Lofty uses a transaction-based pricing model for fractional real estate investing, charging 2.5% on share purchases and 3% on share sales. Its marketplace also offers instant market orders with an additional 2.5% market-maker fee, while ongoing property expenses affect the rental income available for distribution.
These costs work differently from the annual management fees used by some real estate investment platforms. This guide examines Lofty's fees as of October 2026, explains how trading frequency influences total costs, and compares its marketplace structure with the professionally managed fractional real estate investing approach offered by mogul.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
Purchase and sale fees: Lofty's published marketplace rates include a 2.5% purchase fee and a 3% sale fee, equivalent to $550 on two hypothetical $10,000 secondary-market transactions at unchanged values
Market-order costs: Instant market orders include an additional 2.5% market-maker fee, making execution method an important part of the total trading cost
Ongoing property expenses: Lofty does not charge an annual AUM fee or bill investors a separate platform property-management fee, although underlying properties incur operating and management expenses
Rental distributions and liquidity: Lofty supports daily rental-income distributions and 24/7 share trading, with actual payments dependent on property operations and completed transactions dependent on available buyers and sellers
mogul's pricing approach: mogul charges a one-time 5% platform fee, without an ongoing rental-income fee or traditional recurring annual AUM fee on invested equity
How Lofty's Fractional Ownership Model Works
Property ownership through tokenized LLC interests
Lofty provides fractional ownership in individual U.S. real estate properties using blockchain-based records.
Each property is held through a dedicated limited liability company (LLC). Investors purchase ownership interests represented by digital shares, giving them economic participation in that property's rental income and changes in value.
Lofty's listings include single-family homes, multifamily properties, vacation rentals, and commercial real estate.
Property sellers introduce assets to the marketplace, while investors purchase available interests through initial offerings or subsequent trading.
The legal structure matters because blockchain technology records ownership and transactions, while the underlying LLC agreement determines the associated ownership rights.
The SEC's 2026 tokenized securities statement explains that tokenization can take different forms and that the legal rights associated with an asset depend on its structure.
Property selection and investor participation
Lofty's marketplace provides access to property information that can include:
Inspection and appraisal materials
Rental income history
Property operating expenses
Ownership and management information
Available share prices
Property-specific financial assumptions
Investors also receive voting rights associated with their ownership interests.
Lofty's published governance model generally limits individual ownership to 15% of a property's shares and allows voting on matters such as major repairs, rental decisions, and property sales.
These features distinguish property-specific ownership from pooled investment funds.
Understanding property ownership structures compared helps explain how LLC interests, REIT shares, and other investment arrangements differ.
Lofty Fees in 2026: Purchase and Sale Charges
Lofty's primary platform fees arise when investors purchase or sell property shares.
The amount depends on the type of transaction and how an order is executed. Initial property offerings also involve separate arrangements for original property owners selling equity.
Share purchase fee: 2.5%
Lofty's published marketplace pricing includes a 2.5% fee on share purchases.
This applies to the relevant purchase transaction rather than being assessed annually against an investor's account balance.
For example, standard marketplace purchases of previously traded shares would generate:
$1,000 purchase: $25 fee
$5,000 purchase: $125 fee
$10,000 purchase: $250 fee
These examples assume the standard 2.5% trading rate.
Lofty also facilitates initial property offerings, where original property owners sell portions of their equity to investors.
Its property-listing terms identify a separate 3% fee paid by the original property owner on equity sold. This seller-side arrangement is distinct from the fees associated with subsequent investor-to-investor share transactions.
Share sale fee: 3%
Lofty charges a 3% marketplace fee on share sales.
The fee is calculated using the value of the completed sale.
For example:
$1,000 sale: $30 fee
$5,000 sale: $150 fee
$10,000 sale: $300 fee
The fee applies to completed sales rather than simply listing shares for sale.
Sale proceeds also depend on the price at which a buyer agrees to purchase the shares.
For existing investors trading property shares, the 3% sale fee is part of the secondary-market transaction structure. Original property owners selling equity through an initial offering follow the separately disclosed property-listing arrangement.
Limit orders versus market orders
Lofty supports two principal trading methods.
Limit orders
Limit orders allow investors to specify the price at which they want to buy or sell.
