In-Depth Real Estate Investment Reviews
Lofty
The Bottom Line
Lofty gives investors unprecedented flexibility with their real estate investment with low minimums, no holding period, and almost instant liquidity. Some knowledge is required to get the most of your investments, but they do a good job at providing necessary documentation to help investors make the right choice.
Pros & Cons
Secondary market allows investors to trade holdings with low fees from the day they buy them
Investors receive pro-rated rent payments in their account daily
Easily invest in a fraction of a property — as little as 0.1% ownership per property.
Investors actually own the underlying property and vote on major property decisions
Investors from anywhere can invest in U.S. real estate
Fractional investing and managing properties is easy with Lofty, but it's helpful to understand the concept of "limit orders" when buying and selling. This is a key part of trading on Lofty, and it involves you choosing the specific price that you want to trade at.
Lofty's Marketplace has a mix of low and high cap rate properties that you can choose from. Higher higher cap rate properties offer greater cash flow, but they may also carry higher risk of tenant delinquency.
You can easily use Lofty via your mobile web browser, but Lofty does not yet have a dedicated mobile app.
Figuring out where to invest your money is hard enough. Stocks, bonds, and even crypto all have their places in the modern portfolio, but the most misunderstood asset class has always been real estate.
Over the last few years, several companies have appeared claiming to make it easier for people to invest in real estate by removing down payments, increasing liquidity, and breaking properties up into fractions. In such an environment, knowing who to trust and what you're really agreeing to when you invest is more difficult than ever.
We analyzed
Lofty
by digging into key areas investors need to know about before going all in: How easy it is to invest, how much you can earn, and how you can get your money back once you've made the gains you wanted.
Full disclosure - we're Lofty, and we're one of those fractional real estate investment companies. We believe that a rising tide lifts all ships, and that providing an unbiased look at other fractional real estate companies through the lens of our industry expertise will help serve both investors and the companies serving them.
The Basics
Ease of Use
Before investing, it's crucial to ask yourself what you're really investing in. It's not always as clear-cut as you might think.
Earning Potential
There's really one core reason for investing in real estate: to leverage your current capital to create more capital. When it comes to choosing investing platforms, their expected yield and fee structure are the two core levers that determine how well they do that for their customers
Investment Liquidity
One of the most important things to keep in mind when deciding which real estate investment platform to use is to ensure you understand how easy it is to sell your stake when you want to.
In short, liquidity is a way to measure how much control you have over your money after you've invested it. Traditional real estate is illiquid because selling buildings is difficult and time consuming. On the other hand, cash is as liquid as it gets since you can exchange it for goods at any time.
Compare
The Final Verdict
While you're here, here's why you should try Lofty. Lofty makes it easy to invest in real estate more flexibly than ever. Enjoy $50 minimums, daily rent payouts, and easily sell your holdings with low fees & no lock-up periods. Get started today.
Extras