Property Update (11/25/2025):

Net proceeds have been sent to Lofty for disbursement to token holders.

There was an arithmetic error in the calculations previously sent out via governance vote. The actual total debts listed sum to -$42,257.51. Apologies for my arithmetic error. Trust but verify!

Below are the corrected values:

Due TO EARLDAO (includes 5 months interest @ 12%): -$13,401.41

Due to Evernest: -$5,863.21

Due to Universal Lending DAO: -$272.07

Due to 9902 Garfield Lending DAO: -$17,934.45

Due to Lofty : -$2,570.84

Due to ECO Systems (Includes 1.5% Transaction Coordination Fee): -$2,215.53

Total Debts (sum of above): -$42,257.51

Net Sale Proceeds: +$52,391.50

Number of Tokens: 1,386

Final Net Asset Value Per Share: (52391.50-42257.51)/1386 = $7.312

Property Update (11/14/2025):

The Governance Voting results are back for the owner proposed votes.

The winning vote is:

Accept the Offer

This voting option received 264 / 386 token votes which is equal to 68% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3325752622

The winning vote is:

Authorize Earl Vanze Co to sign closing documents as Authorized Member on behalf of the DAO

This voting option was declared the winner in Round 1 with 239 token votes.

The voting results can be found on chain here or by searching the application ID: 3325709093

Property Update (11/13/2025):

Owner-Proposed Governance Vote for 9902 Garfield Ave:

The property manager, ECO Systems LLC, is proposing a governance vote. The previous governance vote is now void.

Their 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 owners,

The following proposal has been updated after I learned about an outstanding Lending DAO balance.

We have received a $60,000 cash offer, no contingencies, closing 11/14/2025. Please see HUD-1 settlement statement in Dropbox.

Net to the DAO is $52,191.50 at closing which includes all back taxes, before reimbursements due to ECO Systems and Lofty.

Financial Summary:

Due TO EARLDAO (includes 5 months interest @ 12%) -$13,401.41

Due to Evernest -$5,863.21

Due to Universal Lending DAO -$270.07

Due to 9902 Garfield Lending DAO approved 08/09/2023 (includes 27 months interest @ 8.5%)

Due to Lofty (Unverified, may include taxes & insurance already paid) -$17,934.45

-$3,566.64

Due to ECO Systems (Includes 1.5% Transaction Coordination Fee) -$2,170.53

Estimated Total Debts -$36,342.64

Net Sale Proceeds +$52,191.50

Number of Tokens 1,386

Estimated Net Asset Value Per Share $11.43

Owners may now vote by 11/14/2025 at 5 PM EST.

Vote 1:

1. Accept the Offer

2. Cancel the sale (I have a BETTER offer)

Vote 2:

1. Authorize Earl Vanze Co to sign closing documents as Authorized Member on behalf of the DAO, settle all debts, and send net proceeds to Lofty for distribution via token redemption.

2. Authorize Lofty AI Inc. to sign closing documents as Authorized Representative on behalf of the DAO, settle all debts, and distribute net proceeds via token redemption.

3. Do not authorize either party to sign closing documents, resulting in cancellation of the sale.

The results will be determined by a 60% Supermajority and sent to all owners on Friday, November 14th once the voting period ends.

Property Update (11/13/2025):

Owner-Proposed Governance Vote for 9902 Garfield Ave:

The property manager, ECO Systems LLC, is proposing a governance vote.

Their 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.

They already voted to sell but sure I’ll separate the votes below:

Fellow owners,

We have received a $60,000 cash offer, no contingencies, closing 11/14/2025. Please see HUD-1 settlement statement in Dropbox. Net to the DAO is $52,191.50 at closing which includes all back taxes, before reimbursements due to ECO Systems and Lofty.

Financial Summary:

Due TO EARLDAO (includes 5 months interest @ 12%) -$13,401.41

Due to Evernest -$5,863.21

Due to Universal Lending DAO -$270.07

Due to Lofty (Unverified, may include taxes & insurance already paid) -$3,566.64

Due to ECO Systems (Includes 1.5% Transaction Coordination Fee) -$2,170.53

Estimated Total Debts -$17,487.69

Net Sale Proceeds +$52,191.50

Number of Tokens 1,386

Estimated Net Asset Value Per Share $24.57

Owners may now vote by 11/14/2025 at 5 PM EST.

