Evaluating Real Estate Crowdfunding Platforms: A Comprehensive Guide

Nov 13, 2023

Evaluating Real Estate Crowdfunding Platforms: A Comprehensive Guide

The burgeoning world of real estate crowdfunding has democratized property investment, allowing people to collectively invest in real estate projects that might have been previously out of reach. However, with an influx of platforms and opportunities, potential investors must practice due diligence to ensure their investments are both wise and profitable. Here's a comprehensive guide on how to evaluate these platforms effectively

Due Diligence: Before venturing into any investment, conducting thorough due diligence is paramount. For real estate crowdfunding platforms, it involves delving into the platform's reputation, understanding the property types they offer, and gauging their transparency level. The more information you have, the better poised you are to make an informed decision.
Investment Threshold: Diverse platforms cater to various financial capacities. Some have reduced the barriers to entry, allowing smaller amounts to be invested. Always ensure that the minimum investment aligns with your budgetary constraints.
Types of Properties: Diversification is a key principle of investment. Platforms offering a mix of property types, from single-family to commercial spaces, can offer richer opportunities and a balanced portfolio.
Platform's Track Record: History often provides a glimpse into the future. Scrutinize past returns, the platform's success rate with funded projects, and the management team's experience to estimate future performance.
Fee Structure: Every investor wants the maximum return on their investment. Being aware of platform fees, management charges, and hidden costs can provide clarity on the expected ROI.
Accessibility: Ensure the platform caters to your investor status. While some platforms are open to all, others restrict participation to accredited investors.
Investor Education and Support: Investment is a continual learning journey. Platforms that prioritize investor education, offer robust customer support, and provide resources can significantly aid your investment journey.
Legal and Regulatory Compliance: Your investment's security is paramount. Platforms that adhere to legal and regulatory standards not only ensure your money's safety but also signal their commitment to best practices.
Technology and User Experience: In today's digital age, a seamless user experience can significantly enhance your investment process. Evaluate platforms for ease of use, transparency, and overall user satisfaction.
Community and Reviews: Feedback from fellow investors can be invaluable. Perusing reviews, testimonials, and joining investor communities can offer unfiltered insights into a platform's credibility.
Location: The geographical location of properties can impact your returns. Always ensure the platform's property locations align with your investment strategy.

In conclusion, real estate crowdfunding offers a promising avenue for investors. However, like all investments, it's not devoid of risks. By considering the factors listed above, you're better equipped to make decisions that align with your financial goals and risk appetite. Always remember, while platforms offer the avenue, the onus of diligent research and consultation with financial advisors rests with you.

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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. Banking services are provided by Evolve Bank & Trust, Member FDIC. By opening a custody account on the Platform, you agree to Evolve Bank & Trust’s Custodial Agreement.

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 for Rialto.

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, or Rialto 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.

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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.