consisting of:

• Unpaid Taxes (can be paid at closing): $1,313.37

• Overdue Insurance Premium: ~$1,197.40 out of $2,634.37 total premium

• Lending DAO Balance: $1,295.35

• Expenses incurred by Earl: $3,565.69

• Transaction Coordination Fee due to Earl: $1,000

• Owners are encouraged to review the latest financial summary in the "Chicago and non-Yhome" tab of Yhome Transition Reconciliation.xlsx and the "Discord" tab on LoftyAssist

• Buyer’s “Final Offer"

• Price: $450,000 (~$35.04/share NAV)

• Financing: $427,500 conventional loan (30-year fixed, 6.625% interest)

• Cash at Closing: $22,500

• Earnest Money / Option Fee: $4,500 earnest, $250 option fee

• Closing: On or before October 1, 2025 (changed from October 7)

• Option Period: 7 days (down from 12 days)

• Additional Terms: Buyer found current survey and will pay if a new one is required, appraisal addendum fully waives termination rights if appraisal is low, seller pays up to $750 for home warranty, pest warranty included by seller, furnishings to convey, property sold “As Is.”

• Vote #1: Action re: Purchase Agreement

• Accept – Approve Earl Vanze Co of ECO Systems LLC to accept the offer at $450,000 under the buyer’s current terms, pending an addendum to adjust seller-paid buyer agent commission from 3% to 2.5% per listing agent agreement. Buyer may ask for more off the price during inspections, even though the offer is “AS-IS”.

• Reject – Decline this offer; continue marketing the property.

• Upon approval, Earl Vanze Co of ECO Systems LLC, and Jerry Chu and Max Ball of Lofty AI Inc., are authorized to sign all required documents and work with Community National Title and Buyer’s lender to close.

• I recommend we accept the offer, contingent on an addendum modifying the seller-paid buyer agent commission to 2.5%.

• Vote #2: Capital Call for DAO-incurred Expenses

• 1. Approve Capital Call – Approve retroactive 1.5% per month of interest on $5,000 of incurred expenses beginning the month they were incurred to compensate for the property’s ongoing holding costs and extended time to close on a sale, to be paid at closing.
• 2. Reject Capital Call & Issue Dilutive Equity – Reject repayment terms outlined, default to dilutive issuance of up to 160 shares @ $25/share to Earl Vanze Co to repay up to $4,000 of funds due and payable immediately.

• Please cast your votes by: August 27, 2025 @ 5 PM CDT. Thank you for your prompt attention.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Wednesday, August 27th once the voting period ends.

• Property Update (08/21/2025):

• Owners are encouraged to review the latest financial summary in the "Chicago and non-Yhome" tab of Yhome Transition Reconciliation.xlsx and the "Discord" tab on LoftyAssist

• Property Update (08/19/2025):

• Owner-Proposed Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed vote:

• The winning vote is:

• NO — Do not convert; continue listing at minimum $450k

• This voting option was declared the winner in Round 1 with 4,347 tokens votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 3177788559

• Property Update (08/12/2025):

• Owner-Proposed Governance Vote for 5401 Odom Ave:

• The owner-elected DAO Representative, Earl Co of ECO Systems LLC, with the following wallet address is proposing a governance vote to turn this property into a PadSplit Model.

• This owner holds 72 tokens 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.

• Please see included proposal for governance vote circulation with 1-week voting period: https://www.dropbox.com/scl/fi/zb4kvtwkofn8id6fe9b3i/Governance-Vote-Convert-5401-Odom-Ave-To-Pad-Split.docx?rlkey=vebs230haa9wjet46hkyqmsl0&dl=0

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Tuesday, August 19th once the voting period ends.

• Property Update (08/12/2025):

• An owner of this property has put together a counter-proposal.

• This is in response to the governance vote sent out on 8/12, which can be viewed on the property page in the "Property Updates" section.

• If you have already voted, and would like to change your vote, click the button below, or at the end of this email.

• The owner who proposed the counter-proposal owns 415 tokens in this property, and his wallet can be viewed here.

• The owner's counter-proposal 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.

• I would like to provide the following context/counter proposal:

• I want to encourage my fellow co-owners to choose the sell at $450K option in this vote. While I agree with the proposer that we need to make a change, I don't believe that operating as a Padsplit is the best way for all of us to maximize our returns. To illustrate this point, I've calculated the returns we would need to make by reinvesting our sale proceeds outside of the DAO under a few scenarios to match the returns we are expected to receive in the DAO with the current proposal. For these calculations, I used the stated NOI in the proposal, as I'm taking Earl's estimates at face value. Please keep in mind that to move from 5 bedrooms to 6 or more will take additional investment in the property, so my comparisons are actually over estimating the implied yield in those scenarios.

• In the base case, in order to be better off with a $450K sale, we would only need to reinvest our proceeds in something with a 3.35% yield to match the performance of this proposal. Anything over that beats the base case. If everything goes perfectly, and we're able to ramp up to 8 bedrooms, and we ignore the investment required to get us there, then we would need our alternative investment to yield 7.48% to match this proposal. In all cases I'm assuming the appreciation rate for the new investment would be similar to that of Odom.

• I believe we all have several options to reinvest sale proceed outside of this DAO at the stated rates or higher, and I don't think there is any reason to believe that Odom will appreciate faster than those alternative investments. The only way that the current proposal makes good financial sense, is if you assume that Odom outperforms from an appreciation perspective to such a degree that it's worthwhile to take a significantly lower yield in the interim. I don't believe that is the case, but reasonable minds could disagree. Please keep in mind that this analysis is the same whether you bought your tokens for $50 or $5 initially. I'm just looking at what the most profitable path forward from this point should be for all of us.

• Because it's been brought up, I want to address the idea that next year we could "sell it for what it's worth". I don't believe this property was ever worth the $550K that the DAO initially paid for it, and there is no evidence that this property will be significantly more marketable a year from now. If $450K is the price that it sells for today, that's the starting point or appreciation. The fact that the DAO paid significantly more does not mean we should be able to sell it for that price anytime soon. Some have mentioned that rates are coming down, and the market may heat up, but this same logic will apply to any alternative investment you make with the sale proceeds. Of course if it turns out we can't even sell for $450K today, then we'll need to reevaluate our situation.

• In summary, unless you believe you are incapable of reinvesting your sale proceeds into something that yields 3.35 - 7.48% and has similar appreciation expectations to Odom, you should vote for the $450K sale price.

• Please note that for this analysis, I used a gross 8% assumption for sales expenses. I believe this is a conservative estimate, but it's possible that actual expenses would be a bit more or less.

• Property Update (07/29/2025):

• Owner-Proposed Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed vote:

• The winning vote is:

• Accept Offer (with Personal Guaranty) Approve the financing terms as proposed, contingent upon a signed personal guaranty.

• This voting option was declared the winner in Round 2 with 3,559 tokens votes.

• The voting results can be found on chain here or by searching the application ID: 3144433108

• Property Update (07/25/2025):

• Owner-Proposed Governance Vote for 5401 Odom Ave:

• The owner-elected DAO Representative, Earl Co of ECO Systems LLC, with the following wallet address is proposing a governance vote for this property.

• This owner holds 60 tokens 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.

• Dear Owners,

• Please see the governance proposal document outlining the terms and analysis of the new seller financing offer for 5401 Odom Avenue.

• Summary:

• Purchase Price: $550,000

• Down Payment: $40,000

• 4% Interest-Only Payments ($1,700/month)

• 7-Year Balloon Repayment

• Personal guarantor required

• You will find a full financial analysis, pros and cons, and voting options in the attached document.

• Action Required: Please review the proposal and submit your vote to approve, counter, or reject. I recommend we accept this offer.

• If you have any questions, reach out on Discord: @earlvanze or email ecosystemspm@gmail.com.

• Thank you,

• Earl Co

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Tuesday, July 29th once the voting period ends.

• Property Update (07/15/2025):

• Owner-Proposed Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed vote:

• The winning vote is:

• Reject Offer. Decline and continue marketing the property.

• This voting option was declared the winner in Round 1 with 5,975 tokens votes.

• The voting results can be found on chain here or by searching the application ID: 3120245912

• Property Update (07/14/2025):

• Owner-Proposed Governance Vote for 5401 Odom Ave:

• The owner-elected DAO Representative, Earl Co of ECO Systems LLC, with the following wallet address is proposing a governance vote for this property.

• This owner holds 58 tokens 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.

• Fellow investors, The prospective buyer has ignored most terms of our counter-offer and countered back with the exact same terms except with the addition of a 7-year balloon with an ambiguous escape clause as follows:

• “The seller financing addendum provides that the buyer shall make a balloon payment at the end of the seven year note. However, if the loan to value of the property is 70% or higher at that time, the balloon payment shall not be required, ensuring the buyer’s financial protection.”

• Please review this governance proposal and make an informed vote by Wednesday, July 16th. Thank you for your diligent consideration.

• Best regards, Earl Co, Manager, ECO Systems LLC

• Voting Options

• Option 1 – Accept Offer

• Approve the purchase contract as proposed.

• Option 2 – Counter-Offer Again

• Reject the ambiguous balloon clause and present the revised language above.

• Option 3 – Reject Offer

• Decline and continue marketing the property.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Tuesday, July 15th once the voting period ends.

• Property Update (07/14/2025):

• An owner of this property has put together a counter-proposal.

• This is in response to the governance vote sent out on 7/14, which can be viewed on the property page in the "Property Updates" section.

• If you have already voted, and would like to change your vote, click the button below, or at the end of this email.

• The owner who proposed the counter-proposal owns 400 tokens in this property, and his wallet can be viewed here.

• The owner's counter-proposal 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.

• I would like to strongly urge my fellow investors to chose Option 3 - Reject Offer.

• Reasoning: This offer is asking for a 7 year interest free loan. This is the equivalent of a sale today that would net the DAO $380K, based on 5% discount rate, which I believe is extremely low. If anyone is curious about the math on this, I'm happy to share. I'm believe if we lower the price, we would be able to get cash offers higher than that. Please reject this offer, by choosing Option 3, and then we can propose lowering the list price to attract more interest.

• Property Update (07/01/2025):

• Owner-Proposed Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed governance vote:

• The winning vote is:

• Counter Offer

• This voting option was declared the winner in Round 3 with 6,802 tokens votes.

• The voting results can be found on chain here or by searching the application ID: 3098398287

• The counter offer can be viewed in the original proposal.

• Property Update (06/29/2025):

• Owner-Proposed Governance Vote for 5401 Odom Ave:

• The owner-elected DAO Representative, Earl Co of ECO Systems LLC, with the following wallet address is proposing a governance vote for this property.

• This owner holds 58 tokens 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.

• "We have received an owner-financed purchase offer. Please review the following Governance Proposal and attached documents and make an informed decision promptly."

• Maintenance and utility expenses

• Previously-approved proposal to sell on terms here

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Tuesday, July 1st once the voting period ends.

• Property Update (06/28/2025):

• Owner-Proposed Governance Vote:

• The owner-elected DAO Representative, Earl Co of ECO Systems LLC, with the following wallet address is proposing a governance vote for this property.

• This owner holds 58 tokens in this property.

• 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.

• "We have received an owner-financed purchase offer. Please review the following Governance Proposal and attached documents and make an informed decision promptly."

• Maintenance and utility expenses

• Previously-approved proposal to sell on terms here

• Property Update (05/27/2025):

• Governance Results for 5401 Odom Ave:

• The Governance Voting results are back for the owner-proposed vote.