Vote 1:

1. Accept the Offer

2. Cancel the sale (I have a BETTER offer)

Vote 2:

1. Authorize Earl Vanze Co to sign closing documents as Authorized Member on behalf of the DAO, settle all debts, and send net proceeds to Lofty for distribution via token redemption.

2. Authorize Lofty AI Inc. to sign closing documents as Authorized Representative on behalf of the DAO, settle all debts, and distribute net proceeds via token redemption.

The results will be determined by a 60% Supermajority and sent to all owners on Friday, November 14th once the voting period ends.

Property Update (11/13/2025):

Correction to the Financial Summary previously provided:

Due TO EARLDAO (includes 5 months interest @ 12%) -$13,401.41

Due to Evernest -$5,863.21

Due to Universal Lending DAO -$270.07

Due to 9902 Garfield Lending DAO approved 08/09/2023 (includes 27 months interest @ 8.5%) -$17,934.45

Due to Lofty (Unverified, may include taxes & insurance already paid) -$3,566.64

Due to ECO Systems (Includes 1.5% Transaction Coordination Fee) -$2,170.53

Estimated Total Debts -$36,342.64

Net Sale Proceeds +$52,191.50

Number of Tokens 1,386

Estimated Net Asset Value Per Share $11.43

Property Update (08/05/2025):

Governance Results for 9902 Garfield Ave:

The Governance Voting results are back for the owner proposed votes.

The winning vote is:

List for sale

This voting option received 463 / 493 token votes which is equal to 93% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3157914961

Property Update (07/28/2025):

Owner-Proposed Governance Vote for 9902 Garfield Ave:

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

This owner holds 32 tokens in this property.

Their 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 this property be listed for sale as it’s been vacant and Earl cannot facilitate renting it.

Options:

A. List for sale

B. Do nothing and leave vacant/open to squatters

The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, August 5th once the voting period ends.

Property Update (06/24/2025):

Governance Results for 9902 Garfield Ave:

The Governance Voting results are back for the owner proposed votes.

The first winning vote is:

Option 2 – Approve capital call of $21,000 via EARLDAO Covers only outstanding balances. Repairs not funded. Non-dilutive. May result in asset depreciation if not improved.

This voting option was declared the winner in Round 2 with 214 token votes.

The voting results can be found on chain here or by searching the application ID: 3090616908

The second winning vote is:

Option 1 – Migrate to ECO Systems LLC as PM w/ Hemlane as Sub-PM (10% PM Fee)PM Fee: 10% ECO only

This voting option received 343 / 348 token votes, which is equal to 98.5% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3090635391

Property Update (06/20/2025):

Owner-Proposed Governance Vote for 9902 Garfield Ave:

The property manager, M1 Homes LLC, with the following wallet address, is proposing a governance vote.

M1 Homes holds 0 tokens in this property.

Their 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.

VOTE #1 – CAPITAL CALL Yhome has billed the DAO $28,473.85, including $14,000 in repair costs based on the provided estimate from AAPK Construction. The DAO may choose to move forward with the repair plan or do nothing. Outstanding Financials:

Balance due to Yhome: $11,480.45 (payment frozen pending legal resolution)

Balance due to OR: $8,130.40

Capital Call due to Universal Lending DAO: $255.19

Unpaid Taxes Due: $491.68

DAO Net Cash (Deficit): $(20,392.27)

Repair Estimate (AAPK Construction): $14,000

Total Capital Call (if approving full bill): $35,000 Option 1 – Approve full capital call of $35,000 via EARLDAO Funds used to pay Yhome and complete $14,000 in repairs. EARLDAO terms: 12% APR, interest-only, balloon in 1 year. Non-dilutive. Option 2 – Approve capital call of $21,000 via EARLDAO Covers only outstanding balances. Repairs not funded. Non-dilutive. May result in asset depreciation if not improved. Option 3 – Approve capital call of $15,000 via equity issuance. Dilutive issuance of 1000 tokens at $15/share to pay for repairs only. Yhome balance remains unsettled. Option 4 – Reject Proposal No funds raised. Yhome remains unpaid. Repairs will not be completed, and property remains vacant.

