PART II AND III 2 ea148237-1apos_landaapp.htm POST QUALIFICATION AMENDMENT TO OFFERING STATEMENT

 

EXPLANATORY NOTE

 

This is a post-qualification amendment (“Amendment No. 2”) to the offering statement on Form 1-A originally filed by Landa App LLC (the “Company”) on December 2, 2020 (File No. 024-11377) and originally qualified by the U.S. Securities and Exchange Commission (“SEC”) on June 29, 2021 (the “Offering Statement”). The purpose of this Amendment No. 2 is to (i) withdraw certain series of the Company from the offering circular contained within the Offering Statement (the “Offering Circular”) since such Series (as defined in the Offering Circular) failed to commence an offering within two calendar days of qualification of the Offering Statement in compliance with Rule 251(d)(3)(i)(F); (ii) offer Shares (as defined in the Offering Circular) in new Series, and (iii) amend, update and/or replace certain information contained in the Offering Circular.

 

 

 

 

This Offering Circular is following the offering circular format described in Part II (a)(1)(i) of Form 1-A.

 

PART II – INFORMATION REQUIRED IN OFFERING CIRCULAR

 

Preliminary Offering Circular (Subject to Completion) dated October 7, 2021

 

This Post-Qualification Offering Circular Amendment No. 2 amends the Offering Circular of Landa App LLC, as qualified on June 29, 2021, and as may be amended and supplemented from time to time (the “Offering Circular”), to withdraw certain securities from being offered pursuant to the Offering Circular and add additional securities to be offered pursuant to the Offering Circular. An offering statement pursuant to Regulation A relating to the securities described in this Preliminary Offering Circular has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. To the extent not already qualified under Regulation A, these securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Securities and Exchange Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the offering statement in which such Final Offering Circular was filed may be obtained.

 

OFFERING CIRCULAR

 

 

LANDA APP LLC

6 W. 18th Street

New York, NY 10011 

(646) 905-0931

Landa.app

 

Best Efforts Offering of Series Membership Interests

 

Landa App LLC, a Delaware series limited liability company (the “Company,” “us,” “we,” or “our”) is offering 10,000 membership interests (each a “Share” and collectively, the “Shares”) in each of the 43 registered series of the Company set forth in the table below (each an “Offered Series,” and collectively, the “Offered Series”), for an aggregate total of 430,000 Shares. The Company has registered and will continue to register series with the Secretary of State of the State of Delaware from time to time (each a “Series” and collectively, the “Series”) for the purpose of offering a unique investment opportunity for eligible investors to benefit from the performance of curated and fully managed rental real estate properties. Each Offered Series will hold, a residential or commercial rental property as its primary asset (each a “Property,” and collectively, the “Properties”), as specified in the table below.

 

 

 

 

We are offering a maximum of 10,000 Shares of each Offered Series at the purchase price per Share set forth in the table below (the respective offerings of Shares of each Offered Series each individually referred to herein as an “Offering”). The purchase of Shares in an Offered Series is an investment only in that specific Offered Series and not an investment in any other Series or the Company.

 

We expect to offer Shares in each respective Offered Series until the earliest of (i) the date we raise the “Maximum Offering Amount” listed on the table below for such Offered Series (herein referred to as the “Maximum Offering Amount” of each Offered Series), (ii) the second anniversary of the first qualification date of the offering statement of which this Offering Circular forms a part pursuant to which Shares of such Offered Series were able to be offered, and (iii) a date determined by the Manager (as defined below), in its sole discretion, based on a number of factors, including the level of current or anticipated interest in an Offered Series.

 

Information Regarding Shares of Offered Series  

 

Series   Address   Asset Type
 (Residential/
 Commercial)
  $ Per
 Share
 (1)(2)
    Maximum Offering Amount (3) (4)     Total Number of Shares Sold (5)  
Landa Series 1703 Summerwoods Lane   1703 Summerwoods Lane, Griffin, GA, 30224   Residential   $ 3.5772     $ 35,772                 
Landa Series 1712 Summerwoods Lane   1712 Summerwoods Lane, Griffin, GA, 30224   Residential   $ 3.5772     $ 35,772          
Landa Series 1743 Summerwoods Lane   1743 Summerwoods Lane, Griffin, GA, 30224   Residential   $ 3.5772     $ 35,772          
Landa Series 1750 Summerwoods Lane   1750 Summerwoods Lane, Griffin, GA, 30224   Residential   $ 3.5772     $ 35,772          
Landa Series 4267 High Park Lane   4267 High Park Lane, East Point, GA, 30344   Residential   $ 4.7625     $ 47,625          
Landa Series 4474 Highwood Park Drive   4474 Highwood Park Drive, Atlanta, GA, 30344   Residential   $ 4.2898     $ 42,898          
Landa Series 4809 / 4811 Pinedale Drive   4809 / 4811 Pinedale Drive, Forest Park, GA, 30297   Residential   $ 5.7081     $ 57,081          
Landa Series 5051 Maple Drive   5051 Maple Drive, Forest Park, GA, 30297   Residential   $ 3.3779     $ 33,779          
Landa Series 8569 Creekwood Way   8569 Creekwood Way, Jonesboro, GA, 30238   Residential   $ 2.6351     $ 26,351          
Landa Series 9439 Lakeview Road   9439 Lakeview Road, Union City, GA, 30291   Residential   $ 5.6709     $ 56,709          
Landa Series 10167 Port Royal Court   10167 Port Royal Court, Jonesboro, GA, 30238   Residential   $ 2.8100     $ 28,100          
Landa Series 1246 Elgin Way   1246 Elgin Way, Riverdale, GA, 30296   Residential   $ 3.8285     $ 38,285          
Landa Series 168 Brookview Drive   168 Brookview Drive, Riverdale, GA, 30274   Residential   $ 2.2626     $ 22,626          
Landa Series 1910 Grove Way   1910 Grove Way, Hampton, GA, 30228   Residential   $ 2.2062     $ 22,062          
Landa Series 268 Brookview Drive   268 Brookview Drive, Riverdale, GA, 30274   Residential   $ 3.6259     $ 36,259          
Landa Series 593 Country Lane   593 Country Lane, Jonesboro, GA, 30238   Residential   $ 2.4592     $ 24,592          
Landa Series 6436 Stone Terrace   6436 Stone Terrace, Morrow, GA, 30260   Residential   $ 1.5479     $ 15,479          
Landa Series 6440 Woodstone Terrace   6440 Woodstone Terrace, Morrow, GA, 30260   Residential   $ 1.8244     $ 18,244          
Landa Series 6848 Sandy Creek Drive   6848 Sandy Creek Drive, Riverdale, GA, 30274   Residential   $ 2.1867     $ 21,867          
Landa Series 687 Utoy Court   687 Utoy Court, Jonesboro, GA, 30238   Residential   $ 3.2922     $ 32,922          
Landa Series 729 Winter Lane   729 Winter Lane, Jonesboro, GA, 30238   Residential   $ 3.1221     $ 31,221          
Landa Series 7349 Exeter Court   7349 Exeter Court, Riverdale, GA, 30296   Residential   $ 2.8138     $ 28,138          
Landa Series 773 Villa Way   773 Villa Way, Jonesboro, GA, 30238   Residential   $ 1.6336     $ 16,336          
Landa Series 8645 Embrey Drive   8645 Embrey Drive, Jonesboro, GA, 30236   Residential   $ 3.4145     $ 34,145          

 

 

 

 

Landa Series 8780 Churchill Place   8780 Churchill Place, Jonesboro, GA, 30238   Residential   $ 3.8057     $ 38,057                   
Landa Series 8796 Parliament Place   8796 Parliament Place, Jonesboro, GA, 30238   Residential   $ 3.1089     $ 31,089          
Landa Series 8641 Ashley Way   8641 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.9950     $ 49,950          
Landa Series 8651 Ashley Way   8651 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.1901     $ 41,901          
Landa Series 8652 Ashley Way   8652 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.6500     $ 46,500          
Landa Series 8653 Ashley Way   8653 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.1518     $ 41,518          
Landa Series 8654 Ashley Way   8654 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.6500     $ 46,500          
Landa Series 8655 Ashley Way   8655 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.9093     $ 49,093          
Landa Series 8658 Ashley Way   8658 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.6500     $ 46,500          
Landa Series 8659 Ashley Way   8659 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.9566     $ 49,566          
Landa Series 8662 Ashley Way   8662 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.8033     $ 48,033          
Landa Series 8668 Ashley Way   8668 Ashley Way, Douglasville, Georgia 30134   Residential   $ 5.8222     $ 58,222          
Landa Series 8670 Ashley Way   8670 Ashley Way, Douglasville, Georgia 30134   Residential   $ 5.4167     $ 54,167          
Landa Series 8674 Ashley Way   8674 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.6117     $ 46,117          
Landa Series 8675 Ashley Way   8675 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.5350     $ 45,350          
Landa Series 8677 Ashley Way   8677 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.2667     $ 42,667          
Landa Series 8678 Ashley Way   8678 Ashley Way, Douglasville, Georgia 30134   Residential   $ 5.7233     $ 57,233          
Landa Series 8679 Ashley Way   8679 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.6117     $ 46,117          
Landa Series 8683 Ashley Way   8683 Ashley Way, Douglasville, Georgia 30134   Residential   $ 4.7788     $ 47,788          

 

(1) Price to the public. The prices per Share for each Offered Series listed above were determined by the Manager. See “Determination of Purchase Price” for additional information.

  

 

 

 

(2) There are no underwriting discounts or commissions as part of the Offerings. We do not intend to use commissioned sales agents or underwriters as part of the Offerings. We expect that the officers of the Manager will offer and sell the Shares in reliance upon the exemption from registration contained in Rule 3a4-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will not receive any compensation from the offer or sale of the Shares of any Offered Series. Dalmore Group, LLC will be acting as the broker dealer of record in connection with each Offering (the “Broker Dealer”) and will be entitled to a brokerage fee (the “Broker Fee”) calculated in the manner set forth under “Plan of Distribution.” The Manager will pay the Broker Fee to the Broker Dealer. See “Plan of Distribution.”

 

(3) The Maximum Offering Amounts represent the gross proceeds from a subscription of 10,000 Shares of the respective Offered Series. For additional information, see “Use of Proceeds.”

 

(4) There is no minimum offering amount.

 

(5) Reflected as of the date of this Offering Circular.

 

All Shares will be offered and sold initially through the Landa mobile application which is available on iOS and Android devices (the “Landa Mobile App”). The Offerings are being conducted on a “best efforts,” no offering minimum basis pursuant to Regulation A of Section 3(6) of the Securities Act of 1933, as amended (the “Securities Act”), for Tier 2 offerings. The Offerings are being conducted as a continuous offering pursuant to Rule 251(d)(3) of Regulation A of the Securities Act, meaning that while the offering of securities is continuous, active sales of securities may happen sporadically over the term of the Offerings. Each Offering will commence within two (2) calendar days after the first qualification date of the offering statement of which this Offering Circular forms a part and, unless earlier terminated by the Manager, each Offered Series will offer Shares until no later than the second anniversary of such qualification date.

 

We expect that there will be multiple closings for each Offering at which time Shares will be sold and the subscription price will be transferred to the operating account of the Offered Series (each, a “Closing”). We expect that each Closing will occur immediately following the acceptance of a subscription. A subscription will be accepted or rejected in whole or in part in the Manager’s sole discretion promptly following receipt of the Subscription Agreement (as defined below). The Manager will accept subscriptions on a first-come, first-served basis subject to the right to reject or reduce subscriptions.

 

All Shares will be issued in electronic form only and will not be listed or quoted on any securities exchange. We expect that after a Series’ Offering has concluded, the Public Private Execution Network Alternative Trading System, or PPEX ATS (the “Secondary Trading Platform”), which is registered with the SEC and operated by North Capital Private Securities Corporation (“North Capital”), will be a venue available for the resale of such Offered Series’ Shares through the Broker Dealer, as a broker dealer member of the Secondary Trading Platform; provided, however, any such resale of an Offered Series’ Shares will be subject to federal and state securities laws and the restrictions in the Offered Series’ Operating Agreement (as defined below), and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely. See “Plan of Distribution - Transferability of the Shares.”

 

 

 

 

Each Share will entitle each holder the opportunity to receive monthly distributions of a portion of the net rental income of a given Offered Series, which we also refer to as “dividends” in this Offering Circular, in the applicable Series Materials, and Property Page (each as defined below). The total distribution amount by an Offered Series will be calculated by the Manager, acting in its sole discretion, and will be based on a number of factors, including, but not limited to, the total number of Shares sold, fees, expenses, taxes, amounts allocated to Reserves (as defined below), economic conditions, debt service requirements, actual and accrued cash flows of the applicable Series, and other factors that could differ materially from our current expectations. The total distribution amount, if any, will be allocated to each holder of Shares of the applicable Offered Series on a pro-rata basis based on the number of Shares of that Offered Series held. We cannot assure you that an Offered Series will have enough net rental income in a given month to make any monthly cash distributions per Share. For any holder that acquires Shares on the Secondary Trading Platform, the initial distribution paid to such holder, if any, will be made on a pro-rated basis, based on the number of days that such holder held the Shares. In addition, liquidating distributions may be made upon the sale of a Series’ Property.

 

Holders of Shares in an Offered Series will have no rights to direct or vote on any matter concerning such Offered Series and the management of its affairs, including whether or not an Offered Series should dissolve. In addition, holders will have no claim or recourse to any of the Properties and will have no rights to share in the success of any other Series or the other Series’ Properties, as fully described in the Limited Liability Company Operating Agreement of Landa App LLC, dated September 24, 2020 (the “Master Agreement”). See “Description of Shares” for more information.

 

Each Series will be treated as a separate entity for U.S. federal income tax purposes. In addition, we intend that each Series will elect to be treated as a corporation for U.S. federal income tax purposes. Since each Series is separately registered in Delaware, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular Offered Series are segregated and enforceable only against the assets of such Offered Series, as provided under the laws of the State of Delaware. Each Offered Series will be governed by an operating agreement specific to that Offered Series (each, an “Operating Agreement”). Each Offered Series’ Offering will be independent of, and not contingent upon, the other Offered Series’ Offerings. You may choose to participate in one or more Offered Series’ Offerings.

 

Each Offered Series will use substantially all of the net proceeds from its Offering to pay down affiliate indebtedness used to purchase the Property for such Offered Series, including affiliate indebtedness with respect to Acquisition Fees, Property Diligence Expenses and Reserves (each as defined below). See “Use of Proceeds” for additional information.

 

Landa Holdings, Inc. will serve as manager for the Company and each Offered Series (along with its affiliates, the “Manager” or “Landa Holdings”). The Manager is not a registered broker-dealer, an investment adviser, crowdfunding platform or other securities intermediary.

