Landa vs FranShares Comparison

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

Invest in fractional shares of rental properties

Invest in franchises

84,000 visits/month 700 search keywords
12,000 visits/month 800 search keywords

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
$500

The minimum investment in FranShares is $500, funded through ACH or wire transfer.


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 FranShares involves risks such as market volatility, economic changes, and franchise-specific challenges. Despite efforts to mitigate risks, there's no guarantee of returns, and FranShares' financial health could impact investments.


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

While liquidity isn't guaranteed, the platform is developing a secondary market for potential future liquidity opportunities.

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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.

Moderate Return
20 %

FranShares' TNT Franchise Fund Inc., with 55 locations across major U.S. metros, historically generates returns of 20 to 28% EBITDA per location after 16-18 months.


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
5-15 years

Income portfolios target a 10-15 year hold; growth funds aim for a 5-7 year period before selling.


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
International

FranShares welcomes both accredited and non-accredited investors, focusing mainly on opportunities for non-accredited individuals. The platform also accepts international investors from many countries, depending on the specifics of each offering.


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

Franchise investments are subject to volatility due to economic shifts, industry trends, and franchise performance. While some franchises may be more resilient, values can fluctuate, posing a risk to investment value in adverse conditions.


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

FranShares employs SEC regulations A+, D, and CF for its investment offerings, creating structures with a main investment vehicle and subsidiaries for each franchise brand, possibly including locations or groups of locations.


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
Yes

FranShares' insurance covers physical damages or losses to franchises but does not protect against market fluctuations, economic downturns, or fraud. Coverage limits may not fully reflect market values, meaning insurance does not eliminate all investment risks.


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
Dividends

FranShares plans to distribute excess cash flow to investors 12 to 18 months after each offering closes, with distributions expected quarterly. The frequency can vary (quarterly, semi-annual, or annual) based on the specific offering.


Withdrawals

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

Withdrawals

Investors in FranShares can receive their investment back through the sale of franchises, targeted within 5-15 years depending on the fund type. Upon sale, net proceeds are distributed to investors based on their fund ownership share.


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

FranShares charges a 1% to 3% annual management fee and possibly a performance fee, detailed in each offering's documents. No management fees are charged for the "TNT Franchise Inc." offering.


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
Annual Statement

FranShares investors may owe capital gains taxes on profits from share sales and pay taxes on dividends, classified as ordinary or qualified based on holding periods and individual tax situations.

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