VOTE #2 – PM & SUB-PM STRUCTURE (If Property is Retained) Only vote on this if DAO does not approve sale. Option 1 – Migrate to ECO Systems LLC as PM w/ Hemlane as Sub-PM (10% PM Fee)PM Fee: 10% ECO only

Leasing Fee: one month's rent

$495 for Hemlane's rent-ready service + materials + labor

No markup on Repairs & Maintenance

Rent placement post-rehab verification Option 2 – Reject Vote #2 and remain with M1 Homes

No change to existing management structure

The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, June 24th once the voting period ends.

Property Update (05/17/2025):

Update from Yhome Nursing LLC (these numbers are currently being reviewed by the new owner-elected property manager, M1 Homes LLC).

"Dear Investors, When Yhome took over this property, it was on the market for over 77 days, with the last offer of $34,000, which the buyer subsequently backed out( that is what they were willing to pay for it). Since then, Yhome has completed a quick turn repair and conducted an inspection to prepare it for sale.

The inspection revealed several issues that need to be addressed. We also found a tenant for Section 8, but the property failed the inspection, and the tenant moved on. However, we received a quote to bring the property up to Section 8 standards, which is attached for your review.

At this point, Yhome is no longer investing additional funds into the property. The current quote for repairs is $14,000. Therefore, my final bill for this property is $28,473.85, and a capital call is necessary to cover this cost. This will ensure Yhome is paid and the repairs are completed, should you choose to proceed. If that is not the case, we still need to do a capital call to pay yhome ( $13,073.85 as of today). Thank you."

Documents provided by Yhome

Property Update (04/28/2025):

Governance Results:

The Governance Voting results are back for the owner proposed vote to change property managers to M1 Homes LLC.

The winning vote is:

Move to M1 for lower fees and better management

This voting option received 496 / 510 token votes, which is equal to 97.2% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2960003094

Property Update (04/24/2025):

The current property manager, Yhome Nursing LLC, has put together a counter-proposal.

This is in response to the governance vote to change managers, sent out on 4/24, which can be viewed on the property page.

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

Yhome owns 4 tokens in this property and their wallet address can be viewed here.

Their 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.

Hi everyone,

I want to start by saying I truly appreciate seeing more community members stepping up—that kind of engagement is commendable and valuable. However, it's also important to recognize that much of the recent momentum isn’t due to Yhome's failure to perform, but rather a desire by some to prevent Yhome from being fairly compensated for the work it has done.

Yes, Yhome will receive compensation—as an asset manager or co-owner—but it's worth noting that the proposed alternative is essentially a return to a structure that already failed these properties in the past.

Yhome’s current system has proven itself. We are no longer fire-selling properties. All past evictions have been successfully handled across the Cleveland portfolio. No one can credibly accuse Yhome of neglect or inaction. The work has been done, and the results speak for themselves.

While I can’t compare Yhome to Earl directly—because we offer different services and use different strategies—what I can say is that shifting away from Yhome may come with significant risks: possible capital calls, delays in repairs, and a lack of a local team with on-the-ground experience in this market. Sure, you may get a basic property management structure, but it won’t come with the same focus on long-term value, stability, and a “profit-first” approach that Yhome offers.

Let’s be clear—many of the loudest critics on Discord are traders looking for quick flips, not long-term investors. If that’s your strategy, that’s your choice. But if you’re in this for stable returns and peace of mind, I encourage you to recognize the value Yhome brings and vote to stay the course.

Thank you.

Property Update (04/24/2025):

Owner-Proposed Governance Vote:

An Owner with the following wallet address is proposing a governance vote to change property managers from Yhome Nursing LLC to M1 Homes LLC.

This owner holds 32 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.

“Recent developments regarding yhome have surfaced serious areas of concern regarding financial transparency and after several months this property still isn’t passing inspection. M1 has agreed to take on management and get us back on track.

Options:

1. Continue with yhome and give up 3.5 percent dilutive equity immediately

2. Move to M1 for lower fees and better management”

The results will be determined by a 60% Supermajority and sent to all owners on Monday, April 28th once the voting period ends.

