Property Update (07/16/2026):

ECO Systems is providing the following clarification for owners reviewing the current owner-proposed governance vote.

• ECO's current property-management compensation is 6% of collected rent in the current management year, with no markup on rehabilitation or repair costs. The current owner-proposed management alternative lists a 12.5% fee until stabilization, then 10% after stabilization, plus a 5% markup on maintenance coordination.

• Earl/ECO is also continuing to carry the seller-side mortgage principal and interest obligation. The latest mortgage statement dated 06/18/2026, for the 07/01/2026 payment, shows $148.24 principal and $272.48 interest, or $420.72 of monthly principal and interest. That amount is separate from the $640.21 escrow component and the $1,060.93 total monthly mortgage payment.

• The 6% management fee was intended to partially offset the ongoing management and rehabilitation workload, as well as the seller-side principal and interest carrying cost, while ECO regrows its economic position in the property. It should not be evaluated as a repair markup or separate rehabilitation surcharge.

• ECO supports protecting reserves, improving occupancy, and reducing high-cost obligations. Owners should evaluate the current proposal based on total cost, continuity during rehabilitation, work already performed, and the long-term interests of the property and investors.

Property Update (07/14/2026):

Owner-Proposed Governance Vote for 724 3rd Ave:

• The owner of S&P Property Management LLC, with the following wallet address, is proposing a governance vote.

• This owner holds 107 shares in this property.

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

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

• Governance Vote: Proposed Sale of 724 3rd Ave, Watervliet, NY

• Proposal #1: 724 3rd Ave Change of Property Management

• The property is a triplex with two of three units leased. One tenant is currently on-time on rental payments, while the other is on a payment plan to catch up on arrears. The third unit is vacant, however after renovations, Earl along with S&P has sourced a few applicants to approve. The property carries two outstanding loans (one to ULD and one to discord member: Gottfather) and has a critically low maintenance reserve. Last month, operations were running negatively.

• This proposal seeks to transition full property management to S&P Property Management LLC under the following terms:

• Key Management Terms:

• Management Fee: 12.5% of gross rents until the property is stabilized, then reduced to 10%, once all units are filled and loans are repaid

• Maintenance Coordination: 5% markup on all maintenance work

• S&P will utilize Earl's existing local maintenance team led by Evan.

• Earl will continue paying his portion of the mortgage (P+I) and provide S&P full access to the mortgage payment portal.

• S&P will aim to reconcile all financials within 90–120 days of transition.

• S&P will serve as the authorized representative and signer of the property when it is sold or purchased.

• NOI Allocation & Strategy:

• Approving this proposal authorizes S&P to allocate available Net Operating Income (NOI) toward:

• Replenishment of operating reserves

• Loan(s) principal paydown (priority on ULD loan)

• Refinancing loans at lower rates

• Token buybacks and burns when pricing indicates

• Proposal #2: Dilutive Equity Raise Proposal: Authorize a dilutive equity raise via Dutch Auction raise for approximately $7,500 (ranked choice voting: $0 / $7,500 / $10,000). Where tokens will be sold by the Authorized Representative, (250) tokens will be sent to the ULD token wallet the sale of tokens will continue Dutch Auction fashion until $X have been surpassed as determined by voting below. From the sale proceeds, a $5,000.00 operating reserve will be established and the remaining proceeds will contribute towards principal paydown on the ULD loan. The remainder of tokens will be sent back to the burn wallet and not factored into supply.

• Objective: This transition will deliver stronger long-term tokenholder value by reducing interest expense, shortening loan terms, improving property stability, and implementing disciplined capital allocation.

• Voting Options:

• Proposal #1:

• For – Approve transition to S&P Property Management LLC under the outlined property management terms, including NOI allocation authority and the dilutive equity raise.

• Against – Reject the proposal and maintain current management.

