Property Update (07/15/2026):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Yes [this proposal authorizes the full transition of property management for the Ohio 3 package to S&P Property Management LLC, effective no later than July 22, 2026. Upon transition, Earl will be fully relieved of all property management duties. S&P must be made aware of any outstanding loans or obligations related to these properties; any loans not disclosed will be considered invalidated. S&P will be authorized to receive offers, sign on behalf of the DAOs and engage local realtors to list both properties for sale either within their investment group or on the MLS in a timely manner, continuing the previously approved sale strategy. This transition will enable faster execution of make-ready work and sales]
• This voting option received 1,287 / 1,684 votes which is equal to 76.42% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3637928858

Property Update (07/14/2026):

Hi everyone,

• This month's update includes the current reviewed financial summary from the guarded monthly workflow.

• Financial summary from FINANCIALS.md:

• Financial data is shown as of 2026-06.

• Cash Flow Snapshot (2026-06):

• Revenue: $743.36

• Operating Expenses: -$62.50

• NOI: $680.86

• Net Operating Cashflow: $680.86

• 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: -$13,198.71 (Lofty curr_maintenance_reserve)

• ECO Operating Cash: -$6,296.53 (ECO Systems General Ledger Column E (126 rows))

Property Update (07/10/2026):

Re: Ohio 3 Package — Response to S&P PM Transition Proposal

• Fellow owners,

• Thank you for the proposal and the continued engagement on the Ohio 3 package. I want to address several points raised and provide clarity on current status.

• On Property Status:

• • 1321 Allendale Ave — Stable and tenant-occupied.

• • 1518 Dille Rd — I understand the frustration with this property. Inspections have been completed to support the approved sale process. Repairs have been necessary and ongoing, in line with the May 2026 governance authorization. However, completing these repair items before listing is strategically important — unresolved maintenance issues invariably trigger buyer inspection renegotiations, reducing net proceeds and extending timelines.

• On information gaps: This claim is not supported by the record. The package has comprehensive documentation including Yhome transition reconciliation (April 2026), Baselane financial records, signed lease agreements, inspection reports, repair estimates, and monthly owner statements. Token holders have access to a full document corpus.

• On occupancy updates: Leases are current and documented. 1321 Allendale is occupied under a lease running through November 2025. 1518 Dille has two active leases (lower unit through November 2025, upper unit through March 2025 with renewal in progress). PM updates were issued June 27 and July 2, 2026.

• On Sale Timeline:

• The delay in listings is not a property management issue. Our broker, Mike Magno, has been out of town until mid-July. Additionally, @ericlemunyan1 is actively pursuing a full acquisition of the remaining Ohio 3 properties, which would provide a clean, expedited exit for all token holders.

• On PM Transition:

• A full transition to S&P PM is not required for a DAO representative or participating owner to coordinate directly with the broker, receive offers, or manage the sale process. The existing governance structure already authorizes these actions. Adding a PM transition introduces unnecessary overhead, cost, and potential delays when the current structure can execute the approved sale strategy.

• I remain committed to completing the approved sale process for both properties and ensuring transparent communication throughout.

• All the best,

• Earl Co

• Manager, ECO Systems LLC

• Member, Lofty Holding 1518 Dille Road DAO LLC

Property Update (07/10/2026):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 213 shares in this property.
• The owner's reasoning is below, word-for-word:
• Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
• This vote was written in coordination with S&P PM LLC, due to recent actions with this DAO; the remainder of the Ohio 3 property package, consisting of 1321 Allendale Ave (Akron) and 1518 Dille Rd (Euclid), experiencing numerous challenges with these properties. On 02/17/2026, Governance Results for Ohio 3 Property Package, the winning vote for voting to sell 1518 Dille Road is to “proceed with BPO scouting (light repairs [>$10k] scenario + as-is scenario) + instruct agents to prioritize cash / cash-equivalent offers”. Following the approved governance vote on May 19, 2026 (86.77% supermajority), 1321 Allendale Ave was authorized for traditional sale with projected closing by September 2026. However, neither of these properties have been listed for sale and the package continues to suffer from significant information gaps, lack of timely updates on occupancy, and drawn-out repair timelines. Additionally, there remains an outstanding obligation to EARLDAO that has been accumulating interest at 12% APY with no defined repayment timeline or consistent financial reporting. These ongoing issues have created unnecessary delays and uncertainty for token holders.
• To resolve these persistent problems and accelerate value realization, this proposal authorizes the full transition of property management for the Ohio 3 package to S&P Property Management LLC, effective no later than July 22, 2026. Upon transition, Earl will be fully relieved of all property management duties. S&P must be made aware of any outstanding loans or obligations related to these properties; any loans not disclosed will be considered invalidated. S&P will be authorized to receive offers, sign on behalf of the DAOs and engage local realtors to list both properties for sale either within their investment group or on the MLS in a timely manner, continuing the previously approved sale strategy. This transition will enable faster execution of make-ready work and sales.
• The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 14th once the voting period ends.

Property Update (05/19/2026):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Yes [List 1321 Allendale Ave for sale]
• This voting option received 3,098 / 3,570 votes which is equal to 86.77% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3564634186

Property Update (05/12/2026):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An owner 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.
• This proposal is to sell Allendale with the closing completed by September and sale proceeds to be distributed in the September cycle of Lofty Rent distributions. The other properties in this DAO are either sold via SFO or in the process of being sold. We should move to record a governance to sell the last and final property in this DAO to realize the bullish appreciation in the equity of these properties and avoid larger capital expenditure creeping into the Ohio 3 portfolio. The sale of Allendale will be in a traditional sale (no-SFO), based on the PM’s NAV calculation and the cash position of the properties after repairs, reserves and rents would net ~$47/token. It is better to realize this investment today, retaining the SFO (Lily St.), then await further major Cap Expenditures (roof, HVAC & Water heaters etc.)
• The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, May 19th once the voting period ends.

Property Update (04/06/2026):

Ohio 3-Property Package - Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx):

• 1258 Lily St

• Yhome Net Due TO DAO: $-7,131.92

• Lofty Operating Cash: $-3,606.65

• ECO Operating Cash: $6,539.05

• Outstanding Liabilities (Unpaid Bills): $0.00

• DAO Net Cash (Capital Call): $6,089.26

• Estimated Owners' Equity: $61,789.00

• DAO Estimated NAV Per Token: $11.09

• DAO Tokens: 6762

• Current PM: ECO (Sold)

• 1321 Allendale Ave

• Yhome Net Due TO DAO: $-5,724.64

• Lofty Operating Cash: $-3,606.65

• ECO Operating Cash: $$6,539.05

• Outstanding Liabilities (Unpaid Bills): $0.00

• DAO Net Cash (Capital Call): $983.91

• Estimated Owners' Equity: $101,071.88

• DAO Estimated NAV Per Token: $15.94

• DAO Tokens: 6762

• Current PM: ECO

• 1518 Dille Rd

• Yhome Net Due TO DAO: $-1,564.28

• Lofty Operating Cash: $-3,606.65

• ECO Operating Cash: $$6,539.05

• Outstanding Liabilities (Unpaid Bills): $0.00

• DAO Net Cash (Capital Call): $-4,365.29

• Estimated Owners' Equity: $150,861.62

• DAO Estimated NAV Per Token: $21.90

• DAO Tokens: 6762

• Current PM: ECO

• Note: Individual property updates are tracked in each property's own UPDATES.md. 1258 Lily St and 1518 Dille Rd do not have separate UPDATES.md files - this package file covers all three.