 

Investing in the Shares involves a high degree of risk. See “Risk Factors” beginning on page 15 for a discussion of certain risks that you should consider in connection with an investment in the Shares.

 

THE SEC DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC; HOWEVER, THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

  

Generally, no sale may be made to you in the Offerings if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

The date of this Offering Circular is      , 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

INCORPORATION BY REFERENCE OF OFFERING CIRCULAR   ii
     
Cautionary statement regarding forward-looking statements   ii
     
Important information about this offering circular   v
     
Important notices to investors   vi
     
State law exemption and purchase restrictions   vii
     
Market and other industry data   vii
     
Questions and answers about the offerings   1
     
Offering summary   10
     
The Offering   12
     
Risk Factors   15
     
Use of Proceeds   30
     
Description of our business   74
     
Description of the properties   82
     
Management’s discussion and analysis of financial condition and results of operation   128
     
Determination of purchase price   137
     
Plan of Distribution   138
     
Interest of management and others in certain transactions   144
     
Description of shares   149
     
Legal matters   153
     
Experts   153
     
Additional information   153
     
FINANCIAL STATEMENTS   F-1
     
EXHIBIT INDEX   154
     
SIGNATURES   161

  

i

 

 

INCORPORATION BY REFERENCE OF OFFERING CIRCULAR

 

This Offering Circular is part of the offering statement (File No. 024-11377) originally filed with the SEC on December 2, 2020 (the “Offering Statement”). We hereby incorporate by reference into this Offering Circular the following information contained in the offering circular of which the Offering Statement is a part as qualified by the SEC on June 29, 2021 (the “Prior Offering Circular”), to the extent not modified or replaced by this Amendment No. 2:

 

Regulations

 

Security Ownership of Certain Beneficial Owners and Management

 

Directors, Executive Officer and Significant Employees

 

Compensation of Directors and Executive Officers

 

U.S. Federal Income Tax Considerations

 

Note that any statement we make in this Offering Circular will be modified or superseded by an inconsistent statement made by us in a subsequent offering circular supplement or post-qualification offering circular.

  

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

The information contained in this Offering Circular includes some statements that are not historical and that are considered “forward-looking statements.” Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negatives of these terms or other comparable terminology.

 

The forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance, including the future performance of each of the Offered Series, taking into account all information currently available to us. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider the risks described in the “Risk Factors” section of this Offering Circular before you make an investment decision with respect to the Shares, along with the following factors that could cause actual results to vary from our forward-looking statements:

 

Our business plan is largely untested, and our Manager has limited experience and track record executing our business plan, as well as with real estate financings and acquisitions. If we are unable to execute our business plan, we will not be able to generate any revenues, and our results of operations would be adversely affected.

 

We have recently commenced operations, and the future performance of each Offered Series is difficult to evaluate.

 

Our dependence upon external sources for the financing of our operations, particularly given that there are concerns about our ability to continue as a “going concern.”

 

Changes in national, regional or local economic, demographic, or real estate market conditions may adversely affect our results of operations and returns to our investors.

 

The market in which we participate is competitive and, if we do not compete effectively, our operating results could be harmed.

 

We acquired the Properties from our affiliate, Landa Properties LLC, who previously acquired the Properties from third-party sellers, some of whom have informed us that historical financial information with respect to certain Properties is not available. As a result, we only have limited information about the historical financial performance of certain Properties, including, but not limited to, information about rental history and prior rental income earned on such Properties.

 

An increase in interest rates may result in failure to attract potential investors for a given Offered Series because of the attractiveness of alternative investments, which may result in an Offered Series’ inability to raise the necessary proceeds.

 

The illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of the Properties and harm the Offered Series’ financial conditions.

 

The actual rental income an Offered Series receives for its Property may be less than the estimated market rent for such Property, and the Offered Series may experience a decline in realized rental rates from time to time, which could adversely affect the Offered Series’ financial condition, results of operations and cash flow.

 

Properties that have significant vacancies could be difficult to rent or sell, which could diminish the return on these Properties.

 

ii

 

 

We may enter into long-term leases with tenants in certain Properties, which may not reflect or result in fair market rental rates over time.

 

Each Offered Series will depend on tenants for its revenue, and lease defaults or terminations could reduce its net income and limit its ability to make distributions to investors.

 

Any unforeseen expenses incurred by an Offered Series or a Property may negatively affect the results of operations of that Offered Series beyond the Manager’s control and could materially affect the return on investment for our investors.

 

Costs incurred as a result of governmental laws and regulations may reduce an Offered Series’ net income and the cash available for distributions to investors.

 

Each Offered Series is liable for any potential violations under the Americans with Disabilities Act (the “ADA”).

 

Uninsured losses relating to a Property or costly premiums for insurance coverage could reduce an Offered Series’ cash flows and the return on the investors’ investment.

 

The return on an investor’s investment in Shares of an Offered Series depends on the rental income of the applicable Property and the increase, if any, in the Property’s value.

 

No public market for the Shares currently exists and the Shares will not be listed or quoted on any securities exchange.

 

  We may be subject to claims for rescission or damages in connection with certain sales of Series membership interests that were made in reliance on the exemption from registration provided under Regulation A.

 

If we do not successfully implement or maintain the Secondary Trading Platform or cannot successfully liquidate an Offered Series, or if significant liquidity does not develop in connection with the Secondary Trading Platform, a holder of Shares may have to hold their Shares for an indefinite period.

     

There can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely.

 

No independent party has made any review of us, the Manager or the Shares offered by any Offered Series on the Landa Mobile App. Therefore, investors do not have the benefit of an independent due diligence review conducted by an unaffiliated party to form a basis for their investment decision.

 

Any investment is an investment in the Shares of a specific Offered Series, which will invest only in a designated Property, and is not a diversified investment in multiple Properties, Series, the Company or the Manager. An investor will not have any interest in, nor will their investment be secured by, any assets owned by another Series or the Manager. Any return on investment will depend solely on the revenue of, and ultimately on the return on, the given Offered Series, and the Property held by it.

 

iii

 

 

We may require additional capital to operate each Offered Series and may be unable to obtain such capital on favorable terms or at all. Difficulty in obtaining necessary capital could adversely affect results from operations.

 

Adverse results from litigation or governmental investigations and/or actions can impact our business practices and operating results.

 

New and existing regulations, including with regard to Internet commerce, could cause additional costs of compliance and harm our business.

 

Investors will not have voting rights or control over the management of the Offered Series or the Offered Series’ Property.

 

The Manager relies on third parties, such as appraisers and inspectors, in evaluating a Property, and if those third parties perform in an unsatisfactory manner, it may harm the performance of a given Offered Series.

 

The Manager’s assessment of a Property may not be correct, which may negatively affect the results of operations of that Offered Series.

 

Each Offered Series will be subject to certain fees and expenses, including a Monthly Management Fee and Reserve (each defined below), and there may be no available funds to make any distributions on the Shares.

 

Our ability to implement our investment strategy depends, in part, upon our ability to successfully conduct the Offerings through the Landa Mobile App, which makes an investment in an Offered Series more speculative.

 

Investors could be harmed if we are unable to maintain and grow the Landa Mobile App.

 

If the security of our investors’ confidential information stored in our systems is breached or otherwise subjected to unauthorized access, investors’ secure information may be stolen.

 

Any significant disruption in service on the Landa Mobile App or in our computer systems and/or networks could reduce the attractiveness of the Landa Mobile App and result in a loss of users or user confidence, which may adversely affect holders of Shares of a given Offered Series.

 

We rely on third-party financial services providers and on third-party computer hardware and software. If we are unable to continue utilizing these services, our business and ability to service the corresponding equity investments may be adversely affected.

 

If we experience design defects, errors, failures, or delays with the Landa Mobile App, each Offered Series could suffer serious harm.

 

The series limited liability company structure is relatively new and state law outside Delaware may not treat series within a series limited liability company as separate entities, including for purposes of treating liabilities of each Series as separate from the liabilities of other Series. In addition, changes to bankruptcy, tax or other laws with respect to series limited liability companies may adversely affect our business.

 

iv

 

 

IMPORTANT INFORMATION ABOUT THIS OFFERING CIRCULAR

 

Please carefully read the information in this Offering Circular and any accompanying offering circular supplements, which we refer to collectively herein as the “Offering Circular.” You should rely only on the information contained in this Offering Circular. We have not authorized anyone to provide you with different information. This Offering Circular may only be used in any jurisdictions where it is not unlawful to offer and sell these securities. You should not assume that the information contained in this Offering Circular is accurate as of any date later than the date hereof or such other dates as are stated herein or as of the respective dates of any documents or other information incorporated herein by reference.

 

This Offering Circular is part of an offering statement that we filed with the SEC, using a continuous offering process pursuant to Rule 251(d)(3) of Regulation A of the Securities Act (“Regulation A”). Periodically, as we make material acquisitions or have other material developments, we will provide an offering circular supplement that may add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent offering circular supplement. The offering statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any offering circular supplement, together with additional information contained in our annual reports, semi-annual and other reports and information statements that we will file periodically with the SEC.

 

In addition, you should read the Master Agreement, the Operating Agreement of any Offered Series in which you may be interested in investing, the applicable management agreement between any such Offered Series and the Manager (each, a “Management Agreement”), the subscription agreement to be executed by each investor in connection with each Offering (“Subscription Agreement”) and the information concerning the particular Property held by any such Offered Series set forth in the “Description of the Properties” and “Use of Proceeds” sections herein, including, but not limited to, the Acquisition Fee, Monthly Management Fee, and, if applicable, the Broker Fee (each as defined below), which information will also be available on the Landa Mobile App (for each Property, information can be found on the Property’s “Property Page”), and any related offering materials approved by us prior to making an investment decision (collectively, the “Series Materials”).

 

The offering statement and all supplements and reports that we have filed or will file in the future can be obtained from the SEC’s website, www.sec.gov or at Landa Holding’s website at www.Landa.app. The contents of the Landa Mobile App (other than the Series Materials) are not incorporated by reference in or otherwise a part of this Offering Circular.

 

The Manager will be permitted to make determinations as to whether potential purchasers of Shares in the Offerings are “qualified purchasers” (as defined below) in reliance on the information and representations provided by the potential purchasers regarding the potential purchasers’ financial situation. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

v

 

 

IMPORTANT NOTICES TO INVESTORS

 

INVESTMENT IN THE SHARES INVOLVES A HIGH DEGREE OF RISK, AND INVESTORS SHOULD NOT INVEST ANY FUNDS IN THESE OFFERINGS UNLESS THEY CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERINGS, INCLUDING THE MERITS AND RISKS INVOLVED.

 

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS IN CONNECTION WITH THE OFFERS MADE BY THIS OFFERING CIRCULAR, NOR HAS ANY PERSON BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION OTHER THAN THOSE CONTAINED IN THIS OFFERING CIRCULAR, AND IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON. THIS OFFERING CIRCULAR DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL OR ANY PERSON TO WHO IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION. NEITHER THE DELIVERY OF THIS OFFERING CIRCULAR NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE AN IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE HEREOF.

 

THIS OFFERING CIRCULAR MAY NOT BE REPRODUCED IN WHOLE OR IN PART. THE USE OF THIS OFFERING CIRCULAR FOR ANY PURPOSE OTHER THAN AN INVESTMENT IN SECURITIES DESCRIBED HEREIN IS NOT AUTHORIZED AND IS PROHIBITED.

 

THE PURCHASE PRICES OF THE SECURITIES TO WHICH THIS OFFERING CIRCULAR RELATES HAVE BEEN DETERMINED BY THE ISSUER AND DO NOT NECESSARILY BEAR ANY SPECIFIC RELATION TO THE ASSETS, BOOK VALUE OR POTENTIAL EARNINGS OF ANY SERIES OR ANY OTHER RECOGNIZED CRITERIA OF VALUE.

 

IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE OFFERED SERIES AND THE TERMS OF THE OFFERINGS, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF CERTAIN STATES AND ARE BEING OFFERED AND SOLD IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

vi

 

 

STATE LAW EXEMPTION AND PURCHASE RESTRICTIONS

 

The Shares are being offered and sold only to “qualified purchasers” (as defined in Regulation A). As Tier 2 offerings pursuant to Regulation A, the Offerings will be exempt from state law “Blue Sky” review, subject to meeting certain state filing requirements and complying with certain anti-fraud provisions, to the extent that the securities offered hereby are offered and sold only to “qualified purchasers” or at a time when the securities are listed on a national securities exchange. “Qualified purchasers” include: (i) “accredited investors” under Rule 501(a) of Regulation D of the Securities Act and (ii) all other investors so long as their investment in the securities does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of their annual revenue or net assets at fiscal year-end (for non-natural persons). Accordingly, the Manager reserves the right to reject any investor’s subscription in whole or in part for any reason, including if it determines in its sole and absolute discretion such investor is not a “qualified purchaser” for purposes of Regulation A.

 

To determine whether a potential investor is an “accredited investor” for purposes of satisfying one of the tests in the “qualified purchaser” definition, the investor must be a natural person who has:

 

1. an individual net worth, or joint net worth with the person’s spouse, that exceeds $1,000,000 at the time of the purchase, excluding the value of the primary residence of such person; or

 

2. earned income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and has a reasonable expectation of the same income level in the current year.

 

If the investor is not a natural person, different standards apply. See Rule 501 of Regulation D of the Securities Act for more details in this regard.

 

For purposes of determining whether a potential investor is a “qualified purchaser,” annual income and net worth should be calculated as provided in the “accredited investor” definition under Rule 501 of Regulation D of the Securities Act. In particular, net worth in all cases should be calculated, excluding the value of an investor’s primary residence. 

 

MARKET AND OTHER INDUSTRY DATA

 

This Offering Circular includes market and other industry data and estimates that are based on the Manager’s knowledge and experience in the markets in which we operate. The sources of such data generally state that the information they provide has been obtained from sources they believe to be reliable, but we have not investigated or verified the accuracy and completeness of such information. Our own estimates are based on information obtained from our and our affiliates’ experience in the markets in which we operate and from other contacts in these markets. We are responsible for all of the disclosure in this Offering Circular, and we believe our estimates to be accurate as of the date of this Offering Circular or such other date stated in this Offering Circular. However, this information may prove to be inaccurate because of the method by which we obtained some of the data for the estimates or because this information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. As a result, you should be aware that market and other industry data included in this Offering Circular, and estimates and beliefs based on that data, may not be reliable.

 

vii

 

 

CURRENT AND PREVIOUS SERIES OFFERINGS

 

The table below (the “Master Series Table”) shows key information related to each Series and its underlying Property. This information will be referenced in the following sections when referring to the Master Series Table. In addition, please see the sections entitled “Description of the Properties” and “Use of Proceeds” included herein for more information regarding each of the Offered Series.

