Real Estate Investing with $50 Using Crypto | Lofty.Ai Review
Become a Real Estate investor with $50
As a crypto and stock investor, I am always on the lookout for other ways to diversify my money. I still love crypto, and I still love stocks but having all my eggs in only 2 baskets is not the best strategy.
I have always been interested in owning some rental properties but the reality is for now there’s no way I can come up with that sum of money for a deposit.
Here is when the magic happened. A few months ago I heard about lofty.ai but I did not look deep into it because I was really focused on increasing my position in crypto. Now that I have more cash flow I am ready to diversify. So I started reading about the project, its pros, and cons, and in the end, decided to make my first investment in a rental property using lofty.
Lofty lets you invest in rental properties as a co-owner using fractional shares with prices as low as $50.
Of course, $50 is not going to make you rich. But let me show you why I started investing with them and why I like it.
Get $25 for Free on Lofty.ai using this link:
https://lofty.ai/account/register?grsf=1q1yh8
What is lofty
Lofty is a marketplace that lets you invest in U.S. rental properties for only $50.
Here’s what the marketplace looks like;
The ownership of the property is reflected as tokens. These tokens are created on the Algorand blockchain.
Doing so decrease the expenses of sending paperwork for everybody, and also gives us the option to later sell our ownership/tokens or move them to any wallet that we want.
Let me show you what is the process
When we purchase a token, that token is equal to 1 share in the property. As you can see above all of them displays the amount of token and amount of token left for purchase.
Each token is pegged to the price of the property. That means if the property goes up, your token appreciates because it is REAL ownership of the property.
You also get paid from the rental income. If it says 7% CoC (Cash on Cash Return), that is the dividend percentage you will be receiving on your investment.
That dividend is paid daily. Using some simple calculations. Let's say you purchase a $50 token with a 7% Coc.
- That is 50 * 0.07 = $3.5
- That $3.5 is then divided into 365 days. Which is 0.0095.
- It can be higher as the rent of the property increases.
Here are the benefits resumed:
- Daily rental income — Earn rental income daily and withdraw anytime.
- Property appreciation — Your ownership stake appreciates in value as the property appreciates.
- No lock-up period — List your ownership stake for sale in our marketplace anytime.
- Tax advantages — Benefit from favorable real estate tax deductions like depreciation.
- Empowered ownership — Vote on all key property decisions, from repairs to rent changes.
- Save time & energy — A property manager executes all vote decisions and handles the rest.
Buying process
To purchase a property you first need to go to the marketplace and scan the one you like.
The next step is to choose the number of tokens and payment method. You can choose between a bank transfer to a fund account, a credit/debit card, or crypto (my favorite).
After purchasing you will start receiving your dividends every 24 hours.
Here’s an example of a property I purchased.
Above you can see my purchase and how I started getting $0.008 every 24 hours.
I know also have the option to withdraw my dividends using Paypal, bank transfers, or crypto.
Conclusion:
Investing in real estate is hard. You need a substantial amount of money and knowledge to start, lofty gives you the option to do it with fewer requirements.
Do not think you will become rich from buying 1 or 2 properties at $50. This is obviously not crypto and the percentage gain are way lower, but this is more sustainable and a way to diversify your income.
I did a background check to make sure lofty is safe, and from what I found they were a project incubated by Y Combinator, and have a direct partnership with ALGO.
Another check is how they make money. They can have the best product but if there is no cash flow the business will not survive.
Lofty makes money in two ways.
A 5% listing fee on each property.
A 3% fee to sellers to list their properties on the marketplace. This fee is paid out once the property is closed and the deed is transferred to the new LLC.
Get $25 for Free using this link:
I will be creating a series out of this lofty journey. More reviews of the features, how to scan for the best property, and continuous reviews on my personal investment.
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Disclaimer: This is not financial advice, I am just a guy with a laptop sharing his opinions and experience. This is for entertainment purposes only. Always Do your own research before investing.
