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Thanks for watching, and the frequent feedback. I really appreciate the discussion. I don't believe what I'm doing is a market timing strategy. For most of the discounted tokens I'm buying, I'm not hoping for the price of the token to rise. My goal is to eventually push for a sale for the properties in real life. The "discount" I'm looking for is not the current token price versus the past token price or my predicted future token price, it's a discount to the real world liquidation value. This makes it much more of an arbitrage strategy, not timing. Now in some instances I've sold tokens because the price rose considerably since I bought them. This is mostly just a happy accident when it happens, but I'll take it. Alternatively, for the discounted tokens that I'm buying to hold long term, I'm still not trying to time the market. I'm just taking advantage of the opportunity to get a very low basis, which increases the yield in the long run. Overall, I see opportunity here, versus stocks, because I can easily ascertain the real world value of the asset and I also have the ability to liquidate at that asset price, separately from what the market for tokens is doing.

@@josephcacciapaglia4753 Well, then your strategy kind of seems similar to stock picking. Stock picking offers the potential for high returns but comes with significant risks, potentially higher costs, and a historically low probability of long-term success.

The big difference between what I'm doing and stock picking, is that it's much easier to determine the value of a single family home than the value of a company. For example, if I want to invest in Apple stock, how do I figure out what Apple is actually worth as a company today? There are so many variables and so much information that I don't have access to. Of course it's going to be difficult, if not impossible to know which companies are over or under valued. On the other hand, figuring out what a home is worth is pretty simple. It's possible to get it marginally wrong, but not in the same way as valuing a company. Additionally, if I pick a stock and I'm right about the value, but the market doesn't see it that way, then I'm stuck holding the stock until they do. With the Lofty tokens, if I'm right about the value, but the market doesn't agree on the token price, then I can push for a real world sale. That additional option creates a ton of opportunity that we don't get when buying stocks. Of course there are extremely large corporate raiders that do this with public companies, but it's not an option for me. Those are the two main reasons I'm so excited about the platform. It's like stock trading, but with two huge advantages: it's very easy to determine the value, and it's possible to liquidate if the value of the asset is higher than the token price. I've been picking investment properties for the last 20 years already. Now I have the opportunity to do that in a much more diversified way, because I can put smaller sums in each deal. Of course, I'm still just experimenting with all of these platforms. It's possible I'll lose, because I'm missing something. There is a reason I haven't dumped a large chunk of my net worth on any of them yet. What do you see as a good alternative strategy?

Jack, thanks for watching, and the offer to share your insights. What's the best way to reach you to discuss?

​@josephcacciapaglia4753 are you in the ORAAT skool community?

Thanks again for coming on and adding some additional insight and transparency to the Lofty co-ownership experience.

I'll see what I can do. Earl is the only one I've interacted with much so far.

Oh man, yeah, those guys would be great.

@@RonnieM90 thanks again for the additional research.

discord.gg/C4GdDFfF

Thanks for watching, and for the question. This particular issue was resolved in just a day or two.

Nice. I love the alerts.

I've done a few follow up videos, that should be in the Mogul playlist: ruclips.net/p/PLAQFVJ2vhuJW6CLbFLQyFnUP6gyPkBlh0 The more I work with Mogul, the more impressed I am by them. It's still very early though. I just received my first full month of cash flow from one of their properties. It's doing better than expected. The biggest thing I'm doing to feel comfortable is by starting with very small amounts of capital. I'm researching the team involved as much as possible, and looking at all the usual sites (think BBB) to see if there are complaints about the company or the people. More than anything, I judge them by the quality of the deals that they're putting out there.

Thanks again for the comment, and the insight. You're absolutely correct. I noticed the same thing. Those are not markets that I would target for long term holds. Almost all of the properties I own in those markets are the ones I've bought at a discount and expect to exit relatively quickly. I'm not nearly as concerned with the market when that is the goal. I'm working on breaking those out separately in my charts for my future analysis.

You're right. My intention is to stay away from platforms where you need to be accredited. Someone specifically asked me to do this one, and I thought it was pretty interesting. If something like this were available with lower cost to entry I'd be all over it.

Oh, that's tough. It's a good market, so given a long enough holding period, you should be OK. I'm sure you've realized by now that the real money on Lofty is made buying the dips. Even some of the best properties dip at some point. Do you remember if they provided an actual appraisal when this one first came out? I couldn't find one in the dropbox, but I was wondering if I missed it. I'd really like to know why HC is so far off from Zillow, Realtor, etc.