Property Update (04/21/2025):

Cal, the Property Manager with Yhome Nursing LLC, provided an update:

"Dear Investors, As previously mentioned, we initially completed only basic turnover repairs, not a full section repair. As expected, the property did not pass inspection. We are now actively addressing the inspection items and working on a more thorough repair to meet CMHA standards. Please note, the tenant may reconsider their decision. We will continue to keep you updated on our progress."

Property Update (03/07/2025):

Cal, the new owner-elected Property Manager with Yhome Nursing LLC, provided an update:

"Dear Investors, I wanted to inform you that we have submitted the necessary packet to Section 8. We are now awaiting the next steps, which will include a scheduled inspection. If the property passes the inspection, the tenant will be able to move in soon after. but we don't anticipate that we will pass inspection because we only did a turn repair. Therefore, more repairs may be necessary after the inspection.

I will keep you updated as we progress through this process."

Property Update (12/16/2024):

Cal, the new owner-elected Property Manager with Yhome Nursing LLC, provided an update:

"We are nearing completion at 9902 Garfield. The property has been secured, and we will soon take photos and prepare it for the next steps. We will keep you updated on our progress.

Best regards, Cal"

Property Update (10/14/2024):

Governance Results:

The Governance Voting results are back for the owner proposed governance vote to take the property off the market and have Yhome Nursing LLC manage the property.

The winning vote is:

Transition management to YHOME and chart a path to cashflowing again.

This voting option received 479 / 668 token votes, which is equal to 71.7% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2364795089

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

Per the management terms, Yhome will front the cost of repairs and pay off the capital balance. Yhome will then collect a portion of the cash flow to get paid back + 6% interest.

There will be no Operating Reserves for properties managed by Yhome, so owners will begin receiving a portion of the daily rent as soon as positive cash flow comes in. Any future repairs/expenses that come up will simply be paid for by Yhome + 6% interest.

Property Update (10/11/2024):

DOM: 77 days

The property had 0 showings in the last 7 days.

The agent noted that an offer was not received this week as expected.

Due to this, the agent recommends to lower the listing price by $5,000.

The property is currently listed at $74,900.

Property Listing

Owners have the ability to propose a governance vote anytime to delist the property for sale and migrate the property management to Yhome Nursing LLC.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

If owners elect to migrate to Yhome Nursing LLC, new repair estimates will be obtained, a loan will be provided at a 6% interest rate to complete the repairs, and the property will be rented out again.

Cal manages 15 other properties in the Cleveland & Akron markets on Lofty, and is the co-owner and Property Manager of the following co-ownership properties on Lofty:

402 N Wild Olive Ave

122 Florida Park Dr

49 Bannbury Ln

27 Pillar Ln

20 Sederholm Path

752 Gelaso St SW

Property Update (10/06/2024):

The approval of the $67k offer was communicated to the Buyer, however they have backed out. They felt there were not enough comps to support the $67k offer they originally proposed and the numbers don't make sense unless they are around $34k.

The property had 2 showings in the last 7 days.

The agent noted that an offer is supposed to be received from an agent who showed the property over the last 7 days.

The listing agent has followed up with the buyers agent a few times and the agent says their client has not yet signed off on things.

The agent recommends to lower the listing price by $2,000 if the property is not under contract by next week.

The property is currently listed at $74,900.

Property Listing

Owners have the ability to propose a governance vote anytime to delist the property for sale and migrate the property management to Yhome Nursing LLC.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

If owners elect to migrate to Yhome Nursing LLC, new repair estimates will be obtained, a loan will be provided at a 6% interest rate to complete the repairs, and the property will be rented out again.

Cal manages 9 other properties in the Cleveland & Akron markets on Lofty, and is the co-owner and Property Manager of the following co-ownership properties on Lofty:

402 N Wild Olive Ave

122 Florida Park Dr

49 Bannbury Ln

27 Pillar Ln

20 Sederholm Path

752 Gelaso St SW

Property Update (09/20/2024):

Governance Results:

The Governance Voting results are back for the governance vote to accept, deny, or counter the counter-offer of $67k

The winning vote is:

Accept the counter-offer of $67k

This voting option was declared the winner in Round 1 with 475 token votes via the Ranked Choice Voting Method.

