We touched on the uses of Blockchain in real estate yesterday. Today you'll learn how to invest in real estate on the blockchain through Lofty Ai.

What is Lofty AI?

Lofty AI is a decentralized real estate agency built on the Algorand blockchain. It was founded by Jerry Chu, Mark Keane, and Max Ball in 2018.

It is the first Web3 real estate marketplace with a DAO. DAO means Distributed Autonomous Organizations and they are usually formed for a particular project.

The Lofty AI's DAO structure allows token holders to share ownership and cooperate or vote on how they would like properties to be managed.

The 'Lofty AI' idea was birthed by Jerry Chu after experiencing time wastage and futile efforts for over two months when he wanted to get his first rental property.

According to him, 'The process was archaic and sucked up all of my time' and after observing that his friends had similar experiences, he decided to build a platform real estate investing can be 10x easier.

Lofty Ai is one out of about six real estate projects built on Algorand blockchain. There are also the likes of QuantmRE, Vesta Equity, Slicespace, and Backers also.

Lofty Ai is backed by several reputable firms including Y combinator, Barclays, J.P Morgan, and NVIDIA.

A report from Crunchbase, reveals that the firm raised $5M in funding. Its last round was on June 14 2021.

How Does Lofty AI Work?

There are three categories to discuss here. There is the new user, the community of existing users, and the Lofty AI team.

For the new user, they'd have to go to the Lofty AI website, sign up, connect their wallet and verify themselves before being eligible to invest in any listed property.

The minimum investment capital for any category of users is $50. For every property listed, there is a unique token created and once users invest, they get these tokens as daily rental income.

The community of existing users is those who have verified their identity on the Lofty AI platform and have started investing in listed real estate properties.

These users own a fraction of the property they have invested in. Lofty ensures that no single user owns over 15% of any property. Users also get to vote on things like maintenance, rent changes, eviction decisions, etc.

A supermajority of 60% votes is paramount to approve a decision.

On the team's end, the Lofty AI team starts to pay users daily rental income right from the first day of investment.

For every property that gets completely sold, the team takes 8% of the property amount.

How Liquid Are Properties On Its Marketplace?

Unlike the traditional real estate system where properties take weeks and sometimes months before getting sold, Lofty has a track record of completing property transactions speedy, sometimes in less than five minutes.

There was this time when a $125k property sold out in less than a minute. Here's a video representation by the Lofty AI's team showing how fast properties get sold out.

The issue of liquidity of physical real estate is being solved by Lofty seamlessly.

Also, tokens (rental income) issued to investors (owners of listed properties) can be readily sold at zero fees or penalties or be donated to a national affordable housing non-profit charity called Mercy Housing.

To invest in real estate on the Blockchain through Lofty AI, ensure to do your own research on the project.