 

The Company is offering 10,000 Shares in each of the 43 Offered Series, for an aggregate total of 430,000 Shares.

 

As of the date of this Offering Circular, all of the Series designated as:

 

  “Closed” in the column “Offering Status” in the Master Series Table have closed their respective offerings and are no longer offering membership interests;

 

  “Withdrawn” in the column “Offering Status” in the Master Series Table have not commenced their respective offerings and have withdrawn such offerings from this Offering Circular;

 

“Open” in the column “Offering Status” in the Master Series Table have ongoing Offerings; and

     

“New” in the column “Offering Status” have not yet launched their respective Offerings and will launch their Offerings within two (2) calendar days after the first qualification date of the offering statement of which this Offering Circular forms a part.

 

Master Series Table

 

Series   Offering Status   Opening Date   Closing Date   Qualification Date   Total Number of Shares Sold (1)     Property Appraisal Date   Property Appraisal Amount     Monthly Rental Income (5)(11)     Lease Expiration (11)   Monthly Property Taxes     Insurance Expiration   Monthly Insurance Expense  
Landa Series 115 Sardis Street (2), (7), (8)   Withdrawn   n/a   n/a   6/29/2021     0     12/5/2019   $ 53,000     $ 810     2/28/2022   $ 128     7/31/2022   $ 35  
Landa Series 1394 Oakview Circle (2), (7), (8)   Closed   7/1/2021   8/9/2021   6/29/2021     10,000     12/5/2019   $ 108,000     $ 775     12/31/2021   $ 116     7/31/2022   $ 26  
Landa Series 1701 Summerwoods Lane (2), (7), (8)   Closed   7/20/2021   9/3/2021   6/29/2021     8,265     12/5/2019   $ 92,000     $ 950     8/31/2022   $ 119     7/31/2022   $ 30  
Landa Series 1741 Park Lane (2), (7), (8)   Closed   7/27/2021   9/3/2021   6/29/2021     3,518     12/4/2019   $ 95,000     $ 725     12/31/2021   $ 154     7/31/2022   $ 35  
Landa Series 209 Timber Wolf Trail (2), (7), (8)   Withdrawn   n/a   n/a   6/29/2021     0     12/5/2019   $ 120,000     $ 775     12/31/2021   $ 75     7/31/2022   $ 36  
Landa Series 2505 Oak Circle (2), (8)   Withdrawn   n/a   n/a   6/29/2021     0     10/15/2020   $ 111,000       (12)      (12)   $ 89     7/31/2022   $ 31  
Landa Series 271 Timber Wolf Trail (2), (7), (8)   Withdrawn   n/a   n/a   6/29/2021     0     10/15/2020   $ 111,000     $ 950     9/30/2022   $ 78     7/31/2022   $ 37  
Landa Series 29 Holly Grove Road (2), (7), (8)   Withdrawn   n/a   n/a   6/29/2021     0     12/13/2019   $ 94,000     $ 710     4/30/2022   $ 122     7/31/2022   $ 31  
Landa Series 1703 Summerwoods Lane (3), (4), (7), (8)   New                 0     2/1/2021   $ 103,900     $ 950     1/31/2022   $ 111     7/31/2022   $ 34  
Landa Series 1712 Summerwoods Lane (3), (4), (7), (8)   New                 0     2/1/2021   $ 103,900     $ 875     12/31/2021   $ 111     7/31/2022   $ 34  
Landa Series 1743 Summerwoods Lane (3), (4), (7), (8)   New                 0     2/1/2021   $ 103,900     $ 975     5/31/2022   $ 111     7/31/2022   $ 34  
Landa Series 1750 Summerwoods Lane (3), (4), (7), (8)   New                 0     2/1/2021   $ 103,900     $ 875     5/31/2022   $ 111     7/31/2022   $ 34  
Landa Series 4267 High Park Lane (3), (4), (7), (8)   New                 0     2/1/2021   $ 139,000     $ 1,150     10/31/2021   $ 115     7/31/2022   $ 50  

 

viii

 

 

Series   Offering Status   Opening Date   Closing Date   Qualification Date   Total Number of Shares Sold (1)     Property Appraisal Date   Property Appraisal Amount     Monthly Rental Income (5)(11)     Lease Expiration (7)(11)   Monthly Property Taxes     Insurance Expiration   Monthly Insurance Expense  
Landa Series 4474 Highwood Park Drive (3), (4), (7), (8)   New                 0     2/1/2021   $ 125,000     $ 1,125     3/31/2022   $ 155     7/31/2022   $ 42  
Landa Series 4809 / 4811 Pinedale Drive (3), (4), (6), (7), (8)   New                 0     2/1/2021   $ 167,000     $ 750     12/31/2021   $ 120     7/31/2022   $ 46  
Landa Series 5051 Maple Drive (3), (4), (7), (8)   New                 0     2/1/2021   $ 98,000     $ 1,275     12/31/2021   $ 78     7/31/2022   $ 41  
Landa Series 8569 Creekwood Way (3), (4), (7), (8)   New                 0     2/1/2021   $ 76,000     $ 795     11/30/2021   $ 61     7/31/2022   $ 39  
Landa Series 9439 Lakeview Road (3), (4), (7), (9)   New                 0     2/1/2021   $ 165,900     $ 1,208     7/31/2022   $ 178     7/31/2022   $ 47  
Landa Series 10167 Port Royal Court (3), (4), (7), (9)   New                 0     3/1/2021   $ 110,000     $ 1,000     9/30/2021   $ 104     7/31/2022   $ 47  
Landa Series 1246 Elgin Way (3), (4), (7), (9)   New                 0     3/1/2021   $ 127,000     $ 1,150     2/28/2022   $ 143     7/31/2022   $ 46  
Landa Series 168 Brookview Drive (3), (9)   New                 0     3/1/2021   $ 110,000       (12)     (12)   $ 127     7/31/2022   $ 42  
Landa Series 1910 Grove Way (3), (4), (7), (9)   New                 0     3/1/2021   $ 110,000     $ 1,175     2/20/2022   $ 124     7/31/2022   $ 46  
Landa Series 268 Brookview Drive (3), (4), (7), (9)   New                 0     3/1/2021   $ 120,000     $ 1,260     7/31/2022   $ 127     7/31/2022   $ 41  
Landa Series 593 Country Lane (3), (4), (7), (9)   New                 0     3/1/2021   $ 95,000     $ 971     6/30/2022   $ 136     7/31/2022   $ 43  
Landa Series 6436 Stone Terrace (3), (4), (7), (9)   New                 0     3/1/2021   $ 60,000     $ 1,000     6/30/2022   $ 60     7/31/2022   $ 41  
Landa Series 6440 Woodstone Terrace (3), (4), (7), (9)   New                 0     3/1/2021   $ 62,000     $ 875     11/30/2021   $ 60     7/31/2022   $ 37  
Landa Series 6848 Sandy Creek Drive (3), (4), (7), (9)   New                 0     3/1/2021   $ 86,000     $ 1,025     3/31/2022   $ 86     7/31/2022   $ 40  
Landa Series 687 Utoy Court (3), (4), (7), (9)   New                 0     3/1/2021   $ 110,000     $ 975     2/28/2022   $ 79     7/31/2022   $ 39  
Landa Series 729 Winter Lane (3), (4), (7), (9)   New                 0     3/1/2021   $ 110,000     $ 1,060     4/30/2022   $ 97     7/31/2022   $ 48  
Landa Series 7349 Exeter Court (3), (4), (7), (9)   New                 0     3/1/2021   $ 110,000     $ 1,060     4/30/2022   $ 139     7/31/2022   $ 48  

 

 

 

 

ix

 

 

Series   Offering Status   Opening Date   Closing Date   Qualification Date   Total Number of Shares Sold (1)     Property Appraisal Date   Property Appraisal Amount     Monthly Rental Income (5)(11)     Lease Expiration (7)(11)   Monthly Property Taxes     Insurance Expiration   Monthly Insurance Expense  
Landa Series 773 Villa Way (3), (4), (7), (9)   New                 0     3/1/2021   $ 96,000     $ 977     8/31/2022   $ 118     7/31/2022   $ 45  
Landa Series 8645 Embrey Drive (3), (4), (7), (9)   New                 0     3/1/2021   $ 113,000     $ 1,103     6/30/2022   $ 108     7/31/2022   $ 41  
Landa Series 8780 Churchill Place (3), (4), (7), (9)   New                 0     3/1/2021   $ 126,000     $ 1,200     11/30/2021   $ 130     7/31/2022   $ 50  
Landa Series 8796 Parliament Place (3), (4), (7), (9)   New                 0     3/1/2021   $ 105,000     $ 1,050     8/31/2022   $ 108     7/31/2022   $ 46  
Landa Series 8641 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 130,664     $ 975     5/31/2022   $ 83     7/19/2022   $ 38  
Landa Series 8651 Ashley Way (3), (4), (10), (14)   New                 0     7/19/2021   $ 109,058     $ 800     1/31/2022   $ 67     7/19/2022   $ 32  
Landa Series 8652 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 121,405     $ 925     5/31/2022   $ 74     7/19/2022   $ 40  
Landa Series 8653 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 108,030     $ 925     5/31/2022   $ 69     7/19/2022   $ 30  
Landa Series 8654 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 121,405     $ 1,050     6/30/2022   $ 74     7/19/2022   $ 34  
Landa Series 8655 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 113,174     $ 950     7/31/2022   $ 85     7/19/2022   $ 32  
Landa Series 8658 Ashley Way (3), (4), (10), (14)   New                 0     7/19/2021   $ 121,405     $ 925     3/31/2022   $ 74     7/19/2022   $ 35  
Landa Series 8659 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 129,635     $ 900     5/31/2022   $ 87     7/19/2022   $ 32  
Landa Series 8662 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 125,520     $ 975     7/31/2023   $ 74     7/19/2022   $ 34  
Landa Series 8668 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 134,780     $ 1,025     6/30/2022   $ 104     7/19/2022   $ 46  
Landa Series 8670 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 141,982     $ 1,000     7/31/2022   $ 97     7/19/2022   $ 42  
Landa Series 8674 Ashley Way (3), (4), (10)(15)   New                 0     7/19/2021   $ 120,376     $ 975     2/28/2022   $ 91     7/19/2022   $ 40  

 

x

 

 

Series   Offering Status   Opening Date   Closing Date   Qualification Date   Total Number of Shares Sold (1)     Property Appraisal Date   Property Appraisal Amount     Monthly Rental Income (5)     Lease Expiration (7)   Monthly Property Taxes     Insurance Expiration   Monthly Insurance Expense  
Landa Series 8675 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 118,318     $ 950     5/31/2022   $ 84     7/19/2022   $ 32  
Landa Series 8677 Ashley Way (3), (4), (7) (10)   New                 0     7/19/2021   $ 111,116     $ 1,050     7/30/2022   $ 63     7/19/2022   $ 40  
Landa Series 8678 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 150,213     $ 925     7/31/2022   $ 105     7/19/2022   $ 48  
Landa Series 8679 Ashley Way (3), (4), (10), (14)   New                 0     7/19/2021   $ 120,376     $ 925     10/31/2021   $ 99     7/19/2022   $ 38  
Landa Series 8683 Ashley Way (3), (4), (10), (13)   New                 0     7/19/2021   $ 110,087     $ 975     6/30/2022   $ 87     7/19/2022   $ 32  

 

 

  

  (1) Reflected as of the date of this Offering Circular.

 

  (2) Title for the property underlying this Series is currently held by this Series.

 

  (3) Title for the Property underlying this Offered Series is currently held by Landa Properties. Landa Properties will transfer title to the Property underlying each Offered Series to the applicable Offered Series prior to such Series’ initial Closing.

 

  (4) The Property underlying this Offered Series is currently subject to a lease by and between Landa Properties and the tenant. Landa Properties will assign the lease agreement to the Offered Series upon the transfer of title to the Property to the applicable Offered Series.

  

  (5) The Monthly Rental Income reflects the monthly rental payment set forth in the applicable lease agreement.

 

  (6) This Property is divided into two rental units with each unit having its own lease agreement. The lease agreement for the Property located at 4809 Pinedale Drive, Forest Park, GA, 30297 provides for monthly rental income of $750 and the lease agreement for the Property located at 4811 Pinedale Drive, Forest Park, GA 30297 provides for monthly rental income of $525. The monthly rental income reflected above for these rental units represents the aggregate amount of rental income earned by the two units. By purchasing the Shares of Landa Series 4809 / 4811 Pinedale Drive, investors will have the right to receive distributions from monthly rental income earned by the entire Property (that is, both rental units).

 

  (7) After the Lease Expiration Date, this lease agreement becomes a month-to-month lease, unless the tenant provides notice of an intention to terminate the lease agreement.

 

(8) This Series was registered in Delaware in May 2020.

 

(9) This Series was registered in Delaware in July 2021.

 

(10) This Series was registered in Delaware in September 2021.

 

(11) For more information about the lease terms for a Property, please carefully review the lease agreement for the applicable Property, attached as exhibits in Part III of the offering statement of which this Offering Circular forms a part.

 

(12) As of the date of this Offering Circular, the Property underlying this Series is not subject to a lease agreement.

 

(13) After the Lease Expiration Date, this lease agreement renews for a 12-month period, unless the tenant provides notice of an intention to terminate the lease agreement.

 

(14) After the Lease Expiration Date, this lease agreement becomes a month-to-month lease for a maximum of 12 months, unless the tenant provides written notice of an intention to terminate the lease agreement.

 

(15) After the Lease Expiration Date, this lease agreement renews for two 12-month periods and becomes month-to-month thereafter, unless the tenant provides written notice of an intention to terminate the lease agreement.

 

xi

 

 

QUESTIONS AND ANSWERS ABOUT THE OFFERINGS

 

The following questions and answers about the Offerings highlight material information regarding us, the Offered Series and the Offerings that is not otherwise addressed in the “Offering Summary” section of this Offering Circular. You should read this entire Offering Circular, including the section entitled “Risk Factors,” before deciding to purchase any Shares.

 

Q: What is Landa App LLC?

 

A: Landa App LLC was organized in 2019 as a Delaware limited liability company to offer a unique investment opportunity for eligible investors to benefit from the performance of curated and fully managed rental real estate properties, each of which will be owned by a separate Series of the Company. Landa App LLC was originally organized as Landa Properties A LLC and was subsequently renamed Landa App LLC. Landa App LLC first registered certain of the Series in Delaware in May of 2020 and continues to register Series from time to time.

 

The Company is managed by Landa Holdings pursuant to the Master Agreement. The Company has no employees and holds no assets other than through its Series.

 

Q: What is an Offered Series?