• The winning vote is:

• List with Robert Hart at the terms outlined in the proposal. Earl will work out any additional details related to the listing agreement

• This option was declared the winner in Round 1 with 3,923 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 3020392954

• Property Update (05/23/2025):

• Owner-Proposed Governance Vote for 5401 Odom Ave:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 390 tokens 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.

• View Governance Proposal

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Tuesday, May 27th once the voting period ends.

• Property Update (04/10/2025):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 58 tokens 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.

• KD has apologized and notified the DAO that due to concerns in his personal life, he is currently unable to fulfill the duties set forth in the previous governance vote and would like to nominate me in his place under the exact same terms. I will be open to communicate with all members via Discord or Twitter (@earlvanze) for questions or concerns. You now have the opportunity to re-vote.

• These terms are restated below for your reference:

• I’ll manage each step of the process, sign documents and coordinate the finalization of the sale, for this I request $250 paid upfront from the DAO, $500 at transaction closing, and a $250 bonus if we exceed the Cash Plus offer. The DAO would cover expenses for a Taskrabbit to be present for video or Dallas travel if required. Confirming specifics with Opendoor during the video call is key, as requirements vary by location. Opendoor may need someone for the in-person assessment or signing—I can travel to Dallas if it’s covered compensation. If a Dallas-Fort Worth member can assist, contact me to cut these unnecessary costs to the DAO.

• Voting Options for Odom DAO Property Sale via Opendoor

• Nominating Representative for the Sale (Yes or No)

• Yes: Approve nominating Earl Co to represent, communicate, and sign on behalf of the DAO for the Opendoor property sale.

• No: Do not approve Earl Co as the DAO’s representative for the sale.

• Authority for Unilateral Decisions (Yes or No)

• Yes: Grant Earl Co the ability to make unilateral decisions if timing constraints prevent a full DAO vote (e.g., Opendoor’s 5-day response window).

• No: Do not allow unilateral decisions; require a full DAO vote for all decisions, even if it risks missing deadlines.

• Cash Offer Negotiation and Acceptance (Yes or No)

• Do not require a vote if net proceeds per token are at least $38.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Monday, April 14th once the voting period ends.

• Property Update (03/31/2025):

• Owner-Proposed Governance Results:

• The Governance Voting results are back for the three owner-proposed governance votes:

• Vote #1 Winner:

• Yes: Approve nominating KD to represent, communicate, and sign on behalf of the DAO for the Opendoor property sale.

• This voting option received 5,172 / 5,398 token votes which is equal to 95.81% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2882123456

• Vote #2 Winner:

• Yes: Approve nominating KD to represent, communicate, and sign on behalf of the DAO for the Opendoor property sale.

• This voting option received 5,014 / 5,398 token votes which is equal to 92.88% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2882130058

• Vote #3 Winner:

• Require a vote

• This voting option received 2,731 / 5,398 token votes which is equal to 50.59% of the total votes.

• This vote did not reach a Supermajority. Therefore, the results will default to the standard protocol of requiring a vote to accept an offer on the property.

• The voting results can be found on chain here or by searching the application ID: 2882136618

• Property Update (03/28/2025):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 64 tokens 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.

• Hello Odom DAO Owners,

• In order to complete our sale to Opendoor they require that we elect a representative of our DAO to proceed. As an active, vocal discord member & owner of 64 Odom tokens, I nominate myself as Transaction Coordinator & representative for the Odom DAO to oversee the sale of our property through the iBuyer, Opendoor. As the Dao Representative, I’ll handle communications with Opendoor and present information as much as possible. Some decisions will have to be made swiftly, for this I am seeking approval to make unilateral decisions as needed. I will be open to communicate with all members via Discord (LaPlebDeLaPleb) or Twitter (@InvestmentKD) for questions or concerns.

I would like to extend gratitude to Zircon for his diligent efforts in getting us here. The previous offer we voted on is void, as Opendoor’s offers dropped to a $511,900 Cash offer and a $598,493 Cash Plus offer, both below the realtor’s $615,000-$630,000 estimate. These offers fluctuate often, so we must act decisively once we begin the process. The 30-minute video call is virtual—no in-person showing needed—but after accepting the preliminary offer, an in-person assessment may require me or a DAO owner or representative to be present, depending on local Opendoor rules.

• In the Opendoor process then they provide a final offer within 24-72 hours, deducting a 5% commission, 1-1.5% closing costs, and costs for repairs. My research shows that the in-person inspection is about 5 minutes long to assess repair costs, which typically range from $10,000-$30,000, though never over $30,000. Once the final offer is made it is pivotal we respond quickly to secure our offer price and then we can set closing for 15-45days for Cash offer and list on the market in the Cash Plus offer. The Cash Plus offer ($598,493) beats the $511,900 Cash offer, with a 90-day listing and a slight bonus ($) guarantee if unsold (after 90-days).

• I’ll manage each step of the process, sign documents and coordinate the finalization of the sale, for this I request $250 paid upfront from the DAO, $500 at transaction closing, and a $250 bonus if we exceed the Cash Plus offer. The DAO would cover expenses for a Taskrabbit to be present for video or Dallas travel if required. Confirming specifics with Opendoor during the video call is key, as requirements vary by location. Opendoor may need someone for the in-person assessment or signing—I can travel to Dallas if it’s covered compensation. If a Dallas-Fort Worth member can assist, contact me to cut these unnecessary costs to the DAO.

• Zircon has created this Odom Sales Table to give each owner the ability to see what their proceeds per token,

• Voting Options for Odom DAO Property Sale via Opendoor

• Nominating Representative for the Sale (Yes or No)

• Yes: Approve nominating KD to represent, communicate, and sign on behalf of the DAO for the Opendoor property sale.

• No: Do not approve KD as the DAO’s representative for the sale.

• Authority for Unilateral Decisions (Yes or No)

• Yes: Grant KD the ability to make unilateral decisions if timing constraints prevent a full DAO vote (e.g., Opendoor’s 5-day response window).

• No: Do not allow unilateral decisions; require a full DAO vote for all decisions, even if it risks missing deadlines.

• Cash Offer Negotiation and Acceptance (Yes or No)

• Do not require a vote if net proceeds per token are at least $38.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Monday, March 31st once the voting period ends.

• Property Update (03/15/2025):

• Owners previously voted to proceed with Opendoor's Cash Plus Offer of $528,000 to $616,000 (Est. proceeds of $41.79 to $45.64/token), with a vote to reconsider if requested repairs exceed $10,000.

• The OpenDoor offers have decreased to an OpenDoor Cash offer of $511,900 and an OpenDoor Cash Plus offer of $598,493, rendering the previous vote void.

• Owners can propose a governance vote to set a price range to accept the OpenDoor offers, which change often, as well as appointing a member-delegate to handle the process if they wish. The delegate must conduct a video call with OpenDoor, per their requirements, and complete additional steps to finalize the sale.

• Property Update (03/13/2025):

• Owner-Proposed Governance Results:

• The Governance Voting results are back for the owner-proposed governance vote to accept one of the iBuyer quotes.

• The winning vote is:

• Proceed with Opendoor's Cash Plus Offer of $528,000 to $616,000 (Est. proceeds of $41.79 to $45.64/token), with a vote to reconsider if requested repairs exceed $10,000.

• This voting option was declared the winner in Round 1 with 5,634 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2834951181

• Owners will receive updates throughout the sales process to OpenDoor.

• Property Update (03/05/2025):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 43 tokens 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.

• Hello,

• We have received iBuyer quotes, which you will see outlined in the chart below. Offers were presented prior to any fees, so I have added those amounts into my table to show the true estimated proceeds.

• Additionally, please note that any of these iBuyers could request repairs or closing credits, which may reduce the amount we receive in a sale. The additional section at the bottom of my chart attempts to show the impact of repairs to the offer on a per token basis.

• My and other owners' recommendation is to proceed with the Opendoor Cash Plus Offer, as it combines a minimum cash price with the potential to reach a higher sales price in the market. It is likely to be the best offer of the 3 iBuyers given fees.

• I do not recommend OfferPad at all, as the offer is significantly below Opendoor or Zoom Casa.

• I do not recommend Zoom Casa, as additional research shows that Zoom Casa overcharges on repairs and withholds full sales proceeds until the house is re-sold. Their program works better for sellers hoping to purchase a new property with the initial upfront proceeds, and who are comfortable waiting on the remainder.

• View Cash Offer Comparison

• Voting Options:

• Proceed with Opendoor’s Cash Plus Offer of $528,000 to $616,000 (Est. proceeds of $41.79 to $45.64/token), with a vote to reconsider if requested repairs exceed $10,000.

• Proceed with Opendoor’s Cash Offer of $528,000 (Est. proceeds of $41.79/token), with a vote to reconsider if requested repairs exceed $10,000.

• Proceed with Zoom Casa’s Offer of $598,623 (Est. proceeds of $44.35/token), with a vote to reconsider if requested repairs exceed $10,000.

• Proceed with OfferPad’s Offer of $484,204 (Est. proceeds of $38.32/token), with a vote to reconsider if requested repairs exceed $0.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Monday, March 10th once the voting period ends.

• Property Update (02/28/2025):

• Quotes came in from multiple iBuyers per the recent governance vote, which can be viewed below:

• Opendoor: 3 options

• Opendoor Cash - $528,000

• No repairs

• No showings

• Opendoor Cash Plus - Up to $616,000

• Get the open door cash offer, and potentially higher offers from pre-qualified buyers.

• No prep or staging needed

• $5,000 Higher Offer Guarantee

• Opendoor Agent - Get a local agent to help you list on the MLS

• Offerpad: $484,204

• Zoom Casa: $598,623

• Property Update (02/24/2025):

• Owner-Proposed Governance Results:

• The Governance Voting results are back for the owner-proposed governance vote.

• The winning vote is:

• Pursue a sale to an iBuyer, get quotes from all three (Opendoor/Offerpad/Zoom Casa) and pursue the best

• This voting option was declared the winner in Round 3 with 6,709 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2795097067

• Once quotes have been received from the iBuyers, another governance vote will be sent to owners to accept or deny the offers.

• Property Update (02/20/2025):

• An owner of this property has put together a counter-proposal.

• This is in response to the governance vote sent out on 2/20, which can be viewed on the property page in the "Property Updates" section.

• If you have already voted, and would like to change your vote, click the button below, or at the end of this email.

• The owner who proposed the counter-proposal owns 58 tokens in this property, and his wallet can be viewed here.

• The owner's counter-proposal 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.

• I asked a friend to run a Comparative Market Analysis and the estimate is $575k, his response below. Therefore, I urge co-owners to list on the MLS as-is for $515-575k and and let the market decide what seller concessions or repairs we can provide if any are necessary or requested, rather than selling to an iBuyer or doing another capital call.

• "The comps were challenging for this one since most of the properties were bigger within a 1-mile radius and had recently sold. I had to bring it out around 2 miles and 9 months ago for data. Also, the IOS pulls the data from the county, but Zillow will provide different information than it.

• Here are the 3-properties that best represent it, but most do not include the photos.

• https://www.zillow.com/homedetails/5861-Lyle-St-Westworth-Village-TX-76114/29150747_zpid/

• https://www.zillow.com/homedetails/3708-Linden-Ave-Fort-Worth-TX-76107/29070399_zpid/

• https://www.realtor.com/realestateandhomes-detail/3708-Cresthaven-Ter_Fort-Worth_TX_76107_M71619-41375

• Only this one is close to the subject property: https://www.zillow.com/homedetails/5705-Fursman-Ave-Fort-Worth-TX-76114/29150580_zpid/ sold for 630k on 11/8/2024

• https://www.zillow.com/homedetails/5400-Volder-Dr-Fort-Worth-TX-76114/29121841_zpid/ sold for 493k on 1/19/2024

• Within the vicinity, there are no recent comps that have a similar square footage, lot size and bed/bath."

