Landa vs EquityZen Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in fractional shares of rental properties

Buy pre-IPO stock in private companies

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Investments
$5

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.

Investments
$10,000

The minimum investment on EquityZen is $10,000, though this may vary by offering.


Moderate Risk
3/5

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.

High Risk
4/5

Investing in private companies via EquityZen involves risks such as limited liquidity, market volatility, company performance uncertainties, regulatory changes, less available information, and potential lack of diversification, which could impact investment returns.


Moderate Liquidity
2/5

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.

Minimum Liquidity
1/5

EquityZen offers liquidity for vested shares only. It does not provide liquidity for unvested shares, unvested RSUs, or options directly.

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Low Return
5.0 %

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.

Not Predictable Return
N/P

Unlike public market investments, private investments carry higher risks and unpredictability. Consequently, it's challenging to define a standard return rate for EquityZen investments.


Long-term Investment
10+ years

Landa focuses on long-term property investment, with the potential for indefinite holding periods due to market liquidity or property performance.

Long-term Investment
2-5 years

Typically, companies on EquityZen have received late-stage funding, suggesting an expected investment horizon of 2-5 years, but outcomes can vary widely.


Who can invest
United States

U.S. residents over 18 with an SSN can invest with Landa, excluding non-U.S. residents and those in Puerto Rico.

Who can invest
United States

Only accredited investors can invest in EquityZen's offerings.


Moderate Volatility
3/5

Real estate values can fluctuate unpredictably, impacting Landa share prices and potentially leading to significant investment losses in volatile markets.

Moderate Volatility
3/5

Assets on EquityZen, which are shares in private companies, can be highly volatile due to limited public information, sensitivity to market conditions, low liquidity, and company-specific events, leading to significant price fluctuations.


Regulation and audits
SEC Regulated

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.

Regulation and audits
SEC Regulated

EquityZen Securities is registered with the SEC and is a member of FINRA/SIPC, ensuring it adheres to regulatory standards and practices for investor protection and undergoes regular audits.


Insurance
No

Without specific details from Landa, it's assumed properties are insured for damage, not for market or fraud risks, with potentially limited coverage.

Insurance
No

EquityZen is a FINRA/SIPC member firm, offering account protection up to $500,000 (including $250,000 for cash claims) through SIPC in case of brokerage failure, not covering market value losses.


Payouts
Dividends

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.

Payouts
No Recurring Payouts

Investors in private companies on EquityZen typically do not receive dividends, as these companies often reinvest profits to fuel growth.


Withdrawals

Withdraw money from Landa through the app with a 2-5 business day processing time to your bank account.

Withdrawals

Investors can get their money back from investments on EquityZen mainly through an IPO, acquisition of the company, or secondary market sales on the platform. However, returns depend on market demand and timing of these liquidity events, with no guaranteed timeline.


Extra Fees
Yes

Landa charges a 2% fee for share transactions on the secondary market, paid to a third-party broker-dealer without any retention by Landa.

Extra Fees
Yes

EquityZen charges a 5% fee to sellers upon transaction closure. For investors, a one-time sales fee applies: 5% for investments up to $500,000, 4% for $500,000 to $1 million, and 3% for over $1 million.


Taxes
Tax Form

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.

Taxes
Tax Form

EquityZen issues a Schedule K-1 for taxable events and provides vetted tax documentation to investors. Upon investment, individuals complete necessary tax forms (W-9 or W8-BEN) and receive annual tax updates.

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