Property Update (04/06/2026):

Ohio 3-Property Package - Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx):

• 1258 Lily St

• Yhome Net Due TO DAO: $-7,131.92

• Lofty Operating Cash: $-3,606.65

• ECO Operating Cash: $6,539.05

• Outstanding Liabilities (Unpaid Bills): $0.00

• DAO Net Cash (Capital Call): $6,089.26

• Estimated Owners' Equity: $61,789.00

• DAO Estimated NAV Per Token: $11.09

• DAO Tokens: 6762

• Current PM: ECO (Sold)

• 1321 Allendale Ave

• Yhome Net Due TO DAO: $-5,724.64

• Lofty Operating Cash: $-3,606.65

• ECO Operating Cash: $$6,539.05

• Outstanding Liabilities (Unpaid Bills): $0.00

• DAO Net Cash (Capital Call): $983.91

• Estimated Owners' Equity: $101,071.88

• DAO Estimated NAV Per Token: $15.94

• DAO Tokens: 6762

• Current PM: ECO

• 1518 Dille Rd

• Yhome Net Due TO DAO: $-1,564.28

• Lofty Operating Cash: $-3,606.65

• ECO Operating Cash: $$6,539.05

• Outstanding Liabilities (Unpaid Bills): $0.00

• DAO Net Cash (Capital Call): $-4,365.29

• Estimated Owners' Equity: $150,861.62

• DAO Estimated NAV Per Token: $21.90

• DAO Tokens: 6762

• Current PM: ECO

• Note: Individual property updates are tracked in each property's own UPDATES.md. 1258 Lily St and 1518 Dille Rd do not have separate UPDATES.md files - this package file covers all three.

Property Update (02/17/2026):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Proceed with BPO scouting (light repairs [>$10k] scenario + as-is scenario) + instruct agents to prioritize cash / cash-equivalent offers
• This voting option was declared the winner in Round 2 with 1,016 votes.
• The voting results can be found on chain here or by searching the application ID: 3454641515

Property Update (02/09/2026):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 50 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.
• After the SFO sale of Lily St, the portfolio has turned over to $2,000+/month NOI from the remaining two properties (Allendale + Dille duplex). However, the Debt has not been cleared as such, meaning the DAOs financials have not stabilized. Earl (ECO Systems) management has been managing all occupied units with decent-paying tenants (including long-term Section 8).
• However, 1518 Dille Rd has now become the primary source of deferred maintenance and risk exposure that Lily previously represented:
• Recent discovery of electrical and water damage affecting ceilings and basement
• Ongoing infrastructure concerns typical of a 1925 duplex (aging plumbing, electrical, potential pest/moisture issues)
• No realistic path to maximize sale price through local contacts or value-add repairs (sealing basement, full turn) given current OR constraints and time horizon
• Selling Dille now would allow the DAO to:
• Realize $164k–$199k (~$24.25–$29.43 per token) in current market conditions
• Eliminate future repair capital calls and lingering liability exposure
• Consolidate into one high-quality, low-maintenance asset (Allendale) with strong cash flow and tenant stability
• Strengthen the balance sheet and position the remaining token holders for cleaner distributions and higher per-token value
• Recommendation: Initiate governance vote to list and sell 1518 Dille Rd as-is, targeting $164,000–$199,000 range, with proceeds used to further fortify the OR and return capital to token holders.
• Earl will make best efforts to sell the property for as much as possible, with a stretch goal of $199K, but is authorized to accept offers as low as $150K. This should net a significant premium over the current token price. Lower offers would require DAO approval. For providing all administrative and decision making services from make-ready through closing, I propose we pay Earl (1.5% of sale PP) after closing. The only limit placed on Earl’s decision making authority is that Earl is not allowed any self dealing, and must not enrich Earl or any associated businesses at the expense of the DAO, except for the agreed upon compensation mentioned above.
• Ranked Choice Voting:
• Proceed with BPO scouting (light repairs [<$10k] scenario + as-is scenario) + instruct agents to prioritize cash / cash-equivalent offers
• Scout BPO only as-is value (no repair scenario) + prioritize cash offers
• Status Quo - Do not obtain BPOs at this time; continue holding the duplex as-is
• The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, February 17th once the voting period ends.

Property Update (11/25/2025):

1258 Lily St: Buyer is requesting to extend the closing date to on or before 12/08. Approved by Earl.

Property Update (10/17/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed votes.
• The winning vote is:
• Option 1: Approve the offer by the buyer ($67,900).
• This voting option received 1,210/1,317 token votes which is equal to 92% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3269397796
• The winning vote is:
• Yes [Authorize Earl Vanze Co to Negotiate and Accept offers on behalf of the DAO and sign closing documents.]
• This voting option received 1,214/1,317 token votes which is equal to 92% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3269399788
• The winning vote is:
• Yes [Compensate Earl for his time facilitating this sale in the amount of $750 to be paid out of sale proceeds.]
• This voting option received 1,150/1,317 token votes which is equal to 87% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3269401889
• The winning vote is:
• Approve Plan, leave $10,000 in OR balance, and Distribute remainder
• This voting option was declared the winner in Round 2 with 930 token votes.
• The voting results can be found on chain here or by searching the application ID: 3269441555

Property Update (09/19/2025):

Owner-Proposed Governance Vote for 1258 Lily St:

• The property manager, ECO Systems LLC with the following wallet address is proposing a governance vote for this property.
• This owner holds 41 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 received a $65k cash offer for Lily, no additional inspections, they reviewed the one we have. Close by 10/6. Lily is currently listed for $75k and the previous buyer offering to buy with seller financing never submitted a formal purchase contract. I recommend we accept the cash offer regardless.
• Vote options:
• 1. Accept the $65,000 cash offer immediately.
• 2. Counter at $69,420. If buyer declines counter, accept the previous offer.
• 3. Decline offer and keep the property listed at $75k (status quo).
• Please submit your votes by Monday, Sept. 22.
• The results will be determined by a 60% Supermajority and sent to all owners on Monday, September 22nd once the voting period ends.

