Risk Tolerance

Dec 16, 2022

Risk Tolerance

The degree of risk that an investor is willing to endure given the volatility in the value of an investment.

Investing in real estate can be a profitable way to generate wealth, but it is not without its risks. Like any other investment, real estate carries a level of risk, and investors need to be aware of their risk tolerance when making investment decisions. Understanding risk tolerance is essential for real estate investors to make informed decisions and build a portfolio that aligns with their investment goals and risk appetite.

Risk tolerance is an investor's ability to handle potential losses from an investment. It refers to the amount of risk an investor is willing to take on for the potential reward. Some investors are more risk-averse, preferring lower-risk investments with more stable returns. Others may be willing to take on more risk for the potential for higher returns.

In real estate, the level of risk varies depending on the type of investment. For example, investing in a commercial property has different risks than investing in a single-family home. Commercial properties may be more complex and require more management, while single-family homes may have more predictable cash flows but may be more susceptible to market fluctuations.

Before making a real estate investment, it is important for investors to assess their risk tolerance. This involves evaluating their financial situation, investment goals, and personal preferences. Investors should consider their investment time horizon, their current financial situation, and their overall investment objectives. By understanding their risk tolerance, investors can choose the type of real estate investment that aligns with their goals and risk appetite.

One way to manage risk in real estate is to diversify the investment portfolio. This means investing in different types of properties in different locations, as well as using different financing strategies. By diversifying the portfolio, investors can spread the risk across different investments, reducing the overall risk of the portfolio.

It is also important for investors to have a contingency plan in place to manage potential risks. This may include having reserves set aside for unexpected expenses, such as maintenance or repairs, as well as having a plan in place to handle tenant turnover or vacancy periods.

Real estate investing can be a lucrative way to generate long-term wealth, but it is important for investors to understand the potential risks associated with the investment. By assessing their risk tolerance and diversifying their investment portfolio, investors can make informed decisions and minimize potential losses. With careful planning and management, real estate investing can provide significant returns and long-term financial security.

Scan to
download

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.

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.