The voting results can be found on chain here or by searching the application ID: 2310029299

The purchase contract will be signed and the listing agent will follow up with any updates on the closing process.

The other voting options were eliminated in Round 1

Hold firm at $70k

76 token votes

Counter the offer at $68k

6 token votes

Counter the offer at $69k

2 token votes

Deny the offer

22 token votes

Property Update (09/18/2024):

Governance Vote:

The buyer has come back and increased his offer to $67k after owners countered the $50k offer at 70k.

Owners will now have the ability to vote to accept, counter, or deny the counter-offer of $67k.

The property is currently listed for $74,900.

The property was originally purchased for $78,500 on 5/6/2022 and the HouseCanary estimated value as of May, 2024 (Low confidence) is $51,648.

The estimated token price based on a sale price of $67k is below:

Offer price: $67k

Commission: $3,350

Unpaid bills: $7,435

Loan balance: $16,329.25

Estimated sales price: $39,885.75

The estimated token price based on a total token amount of 1,836 is $21.72/token.

The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to owners on Friday, September 20th, once the voting is complete.

Property Update (09/18/2024):

Governance Results:

The Governance Voting results are back for the governance vote to accept, deny, or counter the offer of $50k.

The winning vote is:

Counter the offer at $70k

This voting option was declared the winner in Round 7 with 709 token votes via the Ranked Choice Voting Method.

The voting results can be found on chain here or by searching the application ID: 2300009410

The counter-offer has been presented to the buyer. Once a response is received, all owners will receive an update.

The other voting options were eliminated in the following rounds:

Round 1:

Counter the offer at $60k

9 token votes

Round 2:

Counter the offer at $65k

16 token votes

Round 3:

Deny the offer

38 token votes

Round 4:

Counter the offer at $55k

84 token votes

Round 5:

Counter the offer at $74.9k (listing price)

125 token votes

Round 6:

Accept the offer of $50k

289 token votes

Property Update (09/11/2024):

Governance Vote:

The property received an offer of $50k. The buyer originally made an offer of $38k, but increased it to $50k.

The buyer advised that the repair estimate for the furnace, hot water tank, and floor repairs were much higher than the $6,100 estimate quoted by the Property Manager.

Their estimates are below:

$15,000 for furnace/ac and hot water heater

$10,000 for kitchen floor tile and island in center fix wall with hole

$10,000 for roof shows underlying issues with out side soft coming off

The Buyer advised the following:

The roof will need work done as well the soffit on the driveway side is rotted so indicates some underlying issues with the roof.

I will try and make this work if they can come back with a counter offer so I can run it by my people.

Owners will now have the ability to vote to accept, counter, or deny the offer of $50k.

The property is currently listed for $74,900.

The property was originally purchased for $78,500 on 5/6/2022 and the HouseCanary estimated value as of May, 2024 (Low confidence) is $51,648.

The estimated token price based on a sale price of $50k is below:

Offer price: $50k

Commission: $2,500

Unpaid bills: $6,969

Loan balance: $16,329.25

Estimated sales price: $24,201.75

The estimated token price based on a total token amount of 1,836 is $13.18/token.

The winning vote will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to owners on Monday, September 16th, once the voting is complete.

Property Update (09/07/2024):

The property had 1 showing in the last 7 days.

The interested investor from last week has moved on.

The listing agent recommends to reduce the listing price to $72,900, a $2,000 decrease.

The agent also recommends to continue to reduce the listing price by $2,000 each week if no interests are received for the property. Reducing the asking price each week will will help boost the property to the top of searches on a weekly basis.

Owners have the ability to propose a vote to lower the listing price at any time.

Property Listing

Property Update (07/27/2024):

The property's first showing is taking place today, 7/27.

Property Listing

Property Update (07/27/2024):

The property had 0 showings in the last 7 days and 3 showings the two weeks prior

The Listing Agent received feedback that the property required too much work for the Buyers.

The Listing Agent is currently working with an out-of-state investor who is interested in the property.

Property Listing

Property Update (07/22/2024):

Governance Results:

The Governance Voting results are back for the vote on which price to list the property for.

