Go Back

Updated on
4/15/2024

The Impact of Real Estate Crowdfunding on the Property Market

Written by: 
Landa Team

Real estate crowdfunding has significantly impacted the property market by democratizing investment opportunities and offering an innovative avenue for raising capital. This model, propelled by the fusion of technology and legislative changes like the JOBS Act in the United States, has made real estate investment more accessible to a wider audience, breaking down the barriers that traditionally limited these opportunities to wealthy individuals or institutional investors​.

Growth and Accessibility

Since its inception, real estate crowdfunding has seen explosive growth. Platforms such as Landa have emerged, offering investors access to a wide range of real estate projects, from commercial buildings to residential properties. This has not only increased the liquidity in the real estate market but has also introduced a new level of transparency and competitiveness. Investors now have the ability to conduct thorough research and make informed decisions based on detailed information about investment opportunities provided by these platforms​​.

Impact on the Property Market

One of the most profound impacts of real estate crowdfunding on the property market is the increased accessibility of capital for developers. Crowdfunding platforms allow for the pooling of resources from a large number of investors, providing a new funding avenue for development projects. This model has enabled the launch of diverse projects that might not have been feasible through traditional financing routes. Moreover, the inclusivity of crowdfunding has attracted a broader base of investors, contributing to a more dynamic and diversified investment landscape​​.

Challenges and Considerations

Despite its benefits, real estate crowdfunding faces challenges, including managing investor expectations and navigating the complexities of an economic downturn. The industry's relatively short history prompts questions about its resilience during market fluctuations. Furthermore, rigorous due diligence is paramount to avoid fraud and ensure the viability of investment opportunities. The transparency and flexibility offered by crowdfunding platforms can mitigate some of these risks by providing investors with the necessary tools and information to make educated decisions​.

Future Outlook

The future of real estate crowdfunding appears promising, with potential for continued growth and innovation. As technology evolves and regulatory frameworks adapt, crowdfunding platforms are likely to become even more integrated into the fabric of real estate investment. This could further open up the market to a wider array of investors and projects, contributing to a more vibrant and inclusive property market.

Real estate crowdfunding has not only impacted how investments are made but has also contributed to a more open and accessible market, challenging traditional paradigms of property investment. As the model continues to evolve, it holds the potential to further transform the real estate landscape, offering opportunities for innovation, growth, and diversification.

For those interested in exploring real estate crowdfunding opportunities, platforms like Landa provide a gateway to invest in real estate online, highlighting the continued evolution and impact of crowdfunding on the property market.

Ready to start investing?

Sign up for Landa and start investing in real estate.

Get Started

Real estate investing within reach

Get Started

Investors

PropertiesLendEntity AccountsCareersAdvisorsBroker DealersLanda PremiumDirect ListingGet FinancingAPI Access

Residents

Pay RentService RequestsResources

Learn

Education CenterHelp CenterBlogDictionaryMore Real Estate

Company

About UsBusiness ModelLegalSEC FilingsContact UsCareersVendors

Markets

AtlantaNew YorkTampaJacksonvilleOrlandoBirminghamCharlotte

All Rights Reserved © Landa Holdings, Inc

Landa Holdings, Inc. ("Landa Holdings") operates the www.landa.app website (the "Site") and the Landa mobile application (the "App")(collectively, the “Platform”). Landa Holdings manages Landa App LLC, Landa App 2 LLC, Landa App 3 LLC (“Landa Issuers”), and raises funds and facilitates the issuance of shares for the Landa Issuers entities through the Platform pursuant to Regulation A under the Securities Act of 1933 (“Regulation A”).

Neither Landa Holdings nor any of its affiliates is a registered broker-dealer or investment advisor. All securities-related activity for the Landa Entities is conducted through Dalmore Group LLC (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC, You can review Dalmore's brokercheck for Dalmore.

Landa is not a bank.

Further, Landa Management LLC, a wholly-owned subsidiary of Landa Holdings, manages Landa Financing LLC (“Landa Financing”), and raises funds and facilitates the issuance of shares for Landa Financing through the Platform pursuant to Regulation A. All securities-related activity for Landa Financing is conducted through Dalmore Group LLC (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC (for more information on Dalmore, review Dalmore’s brokercheck.

‍You should speak with your financial advisor, accountant, and/or attorney when evaluating any offering of securities. Neither Landa Holdings, Landa App, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or a recommendation to buy or sell any securities. The Site and/or the App may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration.  We urge you to review the applicable offering circular, available here.


All securities offered by the Landa Entities and Landa Financing are deemed “Shares”. Investing in Shares involves risks, and there is always the potential of losing money when you invest in Shares. Past performance is no guarantee of future results. Investments in Shares are speculative and involve substantial risks to consider before investing, outlined in the respective offering materials and including, but not limited to, illiquidity, lack of diversification, and complete loss of capital. An investment in Shares constitutes only an investment in a particular offering and not in Landa Holdings, Landa App, or any of the underlying asset(s). Investors should carefully review the risks located in the respective offering materials for a more comprehensive discussion of risks.

‍
No money or other consideration will be solicited (and if sent, will not be accepted), and no offer to buy Shares of a particular offering can be accepted, and no part of the purchase price can be received until an offering statement filed with the Securities and Exchange Commission (the "SEC") relating to those Shares has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC. An indication of interest involves no obligation or commitment of any kind.


Investment overviews on the Platform contain summaries intended for informational purposes only and are not complete. For detailed information, we urge you to refer to the applicable offering circular filed with the SEC. Neither Landa Holdings nor any of its affiliates offers refunds after an investment has been made.

You should speak with your financial advisor, accountant, and/or attorney when evaluating any Shares. None of Landa Holdings or its affiliates, Dalmore makes any recommendations or provides advice about Shares, and no communication, through this website or in any other medium, should be construed as a recommendation or investment advice. Nothing on the Platform should be construed as investment or tax advice, or a solicitation or offer, or a recommendation to buy or sell any securities.The Platform may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration. We urge you to review the applicable offering circular, available here.


All Shares will be issued in electronic form only and will not be listed or quoted on any securities exchange. After a Series’ offering has concluded, we expect that the Public Private Execution Network Alternative Trading System, or PPEX ATS (the “Secondary Trading Platform”), which is registered with the SEC and operated by North Capital Private Securities Corporation (“North Capital”), will be the only venue available for the resale of Shares. Resales of Shares will be conducted by Dalmore, as a broker-dealer member of the Secondary Trading Platform; provided, however, any such resale of Shares will be subject to federal and state securities laws and the restrictions in the Series’ Operating Agreement, and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely.


Disclaimers

Landa Holdings maintains this website for informational purposes only. All offerings of Series’ Shares (and information about each Series and its underlying property) are conducted exclusively on the Landa Mobile App.

All images and figures shown are for illustrative purposes only and are not actual customer or model returns. Landa is not a cryptocurrency app, all monetary values are in U.S dollars and available only to U.S. investors.

20 West 22nd Street , New York, NY, 10010.

All Rights Reserved © Landa Holdings, Inc