Tokenized real estate seems to be a trend that the masses overlooked. There was much to speculate on in 2021 that caused a frenzy in the market. Amongst these included the rise of NFTs and The Metaverse (which you may have heard of). So it is easy to see how we missed some developments. One thing becoming increasingly popular is known as tokenized real estate – the process of distributing ownership of a property through tokens issued on a blockchain. There are many platforms and blockchains to engage in this sort of activity. In this article, we will look at interacting with Lofty.AI.
How to Register and Enable Two-Factor Authenticator
First things first, you will need to sign up for an account with a valid email that you can access. You will receive alerts about governance votes and other important updates through the email you provide. After you get signed up, it is highly recommended you enable two-factor authentication.
To enable 2FA (two-factor authentication), go to the “Settings” tab and select Security. From here, you will see Disabled – switch this to Enabled. There will be a pop-up. Now, you will need to open your authentication app (google authenticator or authy) and either scan the QR code or type in the Setup Key.
You can set up a credit/debit card in addition to using cryptocurrency. Click on the “Payment Methods” tab to connect a payment method of your choice (if you want to use crypto, do not add a credit or debit card.)
Under the Settings tab, click “Wallet Addresses” to connect an Algorand wallet. Lofty.AI uses the Algorand blockchain. Currently, the only cryptocurrency token accepted for the purchase of properties is ALGO.
In the top left column, you will find the “Assets Overview” tab. Click on it to see a list of the assets under your custody. Here you can also review the amount of rent you have earned per property and in total.
By clicking the “Transaction History” tab, you will be able to review in detail each daily rental payment you have received. Since Lofty.AI uses the Algorand blockchain, you can send payments daily at no cost to the recipient.
In the top left column, click on the “Property Offerings” tab to go to the property marketplace. Here, you will see all the properties that are for tokenized sale. There are some stats under the thumbnail images and expand each property to learn more by clicking on one.
Pictures of the insides of the properties, how many total tokens are available, and the total amount created are also available for review. Other financial stats like closing costs and annual gross rent, to name a few, can be viewed as well. You can view legal documents related to the properties like Inspection Reports and Title Commitments. The entire buying process is tracked. You can also learn more about the market in the area of the property you are reviewing.
How to Buy Tokens with Crypto or Debit/Credit Card
To make a purchase, you need a wallet with Algorand tokens or a debit/credit card. Before you invest, research the property you want to buy. When you have decided on the property, click on the “Invest” button.
After you hit the Invest button, you need to read the terms and conditions and accept them. After you do this, you can select how many tokens you want to buy. Note: You may use rental income to pay for property tokens.
Decide on the number of tokens you wish to purchase and how much rental income you want to use. Then you will be able to choose a payment method.
For credit/debit card transactions, there is a percentage fee + .15 cents. For a new bank account, there is no fee. Tokens are not sent until the bank transfer is complete. For cryptocurrency, it is typically less than .01 penny.
If you use a bank or credit/debit card, you are probably familiar with those transactions. If using cryptocurrency, you will need to have the ALGO tokens available in your Algorand wallet. After you have the ALGOs, you will initiate the crypto transaction. Choose Pera wallet (or whatever wallet you have connected), and you should get a QR code (or get the actual wallet address). Now from your Algorand wallet, click Send and scan the QR code to get the exact transaction details (or you can paste the wallet address and amount needed).
How to Sell Tokens
Currently, tokens are sold anytime for no fees or penalties. So far, there is only p2p or selling back to Lofty. If you would like to sell your tokens back to Lofty, you can email [email protected], and they will refund your original purchase method after you send back the tokens. In Q2 of 2022, Lofty.AI claims they will launch an exchange where people can buy/sell tokens with each other.
How to List a Property
From the home page, click on Sell my Property. By clicking here, you will start filling out a form and begin the legal process of tokenizing your property for sale. Please follow up with Lofty support after you submit your information.
Lofty.AI is not the only project tokenizing real estate or other tangible assets. This phenomenon is occurring in many different ecosystems as you are reading this. It does not seem like this way of money-making has been highlighted by the masses yet. Tokenizing real estate will continue to grow, and many investors will benefit from this. Personally, I am delighted to see blockchain technology used in more relative use cases. This progress can lead to other forms of blockchain integration until we get down to the smallest detail and see blockchain in nearly every aspect of the consumer’s life.
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Written by Edward Gonzales © Crypto University 2022