• Proposal #2: Ranked Choice Voting

• For - $10,000 Capital Raise to offset high interest, build reserves, and protect property

• For - $7,500 Capital Raise to offset high interest, build reserves, and protect property

• Against - Decline to raise, $0, maintain current operations

• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 21st, once the voting period ends.

• This month's reviewed financial summary from FINANCIALS.md is below.

• Financial data is shown as of 2026-06.

• Cash Flow Snapshot (2026-06):

• Revenue: $997.50

• Operating Expenses: -$823.42

• NOI: $174.08

• Net Operating Cashflow: -$170.68

• Monthly Cash Position (2026-06):

• Revenue and operating expenses are scoped to the reporting month. ECO Operating Cash is the current complete DAO-attributed total of Column E across every row in the property-split ECO Systems GL, including accruals.

• Lofty Operating Cash: $11.92 (Lofty curr_maintenance_reserve)

• ECO Operating Cash: -$2,397.46 (ECO Systems General Ledger Column E, 527 rows)

• Accrual Funding Reconciliation (2026-07-15):

• The ECO GL begins 2024-03-01, the first day of the month before the first token sale on 2024-04-24. Earlier rows are excluded from this DAO's GL.

• ECO GL Column E accounting position: -$1,220.97.

• Open accrual requirement: $1,955.24 (legal dao payable $750.00, pm payable $1,205.24).

• Other accounts payable / receivable: $5,173.42 AP and $108.00 AR.

• Live unrestricted DAO bank cash: $337.55.

• Restricted cash excluded from ordinary funding: $1,062.67.

• Bank funding gap after net AR/AP: $6,683.11 underfunded; surplus $0.00.

• 2026 retained-capital model: retained $14.71; ECO principal/interest debt $0.00.

• Column E is the accounting/CF-close position, not current bank cash. Month-end reset and capital-close rows remain in Column E but are non-cash and are excluded from every inter-DAO transfer and bank-underfunding calculation. A positive Column E balance therefore does not by itself mean the bank has enough cash to pay open accruals.

• Current net cash schedule affecting this DAO:

• Pay ECO Systems LLC: $7,128.66 (funding required before full transfer)

• Receive from Heron LFTY0314 DAO LLC: $108.00

• Taxes, insurance, and escrow accruals are reserve requirements rather than immediate external payment instructions. Transfers marked funding required should not be executed in full until incoming reimbursements, reserve top-up, or approved financing is available.

Property Update (05/05/2026):

Governance Vote for 724 3rd Ave:

• The governance results are back for the owner-proposed vote.
• The winning vote is:
• NO: Retain ownership of 724 3rd Ave within Grape LFTY403 DAO LLC, maintaining exposure to current debt levels, partner foreclosure risks, and the ongoing $30/token valuation.
• This voting option received 47 votes and was voted on by 30 out of 47 shares, totaling 78.27% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
• The voting results can be found on chain here or by searching the application ID: 3545532158

Property Update (05/01/2026):

Hello fellow co-owners,

• With this surprise vote, which was not meaningfully workshopped with DAO owners beforehand, I wanted to lay out why I believe owners should vote NO on Alec’s proposal.

• The biggest issue is not simply whether a sale should ever be considered. The issue is that this proposal appears to give Alec broad authority to control the sale process through closing, without requiring a final owner vote on the actual sale terms. That removes an important check from the DAO and risks accepting a deal that may not maximize value for all co-owners.

• There are also conflict-of-interest concerns. Alec has separate financial pressures and obligations outside this DAO, including commitments related to repurchasing co-ownerships and ongoing exposure connected to 5604 Brownfield. Those issues should not determine the timing or terms of a sale for 724 3rd Ave.

• Owners should also consider recent concerns raised around prior property wind-downs, including delays between sale completion and funds reaching Lofty for redemption. If this DAO is going to sell, owners deserve a transparent, accountable process with clear timelines, not open-ended discretion.

