T
he promise of investing in real estate for as little as $5 through Landa, a proptech company, has turned out to be too good to be true for many users. Founded by CEO Yishai Cohen and former CTO Amit Assaraf in 2019, Landa aimed to make real estate investment more inclusive by allowing users to start investing with just $5 and buy and sell shares through its app.

    However, the company's investment portal site is now down, and its app is inoperable. Users claim they can't access their funds and haven't received dividends in months. Over 130 complaints have been filed against Landa to the Better Business Bureau, with users alleging that the company has frozen them out of their funds.

    CEO Cohen initially blamed server issues for the downtime, but later acknowledged that the company was working to restore full functionality. Despite this, investors remain concerned about the status of their money. The situation is further complicated by a lawsuit filed by Viola Credit and L Finance against Landa, alleging "numerous defaults" on over $35 million worth of loans.

    Landa's struggles are not unique in the fractional real estate investing space. Other startups, such as Fintor and Nada, have also faced challenges after mortgage interest rates began soaring in 2022. Arrived, one of the few remaining players in this space, has managed to pay out over $13 million in dividends and interest to its investors.

    As for Landa's users, their future is uncertain. The company's investor portal website still displays a "come-back-soon" message, leaving many wondering where their money has gone and when they will be able to access it again.