Landa, a proptech venture launched to revolutionize real estate investing by permitting users to buy fractional ownership in residential properties for as little as five dollars, has abruptly gone dark, leaving its users anxious and uncertain. Founded in 2019 by CEO Yishai Cohen and former CTO Amit Assaraf, the company surfaced publicly in August 2022 with announcements of $33 million in funding and promises of accessible and affordable investment opportunities for everyday investors.
Initially, the platform allowed U.S. residents aged 18 and over to start investing with minimal funds, providing real-time property updates through a user-friendly mobile app. This accessible approach attracted numerous users keen to become investors without high capital outlays. But now, the investment portal and mobile application are both non-functional, and distressed users report their accounts have been effectively frozen, with dividends abruptly halted in early 2024.
According to one affected investor, who had been actively investing through Landa since 2021, dividends ceased in January of this year. Repeated attempts to communicate with the company resulted only in vague, deflective responses before the app itself eventually became entirely unusable. Users who attempted to exit their positions by selling their shares discovered this option was disabled.
The user frustrations are widespread. More than 130 complaints filed with the Better Business Bureau echo similar grievances, including frozen funds, unmet dividend schedules, and a complete breakdown in customer communication. Despite numerous inquiries, CEO Cohen offered minimal explanation, attributing the problems vaguely to server issues and promising a rapid restoration of services. In late April, Cohen assured concerned customers that the platform’s issues were technical rather than financial. Still, as of late May, the website remains offline, continuously displaying a maintenance notice.
The problems extend far beyond unhappy customers. Viola Credit and L Finance, principal lenders initially backing Landa, filed suit against the company in New York State Supreme Court in November 2024. Alleging multiple loan defaults amounting to over $35 million, the lawsuit highlights Landa’s apparent negligence, including missing property tax payments that led to properties being forcibly sold, failing upkeep on homes, and inadequately collecting rents. Subsequent negotiations failed, culminating in a court injunction that limited Landa’s access to its bank accounts and properties. Despite the injunction, Landa allegedly contacted tenants, redirecting rent payments to alternate accounts outside judicial control, leading creditors to further action and the court to demand explanations from the company. In response, Landa counter-sued, and the legal battle remains unresolved.
Landa’s struggles reflect broader difficulties across the fractional real estate investing model—a segment that has drawn attention and investor enthusiasm in recent years. Similar platforms have either pivoted to alternative services or quietly shifted focus due to escalating interest rates and changing market conditions. For instance, startups like Fintor and Nada, once promising fractional real estate investing, have clearly moved away from their original propositions.
In contrast, others such as Arrived, backed notably by Bezos Expeditions, continue operating successfully, maintaining their original business models and continuing payouts for fractional real estate stakes. But for Landa’s users, the outlook seems bleak. As their investments hang in the balance, any resolution appears potentially prolonged, constrained by litigation, and uncertain in outcome, leaving thousands of users wondering whether they will ever regain access to their invested funds.