Property Update (09/19/2025):

Owner-Proposed Governance Vote for 1258 Lily St:

Property Update (09/03/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• There are two additional voting results, which are included below:
• The winning vote is:
• Yes - Authorize Earl Vanze Co to Negotiate and Accept offers on behalf of the DAO and sign closing documents.
• This voting option received 3,376 / 3,622 token votes which is equal to 93% of the votes.
• The voting results can be found on chain here or by searching the application ID: 3196660529
• The winning vote is:
• Yes - Compensate Earl for his time facilitating this sale in the amount of $500 to be paid out of sale proceeds.
• This voting option received 2,687 / 3,622 token votes which is equal to 74% of the votes.
• The voting results can be found on chain here or by searching the application ID: 3196661230

Property Update (09/03/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Option 2: Decline and counter buyer with $79,000, maintaining the same terms (5% interest, 30-year amortization, 5-year balloon, $15,000 down)
• This voting option was declared the winner in Round 1 with 2,205 token votes.
• The voting results can be found on chain here or by searching the application ID: 3196658327

Property Update (08/13/2025):

The listing agent has provided the following update:

• "Unfortunately due to this issue with [the title company, American Title Solutions], the buyer does not wish to move forward on the transaction. I asked them to switch title companies, but unfortunately they are just not comfortable with the circumstances, and since we can't currently get them clear and marketable title, there isn't anything we can do otherwise. And unfortunately I cant blacklisting the title company, as I am a partner there. I’ve closed over 250 transactions with them, and never had an issue.
• At the end of the day, it’s their underwriters decision, and there isn’t anything you and I can do about it. We’ll simply use a different company for your transactions."
• We will retain the buyer's EMD of $1,000 and re-list at $75k, closing with Golden Title (same as Bowmanville) or another title company.

Property Update (08/05/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• $15,000 Fill OR + $2500 Buybacks
• This voting option was declared the winner in Round 1 with 1,092 token votes.
• The voting results can be found on chain here or by searching the application ID: 3157921420

Property Update (08/01/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 41 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.
• Sale Details:
• Offer: $70,000 mostly-cash, as-is.
• Total Closing Costs: $4,500
• Loan Payoff & Liabilities: $19,680.80 (fully clears debt)
• Net Proceeds: $70,000 – $4,500 – $19,680.80 = $45,819.2
• Total tokens: 6762
• Orphan tokens: 42
• Owned tokens: 6720
• Option 1 (Recommended Strategy): OR + Buybacks
• Operating Reserve (OR): $15,000
• In DAO savings account on Baselane (~3%); Commit 5% perpetual NOI post-100% OR refill
• Token Buyback/Burn: $2,500 over the next 10 months
• $250/month, ~12.5 tokens/month; up to the final price per token before fees of $25. Buybacks will be implemented via the market and limit orders, ~150 tokens total, reducing tokens to 6,642 from 6,762
• Cash Distribution: $65,000 – $19,680.80 (loan) – $15,000 (OR) – $2,500 (buyback) = $28,319.20 ÷ 6,762 = $4.188/token.
• Option 2: Fill OR:
• Operating Reserve (OR): $15,000
• In DAO savings account on Baselane (~3%); Commit 5% perpetual NOI post-100% OR refill
• Cash Distribution: $65,000 – $19,680.80 (loan) – $15,000 (OR) = $30,319.20 ÷ 6,762 = $4.484/token.
• Option 3: OR + Buybacks
• Operating Reserve (OR): $12,500
• In DAO savings account on Baselane (~3%); Commit 5% perpetual NOI post-100% OR refill
• Token Buyback/Burn: $2,500 over the next 10 months
• $250/month, ~12.5 tokens/month; up to the final price per token before fees of $25. Buybacks will be implemented via the market and limit orders, ~150 tokens total, reducing tokens to 6,642 from 6,762
• Cash Distribution: $65,000 – $19,680.80 (loan) – $15,000 (OR) – $2,500 (buyback) = $30,319.20 ÷ 6,762 = $4.484/token.
• Option 4: Payoff Debt & Distribute Cash payout
• Operating Reserve (OR): $0
• No allocation to OR
• Cash Distribution: $65,000 – $19,680.80 (loan) = 45,819.2 ÷ 6,762 = $6.775/token.
• This option will serve as the “Status Quo” option as the sale of Lily will result in the paydown of the Net Debts of the DAO from the Net Proceeds of the Sale, the remainder will then be distributed to owners pro-rata as a one-time lump sum payment.
• I recommend that we proceed with Option 1, due to properties age 100 and 80+ years old and continue to refill the OR by committing 5% perpetual NOI post-100% OR refill.
• Cash payout will be distributed on one day as a lump sum pro-rata (Snapshot after closing). Actual distributions will depend on finalized numbers and are subject to change based on orphaned tokens, debts, or actual closing costs.
• Ranked Choice Options:
• 1. $15,000 Fill OR + $2500 Buybacks
• 2. $15,000 Fill OR
• 3. $12,500 Fill OR + $2500 Buybacks
• 4. Payoff Debt from Net Proceeds & Distribute cash
• 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 (07/02/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Accept Offer As-Is
• This voting option was declared the winner in Round 1 with 2,691 token votes.
• The voting results can be found on chain here or by searching the application ID: 3099639287

Property Update (07/01/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Maintain current 338 tokens (~5%) in AMM pool, keeping higher slippage.
• This voting option was declared the winner in Round 1 with 2,197 token votes.
• The voting results can be found on chain here or by searching the application ID: 3098411745

Property Update (06/30/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• The property manager, ECO Systems LLC with the following wallet address, is proposing a governance vote for this property.
• This owner holds 39 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 – Sale of 1258 Lily Street, Akron, OH 44301
• Proposal Date: 06/30/2025
• Voting Deadline: Wednesday, July 2nd, 2025
• Summary
• This proposal seeks authorization to proceed with the sale of 1258 Lily Street to the prospective buyers, Crystal Tidwell and Shane Johnston Fisher, pursuant to the purchase offer dated June 26, 2025 for $70,000, or to issue a counter-offer or decline the offer.
• Rationale for Selling Lily Street
• Aging Systems & Deferred Maintenance: Appliances and systems aged 15–23 years, with historical repair costs ranging $7,995–$20,750, increasing the risk of further liabilities.
• Low Yield: Cap rate of approximately 6.3% ($895/month rent vs. $102,683 Redfin valuation), materially below comparable properties.
• Debt Clearance: Sale proceeds would clear the outstanding $20,000 EarlDAO loan and fully satisfy all $19,680.80 in liabilities.
• Reallocation to Higher NOI Assets: Allendale and Dille properties produce ~$2,000/month net operating income, replenishing reserves within 5 months and stabilizing operations.
• Purchase Offer Key Terms
• Purchase Price: $70,000
• Earnest Money: $1,000
• Financing Contingency: Buyer financing per lender (not cash offer)
• Inspection Contingencies: General home inspection and walkthrough before closing
• Closing Timeline: On or before July 25, 2025
• Possession: Within 1–3 days after recording deed
• Other Provisions:
• Sale in AS-IS condition
• Tenant-occupied; buyer walkthrough contingent after acceptance
• Seller to provide current leases and tenant ledger
• Standard Ohio disclosures (Lead Paint, Property Condition)
• Voting Options
• Please vote to select one of the following options (Ranked Choice):
• Option 1 – Accept Offer As-Is
• Authorize acceptance of the $70,000 offer under the current contract terms, and proceed to closing.
• Implications:
• Immediate debt clearance
• Transfer of all liabilities to buyer
• Streamlined exit from low-yield asset
• Option 2 – Reject Offer and Counter (Requires subsequent vote)
• Decline the current purchase offer and continue marketing the property.
• Rationale:
• Hold out for higher valuation
• Evaluate additional offers
• Retain current rental income stream
• Estimated Net Proceeds (Option 1 Acceptance)
• Item
• Amount
• Purchase Price
• $70,000
• Estimated Closing Costs
• (~$4,500)
• Loan Payoff & Liabilities
• (~$19,680.80)
• Estimated Net to DAO
• ~$45,819 ($6.77/token to rebuild reserves and/or lend to ULD)
• Note: Actual proceeds may vary.
• Questions or Comments?
• Please reply in the governance channel or contact the management team at ecosystemspm@gmail.com to discuss any aspect of this proposal.
• The results will be determined by a 60% Supermajority and sent to all owners on Wednesday, July 2nd once the voting period ends.