The winning vote is:

List the property for $89,900 (Listing agent's recommendation)

This option was declared the winner in Round 1 with 325 token votes via the Ranked Choice Voting method.

The other voting options were eliminated in Round 1:

List the property for $95,000

107 token votes

List the property for $84,900

28 token votes

List the property for $80,000

5 token votes

The listing agent will default to be listed on Roofstock with their partner agent, Alex Johnson with Real Estate Quest, Inc., which provides exposure both on Roofstock and the MLS.

Owners can propose a vote to choose another listing agent at any time. If an offer is received, owners will have the ability to vote to accept, deny, or counter the offer.

Property Update (07/15/2024):

Governance Vote:

The governance results are back for the governance vote to do a Capital Call or sell the property.

The winning vote is:

Sell the property

This voting option received 404 / 454 of the votes which is equal to 88.9% of the total votes.

Owners will now have the ability to vote on the listing price.

The property was originally purchased on 05/09/2022 for $78,500. The HouseCanary Valuation (Low Confidence) as of May, 2024 is $51,648.

Alex Johnson, a Roofstock partner with Real Estate Quest, Inc., recommends the following:

With the amount of work this property needs, I would suggest listing 9902 Garfield Avenue somewhere between $84,900k-$89,900k. I found zero sold properties on market for this particular area of 44108. I had to open the search perimeter up and the prices were wildly staggered but homes in the average selling home in this area is between $50k - $60k. While my recommended list price might be still be high for the area, I feel that if 9902 Garfield is still in good condition (minus the repairs), it should sell quickly.

The winning vote for the listing price will be determined by a Supermajority of 60%+ and the results will be sent to all investors on Monday, July 22nd once the voting period ends.

Property Update (07/11/2024):

Governance Vote:

Per the previous update, the property requires a new kitchen floor, hot water tank, and furnace in order to be rented.

The total cost of these repairs is $6,100. The PM is also waiting on an estimate for kitchen drywall repairs. An additional cushion of $1,500 will be added to the Capital Call option in order to pay for the drywall repairs, if owners choose to do a Capital Call.

Due to the depleted Operating Reserve, owners now have the ability to raise a Capital Call to complete the repairs or sell the property outright.

The property currently owes $6,691 in unpaid bills to the Property Manager and has an outstanding loan balance of $16,329.25.

The property requires an additional loan of $13,641.96 to make the repairs and pay the unpaid bills. There's potentially $2,434.83 in recoverable depreciation. However, insurance requires repairs to be completed by 8/31 in order to receive these funds.

It is potentially risky to have multiple loans on the same DAO LLC, as debt has to be repaid first in the event of liquidating the property and owners may receive less capital than they expected.

If an additional loan was raised for $14,000 (includes a cushion for property tax, insurance, and utilities payments while the property is vacant), that would take the total loan balance to $30,329.25.

Owners now have the option to do another Capital Call for $14,000, complete the turn repairs, pay the unpaid bills, and rent the property out again. Owners can also choose to sell the property outright.

The property was originally purchased on 05/09/2022 for $78,500. The HouseCanary Valuation (Low Confidence) as of May, 2024 is $51,648.

Alex Johnson, a Roofstock partner with Real Estate Quest, Inc., recommends the following:

With the amount of work this property needs, I would suggest listing 9902 Garfield Avenue somewhere between $84,900k-$89,900k. I found zero sold properties on market for this particular area of 44108. I had to open the search perimeter up and the prices were wildly staggered but homes in the average selling home in this area is between $50k - $60k. While my recommended list price might be still be high for the area, I feel that if 9902 Garfield is still in good condition (minus the repairs), it should sell quickly.

If the Capital Call option is chosen, an owner of the property or the Universal Lending DAO must be willing buy any unsold tokens if the Capital Call does not fully fund within the 15 day funding period. If an owner does not back the Capital Call within one week of this option being chosen, then the property will be listed for sale.

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.

4 year repayment period

The capital call offer is open for 15 days.

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

If a Supermajority is not reached to do a Capital Call, then the property, by default, will be listed for sale on the open market. If this occurs, a separate vote will also be sent to owners to determine the listing price. After the property is listed for sale, owners are still able to propose a governance vote to do a Capital Call and de-list the property for sale if they are willing to back it themselves.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Monday, July 15th once the voting period ends.