• Bottom line: this DAO should not be rushed into a sale structure that removes owner oversight or prioritizes one co-owner’s unrelated liquidity needs over a value-maximizing outcome.

• Please stand with your fellow co-owners and vote NO on this proposal as written. The asset is nearing repair completion, and higher revenue may be achievable in the coming months. If a sale is later appropriate, it should come back to owners with actual terms, clear accountability, and a final vote.

• Thank you!

Property Update (04/29/2026):

Owner-Proposed Governance Vote for 724 3rd Ave:

• An owner with the following wallet address is proposing a governance vote.
• This owner holds 701 shares in this property.
• The owner's reasoning is below, word-for-word:
• Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
• Governance Vote: Proposed Sale of 724 3rd Ave, Watervliet, NY
• Asset: 724 3rd Ave, Watervliet, NY 12189
• Entity: Grape LFTY403 DAO LLC
• Authorized Representative: Alec VanBeek / Whalec Property Management LLC
• Executive Summary
• This governance vote proposes the immediate listing and sale of the property located at 724 3rd Ave, Watervliet, NY, held within Grape LFTY403 DAO LLC. This action is a strategic necessity to protect token holders from mounting financial contagion and to exit a high-risk position that has seen significant secondary market decline.
• Rationale for Sale
• Contagion & Foreclosure Risk: The property is currently burdened by a heavy debt load. Furthermore, partner Earl is facing foreclosure proceedings on other portfolio assets (such as Coolwood), putting the stability of this entity at immediate risk. Selling now is essential to distance the DAO from these external legal and financial pressures.
• Market Indicators: The asset has been trading in the $30 token range for several months. This sustained low valuation reflects a high level of perceived risk and a lack of market confidence in the property’s current trajectory.
• Legacy Issues: It has been identified that the property was listed with undisclosed issues, the costs of which have been disproportionately footed by early investors. Exiting the asset stops this ongoing capital drain.
• Strategic Exit: Liquidation is the most viable path to preserve remaining equity and allow investors to exit before the situation potentially worsens.
• Authorization & Execution
• By voting YES, the DAO grants Alec VanBeek and Whalec Property Management LLC full and final authority to negotiate and execute the sale of 724 3rd Ave at the highest attainable token price. No further governance votes or approvals will be required to finalize the transaction or closing terms once this resolution is passed.
• Voting Options
• YES: Authorize Alec VanBeek / Whalec Property Management LLC to sell 724 3rd Ave at the highest possible price to mitigate foreclosure risk and exit a devaluing asset without further DAO intervention.
• NO: Retain ownership of 724 3rd Ave within Grape LFTY403 DAO LLC, maintaining exposure to current debt levels, partner foreclosure risks, and the ongoing $30/token valuation.
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, May 5th, once the voting period ends.

Property Update (02/19/2026):

The owner who just sent the governance vote is providing clarification on their proposal.

• 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.
• Regarding the previous 724 3rd Ave proposal I sent, I would like to send the owners a notice with additional clarification. Please send the following:
• Clarification on the proposal:
• This most recent proposal is not intended to distribute the 15k of ULD funds, we are using those funds to complete the turn repairs. Once rented, however, we will immediately resume distributions from the rental instead of building the OR to $2500 and then $5000"
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, February 24th, once the voting period ends.

Property Update (02/03/2026):

Owner-Proposed Governance Vote for 724 3rd Ave:

