Go Back

Updated on
3/29/2024

Real Estate Crowdfunding: Commercial vs Residential Properties

Written by: 
Naman

Real estate, ranging from sprawling commercial complexes to quaint suburban homes, has long been prized for its stable cash flow and asset appreciation. Crowdfunding has recently emerged as a tool, democratizing real estate investment, allowing individuals to tap into this market more easily than before.

The Rise of Real Estate Crowdfunding

Real estate crowdfunding, predominantly active in California, allows individuals to pool resources for property ventures. Leading platforms like landa.app have overseen over 200 projects with around 500,000 investors, showcasing the significant impact of crowdfunding in this sector.

Comparing Commercial and Residential Real Estate in the Crowdfunding Arena

Commercial properties, aimed at profit generation through business leases, offer predictable income and potential for higher returns, albeit at a higher initial investment and complexity.

Residential properties, catering to individual or family living needs, are typically more liquid with potentially lower entry points, yet may face volatile occupancy rates and shorter lease durations.

Pros and Cons

Commercial

  • Pros: Predictable income, higher return potential, portfolio diversification.
  • Cons: Longer profit realization, higher initial investment, management complexity.

Residential

  • Pros: Higher liquidity, lower entry points, intuitive understanding.
  • Cons: Volatile occupancy, inconsistent cash flow due to shorter leases.

Comparing Commercial and Residential Real Estate in the Crowdfunding Arena

Crowdfunding lowers the entry barrier, enables easy diversification, offers faster liquidity, and typically involves passive management with professional handling.

However, traditional investments allow direct control, tangible asset appreciation, and tax benefits, albeit at a higher upfront cost and demanding active management.

Risks and Considerations

Investors should consider market fluctuations, regulatory concerns especially with crowdfunding platforms, and the potential for platform defaults or fraud. Thorough due diligence is essential regardless of the investment avenue.

Navigating Your Investment Path

Choosing between commercial and residential properties, and between crowdfunding and traditional investments, should align with an investor’s financial goals, risk tolerance, and investment horizon. The growing U.S. real estate crowdfunding market, expected to reach US$ 868,982.4 million by 2027, underscores the importance of informed decision-making in seizing emerging opportunities.

In Conclusion

In conclusion, whether investing in a bustling commercial hub or a serene residential locale, every property holds potential stories and financial rewards. With the evolving intersection of technology and real estate, investors have more avenues than ever to participate in these stories. Choose wisely!

Ready to start investing?

Sign up for Landa and start investing in real estate.

Get Started

Real estate investing within reach

Get Started

Investors

PropertiesLendEntity AccountsCareersAdvisorsBroker DealersLanda PremiumDirect ListingGet FinancingAPI Access

Residents

Pay RentService RequestsResources

Learn

Education CenterHelp CenterBlogDictionaryMore Real Estate

Company

About UsBusiness ModelLegalSEC FilingsContact UsCareersVendors

Markets

AtlantaNew YorkTampaJacksonvilleOrlandoBirminghamCharlotte


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, 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 is 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.

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 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 circulars, 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.

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