Landa promised real estate investing for $5. Now it’s gone dark.

Summary

The idea of becoming a real estate investor for as little as $5 may seem too good to be true. And for many users of Landa, a proptech company that promised just that — it has been. Landa emerged from stealth in August 2022, announcing a total of $33 million in funding and a pledge to help everyday Americans access residential real estate investment through fractional shares. CEO Yishai Cohen and former CTO Amit Assaraf founded Landa in 2019 in an effort to make real estate investment more inclusive. The app’s only requirements were that users be over age 18 and U.S. residents. They could start investing with just $5, and buy and sell shares as well as see real-time updates on their properties from the Landa app. (Assaraf left the company in December of 2023, according to his LinkedIn profile. He has not responded to requests for comment.) Today, Landa’s investment portal site is down and its app is inoperable. Users claim they can’t access their funds and haven’t been paid dividends in months. The startup is embroiled in litigation, including a lawsuit from its early venture investor Viola. One early user told TechCrunch that Landa stopped paying dividends to him on his shares in January. When he asked Landa about it, they “punted the question,” he said. “I repeatedly emailed them about it and just got deflecting answers, nothing real,” the user said. “Then a few months after that, the app became unusable. It would not open.” The user then asked if he could delete his account, which he had opened in 2021, and sell the shares. But he found Landa had disabled his ability to sell shares. “They have essentially frozen me out of my funds and just shut down the app,” the user said. “Where is the money? Why won’t they return it to me?” Over 130 complaints have been filed against Landa to the Better Business Bureau, with dozens of people echoing similar allegations. For instance, on May 1, one user who filed such a complaint shared they had invested over $8,000 through Land...