Dividends

What if the property isn't profitable?

What if the property isn't profitable?

In certain cases, properties will not pay dividends since dividends depend on property revenue, expenses, and cash reserves. In the event of a vacancy or a disaster that requires expensive repairs, dividends may not go out. However, occasionally, in cases when the property isn't receiving rent, dividends will be distributed due to high cash reserve. Usually, we will do this if the cash reserve is more than 5X times the expected dividend. For example - if the expected dividend (revenue - income) is $250 for the property and the cash reserve is above $1,250, we may distribute dividends.Major expenses
To cover any unexpected expenses to the property, Landa retains a percentage of the rental income earned on a property each month as cash reserves. If the cash reserves aren’t enough to cover the unexpected expense, we may lower or withhold dividends to cover the expense.

What happens if there is a vacancy?
Vacancies are a part of the real estate market cycle- they happen from time to time. When a rental property becomes vacant, Landa investors might not earn monthly dividends until the property is rented. Landa works hard to shorten any vacancy rate times. Once a property is leased out once more and rent is being paid, dividends resume.

What would happen if one of the properties I invested in had a catastrophic event?
Like traditional real estate investments, Landa will try to rebuild or repair the property, either using reserve funds (mentioned later) or through a loan. If we cannot rebuild or it seems too costly, we will try to liquidate what we can and dissolve the LLC. Investors will be paid out of whatever process is applicable, however, there is no guarantee.

What happens if I buy all the shares of a property?
This is not something we support. We limit the number of shares you can own to 9.99% to ensure everyone has the opportunity to buy shares.