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Aug 22, 2023

IPO-ing Real Estate Properties: How It Works

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Landa was formed with a simple mission, allowing everyone to build their real estate portfolio, share by share.

Transforming properties to shares is game-changing. It creates broader access, new levels of liquidity, better price discovery, and allows more individuals to invest. 

It's also enabling us to evaluate the economics of real estate in ways that didn't exist before.

How much value is created when we IPO a property and convert it to 10,000 shares that are available for purchase to the public? 

Using data from Landa’s historical share prices during IPO as well as secondary share prices (until August 21, 2023*) we found that on average, investors that invested in the IPO stage made 88% growth on price per share.

Address

IPO price

Trading price

(August 21, 2023)

Growth

8990 Doris Lane

$3.93

$8.42

114.33%

1394 Oakview Circle

$3.61

$7.06

95.71%

1743 Summerwood

$3.58

$7.42

107.43%

1712 Summerwood

$4.62

$8.95

93.88%

1703 Summerwood

$3.58

$6.71

87.58%

1750 Summerwood

$3.58

$8.14

127.56%

7107 Geiger Street

$6.43

$7.00

8.89%

45 Robertford Drive

$9.29

$13.46

44.85%

1910 Grove Way

$2.21

$9.00

307.94%

8654 Ashley Way

$4.65

$7.13

53.33%

8683 Ashley Way

$4.78

$6.57

37.48%

8679 Ashley Way

$4.61

$8.49

84.09%

8670 Ashley Way

$6.46

$7.38

14.21%

9439 Lakeview Road

$5.67

$8.40

48.12%

8677 Ashley Way

$4.27

$7.90

85.15%

8668 Ashley Way

$5.82

$8.08

38.78%

4267 High Park

$4.76

$7.00

46.98%

8675 Ashley Way

$4.54

$6.11

34.73%

4085 Springvale

$11.37

$15.24

34.05%

8662 Ashley Way

$5.61

$6.87

22.47%

3192 Lake Monro

$5.98

$8.86

48.24%

4474 Highwood Park

$4.29

$6.60

53.86%

8674 Ashley Way

$4.71

$7.90

67.59%

8659 Ashley Way

$6.33

$7.90

24.87%

137 Spring Valley

$6.82

$7.60

11.43%

8653 Ashley Way

$5.29

$7.08

33.75%

8655 Ashley Way

$6.11

$7.15

17.11%

843 Tramore Drive

$7.82

$9.30

18.93%

126 Wildwood Road

$6.93

$7.88

13.67%

8651 Ashley Way

$4.19

$7.83

86.87%

8652 Ashley Way

$5.93

$7.23

21.86%

153 Spring Valley

$8.53

$9.35

9.60%

303 Kellys Walk

$10.54

$15.01

42.44%

8641 Ashley Way

$4.99

$6.00

20.12%

8678 Ashley Way

$6.40

$7.02

9.68%

6436 Stone Terrace

$1.55

$7.07

356.75%

6440 Woodstone

$1.82

$7.72

323.16%

10167 Port Roya

$2.81

$7.00

149.12%

687 Utoy Court

$3.29

$7.62

131.46%

729 Winter Lane

$3.12

$8.90

185.07%

168 Brookview Drive

$5.29

$6.51

23.07%

8796 Parliament Place

$3.11

$9.56

207.51%

593 Country Lan

$2.46

$8.02

226.13%

6848 Sandy Creek

$2.19

$10.46

378.37%

773 Villa Way

$4.79

$8.00

66.88%

8569 Creekwood

$3.40

$7.70

126.80%

8780 Churchill

$3.81

$7.48

96.55%

6696 Mableton

$5.06

$4.68

-7.42%

2174 Scarboroug

$6.70

$8.43

25.91%

1246 Elgin Way

$3.83

$8.22

114.71%

8645 Embrey Drive

$3.41

$9.17

168.57%

7349 Exeter Court

$3.91

$8.04

105.43%

7817 3rd Avenue

$5.44

$6.00

10.31%

Average

$4.98

$8.09

87.85%

It is fair to say that under any market analysis the real estate market didn’t grow at 88%. It was actually not a great year for the real estate market. Prices were between stable and in minor decline. 

The fact that 95% of America doesn't have access to the real estate market, allows us to unlock huge value opportunities in the properties offered.

So what exactly is the add-value that is being generated to the properties by adding them to Landa where everyone can buy and sell their shares?

We believe that’s a combination of access, liquidity, reduced costs and tech. 

Access. Every rental property offers an economic interest (shares) that investors can purchase for under $10, creating an affordable starting point for real estate investing. Investors who purchase these shares receive their portion of the property’s profit (based on performance). We designed a mobile (and desktop) app that makes it easy to browse properties and invest in them. We use clear language and a user interface that is inclusive, inviting, and educational.

Liquidity. A property can take months (or years) to sell. We decided to turn real estate properties into securities, allowing investors to conveniently buy and sell their shares in shorter time frames.