 

A: Each Offered Series is a separate registered series of the Company for purposes of accounting for assets and liabilities. Holders of Shares of an Offered Series will only have a right to receive distributions, if any, from that Offered Series alone and not any other Series or the Company as a whole.

 

 

We expect that each Offered Series will engage Landa Holdings as its manager pursuant to a Management Agreement and the Series Operating Agreement for such Offered Series, and that such Offered Series’ primary assets will be title to the applicable Property (including assets related to such Property) and rental income generated pursuant to the lease agreement related to such Property.

 

None of the Offered Series currently has, or expects to have, any employees.

 

The holders of the Shares will have the rights and be subject to the obligations described in the applicable Series’ Operating Agreement and the Master Agreement, as applicable. See the sections entitled “Description of Shares—Series Operating Agreement” and “Description of Shares—Master Agreement” below. Holders of Shares of an Offered Series will have no rights to direct or vote on any matter concerning such Offered Series and the management of its affairs, including whether or not an Offered Series should sell its Property or dissolve.

 

The Certificates of Registered Series of a Limited Liability Company for each Offered Series are attached as exhibits in Part III of the offering statement of which this Offering Circular forms a part. 

 

Q: What securities are being offered?

 

A: We are offering and selling a maximum of 10,000 membership interests, or “Shares” in each Offered Series.

 

Each Offered Series will use substantially all of the net proceeds from its Offering to pay down affiliate indebtedness used to purchase the Property for such Offered Series, including affiliate indebtedness with respect to Acquisition Fees, Property Diligence Expenses, and Reserves.

 

1

 

 

Each Offered Series’ Offering will be independent of, and not contingent upon, the other Offered Series’ Offerings. An investor will have no claim or recourse to the underlying property of any Series, including the Series for which it holds membership interests, and will have no rights to share in the success of any other Series. You may choose to participate in the Offerings of one or more Offered Series.

 

Q: What is the purchase price for the Shares?

 

A: The Manager has set the prices per Share, specific to each Offered Series, which are as disclosed in the table on the cover page of this Offering Circular. See “Determination of Purchase Price” for additional information.

 

Q: What type of offering is this?

 

A: We are offering the Shares of each Offered Series through the Landa Mobile App on a “best efforts,” no offering-minimum basis to the public at the purchase prices listed on the cover page of this Offering Circular. Since Shares are offered to the public on a “best efforts” basis, we are only required to use our best efforts to sell the Shares of each Offered Series. Neither the Manager nor any other party has a firm commitment or obligation to purchase any of the Shares. There is no minimum number of Shares that need to be sold in each Offering before a Closing may occur.

 

The Offerings will be conducted as a continuous offering pursuant to Rule 251(d)(3) of Regulation A, meaning that while the offering of securities is continuous, active sales of securities may happen sporadically over the term of the Offerings.

 

We expect that Landa Properties will transfer title to the Property underlying each Offered Series to the applicable Offered Series prior to such Offered Series’ initial Closing.

 

The Offering for each Offered Series will be independent of, and not contingent upon, the other Offered Series’ Offerings. By purchasing the Shares of an Offered Series, investors will be acquiring equity interests in the Offered Series and not the underlying Property, and, accordingly, investors will have no recourse to the underlying Property of the Offered Series or any other Series. In addition, investors will have no rights to share in the success of any other Series or other Series’ properties. An investor may choose to participate in the Offerings for one or more of the Offered Series.

  

Further, the acceptance of subscriptions, whether via the Landa Mobile App or otherwise, may be briefly paused at times to allow us to effectively and accurately process and settle subscriptions that have been received.

 

The Company is not offering and does not anticipate selling, Shares in any state where the Broker Dealer is not registered as a broker-dealer.

 

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Q: What happens to my money after I add it to my Landa Mobile App Account (“Landa Account”)?

 

A: All funds deposited into your Landa Account will be placed into a non-interest-bearing custody account maintained by Synapse Financial Technologies, Inc. (the “Custodian”). All bank services provided by the Custodian will be provided directly by Evolve Bank & Trust, Member FDIC. Your Landa Account can be accessed through the Landa Mobile App. The funds in your Landa Account will not be commingled with the operating account of the applicable Offered Series, until, if and when there is a Closing for the Offering of that specific Offered Series with respect to the Shares that you have subscribed to, which will occur immediately following acceptance of any subscription. A subscription will be accepted or rejected in whole or in part in the Manager’s sole discretion promptly following receipt of the subscription agreement. The Manager will accept subscriptions on a first-come, first-served basis subject to the right to reject or reduce subscriptions.

  

If your subscription is rejected in whole or in part, you may withdraw the subscription funds related to the rejected portion of your subscription from your Landa Account promptly after notification of such rejection.

 

The Manager will be responsible for paying any fees paid to the Custodian. See “Plan of Distribution” for additional information.

 

Q: Who can buy Shares?

 

A: Generally, you may purchase Shares if you are a “qualified purchaser,” as defined in Regulation A. “Qualified purchasers” include:

 

“accredited investors” under Rule 501(a) of Regulation D; or

 

all other investors so long as their investment in the Shares does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of their annual revenue or net assets at fiscal year-end (for non-natural persons).

 

Q: How does the subscription process work?

 

A: You may subscribe to purchase the Shares of one or more Offered Series in the Offerings by creating a new account, or logging into your existing account, on the Landa Mobile App. You will need to review the Series Materials, execute a subscription agreement and Operating Agreement for the applicable Offered Series, and pay for the Shares that you intend to purchase at the time you subscribe via the Landa Mobile App.

 

Once you subscribe to Shares of a given Offered Series in the Landa Mobile App, the Broker Dealer will promptly review your information and subscription materials to confirm if you are eligible to invest in the applicable Offering. Once confirmed, the Manager, acting in its sole discretion, will either accept or reject your subscription (in whole or in part) and a Closing will occur with respect to those Shares accepted, if any.

 

When a Closing occurs, funds will be transferred by the Custodian from your Landa Account to the Offered Series’ operating account and you will receive your Shares purchased. For more information, see “Plan of Distribution — How to Subscribe for Shares.”

  

The Manager reserves the right to reject any investor’s subscription in whole or in part for any reason, including if the Manager determines in its sole and absolute discretion that such investor is not a “qualified purchaser” for purposes of Regulation A. Please refer to the section above entitled “State Law Exemption and Purchase Restrictions” for more information.

 

Please see “Plan of Distribution— How to Subscribe for Shares” for additional information.

 

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Q: What is the Landa Mobile App?

 

A: The Landa Mobile App is a mobile application for acquiring Shares in one or more Offered Series. The Landa Mobile App gives investors the ability to:

 

Browse and evaluate each Offered Series’ Offering and obtain information about an Offered Series and Property, including location, property type, and projected rental income;

 

Connect a bank account to the Landa Mobile App, transfer funds to their Landa Account and monitor their Landa Account balance;

 

Review the Series Materials for the applicable Offered Series;

 

Transact entirely online, by executing legal documentation, transferring funds and recording ownership;

 

Manage and track investments through an online portfolio; and

 

Receive distributions and regular financial and tax documentation.

 

The Landa Mobile App is the intellectual property of Landa Holdings and neither the Company, nor any Series, have any rights or interest in the Landa Mobile App.  Landa Holdings has granted a license to each Offered Series in order to, among other things, use the Landa Mobile App for the Offerings, pursuant to a license agreement (the “Landa App License Agreement”).  Any fees associated with the Offered Series’ use of the Landa Mobile App will be included as part of the Monthly Management Fee (as defined below).

 

Q: Is there any minimum investment required?

 

A: Yes. You must initially purchase at least one (1) Share in an Offered Series in order to participate in its Offering. There is no minimum investment requirement on additional purchases after you have purchased the minimum amount, however, the Manager may revise the minimum purchase requirements in the future or, in certain instances, elect to waive any minimum purchase requirement.

 

Q: What will you do with the proceeds from the Offerings?

 

A: Each Offered Series will use substantially all of the net proceeds from its Offering to pay down a portion of the affiliate indebtedness used to purchase the Property for such Offered Series, including affiliate indebtedness with respect to Acquisition Fees, Property Diligence Expenses, and Reserves. In connection with the acquisition of its Property, each Offered Series issued an Acquisition Note (as defined below). See “—Will the Company use financing?” and the sections entitled “Use of Proceeds” and “Description of the Properties.”

 

Q: How long will each Offering last?

 

A: We expect that each Offered Series Offering will remain open for investors until the earliest of (i) the date we raise the Maximum Offering Amount, (ii) the second anniversary of the first qualification date of the offering statement of which this Offering Circular forms a part pursuant to which Shares of such Offered Series were able to be offered, and (iii) a date determined by the Manager, in its sole discretion, based on a number of factors, including the level of current or anticipated interest in an Offered Series.

 

We expect that each Offering will have multiple Closings that will occur immediately following the acceptance of a subscription for Shares.

 

Q: Who will allocate the Properties among the Offered Series?

 

A: Landa Holdings, Inc., as the Manager, will allocate the Properties among the Offered Series as specified in the table on the cover page of this Offering Circular.

 

Q: Where will the title for each Property be held?

 

A: We intend for title to each applicable Property to be held by the respective Offered Series; provided, however, that, prior to an Offered Series’ initial Closing, the Company, or any of its subsidiaries or affiliates, may hold title to a Property, eventually transferring title to its applicable Offered Series. The Master Series Table indicates for each Property whether title is currently held by the applicable Series or the Company, or any of its subsidiaries or affiliates.

 

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Q: How long will each Offered Series hold its Property?

 

A: We expect each Offered Series to hold its Property indefinitely, provided, however, the Manager may, acting in its sole discretion, sell or otherwise dispose of a Property pursuant to the terms of the applicable Offered Series’ Operating Agreement. If a Property is sold or otherwise disposed of, an Offered Series will liquidate in accordance with the terms of the applicable Offered Series’ Operating Agreement.

 

Q: Where can I find general information and any updates about an Offered Series or an Offered Series’ Property?

 

A: This Offering Circular will contain information with respect to each Offered Series, including the Acquisition Fee, Monthly Management Fee (each as defined below) and information about the underlying Property, including, but not limited to, lease terms, rental information, information about the city in which the Property is located and general information about the Property. Such information is available in the “Description of the Properties” section in this Offering Circular. This information may also be accessed on the applicable Property Page in the Landa Mobile App. In addition, on the Offered Series’ Property Page in the Landa Mobile App, investors will be able to access executed copies of the Series Materials for the applicable Offered Series and view the amount of funds currently held in the dedicated custody account of an Offered Series.

 

All material information that investors would need to make an investment decision with respect to the Shares will be provided or incorporated by reference in this Offering Circular or attached as an exhibit to the offering statement of which this Offering Circular forms a part.

 

We will also amend this Offering Circular to reflect any material updates that may occur with respect to the Offered Series for which we are offering Shares and their Properties. Investors may also refer to our current, semi-annual, and annual reports on Forms 1-U, 1-SA and 1-K, respectively, as well as the applicable Property Page in the Landa Mobile App, for updates regarding the Offered Series and their Properties.

 

Q: What competitive advantages do you achieve through your relationship with the Manager?

 

A: The Manager will make use of its personnel and resources, including its proprietary technology, and select Properties to be acquired, evaluate returns, analyze property prices and manage each Offered Series’ day-to-day operations. We will also use the Manager’s personnel and resources to identify and acquire new Properties for future Offerings by newly formed Series. We will use the Manager’s corporate and operating platforms, as well as cash reserves, to realize economies of scale and other benefits.

 

See “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Related Party Loans” for additional information.

 

Q: How is the liquidity of an investment in the Shares different from investing in shares of a listed or quoted company?

 

A: A fundamental difference between the Shares and shares in a company listed or quoted on a national securities exchange, such as Nasdaq, the New York Stock Exchange, or the Pink Sheets, is the daily liquidity of the shares of a listed or quoted company. While there is an established marketplace for the trading of shares of a company that is listed or quoted on a national securities exchange, the Shares will generally not be transferable except through the Secondary Trading Platform, to the extent an active market on the Secondary Trading Platform is established.

 

See “—Will I be able to transfer my Shares after I acquire them?” below for additional information.

 

For investors with a short-term investment horizon, a company that is listed or quoted on a national securities exchange may provide a more suitable alternative to investing in the Shares.

 

Additionally, companies that are listed or quoted on a national securities exchange are subject to more demanding public disclosure and corporate governance requirements than we will be subject to.

 

Q: Will I be able to transfer my Shares after I acquire them?

 

A: The Shares will be issued in electronic form only and will not be listed or quoted on any securities exchange. The Shares will generally not be transferable, except through the Secondary Trading Platform.

 

We expect that after an Offered Series’ Offering has concluded, the Secondary Trading Platform will be available for the resale of such Series’ Shares; provided, however, such resale of an Offered Series’ Shares will be subject to federal and state securities laws and the restrictions in the Operating Agreement, and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely.

 

See “Plan of Distribution - Transferability of the Shares.”

 

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Q: Will I be charged any fees in connection with any trades on the Secondary Trading Platform?

 

A: Initially, any transaction fees associated with buying or selling Shares on the Secondary Trading Platform will be paid by the Manager.

 

Q: Will I have the opportunity to redeem my Shares?

 

A: No. The Shares are not redeemable at your option.

 

Q: Who will pay the Offered Series’ organization and offering costs?

 

A: The Manager will pay all costs incurred in connection with each Offered Series’ organization, including, the Offered Series’ registration fee and franchise tax in the states of Delaware and Georgia. In addition, the Manager will pay all costs incurred in connection with each Offering.

 

Q: What fees and expenses will each Offered Series pay to the Manager or any of its affiliates?

 

A: In connection with the acquisition, or expected acquisition, of its Property from Landa Properties LLC, a wholly owned subsidiary of the Manager and an affiliate of ours (“Landa Properties”) each Offered Series issued an Acquisition Note to the Manager, which included payment to the Manager of an acquisition fee ranging from five percent (5%) to ten percent (10%) of the purchase price of the Property (“Acquisition Fee”). For more information, please see “— Will the Company use financing?”.

 

The Acquisition Fee for each Offered Series was calculated by the Manager, acting in its sole discretion, based on several factors, including the purchase price of the Property, as well as sourcing and due diligence costs incurred in connection with the acquisition of the Property. The Manager will pay the Broker Fee to the Broker Dealer, and no Offered Series will be responsible for the Broker Fee. Information about the Acquisition Fee for each Offered Series can be found in the sections of this Offering Circular entitled “Use of Proceeds” and “Description of the Properties” and on the Property Page for the applicable Offered Series on the Landa Mobile App.

