The idea of becoming a real estate investor with just $5 sounded revolutionary. For many users of Landa, a once-promising proptech startup, that dream has turned into a nightmare.
Launched with bold claims and $33 million in funding, Landa aimed to make real estate accessible through fractional shares. But today, the company’s app is broken, its site is offline, and hundreds of users say they’re locked out of their investments—with no dividends and no clear answers.
From Hype to Headache: Landa’s Rapid Fall
Landa was founded in 2019 by CEO Yishai Cohen and former CTO Amit Assaraf to democratize real estate investing. By 2022, the company had exited stealth mode, boasting its mission and a total of $33 million in venture backing. Investors could start with just $5, buy shares in rental properties, and track their performance via Landa’s sleek app.
Initially, it looked promising. Users were able to invest, collect dividends, and monitor real-time updates. But the success didn’t last. Assaraf left in December 2023, and by early 2024, problems emerged. Dividends stopped arriving, support requests went unanswered, and the app became unusable.
One early investor said he stopped receiving dividends in January and couldn’t even open the app. When he reached out to Landa, responses were vague. Later, he found he couldn’t sell his shares or even delete his account.
“They’ve frozen me out of my funds and shut down the app,” he said. “Where’s the money? Why won’t they return it?”
He’s far from alone. The Better Business Bureau has logged over 130 complaints against Landa. One user claimed they invested $8,000 and hadn’t seen dividends since late 2023. Support emails from Landa only offered vague reassurances that they were “working on it.”
In April, TechCrunch pressed Cohen for answers. He dismissed the issue as a server problem unrelated to dividends. By mid-April, he released a brief statement saying the company was working to restore full functionality and had kept investors informed. But as of May 23, the site still displays a maintenance message, and Cohen has gone silent.
Investors Sue as Legal Trouble Mounts
Landa’s troubles go beyond unhappy users. Its lenders, Viola Credit and L Finance, are suing for defaults on $35 million in loans. The lawsuit, filed in New York State Supreme Court in November 2024, accuses Landa of mismanaging properties, missing tax payments, and even failing to collect rents. These failures allegedly forced property sales and led creditors to appoint an independent property manager.
Despite the court granting an injunction against Landa, problems continued. In January 2025, the lenders accused Landa of trying to bypass the court order by diverting tenant payments to unauthorized bank accounts.
Rather than comply, Landa tried to block the creditors by requesting a restraining order. Judge Jennifer G. Schecter rejected Landa’s motion, ordered it to pay $100,000, and demanded a cooperative resolution. Landa responded with a countersuit in March. The case is ongoing.
Landa isn’t alone in facing setbacks. Several startups once offering fractional real estate investing have quietly pivoted. Fintor, once focused on real estate shares, now markets itself as an AI-powered automation platform. Dallas-based Nada, known for its “Cityfunds,” has shifted its focus to offering home equity access products.
Only Arrived, backed by Bezos Expeditions, seems to be thriving under its original model. It claims to have paid over $13 million in dividends and boasts more than 766,000 users. Investors can still buy into single-family rentals for as little as $100.
But for Landa’s users, the outlook remains bleak. With the app still down, the site redirecting to a placeholder, and no clear communication, investors are left in the dark.