• An owner with the following wallet address is proposing a governance vote.
• This owner holds 490 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.
• Amendment: Immediate Cash Flow for 724 3rd Ave
• The $15k loan is approved—now let’s unlock the rent yield.
• The most recent proposal inserted some language about diverting income to a savings account (Operating Reserve) for months before you see a dime. That cash belongs in our wallets.
• The "Full Distribution" Plan
• This amendment to the previous proposal clarifies the payout structure once the unit is leased after the repairs:
• Pay Debt First: The DAO meets all minimum obligations to the ULD and existing lenders.
• Pay Owners Immediately: 100% of the remaining profit after expenses goes directly to token holders.
• No "Cash Hoarding": We are removing the $2,500 and $5,000 reserve refills. We will use credit or capital calls for future repairs, not your idle cash.
• The Potential (Back-of-Napkin Math by LaPlebDeLaPleb in Discord)
• Once fully rented, this shift could generate fantastic yields:
• ~$38/token buyers: ~18.91% Yield
• $50/token buyers: ~14.37% Yield
• Don't wait months for a return. Vote to turn the rent on immediately.
• Voting Options
• Approve Amendment: Activate potential ~18.91% Yield & Immediate Payouts (Upon Full Occupancy). (Unlocks 100% of post-debt NOI for owners; bypasses reserve requirements).
• Delay Income to Refill Reserve. (Divert rent to the reserve targets after repairs; will cause zero rental yield for many months).
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, February 24th, once the voting period ends.

Property Update (02/03/2026):

Governance Vote for 724 3rd Ave:

• The governance results are back for the owner-proposed vote.
• The winning vote is:
• Approve $15,000 ULD loan only (4.5% fee, 13.5% APR, callable after 18 months, if the minimum)
• This voting option received 34 votes and was declared the winner in Round 4 via the Ranked Choice Voting method. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
• The voting results can be found on chain here or by searching the application ID: 3439113148

Property Update (01/27/2026):

Owner-Proposed Governance Vote for 724 3rd Ave:

• An owner with the following wallet address is proposing a governance vote.
• This owner holds 36 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.
• Governance Proposal – 724 3rd Ave, Watervliet, NY 12189
• The tenant at 724 3rd Ave has vacated, leaving the unit unrented and the property receiving income on only 2 of its 3 units. To quickly return the unit to market rent ($1,100–$1,300/mo), the DAO requires a bridge to fund turn costs (cleaning, minor repairs, marketing, and tenant placement). The PM (Earl) estimates the need at up to $15,000. This proposal authorizes a hybrid funding structure: $7,500 from dilutive equity (Dutch auction starting at $45/token, decreasing $1/day until funded) + $7,500 from the Universal Lending DAO (4.5% origination fee, 13.5% APR compounded monthly, 3-year term (extendable to 4th year, per performance on loan). Loans carry a minimum monthly payments of $75/mo or Interest-Only, whichever is greater after 60 days and loans are if any schedule minimum monthly payments are missed, and are unable to be cured within 60 days, the ULD will seek the DAO to refinance or preside over sale of the property, with the ULD having full-authorization. Earl is authorized to execute the turn, relist the unit, and prioritize quick leasing to restore cash flow.
• In this proposal, the DAO will make minimum repayments to the ULD & Gottfather (discord member) from NOI and refill its OR to $2,500 at a refill rate of 100%, post-loan repayments. After $2,500 has been reached, the refill rate will be 50% NOI until $5000 (the rest of NOI will be distributed to token holders), above $5000 the NOI will be paid out to investors after 5% retained monthly NOI earnings)
• Voting Options (Ranked-Choice):
• Approve hybrid plan (dilutive equity + ULD bridge, authorize Earl to execute turn and leasing)
• Approve $15,000 dilutive equity only (Dutch auction, no ULD loan)
• Approve $15,000 ULD loan only (4.5% fee, 13.5% APR, callable after 18 months, if the minimum)
• Do nothing (Earl funds turn personally; unit remains vacant)
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, February 3rd, once the voting period ends.