• Property Update (02/20/2025):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 33 tokens 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.

• Hello,

• I want to propose the following vote for 5401 Odom, given the recent update and failed capital call. With the failed capital call, we cannot proceed according to the prior vote as we have not funded the repairs required by the realtor, and have an expired listing agreement (if we had one originally). Don't want to re-litigate the realtor choice if we don't need to.

• Proposal starts below:

• Hello fellow token holders,

• In light of the latest update, I want to share some options that we should consider and outline the benefits.

• At this point and following the failure to approve a capital call, I think we should pursue a sale to an iBuyer. It represents only a small discount to the low end of the Redfin range, and has the benefit of speed.

• Relative to an open market sale, a few of us on the Discord wanted to define a minimum price that we should accept. iBuyers like Opendoor/Offerpad/Zoom Casa provide cash offers that would accelerate liquidating this asset. Opendoor’s $475,400 preliminary offer is $446,876 after fees/closing costs, or $37.63/token.

• This is a good option, as failure to pass the capital call means that we do not have funds to make the necessary repairs to capture full property value on market.

• See below for projected net proceeds to token holders:

• View projected net proceeds to token holders

• Thank you for your time and consideration, and the support of fellow owners to bring you these options.

• Voting Options:

• 1. Pursue a sale to an iBuyer, get quotes from all three (Opendoor/Offerpad/Zoom Casa) and pursue the best
• 2. $2,500 capital call, make repairs, and list the property with Juli Palmer-Norris.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Monday, February 24th once the voting period ends.

• Property Update (02/19/2025):

• The guest has checked out, and the cleaning for the reservation has been completed.

• The Listing Agent was notified that the property is now vacant and ready to be listed.

• One of the Owners inquired:

• "Can we ask the agent what she would list it for if we don't do any of the repairs mentioned? And also, if she knows of any vendors who would complete the work, but get paid at closing?"

• The Listing Agent provided the following response:

• "Thank you for the update. I'll need to prepare a listing agreement for signatures.

• Regarding the commission, I believe we previously discussed a total of 6%, with 3% allocated to our office and 3% to the buyer’s agent. Please confirm if this is agreeable and you will pay buyer's agent compensation.

• I’d prefer to complete the repairs before listing, particularly the yard cleanup. Waiting until closing is not ideal since the buyer will have already conducted inspections and likely negotiated repairs or concessions during option period. I understand the reserves are depleted after paying the property taxes, but our vendors won’t be able to delay payment for an unspecified amount of time. Would you be able to discuss potential options with them? My goal is to present the property in the best possible condition when it hits the market.

• As for pricing, I reviewed the most comparable property that I could find-your property is the largest one in the neighborhood so it's difficult to compare.

• 5425 Santa Marie Avenue, Fort Worth, TX 76114-4547

• 2,500 sq. ft., same neighborhood

• Originally listed at $638,000, sold for $585,000"

• Property Update (02/10/2025):

• Governance Results:

• The Governance Voting results are back for the vote to raise a capital call of $4,500 at 13.5% interest.

• The winning vote is:

• Yes, complete the capital call, ask for lower repair quotes, and complete the repairs with whoever is cheaper.

• This voting option received 3,364 / 5,955 token votes, which is equal to 56.5% of the total tokens.

• The voting results can be found on chain here or by searching the application ID: 2761396346

• This vote will not pass due to it not reaching a Supermajority of 60%+.

• Property Update (02/03/2025):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 320 tokens 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.

• I'd like to propose we do a capital call for $4,500 at 13.5% interest. I propose we use these funds to complete the repairs suggested by the listing agent, pay the remaining balance of the property taxes, and leave a little left over for any incidental expenses we may incur during the sale process. I will back this capital call. I would also like to propose that we ask the PM if they're able to complete any of the suggested repairs for less than the estimate provided by the listing agent. It seems like we should be able to do a little better than $10 for a lightbulb, for example, but ask about the whole list.

• Voting options:

• 1. Yes, complete the capital call, ask for lower repair quotes, and complete the repairs with whoever is cheaper.
• 2. No, just wait for a better idea.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Friday, February 7th once the voting period ends.

• Property Update (02/01/2025):

• The Listing Agent conducted a site inspection and provided an estimate of $2,390 to prepare the property for listing.

• They also recommended having the HVAC system inspected and serviced, along with a thorough yard cleanup.

• The HVAC inspection is estimated to cost $149, and the agent obtained two separate estimates for the yard work.

• "We completed the walk through and the first attachment contains the photos taken and the second attachment is the estimate.

• It is recommended to have the HVAC equipment checked and serviced and a good yard clean-up.

• If only one [HVAC unit] was replaced and it [the property] has 2+ then I think we should have it checked out. To service both units the cost would be $149.00.

• I just received the estimate for the yard clean up this morning from our vendor Scott Zachary."

• Feedback from Scott Zachary:

• "Juli, here are some estimates for the yard. Lots of leaves and broken tree limbs and trees, bushes that are rubbing house, and need to be trimmed up and some dead, broken ones, removed from property."

• Estimate 1: A basic yard clean up with mowing and leaf removal of yard with concentrated areas of the driveway, carport, front flower bed and porch, with haul off of leaves, and downed limbs in yard, would be a total of =$575

• Estimate 2: Basic cleanup of leaves, and mowing as stated in estimate 1, plus cutting and trimming of trees and bushes that are rubbing house and the ones that are dead and broken, with haul off included, would be a total of =$1,100"

• The Operating Reserve balance will be approximately $700 after accounting for January's cash flow, which will go toward the remaining $1,966 property tax bill.

• Owners can propose a governance vote to back a capital call to fund repairs and pay taxes or continue renting the property.

• Property Update (12/27/2024):

• Governance Results:

• The Governance Voting results are back for the vote to determine next steps for the property

• The winning vote is:

• Accept the new booking from 1/13/25-2/13/25 for $5,269.28 gross rent, and list the property for sale after this guest moves out

• This voting option was declared the winner in Round 4 with 5,873 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2641499568

• The other voting options were eliminated in the following rounds:

• Round 1:

• Accept the new booking from 1/13/25-2/13/25 for $5,269.28 gross rent, and continue renting the property using One Fine BnB as the Property Manager.

• 154 token votes

• Round 2:

• List the property for sale immediately with Juli Palmer-Norris

• 1,211 token votes

• Round 3:

• Accept the new booking from 1/13/25-2/13/25 for $5,269.28 gross rent, and change property management from One Fine BnB to Earl Co (co-owner & PM of 90 Madison Ave, 88 Madison Ave, 86 Madison ave, and 724 3rd Ave), reducing PM fee from 20% to 12.5%.

• 2,534 token votes

• Property Update (12/23/2024):

• Governance Vote:

• The previous guest moved out on 12/21.

• The property manager confirmed a new booking for 31 nights from 1/13/25 - 2/13/25.

• The gross rental income of the booking is $5,269.28.

• The Owner payout after management, Airbnb fees, and taxes is estimated to be $3,605.08. This does not include any expenses such as utilities, repairs, etc.

• Owners will now have the opportunity to accept this new booking OR list the property immediately with Juli Palmer-Norris of Trend Property Management, who will complete the initial property inspection once the Property Manager confirms that the cleaning has been completed at the property.

• The Property Tax bill is $10,304.14 and is due by 1/31. The Operating Reserve currently has a balance of $7,970.

• If the tax bill is paid in February, the balance owed (with interest) will be $11,025.44. If the balance is paid in March, the total owed will be $11,231.49.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Friday, December 27th once the voting period ends.

• Property Update (11/19/2024):

• The loan is now fully paid off, and the property’s Operating Reserve balance currently stands at $8,346.

• Owners voted to allocate 100% of cash flow until the reserve reaches $13,125 (half full) and 50% of cash flow thereafter until it reaches $26,250 (fully replenished).

• Based on the monthly cash flow in October ($1,402), it will take approximately 3.4 months to reach half the reserve target and an additional 18.7 months to fully replenish the reserve.

• The Operating Reserve balance is part of the property value. As a result, the property will increase in value as the Operating Reserve is replenished.

• Property Update (11/18/2024):

• Governance Results:

• The Governance Voting results are back for the owner-proposed governance vote to reduce the operating reserve to $15,000.

• The winning vote is:

• Keep the operating reserve at $26,250: Maintain the current target to ensure maximum reserve stability.

• This voting option received 3,974 / 6,513 token votes which is equal to 61% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2514308982

• Property Update (11/11/2024):

• Owner-Proposed Governance Vote:

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

• This owner holds 100 tokens 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.

• Dear Fellow Owners,

• With the successful establishment of a liquidity pool for 5401 Odom Ave, owners now have the option to sell their shares instantly for USDC if they no longer wish to hold this asset. Additionally, the operating reserve is on track to reach a comfortable level, and we have a confirmed 45-night booking that will generate $6,934.59 in total revenue (with an estimated owner payout of $4,832.69 after management and platform fees, excluding other expenses).

• Proposal:

• To accelerate cash flow to owners, I propose reducing the operating reserve from its current level of $26,250 to $15,000. This adjustment would allow us to reach the reserve target more quickly, so owners could begin receiving 50% of the rental income in the near future while maintaining a healthy reserve.

• Voting Options:

• 1. Keep the operating reserve at $26,250: Maintain the current target to ensure maximum reserve stability.
• 2. Reduce the operating reserve to $15,000: Lower the target to allow faster distribution of rental income.

• This adjustment balances financial security with the benefit of distributing rental income sooner, while also offering liquidity for those who wish to sell. Thank you for considering this proposal.

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, November 18th, once the voting period ends.

• Property Update (11/07/2024):

• Governance Results:

• The Governance Voting results are back for the vote to choose another listing agent or delist the property and continue renting it.

• The winning vote is:

• Keep the property listed with Juli Palmer-Norris and not rent it.

• This voting option was declared the winner in Round 7 with 6,257 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2463181095

• A new 45-night booking was set to begin on 11/6. Once the guest moves out on 12/21, the property manager will conduct a cleaning of the property, and it will be listed for sale with Juli Palmer-Norris.

• The other voting options were eliminated in the following rounds:

• Round 1:

• Alter the recent vote to only ask for approval of the token holders on sales price, leave the property empty for a minimum of 3 months to expand the potential buyer pool & fund a capital call to meet the upcoming tax payment if required.

• 110 token votes

• Round 2:

• List the property for sale with Victor Steffen

• 172 token votes

• Round 3:

• Do not list the property for sale, and continue using One Fine BnB as the Property Manager.

• 219 token votes

• Round 4:

• List the property for sale with Thomas Byrd

• 542 token votes

• Round 5:

• Pull the listing and fund a capital call to meet the upcoming tax payment obligation & offer the property as a long term rental at the prevailing market price. this is an acknowledgement that the short term prop market was a bad idea.

• 672 token votes

• Round 6:

• Do not list the property for sale and change property management from One Fine BnB to Earl Co (co-owner of 90 Madison Ave, 88 Madison Ave, and 724 3rd Ave), reducing property management fee from 20% to 12.5%.

• 2,659 token votes

• Property Update (11/07/2024):

• Governance Results:

• The Governance Voting results are back for the vote to choose another listing agent or delist the property and continue renting it.

• The winning vote is:

• Keep the property listed with Juli Palmer-Norris and not rent it.

