# Ketju research: Lofty

- URL: https://riadefi.com/rejections/lofty/
- Verdict: rejected
- Type: Other
- Reviewed: 2026-08-17
- Last confirmed: 2026-08-17

## Research summary

This review rejects Lofty because of a documented property-management incident and a liquidity gap between its service and its marketing. Lofty tokenizes fractional ownership of individual US rental properties. A dedicated Wyoming LLC holds each property, with membership interests represented as Algorand Standard Assets available from a $50 minimum. Unlike RealT, which this registry rejected elsewhere and which is now in voluntary liquidation, Lofty remains open to US retail investors. Independent review indicates that this retail access relies on an untested legal theory, using a Wyoming intrastate-LLC, direct-property-ownership structure, rather than a filed Regulation D, CF, or A+ exemption. The City of Akron condemned one Lofty property, 809 Kenmore Boulevard in Akron, Ohio, over a broken heating system, water issues, and a rodent infestation. Tenants reportedly went more than 80 days without heat, and an active lawsuit has now been filed against both Lofty and its property manager. Separately, several reviews and Trustpilot complaints describe the secondary market as materially less liquid than Lofty's own marketing claims, with some token holders unable to exit even at a loss.

## Observable review triggers

- The Akron property lawsuit resolves and Lofty demonstrates corrected property-management oversight across its portfolio
- Lofty's retail-offering legal theory is confirmed compliant by primary offering documents or an independent legal opinion, or the platform files a conventional Reg D/CF/A+ exemption
- Secondary-market liquidity is demonstrated to match marketing claims across a representative sample of properties, not just the most popular listings
- Realized property-sale returns are tracked and published across the full portfolio, not only headline unrealized yield projections

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
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