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Updated on
5/30/2024

Listed & Liquid: Introducing Direct Listing with Landa

Written by: 
Dani Lang

As Landa continues to reshape the real estate investment landscape, we've identified common challenges that hinder both property owners looking to sell and investors eager to buy. Our new Direct Listing service is crafted not just as a feature but as a strategic solution to these enduring problems in the real estate market.

The Rigidity of the Sellers' Market

Reflecting on my early days in real estate, I remember the traditional selling process being notably rigid and layered with middlemen—from brokers to agents to legal hurdles. Each additional layer introduced complexity, costs, and delays, which ultimately reduced the bottom-line value of the property. This outdated system not only slowed down transactions but also added significant expenses, consuming valuable time and financial resources that could otherwise be used more efficiently for other deals.

Age of Inventory Circa 2022 from the Zillow Research Team

The Dual Benefits of Direct Listing

Direct Listing is Landa’s answer to the inefficiencies of traditional real estate sales and transactions. The foremost value proposition of Direct Listing is that it allows investors to intentionally capture maximum value with zero hassle through this new listing process. Direct Listing empowers property owners to list their properties directly on our platform as IPOs, transforming them into tradable shares. This provides sellers with quick, efficient access to the real estate market and offers investors new and diversified opportunities.

A-Z Listing

You might be wondering how this works. The process is straightforward, and one we have completed over 200 times. Once Landa’s team vets your property, we manage everything from start to finish. 

Here's the breakdown: Landa partners with a lender to finance 65% of each investment, while the remainder is funded by our platform investors. To make the property available for investment, Landa adds it to our series LLC offerings, enabling it to be listed on our platform. This allows thousands of investors to purchase shares. Like all properties currently available on the platform, Landa remains the property manager and is responsible for the leasing and maintenance. For complete details, please check out our SEC filings and documents.

A Built-In Safety Net for Sellers

Understanding the framework in place for Direct Listings is essential. Landa’s Fallback Provision was designed to encourage more innovation among real estate professionals. It acts as a robust safety net, enabling sellers to activate this provision and accept an offer for 85% of the purchase price if there is insufficient demand from investors after 180 days. Confident that vetted properties will complete the IPO process, we built this provision to empower innovators in the real estate market, offering them reassurance and stability as they join us in reshaping the real estate landscape through Direct Listings. This ensures both confidence and security for sellers and stability for our platform and its investors.

Operational Integrity

At Landa, we are deeply committed to aligning our interests with those of our stakeholders. We facilitate this alignment through our investment structure and operational practices.To ensure interests are aligned, Landa earns fees from the proceeds and offers a closing guarantee, tying our success directly to the satisfaction and profitability of each listing.

A Strategic Approach to Acquisition

At Landa, our approach to selecting properties for Direct Listing is rigorous and strategic. We focus on residential properties and portfolio known for their income potential and appreciation value. Our criteria prioritizes properties in desirable locations with strong financial performance, ensuring that each new listing is not just an addition to our offerings but an exceptional and diverse investment opportunity.

Looking Ahead: Expanding Opportunities and Community Engagement

The launch of Direct Listing is a key milestone in our roadmap to becoming a full-stack real estate investing platform. It addresses the immediate needs of property sellers and strategically expands our offerings to investors, making real estate investment more accessible and advantageous for new stakeholders. Through continuous engagement with our community and by leveraging their insights, we strive to integrate new and exciting real estate opportunities into the Landa app.

Submit your investment property to Direct Listing with Landa today.

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