 

Each Offered Series will also pay the Manager a monthly management fee pursuant to the Management Agreement (the “Monthly Management Fee”). The Monthly Management Fee will range from five percent (5%) to ten percent (10%) of the gross monthly rent amount collected by an Offered Series (the “Gross Monthly Rent”), as set forth in the applicable Series Materials. The Monthly Management Fee will be calculated by the Manager acting in its sole discretion, based on factors such as the purchase price of a Property, the amount of rental income generated by a Property, the general condition of a Property, and rental market in the area in which a Property is located. The Manager may adjust the Monthly Management Fee at its sole discretion, but at no time will the Monthly Management Fee exceed 10% of Gross Monthly Rent. Information about the Monthly Management Fee, or expected Monthly Management Fee, for each Offered Series can be found in the sections of this Offering Circular entitled “Use of Proceeds” and “Description of the Properties”, and on the Property Page for the applicable Offered Series on the Landa Mobile App.

 

Further, each Offered Series will also reimburse the Manager for any out-of-pocket expenses to be applied for, among other things, special servicing of non-performing Properties, liquidation of Properties, and any other fees or expenses associated with the Offered Series or the Property. Finally, each Offered Series will reimburse the Manager for any out-of-pocket expenses paid to third parties in connection with providing fixture and capital repair services for its underlying Property. This does not include the Manager’s overhead and administrative costs, employee costs borne by the Manager, or utilities or technology costs. In the case that the Manager provides a loan to an Offered Series, the Offered Series will be obligated to pay interest no greater than 7% on that loan at a rate to be determined solely by the Manager. See section entitled “Description of Our Business – Our Manager - Manager Compensation” for a more detailed explanation of the fees and expenses payable to the Manager.

 

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Q: Will there be a lien or any other encumbrance on a Property?

 

A: If an Offered Series enters into a third-party mortgage and/or other debt instruments, such debt may be secured by a security interest in the title of such Property and/or any other assets of the applicable Offered Series.

 

Q: Will the Company use financing?

 

A: Yes. Initially, each Offered Series issued a promissory note to the Manager to finance 100% of the costs associated with the acquisition, or expected acquisition, of its Property, including Acquisition Fees, Property Diligence Expenses, and Reserves (each an “Acquisition Note” and collectively the “Acquisition Notes”). Each Acquisition Note represents a related-party loan between each respective Series and the Manager. The Acquisition Notes issued by each Offered Series bear an interest rate of up to 4.5% per annum, provided that interest will not accrue on the Acquisition Notes issued by the Offered Series, and no payment of amounts outstanding under such Acquisition Notes will be due, prior to the transfer to the applicable Offered Series of title to its Property, and if such title transfer does not occur prior to the maturity of such Acquisition Note, such Acquisition Note will terminate with no obligation for the Offered Series to make any payment thereunder.

 

We expect each Offered Series will pay down, or otherwise discharge, the outstanding balance of its Acquisition Note with an interest-bearing note to the Manager (each a “Refinance Note” and collectively the “Refinance Notes”), to be issued after the qualification date of the offering statement of which this Offering Circular forms a part, and substantially all of the net proceeds from the Offered Series’ Offering.  We expect that each Refinance Note, if issued, will represent interest-bearing related-party loans between each respective Offered Series and the Manager.

 

While we expect each Refinance Note issued by an Offered Series to be issued for the principal amount and on the terms disclosed in this Offering Circular, it is in the Manager’s sole discretion to alter such amount and terms, or to decide whether such Offered Series issues a Refinance Note at all, provided, however, in no event shall the interest rate on the Refinance Note exceed 4.5% per annum.

 

Each Refinance Note will require payments of interest only for the term of such note, with the principal balance due upon maturity. For more information on the principal amounts and terms of each Acquisition Note and the expected principal amounts and terms of each Refinance Note, see “Management’s Discussion and Analysis of Financial Condition and Results of Operation — Related Party Loans.”

 

Each Offered Series may also seek to refinance any outstanding indebtedness with a non-affiliate mortgage and/or other non-affiliate debt financing. We expect that any third-party mortgage and/or other debt instruments that an Offered Series enters into in connection with a refinancing of a Property will be secured by a security interest in the title of such Property and any other assets of the Offered Series.

 

See the sections of this Offering Circular entitled “Description of the Properties,” “Use of Proceeds,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” for more information.

 

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Q: How often will I receive distributions?

 

A: We intend for each Offered Series to make distributions to the holders of Shares monthly. If any Shares are held by a holder for only a portion of the applicable month, the holder will be entitled to a pro-rata portion of the monthly distribution, if any, based on the number of days during the month that the holder held the Shares.

 

Any distributions that an Offered Series makes will be at the complete discretion of the Manager and will be based on a number of factors, including, but not limited to, the total number of Shares sold, the Monthly Management Fee, expenses (including any unanticipated capital expenditures), taxes, amounts allocated to Reserves (as defined below), and actual and accrued cash flows of the applicable Offered Series. For Properties that are vacant, an Offered Series will not be able to make distributions until such Offered Series enters into a lease agreement.

 

Distributions for each Offered Series will be calculated on a pro-rata basis, however the Manager intends to modify the total amount of each distribution based on the total number of Shares of that Offered Series that are outstanding and entitled to participate in the distribution, such that each holder will receive a distribution on their Shares equal to what they would have otherwise received if all 10,000 authorized Shares of the Offered Series were outstanding and entitled to participate in such distribution. Accordingly, the number of Shares that have been sold in the applicable Offering at the time of any distribution will not affect the per Share amount that will be paid in such distribution. Please see “Description of the Properties” section in this Offering Circular for more information.

 

Since the Offerings are being conducted as a continuous offering pursuant to Rule 251(d)(3) of Regulation A, any Closing for Shares you purchase may occur in the middle of a month, in which case you will be eligible to receive distributions, if any, beginning with the month in which you purchase your Shares calculated on a pro-rata basis, based on the number of days in the applicable month that you owned such Shares. For example, if you purchase the Shares in an Offering on the 15th day of a month, and assuming such month has 30 days and that the distributions to be paid per Share for that month equal $0.50, you will receive an initial distribution of $0.25 per Share for that month (calculated based on the 15 days you held the Shares, or 50% of the total distribution on those Shares).

 

For any holder that acquires Shares on the Secondary Trading Platform, the initial distribution paid to such holder, if any, will be made on a pro-rata basis, based on the number of days in the applicable month that such Shares were held by such holder. For example, if a buyer and a seller transact in Shares on the Secondary Trading Platform on the 15th day of a month, and assuming such month has 30 days and that the distributions to be paid per Share equal $0.50, the Series shall pay to the seller a final distribution of $0.25 (calculated based on the 15 days the seller held the Shares, or 50% of the total distribution on those Shares), and shall pay to the buyer the remaining $0.25 (calculated based on the remaining 15 days the buyer held the Shares, or 50% of the total distribution on those Shares).

 

We can provide no assurances that future cash flow will support payment of distributions or that we can maintain distributions at any particular level or at all.

 

Q: What will be the source of distributions on the Shares?

 

A: Distributions will be paid from the excess net operating income of a given Offered Series, after necessary fees, expenses and taxes are paid, and an allocation to Reserves is completed. We can provide no assurances that future cash flows will support payment of distributions or that we can maintain distributions at any particular level or at all. For Properties that are vacant, an Offered Series will not be able to make distributions until such Offered Series enters into a lease agreement. In addition, liquidating distributions may be made upon the sale of an Offered Series’ Property in accordance with the terms of the applicable Offered Series Operating Agreement. See “Description of Shares – Distributions” for a more detailed explanation of the flow of funds.

 

Q: Will the distributions I receive be taxable as ordinary income?

 

A: For U.S. federal income tax purposes, distributions made with respect to Shares of an Offered Series will be treated as dividends to the extent of the current and accumulated earnings and profits of the Offered Series. Any distributions in excess of earnings and profits will be treated first as a return of the holder’s adjusted tax basis in the Shares and thereafter as gain on a sale of the Shares. Dividends are ordinary income, but dividends received by non-corporate holders may qualify for a reduced rate of federal income tax as “qualified dividend income” if certain holding period requirements are satisfied. Distributions treated as gain will be capital gains if the Shares are held as a capital asset. For more information, please review the section of the Offering Circular entitled “U.S. Federal Income Tax Considerations”, which is incorporated herein by reference.

 

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Q: May I reinvest my cash distributions in additional Shares?

 

A: Yes. You may reinvest distributions you receive into Offerings of Shares by other Offered Series or any Offered Series in which you previously invested, provided that such Offerings remain open and you continue to be a “qualified purchaser,” as defined by Regulation A at the time of such purchase.

 

Q: Are there any risks involved in buying the Shares?

 

A: Yes, investing in the Shares involves a high degree of risk. If we are unable to effectively manage the impact of these risks, we may not meet our investment objectives, and therefore, you should purchase Shares only if you can afford a complete loss of your investment. See “Risk Factors” beginning on page 15 for a discussion of certain risks that you should consider in connection with an investment in the Shares.

 

Q: May I make an investment through my IRA or other tax-deferred retirement account?

 

A: No.

 

Q: How will I be notified of how my investment is doing?

 

A: We will provide you with periodic updates on the performance of your investment in an Offered Series and its related Property, including:

 

An annual report on Form 1-K;

 

A semi-annual report on Form 1-SA;

 

Current event reports for specified material events within four business days of their occurrence on Form 1-U;

 

Supplements to this Offering Circular, if we have material information to disclose to you; and

 

Other reports that we may file or furnish to the SEC from time to time.

 

We will provide this information to you by filing such information on the SEC’s website at www.sec.gov.

 

Q: When will I get my detailed tax information?

 

A: Your IRS Form, including Forms 1099-DIV and 1099-B tax information, if required, will be provided by January 31 of the year following each taxable year.

 

Q: Who can help answer my questions about the Offerings?

 

A: If you have more questions about any of the Offered Series or any Offering, or if you would like additional copies of the applicable Series Materials, you should contact us via email at hi@landa.app or by mail at:

 

Landa App LLC

Attn: Landa Holdings, Inc.

6 W. 18th Street

New York, NY 10011 

 

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OFFERING SUMMARY

 

This Offering Summary highlights material information regarding our business and the Offerings that is not otherwise addressed in the sections entitled “Questions and Answers About the Offerings” in this Offering Circular. Because it is a summary, it may not contain all of the information that is important to you. To understand this offering fully, you should read this entire Offering Circular carefully, including the “Risk Factors” section prior to making a decision to invest in the Shares.

 

Overview

 

Landa Holdings, Inc.

 

Landa Holdings was formed as a Delaware limited liability company on February 7, 2019, and was subsequently converted to a Delaware corporation under the name Landa Holdings, Inc. on September 12, 2019. Landa Holdings will serve as the Manager to the Company and each Offered Series and will identify a residential or commercial rental Property for each future Offered Series to acquire. Landa Holdings will also manage these Properties on behalf of the Offered Series and will earn compensation for these services.

 

From time to time, Landa Holdings may organize limited liability companies or series limited liability companies, such as the Company, and will raise funds for these entities through the Landa Mobile App by relying on offerings exempt from registration requirements pursuant to Regulation A. Landa Holdings’ aim is to grow the number of users on the Landa Mobile App, and provide investors with steady, monthly cash flows generated by the rental of the underlying Properties. The Landa Mobile App maintains an investment minimum of at least one (1) Share in an Offered Series in order to participate in an Offering. Each Offered Series will use substantially all of the net proceeds from its Offering to pay down affiliate indebtedness used to purchase the Property for such Offered Series, including affiliate indebtedness with respect to Acquisition Fees, Property Diligence Expenses, and Reserves.

 

Landa Holdings, Inc. serves as manager to our affiliate, Landa Properties LLC, a Delaware series limited liability company (“Landa Properties”).

 

Landa App LLC

 

Landa App LLC (the “Company”) was organized in 2019 as a Delaware limited liability company. Landa App LLC was originally organized as Landa Properties A LLC and was subsequently renamed Landa App LLC. The Company has registered each of the Offered Series in Delaware and will continue to register Series from time to time. Each Series will be treated as a corporation for U.S. federal income tax purposes.

 

See the Master Series Table and the section of this Offering Circular entitled “Description of the Properties” for a description of each Offered Series and its underlying Property.

 

Property Acquisition Strategy

 

We intend to acquire properties on an opportunistic basis, which may consist of a wide variety of both residential and commercial rental properties, including single-family, multi-family, office, industrial, retail, hospitality, recreation and leisure, and other real properties. We focus on acquiring market ready properties, which may include existing income-producing properties or newly constructed properties, in neighborhoods with growing rental demand, strong rental history and in geographic regions which provides steady real estate asset growth. Our acquisition strategy does not include major rehabilitation or repurposing of existing structures or new ground-up development. Our target markets are neighborhoods surrounding metropolitan statistical areas of at least one million (1,000,000) residents, which we estimate having historical capitalization rates ranging from approximately five percent (5%) to ten percent (10%) for single-family homes, six percent (6%) to seven percent (7%) for multi-family homes and six and a half percent (6.5%) to eight percent (8%) for commercial properties. In addition, we expect to target cities with growing populations or cities that show strong rental demand.

  

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Property Acquisition Objectives

 

Our primary investment objective is to maximize net rental income so that an increasing amount of cash flow is distributed to holders on a monthly basis. However, there is no assurance that our acquisition objectives will be realized with respect to any given Offered Series.

 

Market Opportunities

 

We believe that the near and intermediate-term market for acquisitions of cash flow generating residential and commercial rental properties is strong from a risk-return perspective. We favor a strategy weighted toward maximizing monthly investor distributions, targeting acquisitions with strong monthly cash flows and above average capitalization rates.

 

We do not plan on pursuing more risky, opportunistic or value-add Properties which may need significant restoration or repositioning.

 

The Manager

 

Landa Holdings, as the Manager, will manage day-to-day operations of the Company and each Offered Series. The Manager is not a registered broker-dealer, an investment adviser, crowdfunding platform or other securities intermediary. A team of real estate professionals, acting through the Manager, will leverage their expertise and utilize the Manager’s proprietary technology to make all the decisions regarding the selection, negotiation, financing, management, and disposition of the Properties owned by each Offered Series, subject to the limitations in each Operating Agreement. The Manager will also provide property management, marketing, investor relations and other administrative services on our behalf with the goal of maximizing the operating cash flow of each Series and the value of each Property. The Manager will be able to exercise significant control over our business, as well as the business of each Offered Series. See “Description of Our Business – Our Manager” for additional information.

 

The Landa Mobile App

 

The Manager owns and operates a mobile app-based investment platform, which we refer to herein as the “Landa Mobile App.” We intend to distribute the Shares in the Offerings exclusively through the Landa Mobile App.

 

The Landa Mobile App is the intellectual property of Landa Holdings and neither the Company, nor any Series, have any rights or interest in the Landa Mobile App.  Landa Holdings has granted a license to each Offered Series in order to, among other things, use the Landa Mobile App for the Offerings, pursuant to the Landa App License Agreement, which is attached as an exhibit to the offering statement of which this Offering Circular forms a part.  Any fees associated with the Offered Series’ use of the Landa Mobile App will be included as part of the Monthly Management Fee.

