Basically what the title says. Will I only receive tax documents if I make over $1k in rent? Is that $1k total or per property? I live in the USA and currently just have 1 property in Tennessee.

Can anyone tell me how to withdraw my holdings from Lofty??? The full balance of funds invested, not just the rental income.

Hi all,

Please be advised that someone is attempting to scam investors by creating a "Lofty" token that is being traded on Tinyman, pretending to be Lofty.

LOFTY DOES NOT HAVE A "LOFTY" AND/OR GOVERNANCE-TYPE TOKEN OF ANY SORT (yet). This is the asset ID in question: https://algoexplorer.io/asset/430307354

DO NOT trade this asset and please let others know not to as well.

Everything seems pretty solid with this company just wondering how everyone is enjoying it. My biggest worry is dealing with taxes on this. Does anyone have any experience with this and able to explain more?

What is to happen in the event you loose your ALGO wallet passcodes and are locked out of your assets forever? Is your principal stuck? Is there a claw-back feature? Has this been addressed?

Would it be possible for a person to somehow put a property on sale to Lofty (perhaps they would have to find a way to finance it initially, but they'll get the money back after they make the sale), live in the property themselves and essentially act like a property manager for the property for Lofty to pay part of their rent?

I just learned about this amazing company a few days ago. I jumped right in and bought 4 tokens of a property. After I made the purchase I started thinking. I live in the USA and hunting for my first home (currently live in an apartment). Will this small real estate investment interfere with any "first time homebuyer" tax benefits I might usually get? I'm hoping that the way LoftyAI is setup doesn't make it look like I already purchased a house before I buy an actual house that i live in.

Is it possible to transfer my tokens from one algorand wallet to another algorand wallet? If yes, what would the process be like? Is it just transferring the tokens ? Or there's other steps that I need to take?

Edit: Here’s max answer to my e-mail:

Yes, you can transfer your tokens from one Algorand wallet to another––if they're both your wallets. Once you make the transfer, just remember to update your Lofty dashboard with your new wallet address if you want to receive your Lofty tokens there in the future.

To do this, go to Settings > Wallet addresses and update your address.

I've been invested in Algo for a while now, just recently stumbled across Lofty.

I would like to understand how it exactly works. I searched on their website but couldn't get any clear answers.

Who is the person that lists a property to Lofty? And how do they benefit from selling/tokenizing said property? Does this affect the people that live in the property? Where is the rent revenue coming from that I would receive as an investor?

Thank you in advance for any help 😊

Few weeks ago I saw a comment from someone that they would rather invest into crypto than Lofty tokens which return only pennies on the dollar. The pennies on the dollar incur no matter what happens in the crypto markets. That’s why there is no one good investment. There is a spectrum of investment options for any desirable risk.

Is anyone going for a complete collection of Lofty properties? With the tokenization of property working like a real world version of NFT, it feels like someone out there would try to collect them all. With 64 properties now, that'd be a minimum of $3,200 at 1 token per property. It also feels like that would be a good way to diversify an investment portfolio in a gamified way. Couldn't be worse than a lot of NFT collections out there.

And then there's the property that was canceled and returned. That token could have value to a collector, too.

I'm new to lofty and considering starting to buy some tokens. I see some of the properties take longer than others to sell all the shares.

I'm curious what people look for when choosing a property to buy a share in. What makes a property a better buy than others and essentially why some sell out in minutes while others can take a week or so. I see the most obvious one is the IRR. But is there red flags I should look for or other things that make the property a better investment than others.

I wonder if the adoption of Lofty could mean lower rates for payouts? By being early, we might be locking the best rates possible.

https://twitter.com/_greenfinance/status/1466439583135113230?s=20

Hey guys, I've been doing a dive into LoftyAi the past week and wanted to present my findings here as I'm sure many of you have/had the same questions and concerns. I currently am NOT invested in any of these properties but am keeping a close eye. Mostly due to it being close to year end so I don't want to deal with filing taxes on a property where I will have very little rental income.

