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Updated on
3/29/2024

Leveraging Real Estate Crowdfunding for Community Development

Written by: 
Naman

Leveraging Real Estate Crowdfunding for Community Development

Introduction

Real estate crowdfunding, a modern financial conduit, has emerged as a viable alternative to traditional real estate investment pathways. By pooling resources from a myriad of investors, real estate crowdfunding platforms provide a stage for individuals to participate in property markets with lower capital thresholds. Moreover, this innovative model harbors the potential to significantly contribute to community development. This article explores how real estate crowdfunding can be harnessed to foster sustainable and inclusive community growth.

Democratizing Real Estate Investment

One of the groundbreaking advantages of real estate crowdfunding is its democratizing effect on property investment. Unlike traditional real estate ventures that often necessitate substantial capital, crowdfunding platforms lower the entry barriers, enabling a broader spectrum of individuals to partake in real estate projects. This democratization not only diversifies the investor base but also paves the way for community-centric projects that might not attract large-scale commercial investors.

Fostering Local Development

Real estate crowdfunding platforms can act as catalysts for local development. By channeling investments into local real estate projects, these platforms can contribute to neighborhood revitalization, affordable housing, and commercial development. Moreover, they can support community-driven projects that aim to address local needs and challenges, creating a direct positive impact on the community.

Enhancing Transparency and Engagement

The digital nature of crowdfunding platforms fosters transparency and engagement. Investors, including local community members, can easily access project information, financial forecasts, and progress updates. This transparency cultivates a sense of ownership and engagement among investors and local residents, promoting an inclusive approach to community development.

Supporting Sustainable Development

Real estate crowdfunding can also play a pivotal role in promoting sustainable development. By financing projects with green building practices, energy efficiency, and sustainable urban planning, these platforms can contribute to creating environmentally-friendly communities. Moreover, the collective decision-making often inherent in crowdfunding models can prioritize projects that align with sustainable and ethical practices.

Overcoming Challenges

Despite its potential, leveraging real estate crowdfunding for community development is not without challenges. Regulatory hurdles, platform credibility, and ensuring meaningful community engagement are some of the issues that need addressing. A collaborative approach involving local authorities, crowdfunding platforms, and community members can create a conducive environment for successful community-centric real estate crowdfunding projects.

Conclusion

Real estate crowdfunding unfolds a promising avenue for community-driven projects, with platforms like Landa.app leading the charge. Discover the potential of community-centric real estate investments and join the movement towards sustainable development by visiting Landa.app. Your venture into meaningful investments and community growth commences here.

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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.

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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.


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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.

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