By changing the way users could buy and sell shares in properties, Landa’s app democratized real estate investing. In addition, it better informs them with timely and helpful information about their investments. The platform’s funding attracted great cross-sector diversity among investors. To get in, you only had to be at least 18 and a resident of the United States. As Landa loudly proclaims on its site, it has paid out more than $13 million in dividends and interest. Sadly, this remarkable accomplishment has been masked by recent news events.
Technical Difficulties and Unmet Expectations
Ever since January, users have been crying foul over disappeared dividends. This concern has led to more than 130 complaints lodged with the BBB. Simply put, investors are fed up. They say they are unable to draw down their money and have gone without payment for many months.
Compounding these worries, Landa’s investment portal is temporarily offline, leaving its app completely unusable. As of May 23, the investor portal website just sends people to a maintenance page with the message “come-back-soon.” This extreme lack of accountability and transparency has left the majority of users hanging, wondering where their investments are.
“They have essentially frozen me out of my funds and just shut down the app,” a frustrated user expressed.
In response to these concerns, CEO Yishai Cohen pointed to the platform’s technical hurdles. We recognize the concerns that are understandably surrounding our current issues on our platform and product, and would like to recognize all investors that we are working diligently to receive full functionality again as quick as possible. We believe we’ve communicated with our investors every step of the way, and server access disruption was no exception,” he said.
Legal Troubles and Investor Concerns
Landa’s troubles extend beyond technical issues. In response, a court recently ordered the company to reimburse the public by returning 119 properties. This decision comes amidst a long legal battle with a D.C. based lender. Cohen has been under heavy and credible attack from creditors. They accuse him of having directed tenants to pay their rent into a nonexistent bank account. These legal challenges have added to investor concerns, further shaking confidence in the platforms’ business practices.
A judge has ordered Landa to explain its actions regarding attempts to sell or refinance some properties, raising questions about the company’s financial management. Collectively, technical failures and legal issues have thrown cold water on the enthusiasm of many investors. They find themselves wondering about the fate of their investments.
“I repeatedly emailed them about it and just got deflecting answers, nothing real,” another user reported.
Former chief technology officer Amit Assar departed from Landa in December 2023, according to his LinkedIn page. His resignation was certainly a factor in the leadership turmoil we’ve seen in the past few months.
A Response from Leadership
Even with these hurdles, Cohen still has an optimistic outlook for Landa’s future. He calmed frazzled investors. The company hasn’t lost touch with its original vision of making real estate investing accessible to everyone. “Of course not. The site will be back up,” he declared when questioned about the likelihood of restoring the platform.
Cohen reiterated the company’s commitment to addressing the persistent issues and communicating with investors. “It’s unrelated to dividends. It’s from our servers. We are on it,” he insisted, attempting to quell concerns regarding the halted dividend payments.
Landa addresses its technical hitches and legal quagmires, the picture is still very much developing. Investors have taken to our comment section to voice their concerns as they wait for some sort of clarity over their investments and the future of the platform.
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