 

The Landa Mobile App is available for download in application stores on iOS and Android devices.

 

Manager Compensation

 

The Manager will receive fees and expense reimbursements for services relating to the selection, acquisition, and management of the Properties. See “Description of Our Business – Our Manager - Manager Compensation” for a more detailed explanation of the fees and expenses payable to the Manager. The Manager will not receive any selling commissions or dealer manager fees in connection with the offer and sale of the Shares.

 

Corporate Information

 

Our office is located at 6 W. 18th Street, New York, NY 10011, Attn: Landa Holdings, Inc. Our telephone number is (646) 905-0931. Information regarding our Company is also available on the Landa Mobile App, which is available for download in application stores on iOS and Android devices, and on Landa Holding’s website at www.landa.app. 

 

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THE OFFERING

 

Issuer  

A limited purpose Delaware limited liability company that will register separate Series. Each Offered Series will hold a residential or commercial rental property as its primary asset.

     
Securities Offered   We will offer up to a maximum of 10,000 Shares of each Offered Series. By purchasing Shares of an Offered Series, investors will be purchasing a membership interest in that specific Offered Series. Each Offered Series’ Offering will be independent of, and not contingent upon, the other Offered Series’ Offerings. You may choose to participate in the Offerings of one or more Offered Series.
     
Prices per Share   The purchase prices per Share are set forth in the table on the cover page of this Offering Circular and in the applicable Series Materials.
     
Minimum and Maximum Offering Amounts   The Offerings are being conducted on a “best efforts” basis and there is no minimum offering amount. The Maximum Offering Amounts are set forth in the table on the cover page of this Offering Circular.
     
Offering Periods; Closings  

The Offerings are being conducted as a continuous offering pursuant to Rule 251(d)(3) of Regulation A, meaning that while the offering of Shares of an Offered Series is continuous, active sales of Shares may happen sporadically over the term the Offerings. Each Offering will commence within two (2) calendar days after the first qualification date of the offering statement of which this Offering Circular forms a part and, unless earlier terminated by the Manager, each Offered Series will offer Shares until no later than the second anniversary of such qualification date.

    

We expect that there will be multiple Closings for each Offering at which time Shares will be sold and the subscription price will be transferred to the operating account of the Offered Series. Each Closing will occur immediately following the acceptance of a subscription.

 

An Offering will remain open until the earliest to occur of (i) the date we raise the Maximum Offering Amount, (ii) the second anniversary of the first qualification date of the offering statement of which this Offering Circular forms a part pursuant to which Shares of such Offered Series were able to be offered, and (iii) a date determined by the Manager, in its sole discretion, based on a number of factors, including the level of current or anticipated interest in an Offered Series.

 

Since the Offerings are being conducted as a continuous offering pursuant to Rule 251(d)(3) of Regulation A, any Closing for Shares you purchase may occur in the middle of a month, in which case you will be eligible to receive distributions beginning with the month in which you purchase your Shares calculated on a pro-rata basis, based on the number of days in the applicable month that you owned such Shares. For example, if you purchase the Shares in an Offering on the 15th day of a month, and assuming such month has 30 days and that the distributions to be paid per Share for that month equal $0.50, you will receive an initial distribution of $0.25 per Share for that month (calculated based on the 15 days you held the Shares, or 50% of the total distribution on those Shares).

     
Broker Dealer  

We entered into a broker dealer agreement with Dalmore Group, LLC, as our broker dealer in connection with the Offerings (the “Broker Dealer”). The Broker Dealer is registered with the SEC and is registered in each state where the Offerings will be made and with such other regulators as may be required to execute the sale transactions and provide related services in connection with the Offerings. The Broker Dealer is a member of FINRA and SIPC.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer.

     
Restrictions on Investment   Each investor must be a “qualified purchaser” as defined by Regulation A.  See “Plan of Distribution” for additional information.  The Manager may, in its sole discretion, decline to admit any prospective investor, or accept only a portion of such investor’s subscription, regardless of whether such person is a “qualified purchaser.”  Furthermore, the Manager anticipates only accepting subscriptions from prospective investors located in states where the Broker Dealer is registered.

 

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Custody Accounts  

All funds deposited into your Landa Account will be placed into a non-interest-bearing custody account maintained by Synapse Financial Technologies, Inc. (the “Custodian”). All bank services provided by the Custodian will be provided directly by Evolve Bank & Trust, Member FDIC. Your Landa Account can be accessed through the Landa Mobile App. The funds in your Landa Account will not be commingled with the operating account of the applicable Offered Series, until, if and when there is a Closing for the Offering of that specific Offered Series with respect to the Shares that you have subscribed to, which will occur immediately following acceptance of any subscription.

 

If your subscription is rejected in whole or in part, you may withdraw the subscription funds related to the rejected portion of your subscription from your Landa Account promptly after notification of such rejection.

 

The Manager will be responsible for paying any fees paid to the Custodian. See “Plan of Distribution” for additional information. 

     
Voting Rights   None. You will have no rights to direct or vote on any matter concerning the Offered Series and the management of its affairs, including whether or not an Offered Series should dissolve. The Manager will exercise all voting and management control over each Offered Series.
     
Use of Proceeds   See the section of this Offering Circular entitled “Use of Proceeds” for a discussion of the use of proceeds from the Offerings.
     
Fees; Expenses  

Each Offered Series issued an Acquisition Note to the Manager, which included payment to the Manager of an Acquisition Fee ranging from five percent (5%) to ten percent (10%) of the purchase price of the Property. The Acquisition Fee for each Offered Series was calculated by the Manager acting in its sole discretion, based on several factors including the purchase price of the Property, as well as sourcing and due diligence costs incurred in connection with the acquisition, or expected acquisition, of the Property by such Offered Series. Information about the Acquisition Fee for each Offered Series can be found in the section of this Offering Circular entitled “Use of Proceeds” and on the Property Page for the applicable Offered Series on the Landa Mobile App.

 

Each Offered Series will also pay the Manager a Monthly Management Fee ranging from five percent (5%) to ten percent (10%) of the Gross Monthly Rent for each Property, as set forth in the applicable Series Materials. The Manager may adjust the Monthly Management Fee at its sole discretion, but at no time will the Monthly Management Fee exceed 10% of Gross Monthly Rent. The Monthly Management Fee will be calculated by the Manager acting in its sole discretion, based on factors such as the purchase price of a Property, the amount of rental income generated by a Property, the general condition of a Property, and rental market in the area in which a Property is located. Information about the Monthly Management Fee for each Offered Series can be found in the section of this Offering Circular entitled “Description of the Properties,” as well as on the Property Page for the applicable Offered Series on the Landa Mobile App.

 

Further, each Offered Series will also reimburse the Manager for any out-of-pocket expenses to be applied for, among other things, special servicing of non-performing Properties, liquidation of Properties, and any other fees or expenses associated with the Offered Series or the Property.

 

Finally, each Offered Series will reimburse the Manager for any out-of-pocket expenses paid to third parties in connection with providing fixture and capital repair services for its underlying Property. This does not include the Manager’s overhead, employee costs borne by the Manager, or utilities or technology costs. In the case that the Manager provides a loan to an Offered Series, the Offered Series will be obligated to pay interest no greater than 7% on that loan at a rate to be determined solely by the Manager. Any excess funds held by an Offered Series will be placed in its Reserve. Reserves may be used, for among other things, to pay any expenses associated with operating the Properties.

 

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Transfer Agent and Registrar   Securitize LLC will serve as transfer agent and registrar for the Shares of each Offered Series.
     
Transfers; Secondary Market   The Shares will generally not be transferable except through the Secondary Trading Platform. We expect that after an Offered Series’ Offering has concluded, the Secondary Trading Platform will be a venue available for the resale of such Offered Series’ Shares through the Broker Dealer, as a broker dealer member of the Secondary Trading Platform; provided, however, any such resale of an Offered Series’ Shares will be subject to federal and state securities laws and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely.
     
Transfer Limitations   The Manager may, acting in its sole discretion, limit any transfer, assignment or pledge of Shares that would result in there being more than (a) 2,000 beneficial owners of the Offered Series or 500 beneficial owners of the Offered Series that are not “accredited investors,” (b) the assets of the Offered Series being deemed “plan assets” for purposes of ERISA, or (c) the Company, the Offered Series or the Manager being subject to additional regulatory requirements. 
     
Series Materials  

The Series Materials for the Shares being offered hereby consist of this Offering Circular, including the information contained in the Prior Offering Circular incorporated by reference herein, as well as the Master Agreement, Subscription Agreement, Operating Agreement and Management Agreement for the applicable Offered Series, and any related offering materials approved by us before making an investment decision.

 

Please carefully review the Series Materials. You may also access the Series Materials by navigating to the applicable Property Page on the Landa Mobile App.

     
Risk Factors   Investing in the Shares involves a high degree of risk. See “Risk Factors” beginning on page 15.

 

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RISK FACTORS

 

An investment in an Offered Series and the Shares involves a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in the Series Materials, before purchasing Shares through the Landa Mobile App. Any of the following factors could harm our business and future results of operations and could result in a partial or complete loss of your investment.

 

RISKS RELATED TO THE PROPERTIES AND THE OFFERED SERIES

 

The value of the underlying Property held or to be acquired by an Offered Series is subject to many risks.

 

The value of the underlying Property held or to be acquired by an Offered Series is affected significantly by its ability to generate cash flow and net income, which, in turn, depends on the amount of rental or other income that can be generated net of expenses required to be incurred with respect to such Property. Many expenditures associated with Properties (such as Operating Expenses (as defined below) and capital expenditures) cannot be reduced when there is a reduction in income from the Properties. The value of a Property may be adversely affected by a number of risks, including, but not limited to:

 

adverse changes in national and local economic and real estate conditions, including as a result of the COVID-19 pandemic, general economic conditions and terrorist attacks;

 

an oversupply of (or a reduction in demand for) residential rental properties in the areas where a Property is located and the attractiveness of such Property to prospective tenants, which could result in a decline in the rental income, including to zero, if such Offered Series is unable to find a new tenant;

 

  the risk that the Company, or any Offered Series, would default on its debt service if rental income decreased due to tenant default or failure to renew a lease or a lack of rental income due to failure to obtain a lease;

 

the potential for uninsured or underinsured property losses;

 

changes in governmental laws and regulations, fiscal policies and zoning ordinances and the related compliance costs associated therewith and the potential for liability under applicable laws;

 

natural disasters such as hurricanes, earthquakes and floods; and

 

pandemic, epidemic or outbreak of an infectious disease in the United States and globally.

 

These factors may have a material adverse effect on the rental income that you might receive on account of your Shares as well as on the value that Offered Series can realize from a sale of its underlying Property.

 

The COVID-19 pandemic may adversely affect our business.

 

Many states and localities have imposed, and continue to impose, limitations on commercial activity and public gatherings and events, as well as moratoria on evictions as a result of the spread of the COVID-19 virus. Concern about the spread of COVID-19 has caused and is likely to continue to cause quarantines, business shutdowns, reduction in business activity and financial transactions, labor shortages, supply chain interruptions, unprecedented unemployment levels and commercial property vacancy rates, and overall economic and financial market instability.

 

In addition, the impact of the COVID-19 pandemic and measures to prevent its spread could materially negatively impact our ability to launch and operate our business and our results of operations, financial condition and liquidity in a number of ways, including:

 

an inability to sell the Shares in an Offered Series resulting in a lack of capital sufficient to operate the applicable Property and meet debt obligations;

 

a decrease in an Offered Series’ revenues as a result of tenants’ inability to pay their rent timely, or at all;

 

changes in residential preferences may make it less likely that home renters would want to live in the regions where the Properties are located;

 

an inability to enforce tenants’ contractual rental obligations and/or limits on our ability to raise rents upon lease renewals due to restrictive measures imposed by local, regional or national governmental authorities;

 

the risk of a prolonged COVID-19 outbreak causing long-term damage to economic conditions, which in turn could cause material declines in the fair market value of any of the Properties; and

 

the potential inability to maintain adequate staffing for the management and maintenance of any of the Properties due to shelter-in-place orders and/or the continued duration or expansion of the pandemic.

 

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The impacts of the COVID-19 pandemic may increase the risk that the tenants of the Properties will be unable to make their scheduled lease payments on time or seek to terminate their leases prior to the expiration dates of such leases. Furthermore, whenever we are required to locate a new tenant for a property, restrictions on providing access to view properties as a result of the pandemic could make it more difficult to secure a new tenant, which may result in decreases in an Offered Series’ net rental income or an Offered Series not having rental income at all.

 

We may have limited information about the financial performance of the Properties, including rental history, and the future performance of the Properties is not assured and is difficult to evaluate.

 

The Properties were previously acquired by Landa Properties from third-party sellers. Certain of third-party sellers have informed us that historical financial information with respect to the Properties acquired from such sellers is not available, including information about rental history and prior rental income earned on such Properties. Accordingly, we may enter into leases with rental rates that are materially less than amounts historically realized on such Properties, which may result in lower distributions paid to investors. 

 

Changes in national, regional or local economic, demographic or real estate market conditions may adversely affect our results of operations and returns to our investors.

 

Each Offered Series will be subject to risks incident to the ownership of residential or commercial properties including: changes in national, regional or local economic, demographic or real estate market conditions; changes in supply of, or demand for, similar properties in an area; and changes in government rules, regulations and fiscal policies, including changes in tax, real estate, environmental and zoning laws. Additionally, we are unable to predict future changes in national, regional or local economic, demographic or real estate market conditions. For example, a recession or rise in interest rates could make it more difficult for us to acquire and lease the Properties. These conditions, or others we cannot predict, may adversely affect returns to investors.

 

Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of a Property.

 

Because real estate investments are relatively illiquid, our ability to facilitate a sale of a Property promptly in response to changing economic, financial, and investment conditions may be limited. In particular, our ability to facilitate a sale could be negatively impacted by weakness in the market, changes in the financial condition or prospects of prospective purchasers, changes in governmental laws and regulations, changes in regional, national or international economic conditions, changes in the condition of such Property, the occupancy of such Property or the rental income relative to market rates, and changes in laws, regulations or fiscal policies.

 

The actual rent an Offered Series receives for its Property may be less than estimated market rent, and an Offered Series may experience a decline in realized rental rates from time to time, which could adversely affect an Offered Series’ financial condition, results of operations and cash flow.

 

As a result of numerous potential factors, including competitive pricing pressure in our markets, a general economic downturn and the desirability of a Property, an Offered Series may be unable to realize its projected market rent for a Property. If an Offered Series is unable to obtain adequate rental rates for its Property, then its ability to generate cash flow growth will be negatively impacted. The rental rate of each Offered Series’ Property will be determined at the sole discretion of the Manager and may be less than the market rental rate for similar properties.