Property Update (06/30/2025):

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

• This is in response to the previous governance vote sent out on 6/29, 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.
• The owner who proposed the counter-proposal owns 14 tokens in this property, and their 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 send this out to the fellow co-owners to correct some of the claims made in the proposal:
• The reason this pool has high slippage is due to a severe USDC side (quote) shortage. At the time of this writing, the pool has $685.87 dollars left in it, out of $2,195.00 that were staked originally. That's a deficit of $1,500+. Meanwhile the token (base) side has a balance of 380 tokens, a 42 token surplus over the original 338 staked.
• What does that all mean? The side that is in shortage is the side that is driving the pricing equation. Since USDC is in shortage, it is driving the price that's shown on the exchange. You will not change the price by staking more tokens. If you were to stake more tokens, nothing will happen to the price. The token balance will come into the pricing equation only once it is deemed to be in deficit/penalty state.
• The slippage will remain pretty big up until more USDC will make into the pool. And USDC will make it into the pool either by someone staking USDC, or people buying tokens.
• This vote should either be recalled by the proposer (if that's possible?) or option 3 could be treated as "do nothing". I would then encourage the proposer to come over to the property's discord channel and discuss the overall goal of the proposal and what they were trying to accomplish: https://discord.com/channels/847877825373012018/1283475390530326528
• Thank you!

Property Update (06/29/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An Owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 28 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.
• Current AMM Pool: 338 base tokens (Ohio 3 Property tokens) are staked, representing ~5% of the total 6,762 tokens, limiting liquidity and causing high slippage on buy orders, which hinders owners seeking to buy or sell large number of tokens to increase their stake or realize returns.
• Objective: Increase the staked tokens in the Ohio 3 Property DAO’s Automated Market Maker (AMM) pool from the current 338 base tokens (5% of 6,762 total tokens) to 676 base tokens (~10% of total tokens), representing ~10% of the DAO’s current token count. This aims to reduce slippage on buy orders, enhance AMM liquidity, and improve the ability of Lofty owners to realize returns on their base tokens.
• Key Performance Indicators (KPIs) and Benefits:
• Reduced Slippage: Increasing the pool’s base tokens increases pool liquidity, reducing price impact on buy orders, making it easier for owners to purchase more tokens without significant slippage.
• Improved Return Potential: Enhanced liquidity supports a more stable token price enabling owners to realize additional returns in response to trading on the secondary marketplace.
• Drawbacks:
• Adding additional tokens into the base side of the pool will press the AMM, deeper into base penalty which could play a role in USDC stakers withdrawal penalty. (More in discussions)
• Gov. Thoughts:
• Initially, the token price will suffer with the additional of more base tokens in the pool, in the long-run it will potentially align with AMM stakers being able to see more transactional activity take place on the pool leading to staking rewards. Additionally, increasing base tokens in the pool will allow larger investors to buy into the property without fear of generating large swings in price due to slippage.
• Governance Vote:
• Option 1: Approve increasing AMM pool to 676 base tokens (~10% of 6,762)
• Option 2: Increase AMM pool to 1,014 base tokens, (~15%, stabilizes price, but risks of lower overall price)
• Option 3: Maintain current 338 tokens (~5%) in AMM pool, keeping higher slippage.
• The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 1st once the voting period ends.

Property Update (06/24/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote to sell 1321 Allendale Ave and 1518 Dille Rd.
• The leading vote is:
• Yes
• This voting option received 2,219 / 3,901 token votes which is equal to 56.8% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3090647470
• This vote will not pass because it did not reach a Supermajority of 60%+.

Property Update (06/19/2025):

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

• This is in response to the previous governance vote sent out on 6/17, 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.
• The owner who proposed the counter-proposal owns 28 tokens in this property, and their 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.
• Dear Co-Investors and Wallet owners of ZQ66AI2MCFEHIJQJBR4S744MTSU7UQZMJEDRNDAIZNDJOVHIFYILYHGJRE/ 3OQUOWBRZHY23Y6IA22CPHOSGTYXEP4HE4TFESRAJMVWYIMDDAP3CLQGUQ,
• Thank you for sharing your thoughts on the Ohio 3 Property Package. We understand your concerns about the lack of income over the past 1.5 years and the desire to mitigate losses, given the token value drop from $46.87 to $17.29. Our team (on discord) and new management by ECO Systems LLC’s has developed a strategic proposal to maximize Internal Rate of Return (IRR) for all investors by selling only 1258 Lily St, the weakest asset, while retaining the stronger 1321 Allendale Ave and 1518 Dille Rd for their cash flow. We believe this addresses your concerns while enhancing long-term value, avoiding the need to sell all three properties and unilaterally spread losses.
• Key Performance Indicators (KPIs) of Previously Outlined Proposal:
• Ohio 3 Property Recovery Proposal
• https://docs.google.com/document/d/18KAoxEaB3ajpdHnGdiDXV8ngF-hQnDuGJrS0U3yVDtI/edit?tab=t.4zmni45d2ld8
• Why Sell Lily St?: Of course, we want to maximize our overall return on investment; Lily’s low ~6.3% cap rate ($895/month vs. $102,683 Redfin estimate) and aging appliances (15–23-year-old) risk costly repairs ($7,994.70–$20,750 historically), making it a liability compared to Allendale ($1,045/month) and Dille ($1,795/month duplex).
• Debt Clearance: Selling Lily for $60,000–$80,000 clears the $20,000 EarlDAO loan ($19,680.80 liabilities), stabilizing DAO finances.
• Stable Cash Flow from Allendale/Dille: Post-sale, Allendale and Dille will generate ~$2,000/month NOI, replenishing $10,000 into the Operating Reserve (OR) in ~5 months, ensuring operational stability.
• Maximizing IRR:
• Traditional Sale ($60,000–$80,000): Nets enough cash to pay down the EarlDAO loan + increase
• Owner Financing ($80,000, 9%, 5-Year Balloon, $20,000+ Down): Intending to net $20,000 post-closing costs upfront, $501.27/month, and the remainder on a balloon, totaling ~$104,076.
• Tenancy Stability: 2-year lease extensions for Allendale ($1,045/month) and Dille ($795/$1,000) secure $2,840–$2,990/month, with M2M or 1-year options (+3% or +$50/month) to minimize vacancies.
• Why This Approach?: Selling all three properties risks underselling Allendale/Dille in a market that is depressed by high-interest rates. These aforementioned properties which have strong tenants and robust cash flow can help steer this DAO’s future, while Lily’s sale alone addresses the Yhome-related financial mess. The outlined proposal to buyback and make an ULD investment outperforms cash-only distributions or complete liquidation investment returns by boosting the intrinsic token value ($40.36 vs. ~$35.59) for future sales, leveraging Allendale/Dille’s ~$2,000/month NOI for stability. We encourage you to join our Discord for detailed discussions and updates from ECO Systems’ and strategy moving forward.

