How Lofty Works: Fractional Real Estate Investing Explained | Lofty
About Lofty
Lofty is a fractional U.S. real estate investing platform where visitors can browse property shares, learn about rental property investing, review calculators and guides, and access support for marketplace orders and account activity.
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How Lofty Works
Buy shares of rental properties, collect rent daily, and sell anytime on the world’s first real estate exchange.
$100M+
Total invested
40K+
Investors
$5.2M+
Rent paid out
4.7★
Google reviews
Start investing in minutes
Step 1
Browse properties
Explore 100+ rental properties across about 40 U.S. markets: single-family homes, multi-family, vacation rentals, and commercial. Every listing shows full financials, rent history, inspection reports, and photos.
Step 2
Deposit and buy
Click Deposit in your portfolio to transfer from your bank, or click Buy on any property and pay instantly with a credit card. Each property is held in its own LLC, and your shares are direct ownership in it.
Step 3
Earn daily, sell anytime
Rent lands in your account every day around midnight UTC. Withdraw it, reinvest it, or sell your shares on the 24/7 exchange at a price you choose.
Compare that to buying a rental yourself
- Start a property search
- Find a lender and get approved for a loan
- Determine investment value
- Make an offer and see if it gets accepted
- Pay a hefty down payment
- Close on the home
- Get homeowner’s insurance
- Make needed renovations
- List the home for rent
- Show the home to renters
- Screen potential tenants
- Sign a lease
- Safely store security deposits
- Manage property maintenance (yes, toilets too)
- Manage accounting
- Organize taxes every year
Two ways to earn
- Daily rental income. Your share of the rent is paid every day around midnight UTC. Withdraw it anytime or reinvest it to compound.
- Trading gains. Share prices move with the market, and you can sell anytime, at any price you choose. When your shares are worth more than you paid, that gain is yours.
Two ways to trade
- Market orders. Buy or sell right away at the best available price. Includes a 2.5% fee paid to market makers for instant execution.
- Limit orders. Place an order at the price you want. It fills when another investor matches it.
Lofty by the numbers
| Share price | Varies by property, often around $50 or less |
|---|---|
| Maximum ownership | 15% of a property’s shares per investor, to keep voting fair |
| Rent payouts | Daily, around midnight UTC |
| Holding period | None. Sell on the 24/7 exchange anytime |
| Early withdrawal penalty | None |
| Fees | 2.5% on purchases, 3% on sales. No AUM or hidden fees |
| Average rental yield | 9.2% across the marketplace* |
| Ownership structure | Direct fractional ownership of a property-specific LLC |
| Voting rights | Yes. Vote on major repairs, rent changes, and sales |
*Marketplace average as of May 2026. Returns vary by property.
What investors say
Lofty holds a 4.7★ rating on Google. Here’s what real investors say:
"Platform is incredible. Makes buying and selling fractional real estate as easy as buying a share of stock."
Roy Grace · Trustpilot
"Immediate attractive yields and full liquidity for a private real estate asset. Amazing!"
Jonathan Brickman · Trustpilot
"Lofty is a godsend for a small time investor like me."
Lamar Langford · Google
"Simple and flawless experience for buying shares in American real estate, even if you’re not a US resident."
Toni Anicic · Google
How Lofty compares
| Lofty | Fundrise | Arrived | |
|---|---|---|---|
| Getting started | One share, often about $50 | $10 minimum | $100 minimum |
| Rent payouts | Daily | Quarterly | Quarterly |
| Holding period | None. Sell anytime | 5+ years recommended | 5 to 7 years |
| Early withdrawal penalty | None | 1% within first 5 years | Quarterly sellback, approval not guaranteed |
| What you own | Shares of a specific property | Fund shares | Shares of a specific property |
Where the properties come from
Properties on Lofty are listed by third-party owners: individuals and companies who sell a portion of their equity to investors instead of refinancing or selling outright. It’s a co-ownership model that keeps incentives aligned: sellers must keep at least 10% of the property’s equity.
- Seller submits the property. Every seller passes a background check, and the property gets an inspection, an appraisal, and due diligence materials published for investors.
- Seller sets the terms. They choose how much equity to sell, up to 90%, and at what price. Many keep managing the property themselves.
- Investors buy in. Shares go live on the marketplace, and the seller gets paid as investors buy.
Real ownership, real votes
- Voting power matches ownership.
- No investor can own more than 15% of a property’s shares, which keeps voting fair.
- After your first purchase, a short survey sets your management preferences: rent amounts, eviction timing, repairs, and more.
- Votes cover major repairs, rent changes, whether to sell, and other key decisions.
Property management, handled
Properties on Lofty are managed by independent, third-party property management companies:
- Each property page names the manager responsible for day-to-day operations: sourcing tenants, collecting rent, and coordinating repairs.
- In some cases the original owner keeps managing the property while selling a portion of their equity to investors.
- If an update or issue arises, owners receive an email from the property manager with the details.
Easy deposits, easy withdrawals
- Deposits: Click Deposit in your portfolio to transfer from your bank, or pay instantly with a credit card.
- Withdrawals: Send your balance back to your bank anytime. No lock-ups, no penalties.
Taxes made simple
- Rental income is taxed as ordinary income. Standard capital gains taxes apply when you sell shares for a gain. Owners also benefit from depreciation.
Frequently asked questions
Who can invest on Lofty? Anyone, both US and international investors, except residents of sanctioned countries. You must be 18 or older and complete identity verification.
How much can I invest? You can start with a single share.
What am I actually buying? Each property on Lofty is held in its own LLC.
Can I sell my investment early? Yes. There is no minimum holding period.
What fees does Lofty charge? A 2.5% fee on share purchases and a 3% fee on share sales.
What happens to my investment if Lofty goes out of business? You would not lose your investment.
Ready to start?
- Create your free account.
- Verify your identity.
- Deposit funds.
- Buy your first shares.