Property Update (12/09/2025):

Governance Vote for 724 3rd Ave:

• The governance results are back for the owner-proposed vote.
• The winning vote is:
• no, leave OR at $0
• This was voted on by 32 participants in total. Out of the total number of participants, 12 voted for the winning vote, totaling 73% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
• The voting results can be found on chain here or by searching the application ID: 3358946820

Property Update (12/01/2025):

Owner-Proposed Governance Vote for 724 3rd Ave:

• An owner with the following wallet address is proposing a governance vote.
• This owner holds 26 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.
• All,
• I would like to propose increasing the "OR is full" point from the current $0 to $10,000. My reasoning is that I would prefer not to need to take out a loan next time a maintenance expense comes up.
• This would mean:
• 1. 0 rent distributions until OR reaches $5,000
• 2. 50% of FCF rent distribution from $5,000 to $10,000
• 3. 100% of FCF rent distribution once over $10,000
• Voting options:
• 1. yes, increase OR to $10k
• 2. no, leave OR at $0
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, December 9th, once the voting period ends.

Property Update (11/13/2025):

I cleaned up the accounting. Between Sept-Nov, Net Cash Flow was -$10131.01. $5,047.19 was received from the OR, and $5,200 was received as a loan from @.thegottfather. The shortage is therefore -$116.18, which I will recover from the current OR balance of $131.60. The DAO cash accounts will go down to $15.42.

• Yield will remain at 0% for the months of October and November and payouts will resume for December Net Cash Flow in January.
• Income Statement: https://www.dropbox.com/scl/fi/kb7mn5pc2p7jqdjby1l8j/P-L-724-3rd-Ave-Watervliet-NY-12189.xlsx?rlkey=89v0xg5lmhea9zmxtp1rwsc65&dl=0
• Mortgage Statement: https://www.dropbox.com/scl/fi/i75ma76ali84ahssqzwm4/Mortgage-Statement-2025-10-20-724-3rd-Ave-Watervliet-NY-12189.pdf?rlkey=4x4vb137eby6cz0mi0gyvgruk&dl=0
• Mortgage Principal Balance: $68,092.36 as of 11/13/2025.
• There should be 1,362 shares in escrow. There are currently 1,373 shares. Lofty to reconcile.

Property Update (10/14/2025):

Governance Vote for 724 3rd Ave:

• The governance results are back for the owner-proposed vote.
• The winning vote is:
• Yes [propose to loan $5200 to remediate the various repairs needed (plumbing, turnover repairs, etc.). The terms of the loan would be the $5200 to supplement the OR amount of approximately $4800. The $5200 would be loaned at 9% interest over an amortized three year schedule. The terms and schedule are attached here for review. Please Vote Yes or No to accept this loan]
• This was voted on by 39 participants in total. Out of the total number of participants, 36 voted for the winning vote, totaling 95% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
• The voting results can be found on chain here or by searching the application ID: 3265494302

Property Update (10/06/2025):

Owner-Proposed Governance Vote for 724 3rd Ave:

• An owner with the following wallet address is proposing a governance vote.
• This owner holds 25 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.
• This property has outstanding repair needs. Vote info below:
• I propose to loan $5200 to remediate the various repairs needed (plumbing, turnover repairs, etc.). The terms of the loan would be the $5200 to supplement the OR amount of approximately $4800. The $5200 would be loaned at 9% interest over an amortized three year schedule. The terms and schedule are attached here for review. Please Vote Yes or No to accept this loan.
• View Loan Agreement & Breakdown
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, October 14th, once the voting period ends.

Property Update (09/16/2025):

Governance Vote for 724 3rd Ave:

• The governance results are back for the owner-proposed vote.
• The winning vote is:
• NO – Do not authorize the sale at this time.
• This was voted on by 47 participants in total. Out of the total number of participants, 23 voted for the winning vote, totaling 73% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
• The voting results can be found on chain here or by searching the application ID: 3216012344

Property Update (09/11/2025):

Owner-Proposed Governance Vote for 724 3rd Ave:

