Author Topic: Anyone heard of Loftium?  (Read 977 times)

StarBright

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Anyone heard of Loftium?
« on: September 20, 2017, 08:03:02 AM »
We are just starting to do research into rental properties and are two -three years out from pulling the trigger (if we end up getting into it).

In my research I came across this new business:
https://www.loftium.com/?utm_source=nyt

They basically front a downpayment in return for you committing to AirBnBing and giving them the bulk of your profits for the first couple of years.

It is certainly an interesting idea in the sharing economy.

Anyone have any experience with them?

Jon Bon

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Re: Anyone heard of Loftium?
« Reply #1 on: September 20, 2017, 12:19:14 PM »
Kind of sounds like one of those companies that works for 10% is ok for 20% and is a disaster for the other 70% of users.

What is your situation like that you need to use an outfit like this? I feel like buying the duplex and living in one side is about 10x easier and 100x less risky than partnering with these guys.

Seriously give us some  info about how much you have, what you want to buy, typical rents, and what kind of landlord you want to be. This forum is great with helping out potential landlords.


StarBright

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Re: Anyone heard of Loftium?
« Reply #2 on: September 20, 2017, 12:31:29 PM »
Oh- I'm not really thinking of using something like this. We are very happy in our current home and aren't looking to move (ever). But thinking of a small rental property or two in a nearby college town (with a big football culture - which led me to reading about Air BnB, which led to the loftium site)

Just thought it was more interesting than anything (and maybe a little too good to be true).

I'm just in early research phase myself and don't even have amounts or ideas yet really.  But I will definitely be reaching out to this board for expertise when we get closer.

Chiron

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Re: Anyone heard of Loftium?
« Reply #3 on: September 20, 2017, 12:46:36 PM »
Interesting concept.  I'd be interested to know how this works with a conforming loan since the downpayment has to be sourced.  Banks may consider it properly sourced if it's considered an income advance on future airbnb income. 

I could see this making sense for someone willing to put up with the hassle of airbnb.  You'd have to run the numbers on whether it's better than the alternatives (low DP with PMI, second lien, etc.).