Landa promises an investment in real estate for $ 5. It’s darkened now.

The idea of ​​becoming a real estate investor for just $ 5 may seem too good to be true.

And for many Landa users, Proptech, which promised just that – she was.

Landa stealth In August 2022, announcing a total of $ 33 million in funding and a promise to help everyday Americans have access to residential real estate investment through partial shares.

CEO Yishai Cohen and the former CTO Amit Assaraf set up Landa in 2019 in an attempt to make real estate investment more commonly. The only requirements of the app were consumers over 18 and US residents. They could start investing with only $ 5 and buy and sell shares, as well as see real -time updates on their Landa properties. (Asaraf left the company in December 2023, according to his LinkedIn accountS He did not respond to requests for comment.)

Today, the Landa investment portal site has been reduced and its application is non -surgical. Consumers say they have no access to their funds and have not been paid dividends for months. The launch was involved in court disputes, including a case by the investor of the early enterprise Viola.

An early user told TechCrunch that Landa stopped paying him dividends in his shares in January. When he asked Landa about it, they “killed the question,” he said.

“I have repeatedly sent them by email about this and just received diversifying answers, nothing real,” the user said. “Then a few months later the application became unusable. It will not open.”

Then the user asked if he could delete his account, which he had opened in 2021 and sell the shares. But he found that Landa had disabled his ability to sell shares.

“I was essentially frozen from my funds and just turned off the app,” the user said. “Where is the money? Why will they not return it to me?”

Over 130 complaints have been filed against Landa at the Better Business Bureau, with dozens of people echoing such allegations. For example, on May 1, a user who filed such a complaint Shared that they had invested over $ 8,000 through Landa and stopped receiving dividends last fall. The user said Landa’s customer service responded to his emails, saying that the company “works on it”.

In mid-April, when TechCrunch asked Land for the problem-informed about the status of his downloaded site and whether the company itself closed-executive director Cohen said: “Of course, no. The site will come back.”

Asked why the app did not work and why users have not received dividends for months, Cohen’s steps still seem to refer to the website, accusing the servers: “This is not related to dividers. This is from our servers. We are on it.”

Once a further outburst, Cohen on April 18 shared the following statement: “We are aware of the problems that are currently affecting our platform and product, and we want to guarantee all investors that we are actively working to restore the full functionality as soon as possible. community and remain committed to delivering real estate to be accessible to all.

Cohen did not respond to our request to update the status on May 20. NFX and 83north investors did not respond to our numerous requests for comment.

Inherent in a court case

Not only users are upset by Landa. The main creditors of the company are tried.

Viola Credit and L Finance filed a trial In the Supreme Court of the State of New York against Land in November 2024, accusing him of the “numerous defapences” of loans worth over $ 35 million they have given up to the company. (Viola is also an investor in Landa through his risk division.)

The creditors also accused him of missing payments for property tax that led to the forced sale of these properties, neglecting property and even failed to collect rents.

The case – first reported Through the publication of the real estate industry, Bisnow – stated that after more than a year of attempt to make Landa honor their commitments, the creditors removed Landa as home manager and appointed an independent real estate manager and the CEO for restructuring.

After the further negotiations failed, the creditors later asked the court and were provided, an order blocking Landa to have access to bank accounts, intervene in their attempts to restructure the business and return money that they are said to be due -including the income from sales.

Despite the order, the creditors returned to court in January 2025, claiming that Landa had told the tenants to send rent payments to a different bank account, which was not covered by the decision. They found this until they repaired the septic system of a property. They also accused Land’s CEO of trying to sell or refinance some properties.

The court ordered Land to explain. Instead, in early March, Landa asked the court a deterrent order against Viola Credit and L Finance, claiming that the independent manager was “installed illegally”.

Judge Jennifer G. Shekter was not happy. In March, she ordered both sides to find a solution “This is good for all your customers.” She refused Land’s request for disposal and ordered the company to pay nearly $ 100,000. A few weeks later, Landa filed an official suit. The case is still waiting.

Challenging model

Landa is just one of several start -ups that have emerged in recent years, offering partial real estate investment. Obviously, it is also not the only one who fought – especially after mortgage interests began to rise in 2022.

Grimas raised millions of dollars Before, at first glance, he focused on offering an “AI agent for automation of funding and real estate operations with human level implementation”. Dallas -based Nothingwhich offered index -like products, real estate investment called “Cityfunds”, allowing non -accredited investors to embark on the city market with only $ 250, also seems to be directed. Her website now promotes a new label: “Access to home capital to fund everything.”

Arrived It was probably the highest profile of the group-and the only one that looks actively working with the same model. In May 2022, TechCrunch reported that it arrived raised $ 25 million In Serie A funding, including Bezos expeditions, to allow people to buy shares in single -family rentals with only $ 100. According to its website, the launch has so far paid over $ 13 million in dividends and interest and has 766,000 registered investors.

As for those people who invest with Landa, the future of their money seems uncertain. As of May 23, the Land Investor Portal website is still redirecting to a Come-Back-Soon support message.