• 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.
• Governance Vote – 724 3rd Ave, Watervliet, NY 12189
• TL;DR
• Authorize Alec VanBeek / Whalec Property Management LLC to sell the property for maximum token value without requiring any further governance votes.
• Background
• The property located at 724 3rd Ave, Watervliet, NY 12189 is currently facing several factors that make a sale favorable at this time:
• Vacancy at the property, reducing cash flow.
• The asset is well positioned for sale to a house hacker, as the current market remains strong with relatively high property prices.
• Rental income is modest, raising concerns about the sustainability of returns in the event of tenant turnover or job loss in the area.
• There is outstanding debt on the property, and deleveraging across the portfolio is considered a prudent course of action while prices remain high.
• Proposal
• Authorize Alec VanBeek / Whalec Property Management LLC to:
• List and sell the property located at 724 3rd Ave, Watervliet, NY 12189.
• Accept the highest and best offer reasonably obtainable in the market.
• Complete the sale and closing process without requiring additional governance votes.
• Distribute net proceeds proportionally to DAO token holders after repayment of all debts, closing costs, and settlement of outstanding obligations.
• Vote Options
• YES – Authorize Alec VanBeek / Whalec Property Management LLC to sell the property for maximum token value without further governance votes.
• NO – Do not authorize the sale at this time.
• The owner proposing the vote is Alec VanBeek / Whalec Property Management LLC.
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, September 16th, once the voting period ends.

Property Update (08/15/2025):

Owners are receiving the net cash flow for July on a daily basis until September 12th.

• July's net cash flow totaled $1,086.64, a 16% decrease compared to June's net cash flow of $1,288.87.
• Basement tenant is moving out at the end of the month. Some minor repairs are needed in the unit before a new tenant moves in. We have begun listing it for rent to minimize the turnover/vacancy time.
• Mortgage Balance: $68,804.13
• P&L Statement

Property Update (08/13/2025):

Owners will receive the net cash flow for July on a daily basis from August 14th through September 13th.

• July's net cash flow totaled $1,086.64, a 16% decrease compared to June's net cash flow of $1,288.87.
• Basement tenant is moving out at the end of the month. Some minor repairs are needed in the unit before a new tenant moves in. We have begun listing it for rent to minimize the turnover/vacancy time.
• Mortgage Balance: $68,804.13
• P&L Statement

Property Update (08/09/2025):

Owners will receive the net cash flow for July on a daily basis from August 14th through September 13th.

• July's net cash flow totaled $1,086.64, a 16% decrease compared to June's net cash flow of $1,288.87.
• Mortgage Balance: $68,804.13
• P&L Statement

Property Update (07/15/2025):

Owners are currently receiving the net cash flow for June on a daily basis through August 14th.

• June's net cash flow totaled $1,288.87, a 61% increase compared to May's net cash flow of $802.16.
• Mortgage Balance: $68,804.13
• P&L Statement

Property Update (06/13/2025):

Owners are currently receiving the net cash flow for May on a daily basis through July 12th.

• May's net cash flow totaled $802.16, compared to March's net cash flow of $1,349.50 (-41%).
• This is due to multiple plumbing issues throughout the building that have now been repaired.
• A tree branch broke the Floor 2 balcony roof, which has also been fixed.
• Wireless exterior security cameras facing the front, side, and back yards are now up and running.
• P&L Statement
• Bank Statements
• Mortgage Statement

Property Update (05/17/2025):

Owners are currently receiving the net cash flow for April on a daily basis through June 12th.

• April's net cash flow totaled $1,349.50, compared to March's net cash flow of $1,422.70.
• Earl, the co-owner and Property Manager, has shared additional details for investors, outlined below:
• "NOI: $1,349.50 (5% decrease over March) + $62.50 DAO LLC Fees = $1,412.00"
• P&L Statement
• Bank Statement
• Mortgage Statement

Property Update (04/19/2025):

You are currently receiving the net cash flow for March on a daily basis through May 14th.

