Invest in fractionalized rental properties
Invest in collectible assets
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 Rally carries risks, including fluctuating investment values and no guaranteed selling price. The unique nature of collectible assets also introduces specific risks. Detailed risk factors are outlined in each asset's Offering Circular or Private Placement Memorandum, available in the asset's "Legal" section for investor review.
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
Rally's platform offers liquidity through Live Trading, allowing investors to buy and sell shares in real-time during market hours via the PPEX ATS, after a 90-day lock-up period. Shares must be held for 5 business days before resale, with brokerage services provided by Dalmore Group, LLC, a FINRA and SIPC member.
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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).
Not Predictable Return
N/P
Rally's historical returns on collectible assets range from 1.35% to 84% over holding periods of 2 to 6 years. These all-time returns reflect the varied performance of different assets within this timeframe.
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
2-6 years
Investments on Rally typically have a 2 to 6-year horizon, suited for medium to long-term growth. A 90-day lock-up period post-Initial Offering restricts immediate trading, emphasizing a strategic, longer-term investment approach.
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
Rally is open to U.S. residents over 18 with a Social Security number, bank account, ID, and address in the contiguous United States, who pass KYC and AML checks.
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 collectible assets on Rally, such as collector cars and memorabilia, exhibit volatility due to factors like consumer preferences, rarity, and market demand. Unlike traditional investments, their values can fluctuate unpredictably, reflecting the speculative nature of the collectibles market.
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
Rally operates under strict regulatory oversight, offering securities regulated by the SEC and partnering with FINRA and SIPC-member broker-dealers, ensuring investor protection. Its operations and assets are regularly audited for compliance, financial accuracy, and asset authenticity.
Insurance
No
Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.
Insurance
Yes
Rally protects its collectible assets with comprehensive insurance to cover damages or losses, ensuring investor interests are safeguarded against unforeseen circumstances.
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
Rally primarily offers returns through capital appreciation rather than dividends, with investors benefiting from selling shares at a higher price than the purchase price, based on the asset's value increase over time.
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 get their money back by selling shares on Rally after the 90-day lock-up period, during market hours, via the app. Success in selling depends on market demand. Shares must be held for at least 5 business days before they can be resold.
Extra Fees
No
Rally charges no commissions or management fees on investments. Initial offerings include a sourcing fee detailed in each asset's offering circular. Instant Cash transfers incur a 1.5% fee with a $0.25 minimum, added to the transfer amount, but new users enjoy a 14-day fee waiver.
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
Rally issues 1099 tax documents to investors who sell shares or receive dividends, available in their Portfolio by March of the following year. Investors with active investments receive monthly statements, typically updated by the first week of each month, with new investments reflected within two months.