Property Update (06/29/2024):

The PM noted that the estimates provided by Ramos & Vella are still valid, however not all items on the estimate are required to be completed, now that the general turn repairs have been completed.

Because the estimates are still valid, the specific line items can be completed.

To save on additional trip charges to a third vendor, the PM recommends making a decision on the two estimates provided.

Ramos' Bid:

Kitchen Floor (+ section of the bathroom): $1,250

HWT: $1,400

Furnace: $3,500

Total: $6,150

Vella's Bid:

Kitchen Floor: $1,800

HWT: $1,500

Furnace: $2,800

Total: $6,100

The PM recommends to dispatch Vella for the furnace and Ramos for the HWT and kitchen floors. This would amount to $5,450.

The PM will follow up with an estimate for the kitchen drywall repairs.

The property will require an additional Capital Call in order to complete the repairs, due to the depleted Operating Reserve balance.

Property Update (06/22/2024):

The PM received completion confirmation from the vendor, however, during the QC inspection there were a handful of callback items noted.

The PM confirmed the call-back items have been completed.

The PM noted that there were some final issues with cleaning, but the vendor was called out again to address this.

The PM will follow up on the remaining items that must be completed before the property can be listed for rent. The property will require a Capital Call in order to complete these items, due to the low Operating Reserve balance.

The attorney tried to appeal to the prosecutor for failure to complete a Lead-Safe Certificate application, and have the case dismissed.

However, the prosecutor stood firm on the city's position.

The attorney and PM recommended to accept the deal with the Court and pay the $500 fine as the legal, travel, and time expenses for the trial would outweigh the fine itself.

Property Update (05/11/2024):

The PM advised they have had multiple delays with vendors in this market, and the original turn repairs were not completed successfully.

The turn is in the process of being reassigned to a new vendor for a total cost of $8,190.39, which will be completed immediately once it has been re-assigned.

The PM is also in the process of completing roof repairs to the property for $750.

Per the previous update, there were additional repair items required that were not included in the turn estimate.

The estimate outside the turn repair scope of $10,160 includes additional items such as plumbing repairs, kitchen floor replacement, and replacement of the furnace & HWT.

The PM is in the process of obtaining an additional estimate.

The PM advised that the HWT and furnace were stolen during a break-in, and an insurance claim was filed.

The Replacement Cost Value of the damage is $6,900, while the Actual Cash Value is $4,465.17. The deductible is $2,500.00.

A payment of $1,965.17 will be issued.

Additionally, the insurance company noted a supplemental payment can be issued upon completion of the repairs, upon receipt of completion photos and receipts or invoices for materials and labor.

The supplemental payment is contingent upon the completion of repairs within 180 days (8/31/24) and the actual replacement cost for the repairs exceed the initial actual cash value payment of $1,965.17.

If the replacement cost exceeds this amount, the supplemental payment can be up to $2,434.83, representing the difference between the replacement cost value and the actual cash value of the damage.

Insurance Claim

The PM advised that the city issued fines on the property for failure to complete a Lead-Safe Certificate application.

The PM advised that the LLC is not required to complete a Lead Safe Certificate application if the property is vacant and the owners do not receive rent for anything of value for the property.

Legal counsel was appointed to assist with appealing the fines due to this.

A pretrial is scheduled for June 17th, and the attorney will continue efforts to make the case that the Lead Safe Certificate was not required for a property that was vacant, still is vacant, and no rent or anything of value was received for the property.

The PM advised that the worst case scenario is paying a $500 fine.

Property Update (01/27/2024):

The PM confirmed they are waiting for confirmation from the vendor on the completion status of the turn repairs.

The PM has received an estimate totaling $10,150 for the additional repairs that were not included in the original quote.

The PM advised that the estimate is more expensive than they expected, and they are in the process of obtaining a second estimate.

Repair Estimate

Property Update (01/20/2024):

The PM confirmed the vendor is still on track to complete the turn repairs by 1/22.

The PM is still working to obtain an estimates for the additional repairs not quoted on the turn estimate.