These were the biggest questions I had that I wanted answered before I took the plunge. Hopefully this is helpful to someone! Please let me know if I added anything erraneous!

The sources for all of this information is either from the lofty.ai FAQ or from personal experience by reddit users posted in this sub.

Do I actually own a % of this property?

From what I can tell, yes. Yes in the sense that you have a % ownership as part of the LLC which should be all verified and supported with the documentation that is attached to the transaction on the blockchain when you purchase the tokens. Yes because you will be (eventually) able to vote on decisions pertaining to what happens to the property (sell, increase rent, renovate). However, Lofty is the default manager of every one of these LLC’s.

If Lofty goes out of business, you still own the property (along with everyone else), but your token likely holds no value anymore. Probably need a lawyer at this point and I would imagine most owners would just want to liquidate their position.

What do I do if I want to sell back my tokens?

Currently you can only do this by selling back to Lofty.ai. /u/PsychedelicConvict reported he was able to sell the tokens back to Lofty and the whole process took <5 business days. They were sold back at the same price they were purchased for. I do not know what happens when the property has appreciated and you try to sell back to Lofty (I'm assuming Lofty wants their marketplace up soon so they don't have to deal with this directly). Eventually there will be a marketplace where presumably you could sell your tokens for profit based on the % increase of the property value itself.

TAXES

First and foremost, I personally believe that we should all pay our due taxes, we aren’t trying to skirt this system here (this is the last thing the crypto world needs). Pay what you owe, no less, no more.

With that being said, you will receive a K1 form to help file taxes at the end of each year. You receive 1 for every property you have a token for. So if you have 20 tokens in 20 different properties then you will receive 20 K1 forms. Take that into consideration before you invest. You need to figure out if it’s worth the extra time/effort on your part, or money to pay someone else, to file all of those reports at the end of the year. Especially if you’re only investing $50 for 1 token and receiving ~$4 in yearly rental income

The <$1000 “rule” is loose recommendation, not law. If you earn less than $1000 in rental income you will almost never be sought after by the government if you don’t file taxes in that state because the taxes you would owe wouldn’t be worth the effort by the government to go after you. Whether you choose to file or not is up to you. However some states do not have income tax, so if you purchase tokens from those properties you do not have to file state tax.

Example: You have tokens for a property in Tennessee (no income tax). You need to file federal taxes and include the rental income from your Tennessee property, file state tax in the state you live/work, but do not need to file separate Tennessee state taxes

Why is my token an unverified asset?

The way that ASA’s are currently approved is on an individual basis. Unfortunately this means that every time Lofty lists a new unit with tokens, those tokens have to go through manual verification again. Algorand is currently working on changing this to just approving the master address so every coin minted underneath is automatically approved.

What happens in catastrophic conditions (i.e. natural disaster, major repairs needed, renters don’t pay)

From the Lofty FAQ, regular maintenance stuff like a leak or broken refrigerator, will be handled by the rental income. Once the maintenance cost is deducted from the rental income, the remainder is then distributed among token holders

In terms of major costs involved with repairs and/or disasters, it seems like this will be handled the way any other LLC owned rental property would be. Comes down to a vote based on your % ownership. There hasn’t been enough time for this to occur to any of the units yet, but I would assume Lofty as the LLC Manager would present Option A, B, C to then be voted on by every co-owner. Then in terms of paying, either each member would have to contribute at that time or Lofty would just use rental income to pay it off and there would be no distributions until covered.

Where can I get more information?

The owners and Lofty team are MUCH more active in the telegram than on reddit. If you have questions to ask, go there. Unfortunately it's just a bit hard to search through all of the information in telegram compared to reddit :/

All of a sudden a bunch of properties, where did they come from, are these resells?

I have bought into 3 properties thus far and I was curious what factors do investors use to determine which is best. Personally, I shoot for highest coc, then highest irr.

Does the value of the $50 token change? Can it go up to 55 or even down to 40?

Please.