Property Update (06/18/2025):

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

• This is in response to the previous governance vote sent out on 6/17, 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.
• The owner who proposed the counter-proposal owns 3 tokens in this property, and their 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.
• This new proposal is dumb. A lot of us were burned on the legacy properties but we now have new management here so the past 1.5 years doesn't matter. They have already assessed the situation and shared their thoughts on discord on how we should proceed. That is why the last proposal was just to sell the 1 property and not all 3. Don't make ALL owners help spread the LOSS because YOU want out. These 2 properties have good paying tenants and will be paying out once the YHOME mess comes to an end. Join the discord if you want to know what is happening with your investments

Property Update (06/17/2025):

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

• The first winning vote is: Yes: Authorize the sale [of 1258 Lily St] and debt repayment.
• This voting option received 2,554 / 2,687 token votes which is equal to 95% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3079724949
• The second winning vote is: Approve $7,500 to rebuild OR
• This voting option was declared the winner in Round 1 with 2,166 token votes via the Ranked Choice Voting method.
• The voting results can be found on chain here or by searching the application ID: 3079740435

Property Update (06/17/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An Owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 443 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 wanted to propose a vote for the Ohio 3 property package Akron Ohio 44117. - > I think we should sell this property due to not making any income for over 1.5 years. - > The market price is extremely low especially considering many of us bought in at $50. - > If we sell the property, we could spread the losses evenly among every owner. - > That way owners who want to get out don’t suffer major losses on their tokens. - > Thank you - > My algo wallet address: - > ZQ66AI2MCFEHIJQJBR4S744MTSU7UQZMJEDRNDAIZNDJOVHIFYILYHGJRE - This vote will apply to 1321 Allendale Ave and 1518 Dille Rd, as 1258 Lily St has already been voted to be listed for sale. - 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 (06/17/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed votes.
• The first winning vote is:
• Yes: Authorize the sale [of 1258 Lily St] and debt repayment.
• This voting option received 2,554 / 2,687 token votes which is equal to 95% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3079724949
• The second winning vote is:
• Approve $7,500 to rebuild OR
• This voting option was declared the winner in Round 1 with 2,166 token votes via the Ranked Choice Voting method.
• The voting results can be found on chain here or by searching the application ID: 3079740435

Property Update (06/11/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• An Owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 28 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 vote is just for the 1.) sale of Lily & payback of loan additional allocations/ Cash distributions will be made in a separate vote:
• A link to the full proposed plan can be found here:
• https://docs.google.com/document/d/18KAoxEaB3ajpdHnGdiDXV8ngF-hQnDuGJrS0U3yVDtI/edit?tab=t.mjlizfe34...
• Summary: Selling 1258 Lily St, a poorly performing asset, clears the Ohio 3 Property DAO’s $20,000 debt, leverages ~$2,000/month NOI from Allendale and Dille to rebuild reserves, and enhances long-term investor returns through a $2,500 token buyback/burn and $10,000 ULD investment at 13.5% ROIC. This outperforms cash-only distributions by increasing token value for future Allendale/Dille sales, supported by 2-year lease extensions for stable cash flow.
• 1. Benefits of Selling 1258 Lily St:
• Poor Metrics: Lily’s ~6.3% cap rate ($895/month vs. $102,683 Redfin estimate) is below Akron’s 7–8%, with aging appliances (15–23-year-old) risking repairs ($7,994.70–$20,750 historically). Its 750 sq ft limits appeal vs. Allendale ($1,045/month) and Dille ($1,795/month duplex).
• Expense Risks: Appliance failures could trigger capital calls, worsening the DAO’s $19,680.80 liability ($19,732.63 Yhome debt, $5,236.64 taxes, -$3,486.11 reserve).
• Debt Relief: Selling for $80,000–$110,000 clears the $20,000 EarlDAO loan, stabilizing finances.
• 2. Retaining Strong Assets (Allendale and Dille):
• Cash Flow: Allendale ($1,045/month) and Dille ($795 lower, $1,000 upper, Section 8) yield $2,840/month. Post-sale NOI is ~$2,000/month ($2,040 rent – ~$479 [15% fee, $140 utilities, $33 license]), rebuilding a $10,000 OR in ~5 months.
• Stability: we just voted to approve 2-year lease extensions to 2027 (or 1-year with 3% increase; M2M with +$50/month, 30-day notice before expiry and to vacate) ensure $2,840–$2,990/month, minimizing turnover risks.
• Ranked Choice Voting Options:
• Question 1: Authorize Sale of 1258 Lily St and Use of Proceeds to Pay $20,000+ Debts
• Yes: Authorize the sale and debt repayment.
• No: Do not authorize the sale or debt repayment.
• The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, June 17th once the voting period ends.

