B
enzinga and Yahoo Finance LLC may earn commission or revenue through the links below. Landa, a proptech startup that aimed to democratize real estate investing with low minimums, is facing significant operational and legal challenges. The company's app and investment portal have been non-functional for weeks, leaving users unable to access their funds or receive dividends. As of May 23, the app and website display only error messages, with users reporting issues since April 15.

    More than 130 complaints have been filed with the Better Business Bureau, citing concerns such as unresponsive customer support, frozen withdrawals, and lack of communication from company leadership. One investor claimed to have $18,000 stuck on the platform. BBB records include multiple complaints about ignored support tickets and growing anxiety over user funds' safety.

    In November, Viola Credit and L Finance filed a lawsuit against Landa in New York State Supreme Court, accusing it of defaulting on over $35 million in loans and mismanaging properties. The court appointed an independent manager to oversee 119 properties due to concerns about their condition and management. Despite a court injunction, Landa's executives allegedly continued to collect rents and withdrew $724,000 from the properties' accounts.

    Landa CEO Yishai Cohen attributed the platform's issues to server problems, denying that the company has shut down. He stated in April that they are working to restore full functionality as soon as possible.