 

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Each Offered Series will depend on tenants for its revenue, and lease defaults, lease terminations or other vacancies could reduce its net income and limit its ability to make distributions to investors.

 

The success of each Property materially depends on the financial stability of its tenants. A default or termination by a tenant on its lease would cause the applicable Offered Series to lose the revenue associated with such lease and require an Offered Series to find an alternative source of revenue to meet mortgage payments and prevent a foreclosure, if the property is subject to a mortgage. In the event of a tenant default or bankruptcy, an Offered Series may experience delays in enforcing its rights as landlord and may incur substantial costs in protecting its investment and re-leasing its Property. If a tenant defaults on or terminates a lease, the applicable Series may be unable to lease the underlying Property for the rent previously received. Any vacancy could reduce an Offered Series’ net income. For example, the Property underlying Landa Series 168 Brookview Drive is vacant and therefore, that Offered Series has no source of income. These events could cause such Offered Series to reduce the amount distributed to investors or hinder the Offered Series’ ability to make distributions at all. If an Offered Series is unable to find an alternative source of revenue to meet the mortgage payments and the underlying Property goes into foreclosure, the bank providing the mortgage will have priority in such Property over any investors in the Offered Series.

 

An Offered Series may not be able to control its operating costs or its expenses may remain constant or increase, even if its revenues do not increase, causing its results of operations to be adversely affected.

 

Factors that may adversely affect an Offered Series’ ability to control operating costs include the need to pay for insurance and other operating costs, including real estate taxes, which could increase over time, the need periodically to repair (including repairs resulting from significant damage by tenants), renovate and re-lease space, the cost of compliance with governmental regulation, including zoning, environmental and tax laws, the potential for liability under applicable laws, interest rate levels, principal loan amounts and the availability of financing. If an Offered Series’ operating costs increase as a result of any of the foregoing factors, its results of operations may be adversely affected.

 

The expense of owning and operating a Property is not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from a Property. As a result, if revenues decline, an Offered Series may not be able to reduce its expenses accordingly. Costs associated with real estate investments, such as real estate taxes, insurance, loan payments and maintenance, generally will not be reduced even if a Property is not fully occupied or other circumstances cause an Offered Series’ revenues to decrease. If an Offered Series is unable to decrease operating costs when demand for its Property decreases and its revenues decline, its financial condition, results of operations and ability to make distributions to holders may be adversely affected.

 

We may not be able to make any monthly cash distributions to holders of Shares.

 

We intend for each Offered Series to make any monthly cash distributions based on the net rental income generated by a Property. For Properties that are vacant, an Offered Series will not be able to make distributions until such Offered Series enters into a lease agreement. Currently, the Property underlying Landa Series 168 Brookview Drive is vacant and therefore, we will not be able to make distributions with respect to the Shares of that Offered Series until the Series enters into a lease agreements. Any distributions that an Offered Series makes will be at the complete discretion of the Manager and will depend on a number of factors, including, but not limited to, the total number of Shares sold, the Monthly Management Fee, expenses (including any unanticipated capital expenditures), taxes, amounts allocated to Reserves, and actual and accrued cash flows of the applicable Offered Series, many of which could vary substantially from month to month. Accordingly, there can be no assurance that you will receive monthly distributions on your Shares.

 

We may be unable to renew leases with existing tenants or enter into leases with new tenants.

 

The Offered Series’ lease agreement are short-term in nature, which exposes us to the risk that we may have to renew or re-lease a Property in the near term. If tenants do not renew their leases upon expiration, we may be unable to re-lease the vacated Property. For example, we were unable to renew the lease agreement with the former tenant of the Property underlying Landa Series 168 Brookview Drive and such Property is currently vacant. Even if the existing tenants renew their leases or we are able to enter into a lease with a new tenant, the terms and conditions of the new lease may not be as favorable as the terms and conditions of the expired lease.  If the rental rates for a Property underlying an Offered Series decrease, or in the event that a Property becomes vacant, such Offered Series’ financial condition, results of operations, cash flow, the value of the Shares interests and the Offered Series’ ability to satisfy its debt obligations and to make distributions could be adversely affected.

 

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Our Properties may be subject to impairment charges.

 

We will periodically evaluate each of the Properties for impairment indicators. The judgment regarding the existence of impairment indicators is based on factors including market conditions, a tenant’s ability to pay rent, the short-term nature of each Property lease, and any unforeseen expenses or liabilities incurred by an Offered Series or its Property. For example, the early termination of, or default under, a lease by a tenant may lead to an impairment charge. If we determine that an impairment has occurred, we would be required to make a downward adjustment to the net carrying value of a property. Impairment charges also indicate a potential permanent adverse change in the fundamental operating characteristics of the impaired Property. There is no assurance that these adverse changes will be reversed in the future and the decline in the impaired Property’s value could be permanent.

 

Each of the Offered Series will hold its Property as its main asset.

 

Each Offered Series will hold a Property as its primary asset.  The success of an investment in an Offered Series will depend on the revenues generated by the Offered Series’ Property and the appreciation of the value of the Property over time.  Such revenues are determined by a number of factors such social conditions, financial markets and the economy, competition from existing and future companies operating in our industry, as well as government rule and regulation (such as tax and building code charges).  The value of a Property may decline substantially after you purchase your Shares.

 

Rent control or rent stabilization laws could prevent an Offered Series from raising rents to offset increases in operating costs.

 

Various states, cities, or municipalities have a system of rent regulations known as rent stabilization and rent control. Tenants of regulated apartments are entitled to receive required services, to have their leases renewed, and may not be evicted except on grounds allowed by law. If an Offered Series acquires a Property that includes regulated apartments, these regulations could limit the amount of rent the Offered Series are able to collect, which could have a material adverse effect on the Offered Series’ ability to fully take advantage of the investment in such Property. In addition, there can be no assurance that changes to rent control or rent stabilization laws will not have a similar or greater negative impact on any Offered Series’ ability to collect rents.

 

Tenant relief laws may negatively impact our rental income and profitability.

 

As manager of numerous residential properties, the Manager may be involved in evicting residents who are not paying their rent or are otherwise in material violation of the terms of their lease. Eviction activities will impose legal and managerial expenses that will raise costs specific to the applicable Offered Series. The eviction process is typically subject to legal barriers, mandatory “cure” policies and other sources of expense and delay, including restrictions on evictions enacted by many states as a result of the COVID-19 pandemic, each of which may delay our ability to gain possession and stabilize the home. Additionally, state and local landlord-tenant laws may impose legal duties to assist residents in relocating to new housing or restrict the landlord’s ability to recover certain costs or charge residents for damage that residents cause to the landlord’s premises. The Manager will be required to take all appropriate steps to comply with all applicable landlord-tenant laws, and each Offered Series will need to incur supervisory and legal expenses to ensure such compliance. To the extent that a Series does not comply with state or local laws, the Offered Series may be subjected to civil litigation filed by individuals, in class actions or by state or local law enforcement. An Offered Series may be required to pay adversaries’ litigation fees and expenses if a judgment is entered against us in such litigation or if we settle such litigation.

 

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Each Offered Series will face significant competition for tenants, which may hinder the Manager’s ability to find a suitable tenant for an Offered Series’ Property and prevent increases of rental rates for its Property.

 

There is significant competition in the real estate industry, including numerous real estate investment trusts (“REITs”) with property acquisition objectives similar to the Offered Series. The size and financial wherewithal of our competitors may allow them to offer space at rental rates below current market rates or below the rental rates our Offered Series charge their tenants. As a result, an Offered Series may lose existing tenants or fail to obtain future tenants, and the downward pressure caused by our competitors may cause our Offered Series to reduce their rental rates or to offer more substantial rent abatements, tenant improvements, early termination rights or below-market renewal options in order to retain tenants when leases expire. Competition for tenants could adversely impact the net rental income for a given Offered Series.

 

Compliance with governmental laws, regulations and covenants that are applicable to the residential properties held by the Offered Series may adversely affect the Offered Series’ business and growth strategies.

 

Residential rental properties are subject to various covenants, local laws, and regulatory requirements, including permitting and licensing requirements. Local regulations, including municipal or local ordinances, zoning restrictions, and restrictive covenants imposed by community developers, may restrict an Offered Series’ use of its Property and may require the Series to obtain approval from local officials or community standards organizations at any time with respect to its Property, including prior to acquiring the Property or when undertaking renovations. Among other things, these restrictions may relate to fire and safety, seismic, asbestos clean-up or hazardous material abatement requirements.

 

Environmental laws also may impose liens on property or restrictions on the manner in which a Property may be used, and these restrictions may require substantial expenditures or prevent the Manager from operating such Properties. Some of these laws and regulations have been amended so as to require compliance with new or more stringent standards as of future dates. Compliance with new or more stringent laws or regulations or stricter interpretation of existing laws may require us to incur material expenditures. Future laws, ordinances or regulations may impose material environmental liability. The costs of defending against claims of environmental liability, of complying with environmental regulatory requirements, of remediating any contaminated property, or of paying personal injury, property damage or natural resource damage claims could reduce the amounts available for distribution to our investors.

 

We cannot assure you that existing laws or regulations will not adversely affect an Offered Series or result in additional expenses relating to any future renovations or otherwise, or that additional laws or regulations will not be adopted that would result in additional expenses. An Offered Series’ growth strategies may be materially and adversely affected by its ability to obtain permits, licenses, and zoning approvals. An Offered Series’ failure to obtain such permits, licenses and zoning approvals could have a material adverse effect on its results of operations or financial condition and cause the value of your Shares to decline.

 

If any Properties contain lead-based paint, we could be exposed to third-party liability or be in violation of environmental laws or regulations, either of which would adversely affect our operating results.

 

Many of the properties in our target markets were built prior to 1978, and housing built prior to such time may contain lead-based paint. The existence of lead-based paint is especially a concern in residential units and can cause health problems, particularly for children. As a result, Federal, state and local laws and regulations impose certain disclosure requirements and restrict and regulate renovation activities on housing built before 1978. Any violation of these restrictions could result in fines or criminal liability, and we could be subject to liability arising from lawsuits alleging personal injury or related claims. Although we will attempt to comply with all such regulations, we cannot guarantee that we will not incur any material liabilities as a result of the presence of lead-based paint in any Properties that are owned by the Offered Series or that we may acquire in the future.

 

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Uninsured losses relating to real property or expensive premiums for insurance coverage could reduce the Offered Series’ cash flows and the return on your investment.

 

Each Property is currently insured in an amount it determines to be reasonable. However, we cannot assure you that such insurance will be adequate to cover actual losses or that such insurance will continue to be available at reasonable costs, if at all, which could inhibit an Offered Series’ ability to finance or refinance the underlying Property and result in uninsured losses.  In such instances, an Offered Series may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses.  An Offered Series may not have adequate coverage for such losses.  If a Property incurs a loss that is not fully insured, the value of the Offered Series’ asset will be reduced by any such uninsured loss, which would reduce the value of your investment. 

 

An Offered Series cannot guarantee proceeds from the sale of its Property.

 

The Manager will have the discretion to determine whether to hold or sell a Property of an Offered Series and may elect to hold and operate a Property for an indefinite period of time. While we do not intend to sell any of the Properties in the near term, if the Manager, acting in its sole discretion, elects to sell a Property, the sales price to be realized upon the sale or other disposition of the Property will depend upon many factors, including the availability and pricing of financing for purchasers from time to time, whether the Property has a tenant, the availability and price of comparable properties, and conditions in the real estate market in general. An Offered Series cannot assure you that the price and terms of any such sale or other disposition will be sufficient to pay any return at all, or that there will not be a loss as a result of such transaction.

 

RISKS RELATED TO THE SHARES

 

If an Offered Series in which you have invested does not successfully implement a liquidity transaction, you may have to hold your investment for an indefinite period.

 

The Operating Agreement for each Offered Series does not require the Manager to pursue a sale of the Property or other liquidity transaction. Investors will be unable to prompt the sale of a Property through a voting process. If the Manager does determine to pursue a liquidity transaction, such as the sale of a Property, the Manager would be under no obligation to conclude the process within a set time or any specific terms. The timing of any sale of the Property will depend on a number of factors, including real estate and financial markets, economic conditions in areas in which such Property is located, and anticipated federal income tax effects on investors that may prevail in the future. If the Property is not sold, and an active market has not developed on the Secondary Trading Platform, your Shares may continue to be illiquid and you may, for an indefinite period of time, be unable to convert your investment to cash easily and could suffer losses on your investment.

 

You may be unable to resell your Shares at desired times or prices, if at all.

 

While the initial sales of the Shares are exempt from state securities registration requirements under Regulation A, that exemption does not cover resales of the Shares to other investors by purchasers of the Shares. Each state has its own securities laws, often called “blue sky” laws. These laws limit resales of securities to a state’s residents unless the securities are registered in that state or qualify for an exemption from registration; these laws also govern the reporting requirements for broker-dealers doing business directly or indirectly in the state. The fact that the initial offering and sale of Shares qualifies for an exemption is not relevant to determining whether there is an exemption in a given state to allow a holder to resell the Shares to a resident of a given state. There may be significant state blue sky law restrictions on your ability to sell, and on purchasers to buy, your Shares.

 

Given the limited liquidity for the Shares, investors and potential investors may consider these investments to be less appealing and demand for these investments may decrease, which may adversely affect prices you may obtain on the Secondary Trading Platform or your ability to resell your Shares on the Secondary Trading Platform at all.

 

You should consider the resale market for our securities to be limited. You may be unable to resell your Shares, or you may be unable to resell them without the significant expense of state registration or qualification.

 

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There is currently no public trading market the Shares.

 

There is currently no public trading market for any of the Shares, and an active market may not develop or be sustained. If an active public trading market for the Shares does not develop or is not sustained, it may be difficult or impossible for you to resell your interests at any price, unless the securities are registered in that state or qualify for an exemption from registration. Even if a public market does develop, the market price could decline below the amount you paid for your Shares.

 

The Shares will not be listed on any securities exchange, will generally not be transferable except, through the Secondary Trading Platform, to the extent such platform is established and maintained. You should be prepared to hold the Shares indefinitely.

 

The Shares will not be listed on any securities exchange, such as Nasdaq or the New York Stock Exchange. The Shares will generally not be transferable except through the Secondary Trading Platform, to the extent such platform is established and maintained. We expect that after an Offered Series’ Offering has concluded, the Secondary Trading Platform will be a venue available for the resale of such Series’ Shares through the Broker Dealer, as a broker dealer member of the Secondary Trading Platform; provided, however, any such resale of a Series’ Shares will be subject to federal and state securities laws and the restrictions in the Offered Series’ Operating Agreement, and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely. As a result, you may lose some or all of your investment. See “Plan of Distribution- Transferability of the Shares.”

