Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in fractional shares of rental properties
Invest in single-family homes
Landa's minimum share investment is $5, with personal buy limits set at 10% of income/net worth per property, no limits for entities, and weekly deposits capped at $100,000.
The minimum investment on Doorvest is a 25% down payment on a home, averaging $56,250 based on the average home price of $225,000.
Investing in Landa carries risks such as market volatility and potential loss of investment. Despite Landa's measures to legally separate each property series to protect investors' assets, there's no absolute guarantee in bankruptcy scenarios.
Investing with Doorvest involves risks such as market volatility, economic changes, and property-specific issues. While the platform aims to manage these effectively, outcomes can be uncertain, and investors should carefully consider their risk tolerance and conduct due diligence before investing.
Landa offers share liquidity through its trading platform, with market hours set from 9:30 am to 5:00 pm EST and a 2% trade fee. Share pricing is flexible, but an active buyer market is not guaranteed.
Doorvest allows investors to sell their homes back to the platform, requiring them to connect with a client partner for more information on the process.
Landa offers returns through rental income distributions and potential property value appreciation, with additional tax benefits. Returns are influenced by property location, type, and market conditions, shaping overall investment performance.
Doorvest reports an average annual investment return of 18%, accounting for rental income, property appreciation, and mortgage leveraging.
Landa focuses on long-term property investment, with the potential for indefinite holding periods due to market liquidity or property performance.
Doorvest focuses on long-term investments in single-family rentals, generally suggesting a commitment of several years to decades, based on real estate appreciation and rental income.
U.S. residents over 18 with an SSN can invest with Landa, excluding non-U.S. residents and those in Puerto Rico.
To invest with Doorvest, you need to be in the U.S. or able to sign documents at a U.S. Embassy.
Real estate values can fluctuate unpredictably, impacting Landa share prices and potentially leading to significant investment losses in volatile markets.
Real estate assets on Doorvest can experience volatility due to economic shifts, interest rate changes, and local market trends, potentially affecting investment values and posing risks for short-term investors.
Landa's "Shares" are SEC-regulated real estate investments with risks, including loss and illiquidity. Resale of Shares is limited to a secondary platform with no guaranteed market, requiring investors to potentially hold shares indefinitely.
Doorvest complies with the Texas Real Estate Commission (TREC) consumer protection notice, indicating adherence to state-level real estate transaction standards. It does not provide details on broader financial regulations or audits, focusing more on real estate industry compliance than securities regulation.
Without specific details from Landa, it's assumed properties are insured for damage, not for market or fraud risks, with potentially limited coverage.
Doorvest protects rental investments with homeowner's insurance, covering physical structure damage and potentially extending to personal belongings and medical expenses. This coverage is a mortgage lender requirement, safeguarding against various damages, though investors should be aware of any coverage limitations.
Landa investors earn through monthly dividends derived from rental income minus property expenses and through potential appreciation by selling shares in a secondary market. However, dividends are not guaranteed, may fluctuate with property performance, and share trading is subject to market availability.
Doorvest offers rental income as returns to investors, bolstered by a Rent Guarantee that includes vacancy and non-payment protection for the first three months, with an option to extend up to 12 months. Additionally, a Renovation Guarantee covers repair costs for the first year of ownership.
Withdraw money from Landa through the app with a 2-5 business day processing time to your bank account.
To get their money back, Doorvest investors need to sell their property, with the timeline depending on market conditions and the sale process. The process is initiated through Doorvest, and funds are received after the property is sold and the transaction is completed.
Landa charges a 2% fee for share transactions on the secondary market, paid to a third-party broker-dealer without any retention by Landa.
Doorvest employs a fee model, deriving revenue from a portion of the monthly rental income and margins on home sales, always at fair market value.
Landa provides investors with tax documents such as Forms 1099-B, 1099-DIV, and 1099-MISC by January 31st for reporting share transactions and dividends over $10. Income from Landa investments is taxable, and consulting a tax professional is recommended.
Doorvest facilitates tax compliance by providing investors with all necessary documentation for tax filing, related to real estate investment income and expenses.