[Guest Post] Landa raises $25 Million Series A to Become Real Estate Investors for just $5

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Landa raises $25 Million Series A to Become Real Estate Investors for just $5

Guest Author: Sana Ahmad (Click here for Real Estate Listings)

Landa, just came out of stealth on Aug 31st, with $33 million in funding, including a $25 million Series A round and an $8 million seed round. Company was founded by Yishai Cohen and Amit Assaraf in 2019 to make real estate ownership more inclusive. 

“Real estate ownership is the biggest source of wealth generation, and it’s out of reach for most Americans. As housing inequality grows, wealth inequality grows and property ownership remains inaccessible,” Cohen told TechCrunch. “So we were brainstorming on ways to lower the barrier to entry to real estate and provide more people with the ability to access the asset class.”

In 2021, Landa was mainly getting through the regulatory process and then grew from 600 to 25K investors using its app in 2022. Landa has a portfolio of properties in Atlanta and New York City and will soon be launching in Charlotte, Birmingham, Tampa, Orlando and Jacksonville, Florida. Investors have invested in 400 properties across these cities.

Lands provides fractional real estate ownership in properties to both accredited and un-accredited investors, from just a $100. The investors have to be 18 or older, U.S residents and can start investing with just $5 using the app. 

“People start low and build their accounts over time,” Cohen said. “The $5 entry point allows them to build confidence over time and increase their portfolio as they get comfortable.”

Landa purchases the properties any where between $130K to $3 million and make money by by taking a 6% acquisition fee at the time of purchase. It also keeps 8% of the gross rent per month to cover property management fee, since Landa itself is the property manager. Startups focused on rentals are gaining traction and investor attention, than those focused on home buying.  

Whilst, this is a great opportunity, proptech companies and investors will also be watching the cooling for the real-estate market. The question will remain if Landa can sustain the growth during the down turn market and will investors keeps on using their apps? As a licensed realtor for over a decade, I've seen many apps like these come with a promise and then disappear - so let's wait and see how they succeed. 

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