Property Update (06/11/2025):

An Owner with the following wallet address is proposing a governance vote for this property. This owner holds 28 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 vote is just for the 1.) sale of Lily & payback of loan additional allocations/ Cash distributions will be made in a separate vote:
• A link to the full proposed plan can be found here

Property Update (06/10/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner proposed vote.
• The winning vote is:
• Renew tenants on 2-year leases, with an 1.5% increase in year 2 of the lease
• This voting option was declared the winner in Round 1 with 2,027 token votes via the Ranked Choice Voting method.
• The voting results can be found on chain here or by searching the application ID: 3058311877

Property Update (06/05/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• 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.
• Let’s secure $2,840/month cash flow for Ohio 3 Property Package by offering 2-year lease extensions at 1321 Allendale Ave ($1,045/month) and 1518 Dille Rd (Lower: $795/month, Upper: $1,000/month, Section 8), minimizing vacancy risks from repairs. Tenants are approached 90 days before lease expiry (Allendale: November 21, 2025; Dille Lower: November 30, 2025; Upper: March 31, 2025), with decisions on leases due 45 days prior, this notice before expiry and tenant vacancy will give us optimal time to repair and re-tenant. On the new leases, tenants on M2M will have an additional $50/month (Allendale: $1,095; Dille Lower: $845; Upper: $1,050), and require written notice of intent to vacate 30-day notice before expiry.
• Ranked Choice Options:
• a.) 1-year lease with 3% rent increase (Allendale: $1,076.35; Dille Lower: $818.85; Upper: $1,030)
• b.) Renew tenants on 2-year leases, with an 1.5% increase in year 2 of the lease
• c.) No vote, abstain
• The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, June 10th once the voting period ends.

Property Update (05/27/2025):

Governance Results for Ohio 3 Property Package:

• The Governance Voting results are back for the owner-proposed votes.
• The first winning vote is:
• Capital call of $20,000, backed by EARLDAO. 12% APR, interest-only, 1-year balloon. Non-dilutive. Repaid from rent or eventual sale.
• This option was declared the winner in Round 1 with 1,540 token votes via the Ranked Choice Voting method.
• The voting results can be found on chain here or by searching the application ID: 3020381930
• The second winning vote is:
• Migrate to Hemlane (10% PM Fee)
• This option received 1,992/2,114 token votes which is equal to 94.2% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 3020388772

Property Update (05/23/2025):

Owner-Proposed Governance Vote for Ohio 3 Property Package:

• The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.
• This owner holds 39 tokens in this property and has the following wallet address
• 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.
• CAPITAL CALL & PROPERTY MANAGEMENT STRUCTURE
• DAO: Lofty Holding 1518 Dille Road DAO LLC
• Submitted By: Earl Co, Manager, ECO Systems LLC
• Submission Date: 05/23/2025
• Voting Deadline: 05/27/2025
• Background
• All units are occupied and the properties are stable and performant under Aligned, with oversight from ECO Systems. However, the DAO currently has a net liability of $19,680.80, reflecting unpaid balances to Yhome Nursing LLC as well as unpaid taxes and a negative DAO Operating Reserve.
• Yhome Nursing LLC: $19,732.63
• DAO Operating Reserve: $3,486.11
• Taxes Due: $5,236.64
• May 2025 Distributions: $3,462.79
• DAO Net Cash: -$19,680.80
• The unpaid taxes must be promptly paid out of the DAO distributions of $3,462.79 for May 2025 net rents.
• To bring the DAO’s cash balance back to positive and potentially start paying rents in July, a capital call from the Ecosystems Asset Recovery Lending DAO (EARLDAO) is needed to settle outstanding obligations with Yhome. Any funds due to Yhome will be borrowed from and paid out of EARLDAO ONLY and a promissory note will be held by the lenders of EARLDAO. NO additional funds will be disbursed to Yhome at this time until Lofty resolves ongoing legal matters. A full reconciliation report is provided here.
• VOTE #1 – CAPITAL CALL OPTIONS
• Choose one:
• Option 1 – Capital call of $20,000, backed by EARLDAO
• 12% APR, interest-only, 1-year balloon. Non-dilutive. Repaid from rent or eventual sale.
• Option 2 – Capital call of $20,000 via issuance of 897 governance tokens at $23/share
• Offered pro-rata to DAO members. Dilutive.
• Option 3 – Reject proposal
• No action taken. DAO continues with negative balance due to outstanding liabilities.
• VOTE #2 – PROPERTY MANAGEMENT STRUCTURE
• Choose one:
• Option 1 – Stay with Aligned (15% PM Fee)
• PM Fee: 10% to Aligned + 5% to ECO Systems
• Leasing Fee: 1 full month’s rent
• 10% markup on all Repairs & Maintenance
• Option 2 – Migrate to Hemlane (10% PM Fee)
• PM Fee: 10% to ECO Systems only
• Leasing Fee: $695 or 50% of first month’s rent, whichever is greater
• No markup on Repairs & Maintenance
• Self-guided leasing via Hemlane; no rent-ready cost required
• Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC) residing in Cuyahoga or an adjacent county
• The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, May 27th, once the voting period ends.

Property Update (04/28/2025):

Governance Results:

• The Governance Voting results are back for the owner proposed vote to change property managers to ECO Systems LLC.
• The winning vote is:
• Vote to change to ECO Systems property management and NOT give away 3.5% of equity to Yhome.
• This voting option received 2,891 / 3,283 token votes, which is equal to 88% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 2960007640

Property Update (04/23/2025):

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 4/23, 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.
• The owner who proposed the counter-proposal owns 45 tokens in this property, and their 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.
• Dear Fellow Investors,
• If you own any tokens in YHome-managed properties, whether through a co-ownership structure or not, this message is for you. YHome is not just another property management company; we are committed to transforming the way we manage real estate, particularly in the Cleveland and Chicago market.
• When many investors were purchasing tokens at low prices and proposing sales due to unpaid bills, YHome recognized the need for a different approach. Despite multiple capital calls aimed at resolving these issues, the results were often insufficient. Our analysis shows that Cleveland and Chicago are indeed a cash flow market; however, it comes with risks that require a unique management style.
• At YHome, we understand the challenges of the fractional share structure on Lofty, where collective decisions can sometimes lead to conflicting strategies. For example, an investor with a low-cost basis might advocate for a sale at a discount, benefiting themselves while potentially harming others with higher costs. YHome has successfully mitigated these situations by focusing on turning properties around, achieving cash flow positivity, and ensuring bills are paid.
• Our primary strategy is to protect the assets and safeguard your initial investment. Unlike some investors who may prioritize short-term gains, YHome is dedicated to long-term stability. We recognize that not all investors have the time to make daily decisions or are actively trading on the platform (Day traders on discord). We strive to provide you with information backed by facts and documentation, enabling you to make informed decisions.
• While some individuals may express frustration or spread misinformation, it’s essential to understand their motives. YHome’s approach has often prevented short-term gains for a few at the expense of the majority. Our commitment to the profit-first system is designed to protect your investment. We believe that ensuring the health of the asset is paramount, and we’ve worked diligently to achieve this.
• Currently, many property managers have lost their contracts due to poor performance, but YHome remains dedicated to our investors. We prioritize your peace of mind, knowing that we will not engage in capital calls or fire sales that could jeopardize your investment. Yes, YHome needs to make a profit, but our profit position has never been at the expense of your investment or the integrity of the asset.
• Under the profit-first system, YHome initially sacrificed its own profit for the benefit of the properties and investors. Now, having established a more stable footing, we continue to prioritize your interests while ensuring the long-term health of our assets.
• Thank you for your continued trust in YHome. Together, we can navigate this market successfully.
• Best regards,
• YHome Management
• View documents provided by Yhome