• March's net cash flow totaled $1,422.70, compared to February's net cash flow of $1,585.11.
• Earl, the co-owner and Property Manager, has shared additional details for investors, outlined below:
• NOI: $1,422.70 (10% decrease over February) + 62.50 DAO LLC Fees = $1,485.20
• P&L Statement
• Bank Statement
• Mortgage Statement
• The co-owner and property manager, Earl, is available in this property's Discord channel to answer questions from owners.

Property Update (02/16/2025):

Owners are currently receiving the net cash flow for January on a daily basis through March 16th.

• January's net cash flow totaled $1,329.81, marking a 5% decrease from December's net cash flow of $1,405.82.
• YTD Profit & Loss Statement
• Baselane Bank Transactions & Statement

Property Update (02/16/2025):

Owners are currently receiving the net cash flow for February on a daily basis through April 13th.

• February's net cash flow totaled $1,585.11, marking a 19% increase from January's net cash flow of $1,329.81.
• P&L Statement
• Bank Statement

Property Update (01/20/2025):

Owners are currently receiving the net cash flow for December on a daily basis through February 13th.

• December's net cash flow totaled $1,405.82, marking a 3.06% decrease from November's net cash flow of $1,450.17.
• YTD Profit & Loss Statement
• The co-owner and property manager, Earl, is available in this property's Discord channel to answer questions from owners.

Property Update (12/22/2024):

You are now receiving the net cash flow for November on a daily basis through January 13th.

• November's net cash flow totaled $1,450.17, marking a 4% increase from October's net cash flow of $1,387.87.
• Earl, the co-owner and Property Manager, has shared additional details for investors, outlined below:
• "See attached. P&L has December’s update too so that should close out the year for this property barring any additional expenses.
• Outstanding principal is $69,776.68 but that will update on the 18th."
• YTD Profit & Loss Statement
• Baselane Bank Transactions & Statement
• Mortgage Statement
• The co-owner and property manager, Earl, is available in this property's Discord channel to answer questions from investors.

Property Update (11/19/2024):

You are now receiving the net cash flow for October on a daily basis through December 14th.

• October's net cash flow totaled $1,387.87, marking a 172% increase from September's net cash flow of $510.42.
• YTD Profit & Loss Statement
• Baselane Bank Transactions & Statement
• The co-owner and property manager, Earl, is available in this property's Discord channel to answer questions from investors.

Property Update (10/19/2024):

Owners are currently receiving the net cash flow from the month of September on a daily basis until November 13th.

• The net cash flow in September was $510.41, a 64.43% decrease over August's net cash flow of $1,435.09.
• The property had a furnace repair of $964.29 in September. The repair expense was reduced from rent, instead of the Operating Reserve, per the Governance Vote on 10/14. The voting results can be found on chain here or by searching the application ID: 2364766832.
• The co-owner and Property Manager, Earl Co, has provided additional information for investors, which can be viewed below:
• YTD Profit & Loss Statement
• Bank Statements
• Mortgage Statement

Property Update (10/14/2024):

Governance Vote:

• The governance results are back for the governance vote proposed by the co-owner and property manager, Earl Co.
• The winning vote is:
• Reduce Rent! Buy cheaper tokens from paperhands
• This was voted on by 51 participants in total. Out of the total number of participants, 34 voted for the winning vote, totaling 71.65% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
• The voting results can be found on chain here or by searching the application ID: 2364766832

Property Update (10/11/2024):

Owner-Proposed Governance Vote:

• The co-owner and Property Manager, Earl Co, is proposing a governance vote:
• Earl's 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.
• 9/26-27 - 724.2 Furnace Diagnosis and Repair - the internal wiring had melted due to improper installation probably decades ago, leading to overheating by the flame causing arcing and oxidation. We were able to fix it with all new electrical wires, avoiding a new furnace. It should last a few more years hopefully - $964.29 ($67.65 of which was for a temporary space heater I had delivered).
• Does the DAO want to reduce their rents for Oct 15-Nov 14 (the NOI would be $510.41 split amongst 3273 tokens) or should we reduce the ~$1856 OR balance for the furnace repair?
• Option 1: Reduce Rent! Buy cheaper tokens from paperhands
• Option 2: Reduce OR! Last reported balance was $1,856 which should be slightly higher now
• The results will be determined by a 60% Supermajority and will be sent to all owners on Monday, October 14th once the voting period ends.

