Landa PropTech Platform Offline, Investors Locked Out

Proptech startup Landa, which promised real estate investing for as little as $5, has gone dark. Its platform is offline, leaving investors unable to access their funds or receive dividends.

Landa's Rise and Fall

Launched in 2022 with $33 million in funding, Landa aimed to democratize real estate investment through fractional shares. Founded by Yishai Cohen and Amit Assaraf, the platform allowed U.S. residents over 18 to invest with a minimum of $5.

However, Landa's website and app are now inoperable. Users report being unable to access their investments and haven't received dividends for months. The company faces multiple lawsuits, including one from early investor Viola.

User Complaints and Unpaid Dividends

Numerous users have filed complaints with the Better Business Bureau, alleging unpaid dividends and lack of communication from Landa. One user who invested over $8,000 reported stopped receiving dividends last fall. Another user claimed their attempts to contact Landa were met with deflecting responses.

“They have essentially frozen me out of my funds and just shut down the app,” one user stated. “Where is the money? Why won’t they return it to me?”

Legal Battles and Financial Troubles

Landa faces a lawsuit filed by Viola Credit and L Finance over alleged defaults on more than $35 million in loans. The lawsuit accuses Landa of missed property tax payments, property neglect, and failure to collect rents. The court granted an injunction blocking Landa from accessing certain bank accounts. However, the lenders allege Landa directed tenants to pay rent to a different account. Landa filed a countersuit, and the case remains ongoing.

Challenges in the Fractional Real Estate Market

Landa's struggles highlight the challenges faced by fractional real estate investing platforms, particularly after the rise in mortgage interest rates. Similar startups like Fintor and Nada have seemingly pivoted their business models. Arrived, another fractional real estate platform, appears to be operating successfully, having paid out over $13 million in dividends and interest.

Uncertainty for Landa Investors

The future remains uncertain for investors in Landa. As of May 23, the company's website displayed a "come-back-soon" message, offering little hope for those seeking access to their investments.