Property Update (04/23/2025):

Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property to change property managers.
• This owner holds 1,014 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.
• Short story:
• Please vote now to switch to ECO Systems, a proven property manager and AVOID an immediate 3.5% (approx. $10,000) dilutive equity giveaway to our current property manager (Yhome).
• Longer story:
• If we take no action in the next 30 days, our current property manager (Yhome) will be granted an immediate 3.5% dilutive equity stake in this DAO, worth over $10,000. This giveaway is a consequence of Yhome's unilateral change of contract terms, which we (possibly inadvertently) voted to approve in the vote earlier this month, in a confusing vote in which we had no clear option to refuse, and were presented with a menu of terrible options.
• Although I think in some rare cases, equity stakes can be an effective way to align a property manager's incentives with co-owners, I strongly object to one that vests immediately and which the manager can keep even if they decide to stop managing our property right after the grant, or even if they perform poorly. Yhome was asked to agree to a vesting schedule and refused, which is a red flag that they do not have our long-term interests in mind.
• I urge you to vote against this by transitioning management of the Ohio 3 Property Package to ECO Systems, effective April 30th. ECO Systems’ owner has been a dedicated and loyal member of Lofty for the past four years, consistently demonstrating his ability to manage some of the platform’s best-performing properties, in terms of both income and appreciation (e.g., 86, 88 and 90 Madison Ave).
• ECO Systems is an active participant on Lofty and in the Lofty Discord (@earlvanze), offering consistent communication and being readily available to answer any questions from investors, unlike Yhome. ECO Systems’ management fees are 10% of gross rent, first month rent to place a tenant. No fees for re-lease and no maintenance upcharge.
• Option 1: Vote to change to ECO Systems property management and NOT give away 3.5% of equity to Yhome.
• Option 2: Vote to retain Yhome as property manager, giving them an immediate 3.5% dilutive equity grant, which they can keep or sell regardless of performance.
• 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 (02/15/2025):

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

• Cal owns 45 tokens in this property.
• "I would like to provide an update regarding the three Ohio properties. I’m pleased to report that all of them are currently rented, and both the properties and tenants are being well taken care of.
• We are focused on tenant stability and believe we are on the right track, with tenants consistently making payments, including those on Section 8. We anticipate reaching a stable status by the end of April, coinciding with the end of the quarter.
• These properties share a common goal, and our full report will be released in mid-April. Rest assured, we remain on track for stability. Thank you for your continued support!"

Property Update (12/20/2024):

Governance Results:

• The Governance Voting results are back for the owner-proposed governance vote.
• The winning vote is:
• Disapprove this proposal and take no action maintaining operational risk and preventing owners from recovering their lost/stolen tokens and/or launching liquidity pools in the future
• This voting option received 2,197 / 3,575 votes which is equal to 61.4% of the total votes.
• The voting results can be found on chain here or by searching the application ID: 2585847604

Property Update (12/17/2024):

The original proposer of this vote has put together a counter proposal to the recent counter proposal.

• This is in response to the counter-proposal to the previous governance vote sent out on 12/16, 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.
• The owner who proposed this new counter-proposal owns 40 tokens in this property, and their wallet can be viewed here.
• The owner of the previous counter-proposal owns 32 tokens in this property, and their 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.
• In response to #1, it is impossible to have less liquidity by launching a liquidity pool, definitionally speaking. You can't add a pool and all of a sudden have negative liquidity. The bundling may or may not prevent a liquidity pool, but it had been previously stated on Discord that Lofty is holding off on liquidity pools for legacy properties until they're converted into the new token format, Algorand Standard Assets (ASAs). This might be a technical requirement, but Mark from Lofty’s team may be better suited to chime in.
• Cal’s latest update states: "Since these properties share costs and are offered as a single entity, we will initiate our Profit First system once the last property is activated on January 15, 2025.” Splitting up the properties into their own DAOs allows the Profit First system to begin immediately on Dille and Allendale, without having to wait for Lily.
• Cal also reported that there are additional capital improvements needed on some of the properties. Splitting off the two other properties into separate DAOs allows owners to more heavily dedicate funds towards each of the respective properties, allowing for a more efficient allocation of capital. It also allows owners to buy more shares of one and sell more shares of the other if they so choose. This is a real, tangible benefit.
• Another huge benefit is that currently, a liability under one property becomes a liability under ALL three properties. For example, if there are potential legal and safety issues with one of the properties, it places the owners at risk of losing equity in not just one but all three properties. Splitting them up limits and isolates the liability to just that one property.
• In response to #3, as a co-owner seller on the platform, I've been informed multiple times by Lofty's leadership that it is an operational risk and that we're not allowed to bundle deeds together into one LLC. It's why Brownfield’s 60 units had to be split up and launched separately as 32 + 28 units under two separate DAO LLCs simply because they're separate parcels, even though they're operated together. I am working on launching a portfolio of 10 condo units in a single building but they’re individually-parceled, so it is the same gray area risk of violating securities laws that Lofty would rather not take moving forward.
• The reason it can be reasonably argued and interpreted that member-managed DAO LLC shares are not security tokens is that partnership LLCs are pass-through and if there's only one deed per LLC, it's one more point towards this argument of direct ownership akin to a Tenant-in-Common model of fractional ownership of real property, which are by definition not securities. Keep in mind that Lofty is not a registered broker-dealer of securities, and I am not a licensed securities attorney, however I have learned from the best and done enough research to agree with the interpretation taken by Lofty’s legal team. The Ohio 3-Property Package is arguably the closest security-like token currently available on the Marketplace (besides Le Claire), and the current structure should NOT stay that way if we want to ensure the longevity of this platform.
• #2 is the only valid counterpoint, but this is the cost of doing business legally. I did not want to launch 88 and 90 Madison separately, as I operated the Madison portfolio as a single business under a single brand with a common team and they share many of the same resources. Alas, they are in separate DAO LLCs because it was required to reduce Lofty’s risk of violating security laws. It’s not that I could reduce my own risk by simply divesting this 3-Property Package, but that it is an operational risk to the entire exchange that can be avoided with only a marginal increase in cost.
• The counter-proposer might as well say the two current and three upcoming Madison Ave properties should all just be under a single DAO LLC, saving $2200 in DAO LLC renewal fees. However, any risk under one property is a risk to all three properties. Splitting up the portfolio means the risk can be more effectively distributed and owners can decide which of the 3 new tokens in the portfolio to sell or keep, potentially making token trading more efficient and thereby improving liquidity.
• Overall, the properties have been vacant for a long time, so the argument of "Why give up a unit's monthly rent for zero tangible benefit?" is rather short-sighted.
• TL;DR there’s very little downside and huge upside to approving this proposal.

