Diversification

Jul 12, 2022

Diversification

Several golden rules fall under "investing 101."

You have probably already heard about or read that diversification reduces risk. But what does this mean? A diverse investment portfolio, composed of different categories of assets, reduces risk factors. The more varied, the investment opportunities you enter, the better positioned you are to weather a negative economic shock.

For example, the economy enters a bear market, meaning your stock shares are losing value, however, you are also invested in other assets beyond the stock market, like real estate properties. Since real estate has a low correlation to the stock market, the properties you have invested in continue growing in value. Your diverse investment portfolio helps you respond to periods of uncertainty, after all, you have alternative and stable financial resources, like real estate, at your disposal.

Even within an asset category, you can diversify your holdings. For instance, in the stock market, you can buy shares of technology stocks in addition to several shares of energy stocks. Different stock categories perform differently under macroeconomic conditions. In the event of technology as a sector underperforming, your equities portfolio will fare just fine, thanks to your energy stocks. The value of energy stocks is more closely related to energy consumption than to marketing budgets.

The same diversification strategy can be employed in the real estate domain. You can invest in different categories of real estate like residential properties and commercial properties. You can invest in different geographical areas like cities and rural regions, the east coast, and the midwest. You can even invest in multiple properties falling under the same category and location and still reduce your risk level. For example, if one of your properties suffers damage from a kitchen fire, other properties in the neighborhood will continue to fare adequately. Investment diversification suggests your capital comes in from several sources.

Ultimately, diversification protects you in the case of an economic downturn or even something as minor as an unexpected vacancy. If you own three residential properties and one becomes vacant, the other two properties can help cover the losses incurred from the vacant property until you identify a suitable tenant. However, imagine you own a single home that becomes unexpectedly vacant, and now you are responsible for covering the housing bills and mortgage- where will you find the capital? Diversification is a golden rule for a good reason.

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.