From $5 Dreams to Legal Disputes: What Happened to Landa?

Landa, a proptech startup that once captured attention by offering real estate investment opportunities for as little as $5, now finds itself in the spotlight for very different reasons. Once hailed as a democratizing force in property investment, the company has gone silent — leaving investors in the dark, apps offline, and lawsuits mounting.

A Promising Start

When Landa officially launched in August 2022, the startup declared it had secured $33 million in total funding, promising to open the door to real estate investing for everyday Americans. By leveraging fractional ownership of rental properties, users could begin investing with just $5 via an easy-to-use mobile app.

Founded in 2019 by CEO Yishai Cohen and then-CTO Amit Assaraf, Landa set out to challenge the exclusivity of real estate investing. The platform required only that users be over 18 and U.S. residents. From the app, users could buy and sell shares and monitor real-time property data.

However, Assaraf quietly exited the company in December 2023, according to his LinkedIn profile. He has not commented publicly about his departure.

Silence and System Failures

Today, Landa’s app is inaccessible, and the investment portal website only displays a maintenance message. Users report that not only have they been unable to retrieve funds or sell shares, but also that dividend payments ceased months ago.

One early user told TechCrunch that dividend payments stopped in January. When he reached out for answers, “I repeatedly emailed them about it and just got deflecting answers, nothing real,” he said. Later, the app stopped working entirely.

After discovering that he couldn’t delete his account or sell shares, he added, “They have essentially frozen me out of my funds and just shut down the app. Where is the money? Why won’t they return it to me?”

More than 130 complaints have since been lodged against Landa with the Better Business Bureau. One complaint filed on May 1 revealed a user had invested over $8,000 and stopped receiving dividends last fall. The company’s response? According to the user, Landa simply replied that they were “working on it.”

CEO Responds — Vaguely

When TechCrunch reached out in mid-April for comment, CEO Yishai Cohen denied that the company had shut down, stating:

“Of course not. The site will be back up.”

As for the lack of dividends and the nonfunctional app, Cohen pointed to server issues, saying:

“It’s unrelated to dividends. It’s from our servers. We are on it.”

On April 18, Cohen offered a broader statement:

“We are aware of the issues currently affecting our platform and product, and want to assure all investors that we are actively working to restore full functionality as soon as possible. We have kept investors informed through all updates, including the server access issue. We appreciate the continued support of our investors and resident community, and remain committed to delivering on our vision of making real estate investing accessible to everyone.”

As of May 20, Cohen has not responded to additional requests for updates. Key investors, including NFX and 83North, have also declined to comment.

Legal Trouble Mounts

Beyond user complaints, Landa is now entangled in a lawsuit with two of its primary lenders.

Viola Credit and L Finance filed suit in New York State Supreme Court in November 2024, citing “numerous defaults” on over $35 million in loans. Viola, notably, is both a lender and venture investor in Landa.

According to the lawsuit, the company neglected to pay property taxes — resulting in forced sales — failed to maintain properties, and did not collect rents. After more than a year of trying to resolve the situation, the lenders removed Landa from property management duties and appointed a third-party manager along with a chief restructuring officer.

Following failed negotiations, the lenders obtained a court injunction to block Landa from accessing company accounts or interfering with restructuring activities. But by January 2025, they alleged Landa had diverted rent payments to unauthorized accounts. They also accused CEO Cohen of attempting to sell or refinance certain properties without approval.

When the court demanded clarification, Landa instead filed for a restraining order in March against the lenders, claiming the appointed manager was “installed unlawfully.” However, Judge Jennifer G. Schecter rejected Landa’s request, ordering the company to pay nearly $100,000 and urging both parties to reach a resolution that benefits all stakeholders.

Landa responded a few weeks later with a formal countersuit. The legal battle remains unresolved.

A Crowded — and Faltering — Field

Landa isn’t the only startup that aimed to simplify real estate investment through fractional ownership. Others have faced similar challenges, particularly as mortgage rates surged starting in 2022.

• Fintor, which previously offered fractional real estate shares, now appears to be pivoting toward AI-driven solutions for finance and property management.

• Nada, based in Dallas, once promoted “Cityfunds” — a $250 investment product tied to a city’s housing market. Today, its website now advertises: “Access home equity to finance anything.”

• Arrived, a better-known player, remains the only one of the group still operating under the same model. As reported by TechCrunch, the company raised $25 million in Series A funding from Bezos Expeditions in 2022 and currently reports having paid over $13 million in dividends and interest, with more than 766,000 registered users.

Where Do Landa’s Users Stand?

For the hundreds of retail investors who bought into Landa’s promise of $5 real estate investing, the future remains unclear. As of May 23, the company’s investment platform is still down, and communications from leadership have dwindled. Without access to their money or a functional app, many are left wondering if they will ever recover their investments.

Author: Din Kumar