Reduced Costs. By investing in shares of real estate, investors can avoid the costs of typical real estate ownership transfers (there are no brokers, closing attorneys, or title companies to pay). We use technology to make day-to-day property management more efficient, and use economies of scale to reduce costs (insurance, maintenance, improvements, etc.). We internalized the sourcing, acquisition, and property management of the properties.

Tech. We embrace a tech-first approach to our entire business. For every challenge that we have (real estate, legal, accounting, operations), our first call is to hire another engineer rather than another operations person. We evaluate and select properties using data analysis models. We analyze market data to empower our investor community, increasing yields while reducing vacancies. Our residents use a custom-built app to make rent payments, request maintenance, renew leases, etc.

Landa's approach of converting properties into shares has not only expanded the real estate investment landscape but also offered remarkable returns to its investors, even in a challenging market year. The impressive 95% growth in price per share from the IPO stage to the secondary market, as evidenced by our data, underscores the potential that exists when broadening access to a historically exclusive market. By seamlessly integrating the principles of accessibility, liquidity, cost efficiency, and technology, Landa ensures that both investors and residents benefit from a system designed for efficiency, transparency, and inclusivity. As we continue our journey, we remain committed to enabling every individual to tap into the world of real estate, one share at a time.

This information is intended only for educational purposes and provides an overview of the market situation as of the publication date. Keep in mind that it might change without prior notice. It is not meant to offer investment, legal, accounting, or tax advice.

Landa is not obligated to inform you of any changes that might impact the information provided. This content should not be considered as research or investment advice for any specific financial instrument. The strategies mentioned are purely for explanatory and educational purposes and should not be seen as a suggestion to buy, sell, or offer any security. We can't guarantee the effectiveness of these strategies.

Additionally, the information does not factor in costs like commissions or taxes, which could significantly affect the outcomes of a strategy or investment decision. Don't replace professional advice with this material; consult an independent advisor before making decisions, and consider your willingness to take risks and your financial capacity to handle potential losses.

Past performance doesn't ensure future results. Investments carry both the potential for profit and the risk of loss. Reproduction or reference to this material in other publications is prohibited without written permission. 

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All Rights Reserved © Landa Holdings, Inc

Landa Holdings, Inc. ("Landa Holdings") operates the www.landa.app website (the "Site") and the Landa mobile application (the "App")(collectively, the “Platform”). Landa Holdings manages Landa App LLC, Landa App 2 LLC and Landa App 3 LLC (“Landa Issuers”), and raises funds and facilitates the issuance of shares for the Landa Issuers entities through the Platform pursuant to Regulation A under the Securities Act of 1933 (“Regulation A”).

Neither Landa Holdings nor any of its affiliates are a registered broker-dealer or investment advisor. All securities-related activity for the Landa Entities is conducted through Dalmore Group LLC (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC, You can review Dalmore's brokercheck for Dalmore.

Landa is not a bank. Certain services are offered through Synapse Financial, Inc. and its affiliates (collectively, “Synapse”). Synapse is not a bank and is not affiliated with Landa. Brokerage accounts and cash management programs are provided through Synapse Brokerage LLC (“Synapse Brokerage”), an SEC-registered broker-dealer and member of FINRA and SIPC. Additional information about Synapse Brokerage can be found on FINRA’s BrokerCheck.

See Synapse Terms of Service, Privacy Policy, and the applicable disclosures and agreements available in Synapse’s Disclosure Library for more information.

Synapse Brokerage LLC has a direct or indirect business relationship with Program Banks for the placement of deposits in the cash management program. The list can be found in the List of Program Banks.

Further, Landa Management LLC, a wholly-owned subsidiary of Landa Holdings, manages Landa Financing LLC (“Landa Financing”), and raises funds and facilitates the issuance of shares for Landa Financing through the Platform pursuant to Regulation A. All securities-related activity for Landa Financing is conducted through Dalmore Group LLC (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC (for more information on Dalmore, review Dalmore’s brokercheck.

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.

All securities offered by the Landa Entities and Landa Financing are deemed “Shares”. Investing in Shares involves risks, and there is always the potential of losing money when you invest in Shares. Past performance is no guarantee of future results. Investments in Shares 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 Shares constitutes only an investment in a particular offering 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.

No money or other consideration will be solicited (and if sent, will not be accepted), and 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 those Shares 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 Platform contain summaries intended for informational purposes only and are not complete. For detailed information, we urge you to refer to the applicable offering circular filed with the SEC. Neither Landa Holdings nor any of its affiliates offers refunds after an investment has been made.

You should speak with your financial advisor, accountant, and/or attorney when evaluating any Shares. None of Landa Holdings or its affiliates, Dalmore makes any recommendations or provides advice about Shares, and no communication, through this website or in any other medium, should be construed as a recommendation or investment advice. Nothing on the Platform should be construed as investment or tax advice, or a solicitation or offer, or a recommendation to buy or sell any securities.The Platform 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.

All Shares will be issued in electronic form only and will not be listed or quoted on any securities exchange. After a Series’ offering has concluded, we expect that 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 the only venue available for the resale of Shares. Resales of Shares will be conducted by 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.


Disclaimers

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.