Buying real estate through an app for a fraction of the cost to pay outright is not something new. Over the last 5 years, apps like Fundrise, NYCE, and Arrived have been popping up like wildfire in the market. They all aim toward one goal: to make real estate investing more accessible for those who don’t want the challenges of maintaining the venture themselves.
The average cost to buy into these apps is $100 per property. Seems reasonable and low-cost right? Well, TechCrunch reports there is a new player on the market who could yield a return with even less investment.
Landa is a new startup with 33 million in funding already. The company was founded in 2019 by CEO Yishai Cohen and CTO Amit Assaraf. Landa didn’t start significant growth until this year, but as their numbers rise it’s apparent it could be a real contender against those more grandfathered-in apps like Fundrise. Landa jumped from less than 1,000 investors to 25,000 in 2022.
The big whopper about Landa though is its buy-in price. Landa’s buy-in price can be as low as $5 per property. That’s it.
When they were asked about this the duo stated,
“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.”
Landa’s inner workings are similar to other fractional investment apps, like Arrvid which allows unaccredited investors, but its price difference really sets it apart. Landa wants people to start low to build their confidence and diversify their portfolios.
This is a great option if there are investors who started with applications like Fundrise or Groundfloor and want to transition to a different application or open up their portfolio to more options.
Ceo Cohen also stated, “We look for properties that are in ready to rent condition or require minor work.” This means they are wanting quicker turnover and less acquisition costs so we all get paid faster.
Landa can really take over the market with their transparency and trajectory as they already have plans to expand. The interface is user-friendly and each property has a purchase price and breakdowns of dividends and maintenance costs.
Some last things to note here before you jump right i: Landa is not partnered with any REITS or funds with existing real estate operations. This was purposeful on their part. They may change their mind in the future as investor and property numbers grow but that remains to be seen.