Sounds like a great idea! What a terrible investment!
Great idea for the platform owners, they probably make great money. The investors like me however, not so much.
They make it easy to invest and buy property tokens. However, selling those tokens for even close to what you paid is a challenge. I purchased most tokens for $50, I sold my last batch for $21, for a whopping 58% loss. All properties I invested in are very poorly run and mostly post losses, not profits. Then pulling your money out of the platform was another major challenge. I contacted support for months and they pointed me to a complicated process that did not work. Finally, a random user on the platform helped me move my money out through crypto wallets.
I truly regret ever investing in this platform.
Reply from Lofty
Hi there, thank you for your review. To clear up any confusion, property tokens can be listed for sale on the marketplace anytime, there is no lock-up period.
For most properties, property tokens can be sold instantly without having to match with a counterparty via our automated market making service. Simply choose the "market" order option, and you can sell your tokens instantly at the market price.
It's important to note that Lofty is not a fund. We do not purchase properties, flip them, and then sell them on our website to users.
Instead, we are a marketplace like Airbnb, eBay, or Amazon.
The Lofty marketplace consists of buyers (token investors) and third party sellers (people who want to sell their properties).
Because Lofty is a peer-to-peer marketplace, we do not recommend investments. Instead, we provide as much due diligence material as possible so investors can invest based on their own risk tolerance. This due diligence material includes inspection reports, appraisals, title reports, rent rolls, P&L's, and much more.
Plenty of investors are selling tokens in their properties above the original $50 purchase value, which can be seen by going to our marketplace - https://www.lofty.ai/marketplace
Regarding having issues pulling your money out of the platform, we have not received this feedback before because there is a "Withdraw" button you can click that lets you send funds directly from your Lofty account to your bank account. This button is front-and-center and prominent in your Lofty account page, and it takes less than a few minutes to withdraw your funds.
You do not have to use our "Withdraw" feature, as there are plenty of other ways to withdraw your funds. You can also choose to send the USDC you receive from selling property tokens to Coinbase or other exchanges. We have more information on this in our Learning Center, and our support team is available anytime to answer your questions.