Buyers specify their maximum acceptable purchase price
Sellers specify their minimum acceptable sale price
Transactions execute when compatible orders are matched
Standard marketplace purchase and sale fees apply
Market orders
Market orders are designed for immediate execution at the best available price.
Execution uses available marketplace liquidity
An additional 2.5% fee is paid to market makers
The executed price depends on available orders
The fee is separate from the standard transaction charge
The SEC's order type investor guidance explains the differences between market orders and limit orders, including how execution prices can vary. Specific transaction procedures depend on the trading platform.
Other payment and network expenses
Lofty supports bank-linked payments, card-based purchases, and blockchain-enabled transactions.
Additional charges may arise from:
Card payment processing
Currency conversion
Certain withdrawal methods
Blockchain network transactions
These expenses depend on the payment method and transaction route.
Lofty does not publish one universal processing fee that applies identically to every deposit, purchase, and withdrawal.
Its May 2026 terms also describe blockchain network fees associated with transactions initiated through the platform.
What Lofty Trading Fees Mean in Dollar Terms
A $10,000 buy-and-sell illustration
Consider an investor purchasing $10,000 in previously traded property shares through Lofty's secondary marketplace and later selling them for the same $10,000 transaction value.
The following examples isolate marketplace fees using unchanged transaction values. They do not represent the separate arrangements involved when an original property owner first lists equity for sale.
Scenario A: Limit-order purchase and sale
Purchase amount: $10,000
Purchase fee at 2.5%: $250
Sale amount: $10,000
Sale fee at 3%: $300
Combined transaction fees: $550
This represents 5.5% of the $10,000 reference transaction value.
Scenario B: Market-order purchase and sale
Assuming the additional 2.5% market-maker fee applies on both sides:
Standard purchase fee: $250
Additional purchase execution fee: $250
Standard sale fee: $300
Additional sale execution fee: $250
Combined transaction fees: $1,050
That represents 10.5% of the $10,000 reference transaction value.
These examples exclude changes in share prices, bid-ask spreads, property-level expenses, and separate payment-processing charges.
They illustrate the effect of secondary-market transaction fees rather than forecasting investment results.
How holding periods affect effective costs
Lofty's transaction fees are generally associated with buying and selling shares.
A longer holding period spreads those one-time transaction costs across more years, while additional trading activity generates additional fees.
For example, the $550 standard trading cost illustrated above would average $110 per year over a hypothetical five-year holding period.
That equals 1.1% of the original $10,000 reference value per year using simple arithmetic.
However, this is a cost-allocation illustration, not an actual recurring annual expense ratio. The fees occur when the purchase and sale transactions take place.
The SEC's investment fee impact guidance, updated in July 2025, explains the distinction between transaction fees and ongoing investment expenses.
How trading frequency changes expenses
Transaction-based pricing means total charges depend on trading volume.
For instance, completing two separate $10,000 purchases and two separate $10,000 sales through standard limit orders would generate $1,100 in combined fees, assuming identical transaction values.
The same calculations can be applied to different purchase amounts and trading frequencies.
Unlike an annual asset management fee, transaction charges are connected to completed orders.
This makes trading frequency an important variable in evaluating Lofty's overall fee structure.
Lofty's Ongoing Property Expenses
Property management and operating costs
Lofty does not charge investors a separate recurring annual AUM fee.
Its current disclosures also distinguish platform charges from the fees paid to third-party property managers.
Each underlying property incurs its own operating expenses, which can include:
Property management services
Property taxes and insurance
Routine repairs and maintenance
Utilities and property services
Tenant turnover and leasing costs
Financing payments
Operating and capital reserves
Property managers coordinate tenant communication, rent collection, repairs, and other operational responsibilities.
The applicable management arrangements vary by property.
Lofty's marketplace describes independent property managers and, in some cases, continued management by the original property seller.
Individual property operating expenses affect the rental cash flow available for distribution to fractional owners.
Maintenance versus capital improvements
Rental properties require both routine maintenance and longer-term capital planning.
Routine maintenance covers activities such as minor repairs, servicing equipment, and addressing day-to-day property needs.
Major improvements, including roofing replacements or significant building upgrades, are typically classified as real estate capital expenditures.
These investments may extend a property's useful life or improve its operating potential.
The distinction matters because recurring maintenance and major capital expenditures affect property economics differently.