@@josephcacciapaglia4753 Yes! Just like buying an IPO of a stock, you will get hurt way too often if you are first in at list price! I can't remember about the appraisal. We were all having our real estate boom moment and it didn't strike me as a crazy valuation at the time.

@@josephcacciapaglia4753 Yes! Just like buying an IPO of a stock, more often than not you will get hurt from being 1st in! I can't remember about the appraisal. We are all having a real estate boom still when they brought this one to platform. It didn't strike me as a crazy valuation at the time. Even though they bought in around $292k or so!

Thanks for this info. That might be enough tornado risk to keep me from accumulating a larger position in this one. I haven't invested anywhere where tornados were a big concern, so I'll have to dig into that a bit more.

I'd be OK going that low as well. We have a similar basis.

I dug into this a little more, and also got some insight from Earl on the discord. I think the biggest thing affecting this is that the oracle price for Peoria is about half the oracle price for Sangamon. I think this is a flaw in the way Lofty prices stuff, and I'll have to pay a lot more attention to this in the future.

I'm working on this. Great minds...

When you say you expect to hold it, do you mean as a worst case? The faster we sell, the better the returns.

Correct, worst case.

I thought I did a video on that a few months ago, but I don't see it when searching my channel. I think I remember that at the time I thought it was overpriced. $28 seems pretty cheap though. I'll take another look at it, and post a video about it. It is certainly an interesting one.

Thanks for sharing. Definitely important to consider when looking at this deal.

That's true. Most of the time they're a very small part of the overall projected return. This one was so large I literally laughed out loud the first time I saw it.

Thanks for watching, and for the kind comment.

Yep. I take a lot of naps to make it happen though.

@@RonnieM90 Thanks. Great info.

This is a great point, especially with the current fires that are ongoing. I don't believe this particular area is at high risk, because it is more of a desert, but I'm not certain about that. It's definitely something I'd want to dig into further before making a large investment in the area.

@josephcacciapaglia4753 While not traditionally considered high-risk for forest fires due to their arid nature, deserts are increasingly susceptible to wildfires, particularly when invaded by non-native grasses which act as fuel, making them vulnerable to large and dangerous fires, especially with climate change exacerbating drought conditions; this is particularly true in areas like the Mojave and Sonoran deserts where invasive grasses have become prevalent.

I haven't looked at Fundrise in a little while, but I believe the investment options on there are all REITs or Funds. If that's the case, I recently explained why I'd prefer not to invest in that type of product in a video that I did about Roots. It's not specifically about Fundrise, but the thought process about REITs versus individual investments would be the same. Do you currently invest on Fundrise? I'm curious what your experience is like on there. Here is the video I just mentioned, but I'm also open to discussing it further, if you'd like. ruclips.net/video/Uz3orzSkalU/видео.html

@@josephcacciapaglia4753 I have 50 grand invested into fundrise

If you invest in the individual LROs, you don't get automatic compounding, unless you use the auto investing feature. If you invest in the Flywheel portfolio, I think you currently have the option to make it compound or not.

@@josephcacciapaglia4753 so what mine does is I have recurring deposits set for $1000 a month and that goes to the investor account and then I’m seeing transfers that were automatically done where it’s been taking the $1000 from the investor account to the auto investor account.

Thanks! I know FOCUS has been working for you though, so I'm not sure I'd want to derail that. I'm happy to set up another call sometime, and we can talk about what your criteria might look like here.

@@josephcacciapaglia4753 Focus has been working, but the new Padsplit fee structure has me stuck. I am looking for a primary purchase to house hack with the long term no furnished member agreement model. This way I have a low barrier to entry to test out the longer model. If it works then I am off to the races. If it sucks and I can't market and fill the rooms then I would have to put it on Padsplit. Then I would pivot and look for 2 - 10 plexes in another market. Multiplexes in Phoenix metro are rough. :)

Thanks for sharing your thoughts on this one. I'll definitely be checking back in on it in the future.

@@RonnieM90 thank you for watching, and for the feedback. Lofty is the platform that I'm using the most. I think there are a lot of opportunities, but only if you're very selective. I knew this one would be a repeat of a lot of others, but wanted to put all these ideas in one spot. At the moment I'm only investing on Lofty, Mogul, Groundfloor, and Solslot. If there are other platforms you think I should check out, I would be happy to. Thanks again.

Thanks for watching!

Sorry to hear that. Is there another platform you like better? I'm always looking for new alternatives.

@@josephcacciapaglia4753 i havent looked as i just dont think the RE dream is going to continue to flourish the way it once did. expenses will continue to go up which will continue to raise rent,... i dont want to be part of the housing problem and raising rent forcing ppl to live in their cars. i am looking for other investments like rv parks and parking lots in a downtown area. if you find fractional/group investing with that . please let me know

@@TheRomanFox thanks for watching and commenting!