Property Update (08/21/2024):

You are currently receiving the net cash flow for the month of July on a daily basis until September 14th.

• The net cash flow in July was $1,457.41, a $2.43 increase over June's net cash flow of $1,454.98.
• The co-owner and Property Manager, Earl, has provided additional information for owners, which can be viewed below:
• YTD Profit & Loss Statement
• Monthly Mortgage Statement
• Baselane Bank Transactions & Statement

Property Update (05/28/2024):

Governance Results:

• The Governance Voting results are back for the owner-proposed vote to change the Property Management entity. The new entity is still under the same owner, Earl Co.
• The winning vote is:
• Approve the DAO to cancel the existing PM agreement with EVCO, LLC, and contract with EVCO Industries, LLC
• This vote was voted on 35 participants in total. Out of the total number of participants, 33 voted for the winning vote, totaling 58.7% of the voting power.
• Because this vote did not receive a 60%+ Supermajority, it will not pass.
• This is a co-ownership property, which means the governance mechanism used the scaled governance calculation as opposed to the default of 1 token equals 1 vote.

Property Update (05/22/2024):

Owner-Proposed Governance Vote:

• The co-owner and Property Manager, Earl Co, is proposing a governance vote to change the entity of his Property Management company in the Property Management Agreement.
• Earl holds 2,774 tokens in this property.
• Earl's 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.
• Fellow co-owners,
• I need to switch the Property Management entity that I’m currently using to a different entity on the PM agreement, EVCO Industries, LLC, which is a “blocker corporation”, an operating entity owned fully by my IRA/LLC (in which I am the sole beneficiary) and managed solely by me. This is because my IRA/LLC owns at least one share in this DAO LLC and its underlying asset. Due to various IRA rules regarding self-dealing, prohibited transactions, potential direct/indirect benefits, and UDFI/UBTI, my IRA/LLC is at risk of violating one of these rules due to my active role as a managing member of the PM entity currently in use.
• This minor change to the PM agreement is a much more compliant way to go about my near-term goal of moving as much of my equity as possible out of my personal account and into my IRA/LLC's account on Lofty. There will be no changes to actual operations, as this vote is strictly for better compliance with IRA laws which only pertain to me due to my additional roles as mortgagor and property manager. Thank you for your consideration.
• 1. Approve the DAO to cancel the existing PM agreement with EVCO, LLC, and contract with EVCO Industries, LLC
• 2. Keep the existing contract as-is, potentially subjecting Earl's IRA/LLC to non-compliance and/or mandatory divestment
• The results will be determined by a 60% Supermajority and will be sent to all owners on Monday, May 27th once the voting period ends.

Property Update (05/18/2024):

The co-owner and Property Manager, Earl Co, has provided an update which can be viewed below.

• The tenant in Unit 2 has signed a 1 year lease renewal at $875/month, a $25 increase over the previous lease of $850.
• The lease term is 07/01/2024 - 06/30/2025.
• Lease Renewal Agreement
• YTD Profit & Loss Statement

Property Update (05/08/2024):

The co-owner and property manager, Earl Co, will be discounting his management fee from 5% to 0% for the first year.

• This increases the Rental Yield to 11.5% for tokens purchased at $48/token.
• There are currently 828 tokens available at $48, which can be purchased on the property page.
• Earl advised that the electric bill should be reduced in the coming months and he's working to reduce the cost of the pest control as well.
• The long-term tenant in Unit 2 will most likely be renewing their lease in July. If they decide to vacate, Earl advised that the unit can be brought up to market-rent at this time.