Rental strategy also influences expenses. Understanding long-term and short-term rentals helps explain why vacation properties and traditional residential rentals can have different management, maintenance, and occupancy requirements.
Why property expenses matter
A platform's direct fee schedule is only one component of an investment's total cost.
A property with modest platform fees may still incur substantial operating or financing expenses.
Similarly, properties with different occupancy rates and rental strategies may generate different net cash flows.
The relationship between rental revenue, operating costs, and changes in property value is explored through cash flow versus appreciation.
This property-level perspective provides more financial context than a platform's purchase and sale percentages alone.
Lofty's Daily Rental Distributions
How daily distributions work
Lofty processes rental-income distributions daily, generally around midnight UTC.
Investors receive their proportional share of the amounts available for distribution from the properties they own.
Actual payments depend on rental operations and the cash available after applicable expenses.
Daily processing describes how frequently income is allocated and paid when available. It does not establish a fixed payment amount or investment return.
Lofty's published rental yield
Lofty reported a 9.2% average marketplace rental yield as of May 2026.
This is a company-reported marketplace figure, with individual property yields varying according to their operating and financial characteristics.
Rental yield and total investment return measure different things.
Rental yield: Relates rental income to a stated investment or property value
Cash flow: Reflects income remaining after applicable expenses
Appreciation: Measures changes in a property's value
Internal rate of return (IRR): Measures annualized investment performance while accounting for the timing of cash flows
The internal rate of return provides a broader framework for analyzing investments that involve rental distributions and potential sale proceeds.
Because rental yield and IRR measure different components of investment performance, they are not interchangeable metrics.
Financing and rental income
Property financing also influences the income available to fractional owners.
Mortgage interest, principal payments, and other financing obligations can affect distributable cash flow.
The use of borrowed capital is known as real estate investing leverage.
An investment's financial results therefore depend on more than rent collected and marketplace trading fees.
Underlying financing, operating expenses, and ownership duration all contribute to the complete financial picture.
Lofty's Marketplace Liquidity and Exit Costs
How the 24/7 marketplace operates
Lofty operates a 24/7 marketplace where investors can place orders to buy and sell eligible property shares.
Unlike fixed redemption windows, its system allows orders to be submitted continuously.
However, submitting a sell order and completing a sale are different events.
Limit orders require a compatible buyer, while market orders execute using available marketplace liquidity.
The execution price depends on the orders available at the time.
Other ways property interests may be sold
Lofty's ownership model also allows for property-level decisions involving the underlying real estate.
Its current materials describe arrangements such as:
Selling individual shares to other marketplace participants
Property owners voting on a sale of the underlying asset
Original property sellers proposing to repurchase ownership interests
These transactions have different economic implications.
A marketplace share sale involves the price agreed upon by trading participants, while an eventual property sale involves the property's transaction proceeds and applicable obligations.
Incorporating liquidity into investment analysis
Real estate ownership structures use different methods for transferring or realizing investment interests.
The distinction matters when building property investment portfolios involving several assets or rental strategies.
Liquidity, property income, share pricing, and long-term asset value are separate considerations.
For Lofty, marketplace trading costs are especially relevant because investors can independently decide when to place orders rather than relying exclusively on an eventual property sale.
Tax Reporting for Lofty Investors
Forms 1099-DIV, 1099-B, and 1099-DA
Lofty describes providing pre-filled tax documents to support investors' annual tax reporting.
Its published materials identify:
Form 1099-DIV: Used to report qualifying investment distributions
Form 1099-B: Used for certain reportable property-share sales
Form 1099-DA: An IRS reporting form that may apply to qualifying digital-asset sales under the relevant broker reporting rules
The IRS's dividend income reporting instructions explain how dividend-related distributions are classified and reported.
Its securities sales reporting instructions explain when Form 1099-B applies, while the digital asset reporting guidance covers Form 1099-DA.
Form 1099-DA reporting began for certain digital-asset transactions occurring in 2025, with additional basis-reporting requirements introduced for applicable transactions beginning in 2026.
The relevant form depends on the transaction, the asset's tax classification, and applicable reporting rules. Form 1099-DA does not necessarily apply to every tokenized property-share sale.
Lofty also describes depreciation-related benefits within its ownership model.
The tax treatment of distributions, investment gains, and applicable property deductions depends on the underlying arrangements and each investor's circumstances.
How LLC tax treatment can differ
Property-specific LLCs can use different tax classifications.