Thanks for the watching, and for the feedback. Let's do it. Have you bought any fractions yet this year?

Thanks for providing the additional context. It's a good question. I remember thinking AC was way underpriced 10-15 years ago. It's been years since I've actually been in the market, so I don't know what it will take before investors jump in at scale.

There are definitely a ton of bad deals on the platform, but there are also plenty of opportunities. I will very rarely buy any at their $50 initial price point, but am excitedly buying in the teens and low twenties. I think of Lofty as the ebay of real estate. The platform is just there to allow others to list and sell, and you have to do your own due diligence on the item you're buying. Of course, ebay has a better return policy. Thanks for watching and for the comment. Are you investing on any other real estate platforms?

@josephcacciapaglia4753 Yes, I am currently invested in Groundfloor, Ark7, Arrived, and Fundrise.

Thanks for watching. In short it's a way to sell a portion of their equity while still being able to maintain some control and future income from the property. I'll try to do a video with a more in depth explanation of how it works and why someone would choose to sell on there.

@@josephcacciapaglia4753 So in theory, if over 50% of the available "tokens" / shares available are held by others, how does that affect the operation of the asset. Does the original owner/seller then hand over the keys to the group of shareholders to manage or pay for a mgmt company? This is very interesting stuff, your analysis is the real deal. Keep it up. And you're completely spot on about the house hacking formula when starting out. You're always going to have the monthly nut of your own roof of your head, if you can leverage that monthly debt payment by using the asset to either make you money / or save you money- it can really help propel your savings ability for your next purchase.

Thanks for watching, and for the comment. I'm not sure what you're talking about at the 13 minute mark. It may be that I just wasn't explaining the liquidity pools well. The only time that we get diluted from more tokens is when there is a mortgage that's being paid off. As far as YHome, the rate they're lending to the DAO's is pretty low, around 6%, so I don't really understand their motivation. I think it's a matter of them taking on more properties than they can handle, more than some nefarious intent. Only time will tell though. For now, I'm trying to avoid properties that they manage.

@@josephcacciapaglia4753 new to the fractional real estate investing game and learning a lot from watching your vids!

@@RakhiKhatun-t7t thanks for watching and the kind comment. I have several videos about this topic, but if you have specific questions, I'd be happy to try to answer them.

@@josephcacciapaglia4753 Thank you

Thanks for watching, and for the kind comment.

@@hehehelmaoo thanks for watching!

Thanks for sharing all of that. Lofty is definitely hit or miss, depending on which properties you buy. I'm also enjoying Groundfloor. I think I'll end up putting a decent amount of capital in there eventually. I want to see how it does for a bit longer though. Keep me posted on Ark7. I think there is potential there, but haven't found anything too compelling yet.

@@jamiedavis567 sad, but probably true.

Thanks for taking the time to watch, and for sharing your thoughts. I am curious how many $50 purchasers are still holding. I can empathize with them, but continuing to hold a bad purchase is just sunk cost thinking. I believe even people who might lose money on this sale would still be better off, as long as they move it to one of the better performing assets. Holding to maybe break even in a few years versus putting that equity to work today, feels like a decision to protect egos more than a prudent investment decision. I've certainly been in that position in the past though.

I agree and holding it for 5 years would make sense even in a tokenized deal if the numbers originally presented by Lofty were even remotely close to reality. that's not the case in this property and almost one of all the others on the platform. when Lofty recently changed the calculation of account value I am sure many owners were shocked to see how much of their investments had evaporated. I believe that is also the reason that the website shows some fluff-numbers but not performance statistics for the last few years like any other company in the investing world. If Lofty had impressive performance it would show it to attract more investors. The numbers aren't there so we see some pretty pictures. I spoke to Jerry and he keeps saying: "We are a platform". That's true but not taking any responsibility for the numbers presented for a new deal basically means: If you can't do all the due diligence for each deal offered yourself - don't invest here!!! For me, to park a few hundred or few thousand $$ and having to do all the work I do for an outright purchase because you can't trust the platform is flaw that should be corrected. To get to 3.94% Jospeh was generous to calculate with 95% occupancy. Let that sink in

@AMeierhoefer thanks for the input. Definitely have to do our own due diligence on every deal.

@@josephcacciapaglia4753 Yes, true for direct purchases but then why be on Lofty?

@@ReiJarrod thanks, and thanks for watching.

No thanks.

Thanks for watching!

@@sellforcash5914 thanks for watching!