Written by Algorand Foundation | Nov 13, 2024 5:00:00 AM
Real estate investing is expensive and has many barriers to entry, which makes it challenging for smaller investors to participate. Lofty, a marketplace for tokenized real estate, uses the Algorand blockchain to fractionalize property ownership, opening up a novel asset class to millions of new investors.
"Every VC or founder I talk to in this space always asks me why we use Algorand at Lofty. L2s didn't have the right UX for mainstream adoption, so we tried a few L1s, Solana included. I can say that we've never had a single failed transaction on Algorand since 2021. It's why we picked this chain originally to build on and it's why we've stayed there."
- Jerry Chu, Co-Founder, Lofty
Real estate investing has significant barriers for smaller investors looking to build wealth, including rising down payments, inflexible terms, and soaring property prices.
Lofty leverages Algorand to tokenize real estate properties, allowing investors to buy fractional ownership stakes for as little as $50, opening up real estate markets to the masses.
Key benefits
- Fractional ownership lowers the barrier to entry in real estate investment. Algorand’s low transaction fees ensure fractional investing is cost-efficient, for small and large investments alike.
- Investors can buy and sell tokens representing real estate assets at any time.
- Programmable smart contracts allow investors to receive daily income from rent payouts. Algorand’s smart contract technology enables automated daily payouts of rental income.
With Algorand, Lofty unlocks financial freedom and empowerment by making real estate an accessible asset class for more people.