• This voting option was declared the winner in Round 7 with 6,257 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2463181095

• A new 45-night booking was set to begin on 11/6. Once the guest moves out on 12/21, the property manager will conduct a cleaning of the property, and it will be listed for sale with Juli Palmer-Norris.

• The other voting options were eliminated in the following rounds:

• Round 1:

• Alter the recent vote to only ask for approval of the token holders on sales price, leave the property empty for a minimum of 3 months to expand the potential buyer pool & fund a capital call to meet the upcoming tax payment if required.

• 110 token votes

• Round 2:

• List the property for sale with Victor Steffen

• 172 token votes

• Round 3:

• Do not list the property for sale, and continue using One Fine BnB as the Property Manager.

• 219 token votes

• Round 4:

• List the property for sale with Thomas Byrd

• 542 token votes

• Round 5:

• Pull the listing and fund a capital call to meet the upcoming tax payment obligation & offer the property as a long term rental at the prevailing market price. this is an acknowledgement that the short term prop market was a bad idea.

• 672 token votes

• Round 6:

• Do not list the property for sale and change property management from One Fine BnB to Earl Co (co-owner of 90 Madison Ave, 88 Madison Ave, and 724 3rd Ave), reducing property management fee from 20% to 12.5%.

• 2,659 token votes

• Property Update (11/04/2024):

• The property manager relisted the property for rent after owners voted to continue renting while listing the property for sale.

• A new 45-night booking has been confirmed from 11/06/2024 - 12/21/2024.

• The total price for the booking is $6,934.59, which includes a $349 cleaning fee.

• The estimated owner payout, after property management and Airbnb fees, is $4,832.69.

• This amount does not include expenses such as utilities, repairs, or other costs.

• Property Update (11/03/2024):

• Owner-Proposed Governance Votes:

• Two owners have proposed additional governance voting options to be included in the previous governance vote.

• As a result, the previous governance vote will be void, and owners will now have the opportunity to vote again with these additional voting options added.

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

• This owner holds 400 tokens 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.

• new vote - it's ridiculous to put a property on the market and, at the same time, completely constrain the the real estate agent and disregard their advice. the short term property rental market is under pressure throughout the entire country because of over supply. the Odom Property is not booked for the remainder of the year as of the afternoon of 10/31. so, i want to hold a vote to make this a binary decision:

• choice 1 - pull the listing and fund a capital call to meet the upcoming tax payment obligation & offer the property as a long term rental at the prevailing market price. this is an acknowledgement that the short term prop market was a bad idea.

• choice 2 - alter the recent vote to only ask for approval of the token holders on sales price, leave the property empty for a minimum of 3 months to expand the potential buyer pool & fund a capital call to meet the upcoming tax payment if required. we can hold another vote in 3 months if the property is not sold.

• the last vote to constrain the sale of the property was poorly constructed and, frankly, made now sense.

• A second owner with the following wallet address is proposing a governance vote.

• This owner holds 108 tokens 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.

• I would like to propose a governance vote for this property. I would like us to vote to keep the property listed with Juli Palmer-Norris and not rent it.

• She is 100% right it would not go well to keep the property occupied and list it at the same time. And good agent out there would also say this so we need to stay the course with her and list it.

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Thursday, November 7th, once the voting period ends.

• Property Update (11/02/2024):

• Governance Vote:

• The owner-elected Listing Agent, Juli Palmer-Norris, was advised of the owners' decision to continue renting the property against their recommendation.

• Juli provided the following feedback:

• "The frequent turnover of guests and the challenge of coordinating showings while maintaining the property’s presentation are not conditions we can accommodate. It’s likely best for you to partner with another brokerage that better suits your needs. Thank you for the opportunity, and I wish you the best of luck moving forward."

• Owners will now have the ability to choose another listing agent or delist the property and continue renting it using One Fine BnB as the Property Manager.

• There will also be an option to delist the property and change property management from One Fine BnB to Earl Co (co-owner and property manager of the following properties on Lofty: 90 Madison Ave, 88 Madison Ave, and 724 3rd Ave), reducing the property management fee from 20% to 12.5%.

• More information on the other listing agents is below:

• Victor Steffen is a seasoned Realtor and real estate investor in central Texas. He began his real estate career as a sales agent in New York City, where he also began investing and building his own rental portfolio. Victor provided the feedback below: It's a good looking asset. The mother in law suite will help it move faster. Still, it's the largest home in the area and the single family housing market is soft relative to the early 2020s.

• If you are looking for the asset to sell in the next 30 days, I suggest a list price of $475k.

• If you're comfortable waiting 60-90 days we can post it for $500k and still expect a sale.

• If you're only interested in receiving absolute top-of-market price and okay with the property potentially not selling, list for $525k.

• The Comparative Market Analysis includes the sales, pending, cancelled, expired, actives, and withdrawn in the subdivision from the last year.

• Thomas Byrd, a Compass Realtor, was recommended by Chalet, a resource hub that connects short-term real estate investors with realtors and service providers.

• Key points from Comparative Market Analysis

• 9 comparable listings were used for the analysis

• Average price of comparable listings: $524,889

• Price range of comparable: $400,000 (lowest) to $814,000 (highest)

• Estimated sale price for the subject property: $524,889

• I have also created a custom flip book for the property.

• The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all owners in 5401 Odom Ave on Thursday, November 7th once the voting period ends.

• Property Update (10/29/2024):

• Governance Results:

• The Governance Voting results are back for the owner-proposed three-part governance vote.

• Vote #1: Realtor must seek owner approval prior to lower listing price?

• Winner: Yes

• The voting option received 5,411 / 6,222 votes, which is equal to 86.9% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2413292623

• Vote #2: We should work in setting a threshold price in which we are not interested in selling?

• Winner: Yes

• The voting option received 4,786 / 6,222 votes, which is equal to 76.9% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2413304894

• Vote #3: We will continue to operate the AirBnB while the property is listed, against the realtors’ recommendations

• Winner: Yes

• The voting option received 3,818 / 6,222 votes, which is equal to 61.3% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2413312693

• Property Update (10/26/2024):

• The owner-elected listing agent, Juli Palmer-Norris of Trend Property Management, provided the following update:

• "Thank you for the update. Please let me know when the property is available for a walk-through. If we feel it’s a good fit for both parties, we’ll prepare and send over a listing agreement for the owner to sign."

• "Just a reminder, the home is unique and challenging to comp. It appears to be the largest in the community, and the guest house adds an extra layer of uniqueness. Regarding pricing, we'll use the price per square foot from the two active comps we discussed, but we want to be clear that the sales price outcome is uncertain."

• "Additionally, with high interest rates, property taxes, insurance, and increased inventory, homes are staying on the market longer, and the buyer pool is smaller. We want to be transparent with the sellers so they understand we may need to adjust the price throughout the term, make repairs, or offer buyer concessions to get to the finish line."

• Property Update (10/22/2024):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 30 tokens 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.

• Hello fellow co-owners,

• As many of you know, we own the property at 5401 Odom Ave, and after several governance votes, we’ve decided to put it on the market. My main concern is that the realtors might assume we’re aiming for a "liquidation" sale, leading them to reduce the price too quickly. That’s why I’m proposing this governance vote to ensure that 1) the realtor gets our approval before lowering the listing price, and 2) they do not go below a threshold we set as owners.

• We received three sales estimates from local agents and chose Juli Palmer-Norris, an experienced realtor who specializes in managing short-term and furnished long-term rentals in the area. Juli’s analysis suggests a listing price of $682,835. After accounting for fees and property taxes, we should net around $52.89 per token. However, it’s important to note that the property tax bill of $9,751.50 is due on 12/31/2024, and the operating reserve currently doesn’t have enough to cover it.

• I encourage all of us to set a price threshold for the listing and to allow voting options that include keeping the property listed on Airbnb while it’s on the market. The current guest checks out on 10/31, and there are no new bookings at the moment. While it is possible to list a property while it’s rented, the listing agent does not recommend this. They will conduct a walk-through once the tenant moves out. Although we purchased the property for $525K in September 2022, this amount doesn’t factor in the $2.5 per token contribution toward the $26K operating reserve, which brings our total to about $50 per token. Selling the property for less than $542,000 will net less than $42/ token post sale, I recommend making this the threshold price to not sell below. We should vote on an exact threshold in a subsequent vote, pending approval.

• Additionally, we have feedback from other realtors, Victor Steffen, who suggests that if we want a quick sale (within 30 days), we should list at $475K. If we’re willing to wait 60-90 days, $500K might still achieve a sale. If we’re aiming for the absolute top of the market, he recommends $525K, though this comes with the risk that the property may not sell. And, Thomas Byrd, another Compass realtor, provided a Comparative Market Analysis based on similar properties in the area. The average estimated sale price is $524,889, with comparable properties ranging from $400K to $814K.

• Given these insights, I recommend we agree on a firm listing price strategy and proceed with either keeping it on Airbnb or selling directly on MLS only. I look forward to everyone’s input on setting the threshold price and the best path forward.

• Voting Options:

• 1.) Realtor must seek owner approval prior to lower listing price? (Yes or No)

• 2.) We should work in setting a threshold price in which we are not interested in selling? (Yes or No)

• 3.) We will continue to operate the AirBnB while the property is listed, against the realtors’ recommendations (Yes or No)

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Monday, October 28th once the voting period ends.

• Property Update (10/14/2024):

• Governance Results:

• The Governance Voting results are back to determine the listing price.

• The winning vote is:

• List the property for $682,835 (Listing agent's recommendation)

• This voting option was declared the winner in Round 1 with 3,734 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2364866951

• The owner-elected listing agent, Juli Palmer-Norris, will walk the property after the guest moves out on 10/31, and will list the property for sale shortly after.

• Property Update (10/12/2024):

• The owner-elected listing agent, Juli Palmer-Norris, provided feedback for owners:

• "Thank you for reaching out; it's great to hear from you. Before we proceed with the listing agreement, we'll need to conduct a walkthrough once the property is vacant to confirm it is move in ready. Coordinating showings while a tenant is occupying the home can be challenging, so for the best results, we'll want to begin marketing when the home is vacant and ready for viewings."

• The current guest checks out on 10/31 and there are no new bookings at the moment.

• It is possible to list a property for sale while the property is rented, but the listing agent does not recommend it.

• The listing agent will conduct a walk-through once the current tenant moves out.

• The property tax bill of $9,751.50 is due on 12/31/2024.

• Property Update (10/07/2024):

• Governance Vote:

• The governance voting results are back for the vote on which agent will be listing the property for sale. Owners also had the option not to sell based on the new information in the previous email.

• The winning vote is:

• List the property for sale with Juli Palmer-Norris

• This voting option was declared the winner in Round 4 with 4,480 token votes.

• The voting results can be found on chain here or by searching the application ID: 2346008451

• The other voting options were eliminated in the following rounds:

• Round 1:

• Do not list the property for sale, and continue using One Fine BnB as the Property Manager.

• 91 token votes

• Round 2:

• List the property for sale with Thomas Byrd

• 575 token votes

• Round 3:

• List the property for sale with Victor Steffen

• 1,502 token votes

• Round 4:

• Do not list the property for sale and change property management from One Fine BnB to Earl Co (co-owner of 90 Madison Ave, 88 Madison Ave and 724 3rd Ave) reducing property management fee from 20% to 12.5%.

• 1,867 token votes

• Owners will now have the opportunity to vote on the listing price. The owner elected agent, Julie Palmer-Norris, provided the following recommendations: The property is unique in the neighborhood, making direct comparisons challenging. It features a large size and a guest house, which sets it apart from most nearby properties.

• I recommend looking at the two active listings in the neighborhood—233 Athenia and 5424 Odom, since it also features a guest house. If we calculate an average price per square foot between these two, it comes out to $184.65 per foot.