This includes repairs to the roof, siding, fence, furnace, duct cleaning, electric in dining room outlets, kitchen leak behind walls, floor in kitchen and bathroom, reglazing tub and the garage door.

Property Update (01/06/2024):

The PM confirmed the estimated completion date (ECD) for the turn repairs is set for 1/22.

Property Update (01/02/2024):

Evernest completed a move-out inspection and provided a turn estimate amounting to $8,190.39, which includes a 15% discount (total reduced by $1,445.36).

The PM advised there were significant delays in obtaining repair estimates from vendors in Cleveland over this past month, which is the reason for the discount.

The work includes general repairs such as installing a water heater and thermostat, replacing window glass, carpet cleaning, debris removal, and painting walls throughout the house.

Specific room-related tasks involve full painting, securing outlets and switches, installing smoke detectors, and addressing various issues in bedrooms, bathrooms, the kitchen, stairs, and basement.

Additionally, there are miscellaneous repairs, landscaping, electrical and plumbing work, and general cleaning needed to make the property rent-ready.

Third-party estimates will need to be obtained for repairs to the roof, siding, fence, furnace, duct cleaning, electric in dining room outlets, kitchen leak behind walls, floor in kitchen and bathroom, reglazing tub, and the garage door.

Repair Invoice

The total tenant charges are estimated at $4,181.45, which have been sent to a collections agency.

Evernest recently assigned a Senior Property Manager to properties on Lofty in order to increase efficiency and performance, which includes completing repairs faster & renting units in less time.

This Senior PM will be the one point of contact, and will manage & assign tasks to other members of the institutional team including turn & listing coordinators.

All properties managed by Evernest are now managed by a single Senior Asset Manager, whose one and only job at Evernest is managing properties on Lofty.

Property Update (10/25/2023):

The Notice of Compliance has been received, effectively lifting the Lead Hazard Control Order and Order to Vacate notices.

The property must implement an ongoing monitoring and maintenance plan requirement which includes:

The property owner conduct an annual visual survey of any remaining lead based paint that was controlled utilizing interim control methods.

The property owner must have a licensed clearance technician, lead inspector or lead risk assessor conduct a clearance re-evaluation involving dust sampling and/or soil sampling to determine if lead hazards exist.

The new owner-elected Property Manager, Evernest, is aware of these new requirements and will ensure they are fulfilled.

B2B Realty confirmed the turn repairs will be completed by the end of next week.

After the turn repairs are completed, Evernest will perform a QC inspection and list the property for rent.

Property Update (10/10/2023):

The Property Manager overseeing the lead repairs, B2B Realty, confirmed the lead repairs have been completed.

View photos of completed work

The vendors are waiting for lead reports from the lab before submitting them to the Health Department. They advised this should take 10 days.

Once reviewed, the Health Department should issue a passing inspection report.

Additionally, B2B Realty confirmed that half of the turn repairs have been completed, with the remaining repairs to be finished after the lead inspection is passed successfully.

Once the lead inspection is passed successfully & the turn repairs are completed, the new owner-elected Property Manager, Evernest, will take over management and market the property for rent.

Property Update (09/19/2023):

Owners voted to change Property Managers from B2B Realty to Evernest Institutional Services.

Property Update (12/05/2022):

Insurance coverage has been approved for the broken windows and door frame reported on 11/17/2022

The insurance adjuster estimated a total of $1,483.05 in repairs

The property will receive a payout of $220.93 after the $1,000 deductible and $262.12 for depreciation

The total cost of the repair from the vendor is $1,444.80

The insurance will be applied to the expense and a total of $1,182.68 will be deducted from the Maintenance Reserve

The Property Manager confirmed that the work was completed on 12/1

Property Update (11/17/2022):

The tenant reported broken windows that need to be repaired

The Property Manager found that several windows have broken glass and a door jam needs to be repaired immediately

It is not yet confirmed if the damages were caused by storm damage or vandalism

The required repairs include fixing the broken windows, door frame, and installing new locks, at a total cost of $1,444.80

These funds will be deducted from the Maintenance Reserve and replenished via 10% of the cash flow until it is full again

An insurance claim has been filed for the damages and the policy deductible is $1,000

The insurance payout may be minimal after factoring in depreciation on the windows and door