Landa vs Lofty Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in fractional shares of rental properties

Invest in rental properties through a fractional real estate marketplace


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
$50

The minimum investment with Lofty is $50.


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.

Moderate Risk
3/5

Investing with Lofty carries typical real estate investment risks, including market volatility, economic changes, and property management challenges. Additionally, the use of cryptocurrency and tokenization presents legal and regulatory uncertainties.


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.

Moderate Liquidity
2/5

Lofty provides liquidity by allowing investors to list their property tokens for sale on the marketplace at any time, with a 2.5% transaction fee. Orders are held in escrow and have a 30-day expiration.

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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.

Low Return
5 %

Lofty offers a 5% cash on cash return, with token values updating monthly based on HouseCanary's Automated Valuation Model (AVM).


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.

Short-term Investment
1 year

Investment time horizon on Lofty is not fixed and is determined by property owners' collective decision on when to sell through the governance system.


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

Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.


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

The value of assets on Lofty's platform can be volatile, influenced by economic trends, interest rates, and real estate market conditions, potentially leading to variable financial outcomes for investors.


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
Audited

Lofty's marketplace transactions are executed using a smart contract on the Algorand blockchain, which has been audited by CertiK for security.


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

Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.


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
Rental Income

Lofty provides daily rental income to investors, which can be withdrawn at any time through various methods including ACH, PayPal, and cryptocurrency options.


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

Lofty charges a 2.5% fee on both buy and sell orders on its marketplace.


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

Lofty provides US residents with pre-filled 1099 tax forms for income and capital gains reporting. Non-US residents may reduce withholding taxes with forms W-8BEN or W-8BEN-E if they have a US SSN or ITIN.

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