• At 3698 sq ft, recommended list price is $682,835.

• Honestly, this is a challenging property to price. It’s also worth noting the broader market challenges we're facing: with interest rates, high property taxes, and insurance, homes are staying on the market longer, and the pool of buyers has shrunk. Many sellers are starting at a price they’re comfortable with, expecting they will likely need to reduce pricing.

• Comparative Market Analysis

• The property was originally purchased by owners for $525k in September, 2022.

• The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all owners in 5401 Odom Ave on Monday, October 14th once the voting period ends.

• Property Update (10/02/2024):

• Governance Vote:

• Three sales estimates were received from local real estate agents.

• Owners will now have the ability to choose the listing agent. There will also be an option not to sell the property based on this new information.

• If owners choose to continue selling the property, they will have the ability to vote on the listing price on Monday, October 7th.

• Victor Steffen is a seasoned Realtor and real estate investor in central Texas. He began his real estate career as a sales agent in New York City, where he also began investing and building his own rental portfolio. Victor provided the feedback below: It's a good looking asset. The mother in law suite will help it move faster. Still, it's the largest home in the area and the single family housing market is soft relative to the early 2020s.

• If you are looking for the asset to sell in the next 30 days, I suggest a list price of $475k.

• If you're comfortable waiting 60-90 days we can post it for $500k and still expect a sale.

• If you're only interested in receiving absolute top-of-market price and okay with the property potentially not selling, list for $525k.

• The Comparative Market Analysis includes the sales, pending, cancelled, expired, actives, and withdrawn in the subdivision from the last year.

• Thomas Byrd, a Compass Realtor, was recommended by Chalet, a resource hub that connects short-term real estate investors with realtors and service providers.

• Key points from Comparative Market Analysis

• 9 comparable listings were used for the analysis

• Average price of comparable listings: $524,889

• Price range of comparable: $400,000 (lowest) to $814,000 (highest)

• Estimated sale price for the subject property: $524,889

• I have also created a custom flip book for the property.

• Juli Palmer-Norris, is a realtor with experience managing short term rentals and furnished long term rentals for area. Juli provided the anaylsis below:

• The property is unique in the neighborhood, making direct comparisons challenging. It features a large size and a guest house, which sets it apart from most nearby properties.

• I recommend looking at the two active listings in the neighborhood—233 Athenia and 5424 Odom, since it also features a guest house. If we calculate an average price per square foot between these two, it comes out to $184.65 per foot. At 3698 sq ft, recommended list price is $682,835.

• Honestly, this is a challenging property to price. It’s also worth noting the broader market challenges we're facing: with interest rates, high property taxes, and insurance, homes are staying on the market longer, and the pool of buyers has shrunk. Many sellers are starting at a price they’re comfortable with, expecting they will likely need to reduce pricing.

• Comparative Market Analysis

• The property was originally purchased by owners for $525k in September, 2022.

• The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all owners in 5401 Odom Ave on Monday, October 7th once the voting period ends.

• Property Update (09/27/2024):

• Governance Results:

• The Governance Voting results are back for the owner-proposed governance vote.

• The winning vote is:

• No change [continue listing the property for sale]

• The voting option was declared the winner in Round 1 with 3,437 token votes via the Ranked Choice Voting method.

• The voting results can be found on chain here or by searching the application ID: 2324688763

• Multiple local brokers are in the process of providing comparative market analysis (CMA) reports, and owners will soon have the ability to vote on the broker and the listing price for the property.

• Property Update (09/20/2024):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 4 tokens 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.

• I propose that instead of a binary sell/do not sell, we instead consider a range of options that include seeking an appraisal so that token holders have an up to date view of the property value. From there, token holders can better assess whether a sale is wise at this time, or if one of the other suggestions better meets token holders' needs.

• Listing the property at the conclusion of the latest booking (10/31/24) is disadvantageous to achieving a high sales price, as this is after a key homebuying season.

• My recommendation is to choose Options 1, 2, 3, 4, 5, and 6, as it unlocks financial performance and provides us with more information on the property's value. Here are the options that we should be voting on, and will open up options beyond just a sale. Options 1 to 6 are not mutually exclusive, and several changes could be made at once. Only Option 7 is mutually exclusive with Options 1 through 4.

• 1. Change property management from One Fine BnB to Earl Co (co-owner of 90 Madison Ave, 88 Madison Ave, and 724 3rd Ave), reducing property management fee from 20% to 12.5% (37.5% savings). Earl's experience managing similar properties could unlock expense savings and enhance revenues - if run better this property could reach a 7% cap rate.
• 2. Rate of Operating Reserve (OR) replenishment and loan repayment terms: Change terms to allow for 25% of cash flow to token holders: "When the Operating Reserve is <50% full, 25% (reduced from 50%) of all net rental income should go to the Operating Reserve, and half to pay off the loan; when the Operating Reserve is >=50% full, 75% (reduced from 100%) of net rental income should be used to pay off the loan."
• 3. Reduce target operating reserve balance from current $26,250 to $15,000 (current balance is $6,415 of $26,250 target).
• 4. Seek terms of a cash out refinance supported by property net operating income to fully fund the OR, repay the capital call, and potentially distribute cash pro rata to token holders. Note: This assumes a non-recourse loan secured by the property alone.
• 5. Authorize paying for a property appraisal so that token holders have an up to date view of the property value.
• 6. Seek at least two (2) brokers' opinion of value (typically free - an unofficial assessment of a property’s market value based on expert judgment)
• 7. Using inputs from 5 and/or 6, continue to list the property.

• Thank you for your consideration of this proposal.

• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Wednesday, September 25th once the voting period ends.

• Property Update (09/18/2024):

• Governance Results:

• The Governance Voting results are back for the vote to sell the property.

• The winning vote is:

• Yes, list the property for sale

• The voting option received 6,129 / 8,273 votes, which is equal to 74.1% of the total votes.

• The voting results can be found on chain here or by searching the application ID: 2303657891

• Owners will soon have the ability to vote on the agent that will list the property for sale, as well as the listing price.

• Property Update (09/13/2024):

• An owner of this property has put together a counter-proposal to not sell the property.

• This is in response to the previous governance vote sent out on 9/10, which can be viewed on the property page in the "Property Updates" section.

• The voting period will be extended until Wednesday, September 18th.

• If you have already voted, and would like to change your vote, click the button below, or at the end of this email.

• The owner who proposed the counter-proposal owns 4 tokens in this property, and his wallet can be viewed here.

• The owner's counter-proposal 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.

• I recently submitted what I intended to be a replacement set of options for us to consider instead of selling. These include alternatives to explore such as seeking an appraisal, changing Operating Reserve balances, adjusting how cash flows are allocated such that token holders receive some while OR/capital call amounts are outstanding, changing property manager, etc.

• Most importantly, Earl (co-owner of 90 Madison Ave, 88 Madison Ave, and 724 3rd Ave) has expressed willingness to manage this property at 12.5% vs current 20%.

• Please vote "No" to the current vote, and join with me to explore other options to enhance property value/returns. Thank you

• Property Update (09/10/2024):

• Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.

• This owner holds 400 tokens 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.

• I would like to conduct a vote with the token holders of 5401 Odom Ave., Fort Worth, TX to sell the property for the simple reason that under the current construct, as a mid-term rental property, it generates insufficient cash flow to return rental income to investors.

• The lack of visibility on future rental income contributes to the uncertainty regarding cashflow generation.

• The property is rented out until 10/31/24, which will give us plenty of time to line up a broker and position the property for sale. We can even sell it fully furnished!

• In short, this is an unattractive investment which does not appear to have an off-ramp other than a sale of the asset. The most recent HouseCanary valuation from June 2024 was $592,932. I believe the original sales price was $525,000. We would be very fortunate to achieve anything close to this the HC estimate. At a minimum, we should engage local real estate people and assess the market.

• If owners vote to sell the property, a separate vote will take place to determine the listing agent and listing price.

• The results will be determined by a 60% Supermajority and sent to all owners on Monday, September 16th once the voting period ends.

• Property Update (08/21/2024):

• The PM confirmed a new booking for 59 nights from 09/02/2024 - 10/31/2024.

• The total price of the booking is $9,216.38, which includes a cleaning fee of $349.

• Owner payout after property management and Airbnb fees are deducted is estimated to be $6,514.73. This does not include any expenses such as utilities and repairs.

• View Airbnb Listing

• The total revenue for July was $5,315.43. This includes the prorated cleaning fee of $127.28, paid by the guest.

• The property management commission was $1,012.17.

• There were no repairs in the month of July.

• The net cash flow for July was $1,998.82.

• Property Update (07/13/2024):

• The total revenue for June was $5,020.79. This includes the prorated cleaning fee of $123.18, paid by the guest.

• The Property Management commission is $979.52.

• During the stay, the tenant reported a water pressure issue which caused a calcium buildup. A repair included two site visits to decalcify the line and replace a valve. The total cost of repairs is $309.15.

• The property expenses for June also include 2 lawn visits of $60 each.

• The final draw from the PM is $3,428.94. This is before utilities, insurance, and repayment for the capital call and furniture credit.

• Property Update (03/16/2024):

• Update 1:

• The Capital Call was successfully funded and the AC replacement was completed on 3/8 by Sandoval Air Services.

• The vendor also replaced the air filter on both sides of the furnace, as they advised it was dirty.

• The vendor also installed a safety switch and a cover line set while completing the work.

• These additions were not included in the estimate and the vendor did not charge extra for them.

• View Completion Photos

• Update 2:

• A future guest changed their reservation to 4/15 - 5/15 for a total of 30 nights.

• The guest had previously booked the nights from 4/1 - 5/15.

• The PM will aim to fill the open nights from 4/1 - 4/15 ASAP.

• The total price of the booking is $5,518.88, which includes a cleaning fee of $349.

• The payout after PM and Airbnb fees is estimated to be $3,592.38. This does not include expenses such as utilities.

• Property Update (03/06/2024):

• Governance Results:

• The Governance Voting results are back for the governance vote to either replace the HVAC for $8,415 with vendor #1 or replace the AC Unit and evaporator coil for $5,600 with the new vendor.

• The winning vote is:

• Replace the AC Unit and evaporator coil for $5,600 with the new vendor referred by the original seller

• This option received 2,938 out of 3,257 token votes which is equal to 90.2% of the total votes.

• Now that the Capital Call option has been chosen, an owner of the property must be willing buy any unsold tokens if the Capital Call does not fully fund within the 15 day funding period.

• If you are interested in backing the Capital Call, reach out to support@lofty.ai.

• The terms of past Capital Calls are as follows:

• The interest rate paid to owners contributing funds to the capital call will be 13.5%.

• When the Operating Reserve is <50% full, half of all net rental income should go to the Operating Reserve, and half to pay off the loan; when the Operating Reserve is >=50% full, 100% of net rental income should be used to pay off the loan.

• The capital call offer is open for 15 days.

• The owner will back any unsold tokens from the capital call.

• If an owner chooses to back a Capital Call with a structure that is different from the above structure that was previously voted for, a separate Governance vote will be sent out to determine if owners would like to proceed with the new structure.

• Property Update (03/04/2024):

• Governance Vote:

• The Governance results are back for the vote to do a Capital Call to raise funds for a new HVAC system and/or replace the washer & dryer.

• The winning vote is:

• Replace the HVAC for $8,415 with Vendor #1 (Property Manager's recommendation)

• This option was chosen as the winner in round 5 with 5,675 token votes via the Ranked Choice Voting method.

