Invest in fractionalized rental properties
Invest in private credit deals
Investments
$500
Investors can enter the private credit market via Percent with a minimum of $500, accessing a variety of asset-based securities and corporate loans.
Moderate Risk
3/5
Investing with Lofty carries typical real estate investment risks, including market volatility, economic changes, and property management challenges. Additionally, the use of cryptocurrency and tokenization presents legal and regulatory uncertainties.
Moderate Risk
3/5
Investing on Percent comes with inherent risks, despite efforts to minimize these through a proprietary risk framework for its own deals. The risk levels can vary across the platform, depending on whether Percent or a third party underwrites the deal.
Moderate Liquidity
2/5
Lofty provides liquidity by allowing investors to list their property tokens for sale on the marketplace at any time, with a 2.5% transaction fee. Orders are held in escrow and have a 30-day expiration.
Minimum Liquidity
1/5
Liquidity on Percent, as with many private credit platforms, varies by investment. Generally, these investments are less liquid than public stocks, tied to longer-term commitments without guaranteed immediate access to funds.
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Low Return
5 %
Lofty offers a 5% cash on cash return, with token values updating monthly based on HouseCanary's Automated Valuation Model (AVM).
Moderate Return
13.41 %
As of February 1, 2024, Percent offers a 2.5% interest rate on idle cash in accounts and reports a historical weighted average APY of 13.41% on investments.
Short-term Investment
1 year
Investment time horizon on Lofty is not fixed and is determined by property owners' collective decision on when to sell through the governance system.
Short-term Investment
3+ months
Percent offers investment horizons starting at 3 months, accommodating short-term investment strategies.
Who can invest
International
Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.
Who can invest
United States
Percent accepts investments only from accredited investors in the U.S. with U.S. bank accounts, adhering to Reg D 506(c) exemption rules.
Moderate Volatility
3/5
The value of assets on Lofty's platform can be volatile, influenced by economic trends, interest rates, and real estate market conditions, potentially leading to variable financial outcomes for investors.
Moderate Volatility
3/5
Assets on Percent generally show lower volatility than public market investments due to the nature of private credit, which often involves fixed returns from contractual agreements.
Regulation and audits
Audited
Lofty's marketplace transactions are executed using a smart contract on the Algorand blockchain, which has been audited by CertiK for security.
Regulation and audits
SEC Regulated
Percent is regulated under Regulation D, 506(c) of the Securities Act, allowing only accredited investors to participate after verifying their status.
Insurance
No
Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.
Insurance
Yes
Funds deposited with Percent are held at an FDIC-insured bank, ensuring protection up to $250,000, the maximum allowed by law, providing security for investors' capital in case of a bank failure.
Payouts
Rental Income
Lofty provides daily rental income to investors, which can be withdrawn at any time through various methods including ACH, PayPal, and cryptocurrency options.
Payouts
No Recurring Payouts
Percent provides returns through interest payments or fixed returns from private credit deals, rather than traditional dividends.
Withdrawals
Investors on Lofty can sell tokens anytime on the marketplace and withdraw proceeds using methods like bank transfer, PayPal, or cryptocurrency.
Withdrawals
Upon investment maturity on Percent, funds (principal and yield) are credited to the investor's account. Investors can then transfer these funds to an external account or reinvest.
Extra Fees
Yes
From September 2023, Percent charges a fee of 10% on interest payments, not affecting the principal.
Taxes
Tax Form
Lofty provides US residents with pre-filled 1099 tax forms for income and capital gains reporting. Non-US residents may reduce withholding taxes with forms W-8BEN or W-8BEN-E if they have a US SSN or ITIN.
Taxes
Tax Form
Percent provides investors with a consolidated 1099-INT form each tax year, reporting all investment income as ordinary income for tax purposes.