Full-Stack Ahead: We Became a Brokerage

Dec 16, 2022

Full-Stack Ahead: We Became a Brokerage

Earlier this week, we announced that we received our real estate brokerage licenses in all states where we have existing properties, as well as states where we are planning for expansion. This is an important milestone in our long-term strategy to transform the real estate industry.

I wanted to double down on why we issued brokerage licenses and how this fits into our greater roadmap.

One of the primary objectives of any investment is to keep costs as low as possible to maximize profit. Historically, real estate has suffered from some of the highest levels of fee takers and service providers, who collectively take a more significant cut of the investment compared to any other asset class. While brokers take the largest fee, the purchase tax, mortgage tax, title insurance, loan origination fee, and legal fees, are just some highlights in a long list of costs that eat away at your real estate investing equation.

This is why our long-term vision remains — replacing the entire real estate industry pipeline as a full-stack product.

When we first started Landa, it was also as a property management company. We hired local onsite teams and built an app for our residents to automate their experience — the residents’ digital toolbox. Instant maintenance order solutions and instant tour booking radically improved their experience. We built a property management company 2.0.

By assuming property management responsibilities, we were able to successfully cut costs for our investors and optimize their overall investing experience. As property managers, we can ensure that every aspect of property management runs smoothly and efficiently.

Property inventory is gated in the broker’s closed database often referred to as the MLS. For access, one must either be a licensed broker or work with a broker and pay transaction fees of up to 6%. This closed database plays a significant role in gatekeeping real estate investing from real people. Landa investors now hold the keys to the MLS which means competitive acquisition and purchase prices for everyone.

Beginning this week, Landa is also a real estate brokerage firm.

We received our brokerage licenses in Georgia, Florida, New York, North Carolina, and Alabama to remove the brokerage fees (buyer and seller) involved in the property acquisition process, gain direct access to the MLS, and send offers automatically based on our underwriting technology. Moving forward, we will continue to expand our brokerage licensing accordingly.

We are confident that our brokerage licenses will improve our acquisition process leveraging economies of scale, and generate further value for our investors as we continue to solidify our position as a disruptive force in the real estate industry. To our investors who are determined to change the landscape of real estate investing — thank you for using Landa to invest in new properties every day!

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Landa Holdings, Inc. ("Landa Holdings") operates the www.landa.app website (the "Site") and the mobile-based app (the "App"). Landa Holdings serves as manager to Landa App LLC and Landa App 2 LLC. From time to time, Landa Holdings may organize limited liability companies or series limited liability companies, such as Landa App LLC and Landa App 2 LLC, and will raise funds for these entities through the App by relying on offerings exempt from registration requirements pursuant to Regulation A under the Securities Act of 1933 (“Regulation A”). Such companies shall be collectively referred to herein as “Landa App”.

Neither Landa Holdings nor Landa App is a broker-dealer or an investment advisor. All securities-related activity is conducted through Dalmore Group LLC (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC, located at 525 Green Place, Woodmere, NY 11598. You can review the brokercheck for Dalmore. Banking services are provided by Evolve Bank & Trust, Member FDIC. By opening a custody account on the App, you agree to Evolve Bank & Trust’s Custodial Agreement.

All securities (“Shares”) are being offered by one or more series (“Series”) registered under Landa App. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results. Investments such as those offered by Landa App are speculative and involve substantial risks to consider before investing, outlined in the respective offering materials and including, but not limited to, illiquidity, lack of diversification, and complete loss of capital. An investment in an offering constitutes only an investment in a particular Series and not in Landa Holdings, Landa App, or any of the underlying asset(s). investors should carefully review the risks located in the respective offering materials for a more comprehensive discussion of risks.

You should speak with your financial advisor, accountant, and/or attorney when evaluating any offering of securities. Neither Landa Holdings, Landa App, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or a recommendation to buy or sell any securities. The Site and/or the App may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration. We urge you to review the applicable offering circular, available here.

Landa Holdings intends to conduct a securities offering by each Series registered under Landa App pursuant to Regulation A. From time to time, Landa App will seek to qualify additional Series offerings of securities under Regulation A. For offerings that have not yet been qualified, no money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy Shares of a particular offering can be accepted, and no part of the purchase price can be received until an offering statement filed with the Securities and Exchange Commission (the "SEC") relating to that Series has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC. An indication of interest involves no obligation or commitment of any kind.

Investment overviews contained on the Site and/or the App contain summaries of the purpose and the principal business terms of the investment opportunities. Such summaries are intended for informational purposes only and do not purport to be complete, and each is qualified in its entirety by reference to the more detailed discussions contained in the applicable offering circular filed with the SEC. Neither Landa Holdings nor Landa App offers refunds after an investment has been made. Please review the relevant offering materials and subscription documentation for more information.

All Shares will be issued in electronic form only and will not be listed or quoted on any securities exchange. We expect that after a Series’ offering has concluded, the Public Private Execution Network Alternative Trading System, or PPEX ATS (the “Secondary Trading Platform”), which is registered with the SEC and operated by North Capital Private Securities Corporation (“North Capital”), will be a venue available for the resale of such Shares through Dalmore, as a broker-dealer member of the Secondary Trading Platform; provided, however, any such resale of Shares will be subject to federal and state securities laws and the restrictions in the Series’ Operating Agreement, and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely.

You may obtain a copy of the applicable offering circular here.

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Landa Holdings maintains this website for informational purposes only. All offerings of Series’ Shares (and information about each Series and its underlying property) are conducted exclusively on the Landa Mobile App.

All images and figures shown are for illustrative purposes only and are not actual customer or model returns. Landa is not a cryptocurrency app, all monetary values are in U.S dollars and available only to U.S. investors. All Rights Reserved © Landa Holdings, Inc.