• A Supermajority was not reached to replace the washer & dryer. As a result, the units will not be replaced.

• The voting results are:

• Do not replace washer/dryer:

• 2,996/5,675 token votes (52.8%)

• Replace washer/dryer:

• 2,679/5,675 token votes (47.2%)

• Per the previous update, the original seller of the property provided a referral to a local AC vendor they've worked with in the past.

• The new vendor initially quoted $3,500 to replace the AC unit with a new 5-ton Goodman unit.

• They visited the property over the weekend and advised that the condenser has a leak and the copper is not the right size.

• The new vendor now advises to replace the AC unit as well as the evaporator coil, totaling $5,600. This comes with a 10 year warranty.

• View Estimate

• The new vendor advised the following:

• A gas system has an outside unit (condenser), inside unit (coil), and a furnace. The furnace is still in great condition and doesn't need to be replaced. The copper line is too small for a 5-ton system and can be the reason why there's a leak and most likely the leak has affected the coil since he sees evidence of leak on the coil. Condenser is shot and needs to be replaced. Recommend replacing the coil at the same time with the condenser for better warranty coverage.

• Owners now have the ability to vote to replace the HVAC for $8,415 with vendor #1 or replace the AC Unit and evaporator coil for $5,600 with the new vendor.

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all investors in 5401 Odom Ave on Wednesday, March 6th once the voting period ends.

• Property Update (03/02/2024):

• Update 1:

• The PM confirmed a new booking for 85 nights from May 18th to August 11th.

• The total revenue from the booking is $16,222.69, which includes a cleaning fee of $349.

• The payout after PM and Airbnb fees is estimated to be $11,101.26. This does not include expenses such as utilities.

• The PM's cancellation policy allows guests to cancel up to 30 days before the check-in date for a full refund.

• The property currently has a guest booking from 2/17 - 3/31 and another guest booking from 4/1 - 5/15.

• Update 2:

• The original seller of the property was contacted to inquire about any warranties on the HVAC unit.

• The seller advised they do not have a warranty, but mentioned that the previous estimates received for an HVAC replacement are priced well over market. They referred a local AC vendor contact they have worked with in the past.

• The vendor quoted to replace the unit with a new 5-ton Goodman unit for $3,500.

• The new unit will come with a 10-year manufacturer warranty.

• The vendor provided this estimate without actually seeing the unit in-person.

• The vendor is currently coordinating a site visit to give an accurate quote to replace the HVAC.

• They will also give their assessment on repair options while they are onsite.

• Property Update (02/28/2024):

• Governance Vote:

• Per the previous update, the HVAC is not functional and the Property Manager advised that it should be repaired or replaced.

• The new guest has not brought up any issues about the AC not working.

• The property is currently occupied with a guest from 2/17 - 3/31 and has another booking confirmed from 4/1 - 5/15. The gross revenue from these bookings is $14,443.95.

• The first vendor provided two options: replacing the compressor for $7,507 or replacing the unit for $8,415. The PM has worked with this vendor before and recommends them highly.

• View both estimates here

• The vendor advised that the compressor is currently on back-order for 3-6 months, and replacing the compressor does not guarantee that the unit will start back up. The vendor recommends replacing the unit and advised that replacing parts for an old HVAC will not guarantee it will work, especially since he doesn’t know how long the Freon leak has been an issue. The Freon is currently empty.

• A second vendor believes the HVAC just needs to have the evaporator coil replaced. The cost to replace the coil is $4,791.88. The PM advised that the repair does not come with a warranty, and they have never worked with this vendor before. The vendor also provided a replacement estimate for $8,481. The vendor is suggesting to replace the coil first because they detected a leak around the area. However, if they replace the coil and there is still an issue, they would need to replace the compressor as well. The vendor advised that when the coil is damaged or not working properly for some time, it could then cause damage to the compressor.

• View estimate to replace coil

• View estimate to replace unit

• The PM also recommends to replace the current washer & dryer for $1,426.67, as the current system is inadequate due to its small size and age. The PM advised it is taking a long time to wash all the towels and linens along with using more water and electricity. This is causing the property to not be able to have same-day bookings, meaning 1 down-day in between bookings. The PM confirmed that guests have not yet complained about the washer & dryer.

• View estimate to replace washer & dryer

• Owners now have the option to do a Capital Call to repair or replace the HVAC, and/or purchase a new washer and dryer.

• If owners choose to do a Capital Call, an owner of the property must be willing buy any unsold tokens if the Capital Call does not fully fund within the 15 day funding period.

• The terms of past Capital Calls are as follows. Owners are able to propose a different structure which would be subject to an additional governance vote.

• The interest rate paid to owners contributing funds to the capital call will be 13.5%.

• When the Operating Reserve is <50% full, half of all net rental income should go to the Operating Reserve, and half to pay off the loan; when the Operating Reserve is >=50% full, 100% of net rental income should be used to pay off the loan.

• The capital call offer is open for 15 days.

• The owner will back any unsold tokens from the capital call.

• The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all investors in 5401 Odom Ave on Monday, March 4th once the voting period ends.

• Property Update (02/23/2024):

• Update 1:

• During the previous stay, the tenant reported an issue with the thermostat in the guest suite.

• The PM had the thermostat replaced, but the HVAC still didn't turn on. The HVAC vendor advised that the issue is the system overloading the electrical system.

• The trip charge and diagnostic charge from the HVAC vendor was $110. The cost to replace the thermostat was $265.

• The electrical work includes:

• Run 80 feet of 6/3 AWG wire and install a 60 Amp breaker.

• Use PVC, cement, and a coupling to ensure secure connections and proper insulation for the wiring.

• The cost of the electrical repair was $1,125.

• Repair Invoice

• The property expenses for December and January also include stocking supplies for $354.03, installing a lock for the supply closet for $146.52, trip charge for housekeeper for $50, and photography for property listings for $169.

• View Statement from 12/01/2023 - 01/31/2024

• Update 2:

• The annual property tax payment was due and totaled $12,562.90.

• Each month, funds are deducted from rental income and escrowed for annual property tax and insurance payments.

• If there are not enough funds escrowed for the payments, then the funds are deducted from the Operating Reserve.

• As a result, the Operating Reserve is now depleted. This updated balance will be reflected in the next financial update on March 17th, once February's rent begins being paid out.

• Update 3:

• The PM advised they received and approved a same day booking for 43 nights from 02/17 - 03/31.

• The total revenue from the booking is $6,564.44, which includes a cleaning fee of $349.

• The payment after PM and Airbnb fees is estimated to be $4,325.86. This does not include any expenses such as utilities and repairs.

• The guest checked in and put in a work order for slow internet service and the AC not working.

• The techs arrived and confirmed that there is internet, but there are too many devices connected to the T-Mobile modem.

• New cable internet has been ordered with Spectrum and the new service was installed today, 2/23.

• An HVAC vendor was dispatched on 2/22. The tech found the outdoor system off and in disarray.

• Diagnostics revealed no refrigerant and compressor issue.

• The tech reinstalled the disconnect switch and added refrigerant, but the unit still didn't start.

• The HVAC vendor provided two options for repair: replacing the compressor for $7,507 or replacing the outside unit for $8,415.

• The HVAC vendor advised that the compressor is currently on back order for 3-6 months and replacing the compressor does not guarantee that the unit will start back up.

• The PM is currently waiting for a second estimate from another vendor.

• Repair Estimate

• Property Update (02/12/2024):

• Owner Proposed Governance Results:

• The Governance Voting results are back for the owner-proposed vote to create a referral program for this property to capture more mid-term rentals.

• The winning vote is:

• Start with offering $100/referral

• This option was declared the winner in Round 2 via the Ranked Choice Voting Method with 3,195 token votes.

• The other options were eliminated in the following rounds:

• Round 1:

• Do not provide an incentive

• 281 votes

• Round 2:

• Start with offering $50/referral

• 2,107 votes

• The PM will be notified of the results and will begin offering guests a $100 reward if they refer someone that completes a stay at the property.

• Property Update (02/10/2024):

• The PM confirmed a new booking for 42 nights from 3/18 to 4/29 at a nightly rate of $204.87.

• The total booking gross revenue is $8,604.95, which includes a cleaning fee of $349.

• Expenses including the Airbnb fee, property management fee, and utilities will be deducted from the total revenue.

• The PM's cancellation policy allows the guest to cancel up to 30 days before their check-in date for a full refund.

• The PM is actively marketing the property to fill the vacancy from 2/11 - 3/15.

• View Airbnb Listing

• Property Update (02/06/2024):

• Owner Proposed Governance Vote:

• An owner in this property with the following wallet address is proposing a Governance Vote to create a referral program for this property to capture more mid-term rentals.

• This owner holds 30 tokens 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.

• Hello Odom Co-Owners,

• I saw this on the discord chat a few days ago and thought this was a worthwhile proposal to make to other owners. To enhance our property's market presence and capture more Medium Term Renters (MTR)/ business travelers for 5401 Odom Ave, Fort Worth, TX, we should initiate a referral program with our Property Manager (PM) to incentive MTR travelers to refer friends and co-workers. The concept is simple: award the previous renter Monetary compensation for each successful booking they refer.

• Referral Program Highlights:

• Incentive Structure: Offer a monetary reward to the previous traveller for each renter they refer whole completes their stay at our property.

• Target Audience: Focus on business travelers, including professionals on business trips, traveling nurses, and those conducting business in the Dallas-Fort Worth area.

• Showcase Our Home: Leverage our beautifully staged property to attract business travelers seeking comfort and convenience. Benefits:

• Word of Mouth Marketing: Harness the power of word-of-mouth as satisfied renters share positive experiences, extending our reach organically. Increased Visibility: Expand our property's exposure beyond the PM's regular outreach efforts, positioning it as a preferred choice for business travelers.

• Becoming a Preferred Option: Build a reputation as a top choice for business travelers, fostering consistent bookings and positive reviews.

• Monetary Gains: While the referral incentives represent a minor cost, the potential income from increased bookings and positive word of mouth far exceeds this investment.

• Implementing this referral program aligns with our goal to establish 5401 Odom Ave as a preferred accommodation for business travelers.

• Start with Offering $50/ referral

• Start with offering $100/ referral

• Do not provide an incentive

• The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all owners on Monday, February 12th once the voting period ends.

• Property Update (12/11/2023):

• The PM confirmed the first booking from 12/18 to 1/31 for a total of 44 nights.

• The total booking cost is $7,912.48, or a nightly rate of $179.82.

• This is a 17% increase over the initial target nightly rate of $153.

• The tenant will sign a lease agreement which will be uploaded to the property's Dropbox folder.

• View Airbnb Listing

• Property Update (11/17/2023):

• The property has been fully furnished and the Airbnb listing is now available to view.

• View Airbnb Listing

• The property will also be listed on the highest demand websites like Expedia, Booking.com, Agoda, TripAdvisor, VRBO, and more.

• The property will be rented as a mid-term rental with 30-day minimum stays, per the prior governance vote.

• The Property Manager, One Fine BnB, is a Superhost on Airbnb with 10 years of experience, 3,109 reviews, and an overall rating of 4.63/5 stars.

• View One Fine BnB Host Profile

• The PM is making final edits to the listing and will push the listing live today to their channel manager: Hostaway. It will take 72 hours or less to have the listing live and bookable.

• The listing was delayed due to the furniture arriving in batches throughout the first two weeks of November, instead of the original projected date of 10/25.

• The prices on the listing are not the final pricing. The final pricing will be added once the listing is connected to the PM's software.

