Nov 16, 2023

Building a Real Estate Portfolio Through Crowdfunding

Real Estate Crowdfunding (REC) has emerged as a captivating intersection of technology, real estate investment, and collective financial endeavor. With projections indicating a market valuation of USD 161.8 billion by 2030, REC is undeniably a burgeoning domain in the investment landscape1. As a nascent investor or a seasoned one looking to diversify, creating a well-rounded portfolio through REC can be a rewarding venture. This article elucidates a strategic pathway to building a robust portfolio in this realm.

Understanding Your Investment Goals

The maiden step in this journey is to have a lucid understanding of your investment objectives. Are you inclined towards regular rental income, long-term appreciation, or perhaps a blend of both? Your goals will steer the selection of projects on crowdfunding platforms, aligning with your financial strategy.

Researching Crowdfunding Platforms

The REC landscape is dotted with a myriad of platforms, each with its unique offerings. A diligent comparison considering aspects like fees, track record, investor protections, and the variety of real estate opportunities is imperative. Opt for platforms with a solid reputation and transparent operations, ensuring a sound foundation for your investments.

Diversification: The Risk Mitigator

Diversification is your armor against risk. By spreading your investments across multiple projects or properties, you not only mitigate risk but also open doors to a variety of property types and locations, enriching your portfolio with a diversified real estate flavor.

Conducting Due Diligence

Each investment opportunity warrants a thorough examination. Delve into property details, financial projections, and the track record of property developers or owners. An informed investor is a wise investor; hence, don't shy away from asking questions and seeking clarifications when necessary.

Assessing the Risk-Return Profile

A sagacious assessment of the risk-return profile of each investment is crucial. Equity-based investments, though high on risk, promise significant returns, while debt-based investments are less risky but might yield lower returns. Balancing your portfolio in alignment with your risk tolerance and financial goals is paramount.

Staying Abreast of Market Trends

The real estate market is a dynamic entity, influenced by broader economic conditions. Keeping a finger on the pulse of real estate market trends and economic shifts will empower you to make informed investment decisions.

Exercising Patience

REC investments are not a sprint but a marathon. Property projects take time to fructify, and rental income can fluctuate. Exhibiting patience and avoiding impulsive decisions based on short-term market fluctuations is advisable.

Legal and Regulatory Compliance

REC operates within a legal and regulatory framework that varies by jurisdiction. Understanding the legal milieu governing your investments and adhering to regulations is non-negotiable to protect your investments and rights as an investor.

Financial Capacity and Historical Performance

Invest according to your financial capacity and consider platforms with a commendable historical performance track record. For instance, platforms like Groundfloor have exhibited a historical track record of generating attractive returns, making them a viable option for new investors.

Conclusion

Building a portfolio through Real Estate Crowdfunding is a structured endeavor, laden with research, strategic planning, and continuous learning. Following the guided approach delineated above, you can navigate the REC landscape with informed confidence, creating a portfolio poised for growth and diversification in the long run.

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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.