Property Update (12/17/2024):

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

• This is in response to the counter-proposal sent out on 12/17, which can be viewed on the property page here.
• 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 57 tokens in this property, and their wallets can be viewed here and 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.
• "1. My first point was misunderstood by the counter-counter proposer. My point was that splitting up the properties into different tokens does not guarantee a liquidity pool. We could easily end up in a situation with 3 different tokens without liquidity pools that all have lower liquidity than is currently available. Splitting up the properties has also not been explicitly stated to be a requirement for a liquidity pool. Regardless, a liquidity pool is a very mild benefit.
• 2. An operational risk on Lofty's end does not constitute a call to action on ours. If Lofty does indeed deem the bundling of these properties to be an operational risk, they can foot the bill. Why should we have to spend an additional $1000 a year for Lofty's mistake when launching the property?
• I reached out to Lofty regarding them potentially lowering the fees in the event the property does vote to split, and they would not do it. So it's a pretty clear decision in my opinion. Vote no to splitting up the properties to avoid paying $1000 a year. If it does become an issue down the line, I'm sure they'll find a way to acquiesce."

Property Update (12/16/2024):

Owner-Proposed Governance Vote:

• An Owner with the following wallet address is proposing a governance vote for this property.
• This owner holds 40 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 co-owners,
• I propose for this 3-property package to be de-securitized via an airdrop issuance of two (2) new tokens to spin off each deed into their own DAO LLCs. Ownership of the existing LFTY0123 token means automatic ownership of the two new DAO LLCs and their corresponding tokens, one for 1258 Lily St and another for 1321 Allendale Ave, at least initially. Two new listings will be created for the corresponding properties on the Marketplace and the current listing will be updated to reflect the spin-off. Owners may then choose to trade any of the properties individually and rebalance their portfolio accordingly.
• This vote is strictly procedural and will give Lofty the authority and capability to reduce operational risk of any potential violations of securities laws, and will better align with the mission of direct ownership, control, and governance by the member-owners of each deeded parcel. This vote will also allow Lofty to programmatically launch liquidity pools for each of the 3 properties separately at a later time and at their discretion, typically when an owner volunteers to "seed" the aforementioned pool.
• The existing LFTY0123 token shall represent ownership of the existing Lofty Holding 1518 Dille Road DAO LLC and therefore 1518 Dille Road, but if Lofty deems it operationally and technologically necessary to upgrade and re-issue the token to be compatible with the liquidity pools as well as recover owners' lost and stolen tokens and restore their trading capabilities, then approval of this vote shall also be deemed an approval for the re-issuance or replacement of the LFTY0123 token. Any and all new tokens shall be deposited in the corresponding owner's Lofty Wallet and owners may choose to move their tokens elsewhere at their own discretion. This vote shall not change any other terms of governance or conflict with existing Property Management under YHOME as it is purely procedural. I strongly urge owners approve this proposal.
• 1. Approve the proposal to issue 2-3 new tokens representing automatic ownership of separate DAO LLC tokens for 1258 Lily St and 1321 Allendale Ave
• 2. Disapprove this proposal and take no action, maintaining operational risk and preventing owners from recovering their lost/stolen tokens and/or launching liquidity pools in the future
• The results will be determined by a 60% Supermajority via the Ranked Choice Voting method and sent to all owners on Friday, December 20th once the voting period ends.

Property Update (12/16/2024):

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

• Cal owns 45 tokens in this property.
• "Dear Investors, I wanted to provide you with an update on the three Ohio properties that we are managing as a single package.
• I’m pleased to report that all three properties are now rented: Lily as of December 14, 2024; Dille as of December 1, 2024; and Allendale as of November 22, 2024. Since these properties share costs and are offered as a single entity, we will initiate our Profit First system once the last property is activated on January 15, 2025. During this interim period, we will adhere to the Profit First principles.
• However, I must inform you that these properties still require stabilization. Upon reconnecting utilities, several issues have surfaced, including 12 gas leaks in the lines, emergency water bills that needed to be paid, among others. Please consider this as an initial update. A comprehensive analysis of the Profit First system will be conducted once all properties are stabilized and tenant stability is achieved. Thank you for your understanding. Best regards, Cal"

Property Update (12/16/2024):

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

• This is in response to the previous governance vote sent out on 12/16, 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.
• The owner who proposed the counter-proposal owns 57 tokens in this property, and their 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 highly encourage everyone to vote for "2) Disapprove this proposal and take no action" for the following reasons:
• 1. There is almost zero benefit to current holders in doing this. The possibility of a liquidity pool is a possible advantage for those who want to exit the property - however - it has never been officially stated by Lofty that the bundling of the 3 Property Package disallows a liquidity pool, nor that separating the properties would ensure they would get liquidity pools. So you may very well end up with less liquidity by doing this.
• 2. We would be paying an additional $1000 in DAO LLC filing fees per year as it is a flat $500 fee per DAO. That is about or in excess of the monthly rent for some of the units in the property bundle. Why give up a unit's monthly rent for zero tangible benefit?
• 3. The "operational risks" of the properties being bundles has never been officially stated by Lofty, and if it ever did become a problem we could simply vote to do this down the line.
• All in all, there's no real benefit and it would simply cost us an extra $1000/yr for said lack of benefit."

Property Update (11/27/2024):

The new owner-elected Property Manager, Yhome Nursing LLC, confirmed the tenant moved in on 11/22 as scheduled.

• The tenant signed a 12-month lease at $1,045 and paid a security deposit of $1,045.
• The property manager charges a leasing commission of first month's rent, which will be deducted from November's rent.
• The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.
• Further updates will soon be provided for 1258 Lily St and 1518 Dille Rd. Per the previous update, a new tenant has been approved and will move in to 1518 Dille Dr Unit 1 on 12/1.
• Rent Distributions & Loan Structure
• Per the terms of the Yhome Profit First System, when a property is onboarded to Yhome Nursing LLC, owners start receiving 1/12 of the monthly cash flow as daily rent, once the leasing fee has been paid.
• After 90 days of management, during which an inspection is conducted and tenant payment reliability is assessed, owners can vote on the cash flow distribution for the next quarter, also paid as daily rent. Yhome will suggest an amount to set aside for routine maintenance and repairs to ensure property stability. This voting process occurs quarterly.
• Properties managed by Yhome do not have traditional Operating Reserves or an Operating Reserve replenishment rate. As a result, owners will begin receiving cash flow as daily rent once the initial 90 day period ends.
• The unpaid bill balance of $5,009, along with the required repairs in order to turn the properties (exact repair amounts will be provided shortly) will be paid off via a loan from Yhome Nursing LLC at a 6% interest rate, amortized over 15 years.
• The following documents will soon be provided for each property:
• Amortization calculator
• Cash flow model
• Cash flow projections
• Promissory note