• All tenants will sign lease agreements for the 30 day stays. The PM recommends allowing for 6 month, 9 month, or 12 month bookings at a time as well. These bookings will be presented to owners to vote to accept, if a booking comes through with these longer lease terms.

• Property Update (10/19/2023):

• An owner volunteered and successfully applied for the Living Spaces credit card under their personal name in order to obtain the 18 month financing with 0% interest for the furniture.

• The total for the furniture order has been reduced to $7,771.84, which includes a 5% discount from Living Spaces. The order has been placed on the store credit card. $431.76 will be paid over 18 months to cover the total cost of the furniture.

• Living Spaces Receipt (does not include additional $123.40 charge for delta bronze dining side chair)

• The furniture is tentatively scheduled to be delivered and installed on 10/25, provided Living Spaces has received all of the pieces by then.

• The property will also need linens, wall art, rugs, a TV, and supplies to furnish the mid-term rental.

• The total cost for the initial supplies for the rental is $4,740.36.

• The total cost to furnish the mid-term rental is $12,512.20.

• The new owner-elected Property Manager, One Fine BnB, completed an inspection of the property.

• They identified repairs that need to be completed prior to listing the property on Airbnb, which includes installing a BT lock on the front door, removing several wasps nests at the exterior of the property and removing the boarded door that separates the 2 units.

• The repair estimate includes various services such as paint touch-up, wood plank removal, broken light switch removal, shower/tub reseal, shower head replacement, baseboard replacement with carpet removal and haul-off, closet door installation, grate and air filter replacement, wasp removal, smart-lock installation (equipment not included), deep cleaning, and staging photos.

• The final cost for all these services is $1,378.76.

• Repair Invoice

• Once the repairs are completed, the PM will take new photos of the mother-in-law suite and list it on Airbnb.

• After all of the furniture & other items are installed in the main unit, the entire property will then be listed on Airbnb as a mid-term rental.

• Internet has also been ordered for the property. The cost of internet is $50/month from T-Mobile.

• Property Update (10/05/2023):

• The furniture selection for the main unit has been finalized by Living Spaces and can be viewed here.

• The Property Manager, One Fine BnB, has confirmed the furniture being provided is sufficient in order to rent the property for the initially proposed $4,500/month.

• The total for the furniture costs is $9,576.24 ($10,080.25 - $504.01 discount).

• There will be additional expenses for a TV (~$300 - $500) and knickknacks around the home.

• The furniture is being delivered to the property, and the PM will be at the property to ensure all of the furniture is set up correctly.

• The furniture is projected to be fully set up within the next 2 weeks.

• Living Spaces offers an 18 month financing option for the furniture, which would allow for monthly payments of around $532, compared to paying $9,576.24 from the Operating Reserve upfront.

• The financing options can be viewed here.

• In order to get a Living Spaces credit card to get the financing, one of the Owners of this property must personally apply for the credit card. Living Spaces does not allow entities, like the DAO LLC, to apply for credit cards.

• If you are interested in applying for the credit card under your personal name, please respond to this email & we will connect you with Living Spaces right away. The funds to pay for the monthly payments will come directly from the Operating Reserve or the property's rental income.

• The PM is in the process of getting new pictures for the mother-in-law suite in order to begin renting the unit on Airbnb right away, while the furniture is still being set up for the main unit.

• Shortly after the furniture is installed in the main unit, the entire property will be rented on Airbnb and other short-term rental websites.

• Property Update (09/18/2023):

• The lawyer hired by the DAO LLC, Bob Bone with O'Conor, Mason, and Bone, P.C., has provided a legal opinion on renting the property as a mid-term rental (MTR).

• His legal opinion is below:

• Good afternoon Kathie – as requested, having reviewed this local ordinance in fort Worth (Ordinance No. 26005-02-2023, i.e. “Short Term Rental Registration”), and seeing that it specifically defines “short term rental” to mean the rental of a dwelling for “a period of not less than one night and not more than 29 consecutive days” (Page 3 of the ordinance under definitions), I think that as long as the owner rents the property for a minimum of 30 consecutive days such would not be considered a “short-term rental” under this ordinance.

• View Legal Opinion (sent via email)

• The lawyer will provide a total fee for the legal opinion shortly.

• Now that the property has been approved to be listed as an MTR, the results from the Governance Vote on which Property Management company will manage the property as a MTR can be viewed below:

• The winning vote is:

• One Fine BnB

• This option received 4,916 out of 5,104 votes, which is equal to 96.3% of the total votes.

• One Fine BnB has been notified they will be managing this property, and that it must be rented for a minimum of 30 consecutive days to comply with local ordinances.

• The main-unit requires furniture in order to be listed as an MTR. The Property Manager will begin marketing the mother-in-law suite ASAP on Airbnb while owners decide on the furniture to include in the main unit.

• A furniture quote was received from Living Spaces. The package is $11,488.59 ($12,093.25 - $604.66 discount) with 0% financing options available. To reduce costs, some of the decor in this inventory sheet including rugs, mirrors, lamps, and pillows can be removed. You can view pictures of the furniture, sent over by Living Spaces, by clicking here.

• We are currently waiting to hear back with different financing options from Living Spaces, as well as a confirmation from the PM on the absolute minimum decor needed in order to get the projected $4,500/month rent, along with a projection of how much more rent the property could generate if all the decor was included.

• Once this information has been received, owners will have the opportunity to vote on which financing option they prefer, along with the specific furniture to include in the main-unit.

• Property Update (09/06/2023):

• Governance results:

• The Governance Voting results are back for the owner-proposed Governance Vote to stop the process of listing the property for rent, midterm or long term, until the DAO has a written opinion from the lawyer that states whether midterm rentals are legal in the city, due to the recent ordinance passed in February, 2023.

• The winning vote is:

• Only proceed with the short term proposal with a legal opinion and the cost of the legal fees come out of the reserve. The lawyer should provide an all in/upfront cost for this opinion.

• This option received 5,274 out of 6,168 votes, which is equal to 85% of the total votes.

• A lawyer in Texas, Bob Bone with O'Conor, Mason, and Bone, P.C., has been contacted to get a legal opinion. He has provided an estimated cost of $440 - $590 for 1.5 - 2 hours of work for a legal opinion on whether this property can be rented as a mid-term rental.

• Once the legal opinion is completed, all owners will receive an update.

• An additional update on the property is below:

• The PM confirmed the tenant will be charged $995 for the make ready clean, carpet clean, damaged toilet paper holder, and paint repairs. These funds will be added to the Operating Reserve.

• The roofer inspected the roof and they reported that the roof is in good condition.

• The cost of the roof inspection was $165.

• The HVAC vendor advised that the outside condenser unit needs to be cleaned, as it is causing the air to not work properly.

• The vendor did not complete the work, as they claimed there was no water on the property.

• The PM confirmed that there is water service onsite and is working to reschedule the service with the HVAC vendor.

• Property Update (09/01/2023):

• Governance Vote:

• An owner in this property with the following wallet address is proposing a Governance Vote to stop the process of listing the property for rent, midterm or long term, until the DAO has a written opinion from the lawyer that states whether midterm rentals are legal in the city, due to the recent ordinance passed in February, 2023.

• 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 is what i would like to do. please propose a new vote that says that the prop can't be relisted without a legal opinion..

• choice 1 - proceed as is with no legal opinion

• choice 2 - only proceed with the short term proposal with a legal opinion and the cost of the legal fees come out of reserves. the lawyer should provide an all in/upfront cost for this opinion.

• The lawyer has provided an estimated cost of $440 - $590 for 1.5 - 2 hours of work for a legal opinion on whether this property can be rented as a mid-term rental.

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Wednesday, September 6th once the voting period ends.

• Property Update (08/28/2023):

• Governance Vote:

• Owners will now have the opportunity to choose which Property Management company will manage the property as a mid-term rental, based on the results of the previous governance vote below.

• The winning vote for the previous governance vote is:

• Rent the whole property (both units) as one mid-term rental with a target rent of $4,500/month. Main unit will require $7k - $10k in furniture. These funds will be deducted from the Operating Reserve.

• This option was chosen in Round 3 with 5,963 token votes using the Ranked Choice Voting method.

• The other options were eliminated in the following rounds:

• Round 1:

• Wait to receive a cost estimate to install an additional utility meter, and further evaluate renting out both units separately again. Not recommended by the Property Manager or lawyer due to the recent ordinance.

• 52 votes

• Round 2:

• Rent the whole property (both units) as one long-term rental with a target rent of $2,995/month.

• 2,496 votes

• Additional quotes for furniture for the Main Unit will be attained this week, per the request of owners, to reduce the amount of funds deducted from the Operating Reserve.

• Two PMs have been engaged for the furnished rental unit, as the previous PM is unable to continue managing the unit.

• One Fine BnB

• Has field teams in place in the Fort Worth area

• Data-driven

• Has been very responsive since initially engaging, including providing an analysis of pricing based on comps in the area.

• Management fee is 20% of the net revenues, post deductions like housekeeping and taxes.

• They have maintenance crew that can complete minor repairs at a handy-man level

• All trade repairs (ie. roof and HVAC) will have to be contracted out with a vendor.

• They offer a Month-to-Month agreement option and the DAO LLC can cancel management at any time.

• iTrip Property Management

• Referred by the previous PM

• One man show, run by the owner

• The management fee is 20% of gross rents

• The guest pays for the cleaning fees

• The DAO LLC will pay for supplies for the rental. The start up cost for supplies (ie. paper towels, toilet paper, etc.) is $200 and they will be replenished as the guest utilizes them

• Requires a 1 year management agreement

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Thursday, August 31st once the voting period ends.

• Property Update (08/23/2023):

• Governance Vote:

• Owners will now have the opportunity to vote on whether to lease 5401 Odom Ave as a long-term rental or a mid-term rental (30-day stays).

• Per the previous update, an An ordinance was recently passed in Fort Worth in February, 2023 (5 months after the property closed on Lofty) which may prevent this unit from being listed on Airbnb. A lawyer in Texas, Bob Bone with O'Conor, Mason, and Bone, P.C., was consulted on this matter, and recommended to not have two separate leases per this ordinance, as the property is zoned as a single-family home & would likely receive hefty fines.

• The current Property Manager, HomeRiver Group, declined to manage the main unit if there is a short-term rental attached, unless the utilities are separately metered. But, they do not advise leasing the two units separately due to the recent city ordinance.

• HomeRiver Group had a local agent assess the target rent for the whole property as a single rental as a 5 bedroom, 2 flex spaces and 3 bathrooms, including the furnishings in the mother-in-law suite.

• The realtor advised there are only 2 comps within the last year that are similar in size and zip code. The realtor recommends a target rent of $2,995. They can start at a higher rate to gauge the market demand.

• A short-term/mid-term rental Property Manager, One Fine BnB, advised the whole property could rent for $4,500/month as one short-term rental, with 30 day stays. They stated, "$4,500 is a fair number that will keep it competitive and have it rented out for the majority of the year. From there, if it stays busy, we can adjust and up the monthly rate and go from there."

• In order to rent the property as a short-term rental, the main unit must be furnished. Living Spaces quoted $7k-$10k for furniture. These funds would come from the - Operating Reserve balance of $20,150.60.

• The mother-in-law suite can be rented on Airbnb immediately, as it is already furnished.

• The PM advised that the roof is in good condition, and the roof inspection cost is $156. The AC condenser is dirty & needs to be cleaned in order for it to work properly. We are currently waiting on an estimate to clean the condenser.

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Monday, September 4th once the voting period ends.

• Property Update (08/16/2023):

• Main Unit:

• A move-out inspection was conducted & can be viewed here.