Some structures may be taxed as partnerships, with qualifying allocations reported through Schedule K-1.
The IRS's partnership Schedule K-1 instructions explain how income, deductions, credits, and other partnership-related items are reported.
For investors examining investment property tax benefits, the legal entity's tax classification matters alongside ownership rights and property expenses.
Depreciation-related allocations and other potential deductions do not automatically translate into immediately usable tax savings.
How mogul Brings Institutional Underwriting to Fractional Ownership
Lofty emphasizes a marketplace where investors can purchase, trade, and vote on property interests. mogul approaches fractional real estate through a curated residential property model built around institutional underwriting, professional operations, and aligned ownership.
Founded by former Goldman Sachs real estate professionals with more than $10 billion in collective transaction experience, mogul applies a selective acquisition process to the individual properties it offers.
Its investment experience centers on three elements:
Disciplined property sourcing: Fewer than 1% of reviewed properties pass mogul's diligence process, with screening focused on market fundamentals, property conditions, and rental economics
Professionally coordinated operations: Dedicated teams handle property management and rental operations, with qualifying operating properties distributing available rental income monthly
Aligned property ownership: Investors acquire interests through dedicated LLCs, while mogul co-invests alongside members in every property offered on the platform
The property selection underwriting process reflects an investment model focused on identifying and operating individual residential assets.
A pricing structure connected to property operations
mogul also uses a distinct fee structure.
Its pricing model includes:
One-time 5% platform fee: Charged once as part of the initial investment transaction
No ongoing rental-income platform fee: mogul does not charge an additional platform fee on collected rental income
No traditional annual AUM fee: mogul does not apply a recurring annual AUM charge to invested equity
This model centers platform compensation on the initial property transaction rather than marketplace trading frequency.
The property ownership and management structure also gives investors access to identified residential assets, property-level financial information, and professionally coordinated management.
Bringing property analysis into the investment experience
For investors evaluating real estate opportunities, rental assumptions and financing are as important as platform fees.
The free investment property analysis calculator supports projections involving rental income, financing, holding periods, and potential returns.
The rental property analysis calculator provides another way to explore cash flow and operating assumptions.
These tools support scenario-based analysis rather than guaranteed performance outcomes.
mogul's approach brings institutional real estate experience directly into fractional residential ownership, combining carefully selected properties, professional management, and clearly defined fees within a streamlined investing platform.
For investors comparing Lofty's transaction-driven marketplace, mogul offers an alternative centered on the underlying property's acquisition, rental strategy, and long-term financial economics.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
How much does Lofty charge to buy and sell property shares?
Lofty's published marketplace rates include a 2.5% fee on share purchases and a 3% fee on completed share sales. On hypothetical $10,000 secondary-market purchase and sale transactions using the same value, these charges total $550. Initial property offerings also involve separate seller-side arrangements for original property owners, while market orders introduce additional execution fees.
Does Lofty charge annual management fees?
Lofty does not charge a traditional annual AUM fee or directly bill investors a recurring platform property-management fee. However, the underlying real estate incurs operating expenses, including third-party property management, maintenance, taxes, insurance, and applicable financing costs. These expenses influence the rental income available for distribution.
Are Lofty's market orders more expensive than limit orders?
Lofty's market orders include an additional 2.5% market-maker fee for immediate execution. If this charge applies to both a purchase and sale, it increases the total cost compared with using standard limit orders. On two hypothetical $10,000 secondary-market transactions at identical values, the combined platform and execution charges would total $1,050 instead of $550.
Can investors sell Lofty shares whenever they want?
Lofty permits investors to submit sell orders through its 24/7 marketplace without a platform-imposed minimum holding period. Completed sales depend on available buyers or market-maker liquidity, the type of order submitted, and the applicable execution price. Standard sales incur a 3% fee, with additional market-maker charges applying to relevant instant-execution transactions.
How does mogul's fee structure compare with Lofty's?
mogul charges a one-time 5% platform fee without an ongoing rental-income fee or traditional recurring annual AUM fee on invested equity. Lofty primarily charges fees on marketplace purchases and sales, while its properties also incur operating expenses. Both platforms provide property-specific ownership structures, but mogul emphasizes institutionally underwritten residential investments with professionally coordinated operations and monthly rental-income distribution opportunities.