Invest in fractionalized rental properties
Invest in equity REIT
Investments
$3,515
The minimum investment amount for Streitwise is $3,515, which is based on a Net Asset Value (NAV) of $7.03 per share.
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 in Streitwise involves risks such as market fluctuations affecting real estate values, limited liquidity with a one-year lockout period and potential for delayed redemptions, discounts on early redemption reducing investment value, concentration in specific real estate markets, reliance on management's decision-making, regulatory changes impacting operations, and sensitivity to interest rate changes.
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
Streitwise's Redemption Plan offers investors a structured way to sell their shares back to the company, starting after a one-year lockout period. Redemption before five years involves a discount, with full NAV redemption available after five years.
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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).
Low Return
7.3 %
Streitwise has offered an average annualized dividend yield of 7.3% since 2020. Future dividends depend on factors like tenant quality and maintenance costs, and cannot be guaranteed.
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.
Long-term Investment
5+ years
Streitwise targets long-term investments, ideally over five years, to avoid early redemption discounts and maximize returns. There's a one-year lockout period, emphasizing the long-term approach.
Who can invest
International
Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.
Who can invest
International
Streitwise is open to both accredited and non-accredited investors, including international participants, with some investment limits for non-accredited investors to ensure their financial safety. International investors can join with certain conditions and may face delays in processing.
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 the Streitwise platform, mainly commercial real estate, typically show lower volatility compared to stocks or cryptocurrencies, due to the slower pace of value changes in real estate. However, factors like economic shifts, interest rate changes, and market conditions can still cause fluctuations, albeit over longer periods.
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
Streitwise is regulated under Regulation A+ of the JOBS Act, allowing it to sell securities to both accredited and non-accredited investors with SEC oversight. Although not specified, companies under this regulation typically must submit audited financial statements annually, conducted by independent firms, ensuring transparency and compliance.
Insurance
No
Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.
Insurance
No
Streitwise has not specified the types of insurance it holds for its operations or properties. Typically, real estate investments are covered by property, liability, and business interruption insurance.
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
Dividends
Streitwise pays dividends quarterly, about 10 days post-quarter end, offering payment via check, direct bank transfer, or through a dividend reinvestment program.
Withdrawals
Investors on Lofty can sell tokens anytime on the marketplace and withdraw proceeds using methods like bank transfer, PayPal, or cryptocurrency.
Withdrawals
Investors can request to redeem their Streitwise shares after a one-year lockout period, with redemptions processed quarterly. Early redemptions (before five years) face discounts, while shares held for five years or more are redeemed at 100% NAV. Quarterly redemption limits may delay processing.
Extra Fees
No
Streitwise charges a straightforward 2% annual fee on investments, taken from dividend payments, not the principal. There are no additional or hidden fees, making its fee structure transparent and investor-friendly.
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
Streitwise provides a Form 1099-DIV for tax reporting by January 31 each year, detailing dividends which may be taxed as return of capital, capital gains, or ordinary income.