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Full-Stack Ahead: We Became a Brokerage

Written by: 
Yishai Cohen

Earlier this week, we announced that we received our real estate brokerage licenses in all states where we have existing properties, as well as states where we are planning for expansion. This is an important milestone in our long-term strategy to transform the real estate industry.

I wanted to double down on why we issued brokerage licenses and how this fits into our greater roadmap.

One of the primary objectives of any investment is to keep costs as low as possible to maximize profit. Historically, real estate has suffered from some of the highest levels of fee takers and service providers, who collectively take a more significant cut of the investment compared to any other asset class. While brokers take the largest fee, the purchase tax, mortgage tax, title insurance, loan origination fee, and legal fees, are just some highlights in a long list of costs that eat away at your real estate investing equation.

When we first started Landa, it was also as a property management company. We hired local onsite teams and built an app for our residents to automate their experience — the residents’ digital toolbox. Instant maintenance order solutions and instant tour booking radically improved their experience. We built a property management company 2.0.

By assuming property management responsibilities, we were able to successfully cut costs for our investors and optimize their overall investing experience. As property managers, we can ensure that every aspect of property management runs smoothly and efficiently.

Property inventory is gated in the broker’s closed database often referred to as the MLS. For access, one must either be a licensed broker or work with a broker and pay transaction fees of up to 6%. This closed database plays a significant role in gatekeeping real estate investing from real people. Landa investors now hold the keys to the MLS which means competitive acquisition and purchase prices for everyone.

Beginning this week, Landa is also a real estate brokerage firm.

We received our brokerage licenses in Georgia, Florida, New York, North Carolina, and Alabama to remove the brokerage fees (buyer and seller) involved in the property acquisition process, gain direct access to the MLS, and send offers automatically based on our underwriting technology. Moving forward, we will continue to expand our brokerage licensing accordingly.

We are confident that our brokerage licenses will improve our acquisition process leveraging economies of scale, and generate further value for our investors as we continue to solidify our position as a disruptive force in the real estate industry. To our investors who are determined to change the landscape of real estate investing — thank you for using Landa to invest in new properties every day!

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