Landa vs RealtyMogul Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in fractional shares of rental properties

Invest in individual commercial real estate properties or REITs


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
$25,000

The minimum investment on RealtyMogul typically ranges from $25,000 to $35,000, depending on the specific investment 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.

Moderate Risk
3/5

Investing through RealtyMogul entails risks like market volatility, economic shifts, and property-specific issues. Investments are illiquid and there's potential for loss of capital.


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

Investments through RealtyMogul are illiquid, as they are private real estate transactions not traded on public exchanges, and therefore cannot be easily sold or traded. Investors should have a long-term commitment and not expect to resell quickly.

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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.

High Return
15.0 %

Investors on RealtyMogul can expect an overall realized IRR of 20.8% and an overall target IRR of 15.0%. Cash-on-cash returns, IRR, and equity multiples are key metrics provided for each deal.


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
3-10 years

Investments on RealtyMogul generally have a hold period ranging from 3 to 10 years, depending on the individual property's business plan and associated financing.


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

RealtyMogul allows both accredited and non-accredited investors to use its platform. However, only accredited investors can participate in private placement offerings, while both categories of investors may invest in RealtyMogul's managed REITs, subject to certain legal limitations.


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

Commercial real estate assets on RealtyMogul can be volatile, with values affected by economic shifts, interest rates, and market trends. This can lead to fluctuations in investment value and potential financial losses.


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

RealtyMogul is regulated by the SEC and must adhere to strict disclosure and filing requirements. The platform's offerings are subject to regular audits to ensure compliance with financial reporting and regulatory standards.


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

RealtyMogul's properties are insured against physical damage and loss, but insurance might not cover all risks, such as market volatility or economic downturns. Insurance is a risk mitigation tool, not a guarantee against all potential 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
Dividends

Investors may receive quarterly distributions, which are not guaranteed in timing or amount and depend on the performance of the investment and terms set by the managing real estate company.


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

Investors indirectly pay fees for each investment, which vary by the offering and cover administrative, legal, and management costs. Fee details are disclosed for each opportunity on the platform.


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

RealtyMogul issues Schedule K-1 forms for individual deals and Form 1099s for REIT investments, made accessible via the investor's dashboard. Dividends from REITs historically have not been qualified for preferential tax rates.

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