• The PM received two turn estimates

• Estimate 1: $4,388.56

• Estimate 2: $1,070 (tree & landscaping services not approved, as the PM of the mother-in-law suite already completed these repairs in their scope)

• The turn repairs are underway & the scope of work includes:

• Make-ready cleaning and carpet cleaning.

• In the guest bathroom, the toilet paper holder will be repaired.

• Various areas, including the master bedroom, bedrooms 2, 3, and 4, the laundry room, and the wall with the thermostat, will receive paint touch-ups.

• Additionally, pool equipment will be hauled off.

• The PM advised that there are no immediate concerns with the floor cracks in the master bathroom, and any foundation repairs would be preventative.

• The foundation inspection couldn't be completed due to limited clearance in the crawl space, only 12 inches.

• To get an accurate proposal of repairs, they would need to remove 158 feet of soil beneath the structure.

• The estimated cost for this excavation is $14,000, which the PM does not recommend.

• Foundation Inspection Photos

• Foundation Inspection Estimate

• The PM is still waiting on the vendors to assess the HVAC and the roof.

• The Field Inspector noted that the AC unit was not working from the Move-out Inspection.

• The Operating Reserve balance after the repairs for both units is $20,150.60.

• Mother-in-law Suite (Airbnb):

• A move-out inspection was conducted & can be viewed here.

• The previous PM, Polo Investment, completed the carpet cleaning for the furnished rental and the landscape repairs for the property.

• The cleaning cost, primarily for pet waste removal, was $130.

• The yard service, initially quoted at $260, ended up costing $300.

• The extra charge was due to the lawn servicer removed tall branches and overgrowth, which required hauling the debris to the dumpster.

• The total cost for the services was $430.

• An ordinance was passed in Fort Worth in February, 2023 which may prevent this unit from being listed on Airbnb. A lawyer has been consulted in the Fort Worth area to confirm this.

• Two PMs have been engaged for the furnished rental unit, as the previous PM is unable to continue managing the unit per the last update.

• iTrip Property Management was referred by the previous PM.

• Visited the property and advised that they can manage the unit.

• The management fee is 20% of gross rents.

• The guest pays for the cleaning fees.

• The DAO LLC will pay for supplies for the rental. The start up cost for supplies (ie. paper towels, toilet paper, etc.) is $200 and they will be replenished as the guest utilizes them.

• Requires a 1 year management agreement.

• One Fine BnB recommends to convert the property to two mid-term lease rentals (rentals 30+ days, less than 12 months) to generate the most income and to avoid tenant issues.

• For the mother-in-Law suite, they project an average nightly rate of $65, translating to a monthly revenue of $1,950.

• For the main unit, the estimated nightly rate is $110 when fully furnished, resulting in a monthly revenue of $3,300.

• Although Fort Worth has a 30-day minimum rental policy, they're confident in maintaining high occupancy for both units throughout the year, often exceeding their estimates.

• Their management fee is 20% of the net revenues, post deductions like housekeeping and taxes.

• They have maintenance crew that can complete minor repairs at a handy-man level.

• All trade repairs (ie. roof and HVAC) will have to be contracted out with a vendor.

• They offer a Month-to-Month agreement option and the DAO LLC can cancel management at any time.

• Update on Concessions:

• Lofty spoke with the HomeRiver Group leadership team last week on behalf of owners to request the concessions mentioned in the previous update.

• Evidence was provided to HomeRiver Group showing that they did not notify the tenant that there was an Airbnb unit, and that they would not have access to it.

• HomeRiver Group followed up this week and have decided not to provide concessions for the property. Their exact response is below:

• Our team met on this issue in hopes of finding a resolution. I learned that in addition to the concessions you have requested, HomeRiver has already covered a $9000 settlement with the prior tenant when they considered legal action against HomeRiver and Lofty. Your owners of this property are now asking for an additional $19,881.80.

• It appears both the original tenant and Lofty owners knew that this was an Airbnb. It is unclear to me who was supposed to manage the Airbnb as this is not a service that HomeRiver offers. Not to mention the fact that Airbnb’s do not appear to be legal in zoned residential areas in Ft Worth. In any case we are being asked to cover lost rents, future rents, turn repairs and future lease fees. We are not able to guarantee how long a tenant may stay, what types of repairs may be required and how long the unit will remain vacant before finding another tenant. I am not aware of any property management firm willing or able to make these types of commitments.

• We do not have any liability in this situation. The requested concessions cover expense items you would experience should any tenant exit their lease prematurely. We will not be offering additional concessions beyond the $9000 we have already funded. You made it clear that our response to this request would determine if you would recommend us for management of an additional 90 properties in Ohio. We are aware our decision may have a detrimental impact on future management.

• When we began our relationship with Lofty over a year ago, we were an eager partner, hoping to support your strategic growth goals of adding 20-30 properties each month. It appears as of today we are managing a total of 27 properties for Lofty; certainly not the targets either one of us expected. Although the $9000 settlement we previously offered in this situation far exceeded our bottom-line financial results life to date, we stepped forward in a spirit of compromise hoping to move forward towards future growth together.

• We remain committed to professionally managing any properties Lofty may decide to onboard with us. We share your excitement for your new business model going forward and hope it will bring about the growth you expected to realize on this platform. If you have any questions or need clarification on this issue, always feel free to reach out to me.

• Property Update (06/27/2023):

• HomeRiver Group has agreed to pay the full settlement amount of $9,000.

• We are still waiting to hear back on if HomeRiver Group will be providing the owner-requested concessions for lost rent from the Airbnb not being rented, turn repair costs, and lost rent that will accumulate until a new tenant is found.

• The tenant moved out on July 20th.

• An inspection has taken place, and the PM advised they will be sending over the Move-out Inspection Report asap.

• The PM for the Short Term Rental (original seller of the property) advised they will not be managing the unit moving forward, as his real estate investment business is growing and doesn't have the capacity for Short Term Rental management anymore.

• Multiple Short Term Rental PM's have been consulted, and owners will soon have the opportunity to vote on which PM to use to manage the Airbnb unit.

• Property Update (06/17/2023):

• The Property Manager, HomeRiver Group, has provided an update on the tenant dispute, which can be viewed below:

• We finally got some results. The tenant is wishing to settle at $9k, see breakdown below.

• $4k in damages, plus the 2.5k on deposit and 2.5k attorneys fees for a total of $9k Total monetary damages demand is $9,000.00. This will include a full and complete release of all claims on behalf of HRG and the owner.

• Move out by July 20 - no prorated rent for July We had stated June 30 but there simply is not enough time for that. He assured me she wants to leave.

• $4k paid within 10 days so the client has money to effectively move out. Remainder after moving out and walking through.

• He said she needs the money to help put a deposit down on another place an to pay for a mover.

• HomeRiver Group has requested to split the $9k cost with owners. This request has been countered per the suggestion of owners, who are asking that HomeRiver Group pays the full amount.

• We are also waiting to hear back on concessions that have been requested for the lost rent from the Airbnb not being rented, along with lost rent which will accumulate once the current tenant moves out until a new tenant is found.

• A concession has also been requested for any turn repair expenses required once the tenant moves out.

• Property Update (06/14/2023):

• The tenant's lawyer withdrew the $27,000 demand and the tenant is preparing to vacate the property.

• HomeRiver Group's lawyers are currently negotiating a settlement with the attorney representing the tenant.

• Concessions have been requested for the lost rent from the Airbnb not being rented, along with lost rent which will accumulate once the current tenant moves out until a new tenant is found. A concession will also be requested for any turn repair expenses required once the tenant moves out.

• HomeRiver Group's attorney asserted that the tenant was informed the guest house was leased separately for short-term stays, outside their lease agreement.

• A one-month rent discount was given to the tenant to compensate for their responsibility to pay all utilities, including those for the separately metered guest house.

• HomeRiver Group confirmed that the short-term rental is legal and no approval was required from Fort Worth or Tarrant County for this separate guest house rental arrangement.

• More details will be provided as soon as possible regarding the settlement agreement with HomeRiver Group and the tenant, a move-out date, and concession paybacks from HomeRiver Group to the DAO LLC.

• Property Update (06/09/2023):

• The tenant in the main unit is claiming they were not aware that there was a guest house on the property that is being rented out to professionals on Airbnb.

• The tenant subsequently shut off the power to the Airbnb unit, due to the high utilities cost.

• The tenant had already received a one-month concession to offset the extra utilities expenses at the start of their lease, which was outlined to them when the concession was provided.

• The tenant involved a lawyer who sent a demand letter to the PM for the amount of $27,000 for a rent abatement towards sharing the property and utilities with the Airbnb unit and legal costs.

• The Property Manager, HomeRiver Group, appointed legal counsel for the case and will cover the legal costs due to the miscommunication with the tenant, causing them to be unaware they were paying utilities for the full property, and that the back-unit would be used as a short-term rental.

• The PM was fully aware the back-unit was being used for an Airbnb when marketing the property for rent, which is legal in the city of Fort Worth because the unit is leased for a minimum of 30 days.

• The Airbnb rental has been put on hold while the Property Manager, HomeRiver Group, sorts out the issue.

• The PM's lawyer is in communication with the tenant's attorney, and the tenant's attorney is open to reaching an agreement to avoid a lawsuit, which will likely involve the tenant moving out.

• The Airbnb Property Manager (Polo Investment) is currently awaiting confirmation from the lawyers that the Airbnb unit can be leased out again.

• Property Update (02/03/2023):

• The guest decided to extend their stay another 9 days until 2/9 at the same nightly rate of $179.82.

• There are no new bookings at the moment.

• The PM has confirmed they are actively advertising the property on all the listing channels including Airbnb, Expedia, Booking.com, Agoda, TripAdvisor, VRBO, and more.

• View Airbnb Listing

• Property Update (11/25/2022):

• A new tenant has signed a 12-month lease for a home at a monthly rent of $2,500

• The tenant will also pay a $25/month pet fee

• The lease will start on 11/28/22 and end on 11/30/23

• The Property Manager received interest in the unit over the past few months, but prospects were concerned about the condition of the carpet and shared expenses with the short-term rental attached to the property

• The Property Manager recommended and completed some repairs/improvements to improve the chances of a lease signing, including installing new garage door openers, replacing the carpet and pad, using an O-zone machine to remove pet odor, and a full make-ready cleaning

• The total cost of repairs was $3,783.85 and Lofty is attempting to recoup these funds from the seller, but for now they will be deducted from the Maintenance Reserve and replenished with 10% of the cash flow until it is full again

• Owners will continue to receive a rent credit at the original projected rent of $2,975/month until 11/28, after which the CoC Return will be reduced to 7.2%

• Property Update (10/22/2022):

• The rent for the main living unit has been reduced to $2,500 to attract more renters in the area.

• The annual utility expenses for owners will be reduced to $1,680, with owners only responsible for internet and landscaping.

• The tenant in the main living unit will be responsible for all other utilities, which will be shared with the short-term rental unit when it is occupied.

• The Property Manager will offer a $1,500 rebate to offset additional utilities expenses when a short-term rental is booked.

• Owners will continue to receive a rent credit at the original projected rent of $2,975/month until a new lease begins.

• The CoC Return will be increased to 8.17% because of the lower utility costs. Once a new lease begins at $2,500/month, the CoC Return will be reduced to 7.2%.

• Property Update (06/30/2022):

• The main living unit of the property is now available for rent at $2,975/month

• Rent includes WiFi, water, and gas, saving an additional $275/month in utilities

• A rental credit will be provided at the new rental terms until a new lease begins for the unit

• Increase in annual cash flow of $4,500, resulting in an increase in the Cash on Cash return from 6.67% to 7.43%