Invest in fractionalized rental properties
Invest in multimillion-dollar art shares
Investments
$3,000
The minimum investment required on Mintus for art investment opportunities is $3,000, with investment amounts typically ranging from $15,000 to $100,000.
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 Mintus carries risks such as market volatility affecting art values, limited liquidity options until the secondary market launches, potential regulatory changes impacting investment practices, operational challenges, and the subjective nature of art valuation.
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
Mintus plans to introduce a secondary market feature, which is currently marked as "coming soon". This future addition aims to enhance liquidity by allowing investors to sell their shares in artworks to other users, although it's not yet available.
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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
8.9 %
Mintus targets an 8.9% annual growth rate for investments, though actual returns may vary due to market conditions and art performance.
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
Investments through Mintus generally have a long-term horizon, often spanning several years, due to the nature of art appreciation and market trends. Exact duration may vary based on specific artworks and market conditions, with potential for earlier liquidity once the secondary market is introduced.
Who can invest
International
Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.
Who can invest
International
Mintus allows both individual investors and institutions to invest in artworks. Individual investors need to qualify as "high net worth individuals", "sophisticated investors", or "accredited investors" and pass an appropriateness assessment. Institutions like wealth managers and family offices should contact Mintus directly for specific investment options.
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
The volatility of assets on Mintus, consisting of high-value artworks, is influenced by art market dynamics, economic factors, and the unique characteristics of each piece, such as rarity and provenance. These elements can cause fluctuations in art valuations, making them inherently volatile investments that require careful consideration.
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
FCA Regulated
Mintus is authorized and regulated by the Financial Conduct Authority (FCA) in the UK. This regulatory oversight ensures Mintus meets strict standards for investor protection, transparency, and market integrity, although specific audit details are not mentioned.
Insurance
No
Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.
Insurance
Yes
Details on insurance for artworks on Mintus are not explicitly mentioned. Typically, art investment platforms secure artworks against risks like damage or theft through 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
No Recurring Payouts
Mintus does not offer traditional dividends. Instead, investors gain returns through the appreciation and eventual sale of the artworks, receiving profits based on their share ownership.
Withdrawals
Investors on Lofty can sell tokens anytime on the marketplace and withdraw proceeds using methods like bank transfer, PayPal, or cryptocurrency.
Withdrawals
Investors on Mintus receive their returns after the sale of an artwork, with profits made available in their wallet. They can then choose to withdraw these funds to a bank account or reinvest in other artworks on the platform.
Extra Fees
Yes
Fees on Mintus vary by artwork and investment structure, with all fees shown in advance in the Memorandum document available for each opportunity.
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
Annual Statement
Mintus notes that artworks don't generate income while held, so tax implications mainly stem from capital gains upon sale.