Landa, a startup that launched with big promises, let people invest in residential real estate starting with only $5. The idea was to make real estate investment easy and accessible for everyday Americans by buying fractional shares of properties through their app.
The company was founded in 2019 by CEO Yishai Cohen and former CTO Amit Assaraf, and quickly raised $33 million in funding by the time it came out of stealth in 2022. Users only needed to be over 18 and live in the U.S. to start investing, track their investments in real time, and buy or sell shares via the app.
But now, things have gone very wrong.
The app and investment website are no longer working. Users say they can’t access their money or sell their shares, and many haven’t received dividends for months. Customer support is unresponsive or gives vague answers. Over 130 complaints have been filed with the Better Business Bureau, with many users sharing similar frustrations about frozen funds and unanswered questions.
Behind the scenes, Landa is also facing serious legal troubles. Its lenders, Viola Credit and L Finance, sued the company in late 2024, accusing it of defaulting on over $35 million in loans. They claim Landa failed to pay property taxes, neglected maintenance, missed rent collections, and even mishandled tenant rent payments by redirecting them to accounts not covered by a court injunction. As a result, the lenders removed Landa as the property manager and appointed their own manager and a restructuring officer.
The court has been involved, ordering Landa to cooperate, but the situation remains tangled, with Landa filing countersuits and disputes ongoing.
Other startups offering similar fractional real estate investment options have also struggled, especially after mortgage rates rose in 2022. Some have pivoted their business models entirely, while others continue operating, like Arrived, which has paid out millions in dividends to its investors.
For those who invested in Landa, the future of their money is uncertain. The company’s website still shows a “come back soon” message, but no clear answers about when — or if — the platform will be up and running again.
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