 

The trading price of Shares that trade on the Secondary Trading Platform may be extremely volatile.

 

Securities that trade on the Secondary Trading Platform, as with other public markets, likely will experience significant price and volume fluctuations. These fluctuations can be more pronounced for securities that have a small public float, such as the Shares. Share prices could fluctuate widely in price in response to various potential factors, many of which will be beyond our control, including the total number of available buyers or sellers at any point in time, property value, occupancy rates, and economic, market, geopolitical and other external factors. As a result, the market prices of the Shares that are listed may be volatile, and holders of such Shares may experience a decrease in the value of their Shares. No assurance can be given that the market price of the Shares will not fluctuate or decline significantly in the future or that you will be able to sell your Shares when desired on favorable terms or at all.

 

While we expect the Secondary Trading Platform will be available after the conclusion of an Offered Series’ Offering, such resale of an Offered Series’ Shares will be subject to federal and state securities laws and the restrictions in the Operating Agreement, and there can be no assurance that an active market for any Shares will develop on the Secondary Trading Platform, that the Secondary Trading Platform will be available to allow resales of Shares to residents of all states, or that the Secondary Trading Platform will be available at all. For these reasons, investors must be prepared to hold their Shares indefinitely. See “Plan of Distribution – Transferability of the Shares.”

 

Because of the illiquid nature of the Offered Series’ Shares, you should purchase the Shares only as a long-term investment and be prepared to hold them for an indefinite period of time.

 

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The Offered Series Offerings will not have a minimum offering amount, which could result in an Offering ending without reaching the Offered Series’ funding target.

 

Each Offered Series’ Offering will be conducted on a “best efforts” no minimum basis.  We expect that there will be multiple Closings for each Offering and each Closing will occur immediately following the acceptance of a subscription. We expect that each Offered Series’ Offering will remain open for investors until the earliest of (i) the date subscriptions for the Maximum Offering Amount of such Offered Series have been accepted by the Manager or (ii) any earlier date determined by the Manager, based on a number of factors, including the level of current or anticipated interest in an Offered Series.  Therefore, an Offering may end without reaching the Offered Series’ funding target such that the total proceeds amount may not be sufficient to pay down the Offered Series’ Acquisition Note or Refinance Note.  As a result, an Offered Series may have significant debt obligations which could adversely affect the Offered Series’ financial condition, reduce the total distributions to each holder, and/or delay distributions to Offered Series holder.

 

The purchase price for the Shares of each Offered Series was determined by the Manager and may not necessarily bear the actual value of the Shares.

 

The purchase price for the Shares of each Offered Series was determined by the Manager and was calculated by dividing (a) the total amounts outstanding under the Offered Series’ Acquisition Note, less the expected principal amount of the Refinance Note by (b) the total expected Shares to be issued in such Offered Series (10,000). The purchase prices for the Shares may not necessarily accurately reflect the actual value of the Shares. See section entitled “Determination of Purchase Price.”

 

No party has made an independent review of the Company, the Manager, any Offered Series, Properties or the Shares offered on the Landa Mobile App. Therefore, investors do not have the benefit of an independent due diligence review conducted by an unaffiliated party to form a basis for their investment decision.

 

No independent party has undertaken any review of us, any Offered Series, Properties or the Shares offered on the Landa Mobile App. Therefore, investors do not have the benefit of an independent due diligence review conducted by an unaffiliated party to form a basis for their investment decision in the Shares of an Offered Series. You should consult your investment, accounting, legal, and tax advisors before investing in any Shares.

 

RISKS RELATED TO THE COMPANY AND THE MANAGER

 

Your investment is an investment in the Shares of a specific Offered Series, which will invest only in a single Property, and is not a diversified investment in the Company or the Manager. You will not have any interest in, and your investment in an Offered Series will not be secured by, any assets owned by the Company, the Manager, or any other Series. Any return on your investment will depend solely on the cash flows of, and ultimately on the return on, the Offered Series in which you invest, and underlying Property held by such Offered Series.

 

Your investment is an investment in the Shares of an Offered Series and not an investment in the Company or the Manager. An investment in an Offered Series is not a diversified investment in the Company, the Manager, any other Series, the Properties underlying the other Series, or the Landa Mobile App. You will not have any interest in, and your investment will not be secured by, assets owned by the Company or the Manager. If the Property does not operate profitably, you may not receive any distributions or may lose your entire investment without recourse to the Company’s or the Manager’s assets. For example, a Series with a vacant Property may not be able to make a distribution until such Series enters into a lease agreement. Your return, if any, will depend upon income derived from the Offered Series in which you invest, and the underlying Property and the costs associated with it. You will not share in any increase in the value of the Manager.

 

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You will not have control over the Offered Series in which you invest.

 

Each Operating Agreement provides that the assets, affairs, and business of the applicable Offered Series will be managed by the Manager. You will not elect or vote on the Manager, and, unlike the holders of common shares of a corporation, you will have no voting rights on matters affecting the business of an Offered Series, including whether to dissolve and liquidate an Offered Series, and therefore you will have no ability to influence decisions regarding the business of an Offered Series. As a result, you will depend on the Manager’s skill and judgment for a return.

 

We have only recently commenced operations and our future performance is not assured and is difficult to evaluate.

 

The Manager has a limited history of operations with this business model. We therefore should be considered a development stage company. Our operations are subject to all of the risks inherent in the establishment of a new business enterprise, including, but not limited to, hurdles or barriers to the implementation of our business plans. Further, we have limited operating history upon which to evaluate the Manager’s ability to manage our operations and achieve our goals or our likely performance. No assurances can be given that we can operate profitably or raise sufficient capital to continue our operations. If we are unable to continue to operate, the Landa Mobile App could cease operations, in which case your ability to continue to receive rents from the Property or to otherwise realize the value of your investment could cease.

 

An Offered Series may require additional capital and may be unable to obtain such capital on favorable terms or at all.

 

If funds generated from investors for an Offered Series through the Landa Mobile App are insufficient, we may seek additional capital in the form of debt financing from other financing sources. Additional debt financing may not be available on reasonable terms, on a timely basis or at all, and if available, would result in additional payment obligations and may involve agreements that include restrictive covenants that limit an Offered Series’ ability to take specific actions, such as incurring additional debt, making capital expenditures, creating liens or making distributions on Shares, which could adversely impact the Offered Series’ ability to conduct its business or provide distributions on your Shares.

 

The Manager depends on key personnel to manage the Offered Series, and if the Manager is unable to retain, attract and integrate qualified personnel, the Offered Series’ ability to develop and successfully grow their businesses could be harmed.

 

We believe our success will depend on the efforts and talents of the executives and employees of our Manager and its affiliates. Our future success depends on our continuing ability to attract, develop, motivate, and retain highly qualified and skilled employees, including employees with sufficient experience in the real estate industry. Qualified individuals, including individuals with sufficient experience in the real estate industry, are in high demand, and we may incur significant costs to attract and retain them. In addition, the loss of any of the key employees or senior management of the Manager could have a material adverse effect on our ability to execute our business plan and strategy, and we may not be able to find adequate replacements on a timely basis, or at all. Our Manager’s executive officers and other employees are at-will employees, which means they may terminate their employment relationship with the Manager at any time, and their knowledge of our business and industry would be extremely difficult to replace. The Manager may not be able to retain the services of any members of its senior management or other key employees. If the Manager fails to attract well-qualified employees or retaining and motivating existing employees, it could have a material adverse effect on our business, financial condition and results of operations.

 

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Adverse results from litigation or governmental investigations can impact our business practices and operating results.

 

From time to time, we may be party to litigation, regulatory and other proceedings with governmental authorities and administrative agencies. Adverse outcomes in lawsuits or investigations could result in significant monetary damages or injunctive relief that could adversely affect our business model, results of operations and financial condition.

 

The SEC has a broad range of civil sanctions under federal securities law, which it may seek against corporations and individuals, including injunctive relief, monetary penalties and compliance programs.  These matters require the involvement of senior management of the Manager that could impinge on the time senior management has available to devote to other matters relating to the Offered Series.

 

The Manager has limited experience and track record in real estate operations.

 

The results of operations of each Offered Series will depend on the Manager’s ability to operate, lease and maintain such properties profitably. The Manager has limited experience in real estate operations. If the Manager manages the Property or an Offered Series ineffectively, the ability of such Offered Series to generate revenue and its results of operations may be adversely affected.

 

The Manager’s liability is limited under each Offered Series’ Operating Agreement, and each Offered Series has agreed to indemnify the Manager against certain liabilities.  As a result, an Offered Series may experience poor performance or losses of which the Manager would not be liable. 

 

Pursuant to each Offered Series’ Operating Agreement, the Manager will not assume any responsibility other than to render the services called for thereunder. The Manager maintains a contractual, as opposed to a fiduciary, relationship with the members in each Offered Series.  Under the terms of each Offered Series’ Operating Agreement, neither the Manager nor any director, officer, or employee of the Manager will be liable to the Offered Series or any of its members for acts or omissions performed in accordance with and pursuant to the Offered Series’ Operating Agreement, except by reason of acts or omissions constituting gross negligence, willful misconduct, fraud, material misrepresentation or material violation, as determined by final adjudication. Accordingly, each Offered Series and its members will only have recourse and be able to seek remedies against the Manager, or any director, officer, or employee of the Manager, to the extent it breaches its obligations pursuant to the applicable Offered Series’ Operating Agreement. Furthermore, each Offered Series has agreed to limit the liability of the Manager and to indemnify the Manager against certain liabilities.  In addition, we or an Offered Series may choose not to enforce, or to enforce less vigorously, our or its rights under the Offered Series’ Operating Agreement in order to maintain our or its ongoing relationship with the Manager.

 

Any adverse changes in the Manager’s financial health or our relationship with the Manager or its affiliates could hinder our operating performance and the return on your investment.

 

The Manager will utilize its personnel and resource to perform services on its behalf for us and for each Offered Series. Each Offered Series’ ability to achieve its investment objectives and to pay distributions to its investors is dependent upon the performance of the Manager and its affiliates, as well as the Manager’s real estate professionals in the management of the Offered Series’ Property and operation of day-to-day activities of the Company and such Offered Series. Any adverse changes in the Manager’s financial condition or our or an Offered Series’ relationship with the Manager could hinder the Manager’s ability to successfully manage the Offered Series’ operations and the Properties.

 

The Manager may fail to successfully operate the Properties, which could adversely affect the applicable Offered Series and impede their growth.

 

The Manager’s ability to successfully develop, redevelop and/or operate the Properties may be exposed to significant risks. Offered Series may be required to spend more than their budgeted amounts to make necessary improvements or renovations to Properties and may not be able to obtain or maintain adequate insurance coverage for Properties.  Any failure to operate acquired properties to meet our financial expectations could impede the growth or an Offered Series and have an adverse effect on such Offered Series, including its financial condition, results of operations, cash flow, and the market value of its interests.

 

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The reports of our independent registered public accounting firm contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern, which could prevent us from obtaining new financing on reasonable terms or at all.

 

The reports of our independent registered public accounting firm on our audited financial statements for the periods ended December 31, 2019 and December 31, 2020, contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern. Further reports on our financial statements may include an explanatory paragraph with respect to our ability to continue as a going concern. We will incur significant additional expenses in the conduct of our business and until we can generate significant recurring revenues, we expect to satisfy our future cash needs through debt or equity financing. We cannot be certain that additional funding will be available to us on acceptable terms, if at all, and these going concern opinions could materially limit our ability to raise additional funds through the issuance of equity or debt securities or otherwise. If funds are not available, we may be required to delay, reduce the scope of, or eliminate future business plans. This may raise substantial doubts about our ability to continue as a going concern.

 

The Manager may have a conflict of interest as it manages multiple Series and the Company, and has a financial interest in certain agreements of the Series, both of which could result in the Manager not acting in the best interest of a particular Offered Series.

 

Since the Manager receives compensation from each Series, and is a creditor to each Series, there are potential conflicts of interest that may affect the decision-making of the Manager as it manages each Series and the Company. For example, it may be in the best interest of the Manager for its personnel to focus more time rendering services to certain Series as opposed to others. This could result in less net rental income or a decline in the Property value of the Offered Series in which you invest. In addition, we expect each Offered Series will enter into a Management Agreement with the Manager. The Management Agreements are not expected to be negotiated at arm’s length, and accordingly, such terms may be less favorable than if the Series received a loan or management services from a non-affiliate.

 

In addition, since many of the properties owned or to be owned by the Series are located in nearby neighborhoods, if the Manager receives an interested tenant or purchaser of a property in a given neighborhood, the Manager may direct the interested individual to a property owned by a Series that is not the Offered Series in which you invested in.

 

One or more Offered Series may have conflicts of interest with the Manager and other affiliates, which could result in investment decisions that are not in your best interests.

 

There are numerous potential conflicts of interest between the interests of the Offered Series and the interests of the Manager and its other affiliates, including conflicts arising out of the allocation of personnel, capital and time to devote to the activities of a specific Series.

 

Examples of these potential conflicts of interest include:

 

Competition for the time and services of Manager personnel that work for one or more Series;

 

The Manager has considerable discretion with respect to the terms and timing of maintenance, leasing and liquidity transactions;

 

The possibility that the competing demands for the time of the Manager, its affiliates and our officers may result in them spending insufficient time on the Property, which may result in the Property missing rental opportunities or maintenance requirements, which could reduce the profitability of the Property and the value of your investment; and

 

The Manager and/or its affiliates may lend money to the Company or any Series to cover Operating Expenses (as defined below) and any shortfalls in the event we do not raise enough money.

 

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Any of these and other conflicts of interest between the Series and the Manager could have a material adverse effect on the returns on your investments.

 

RISKS RELATED TO COMPLIANCE AND REGULATION

 

We may be subject to claims for rescission or damages in connection with certain sales of Series membership interests that were made in reliance on the exemption from registration provided under Regulation A.

 

We are conducting, and will continue to conduct, offerings of Series membership interests on a continuous basis under Rule 251(d)(3)(i)(F) of Regulation A. In order for an offering to qualify as continuous under Rule 251(d)(3)(i)(F) of Regulation A, such offering is required to commence within two (2) calendar days after the qualification date of the applicable offering statement. Based upon our view that the offerings by the Original Series (as defined below) constituted a single continuous offering under Rule 251(d)(3)(i)(F) of Regulation A, the Company commenced the offering of membership interests in one Original Series – Landa 1394 Oakview Circle – within two calendar days of the June 29, 2021 qualification date and commenced the offering of membership interests of Landa Series 1701 Summerwoods Lane and Landa Series 1741 Park Lane more than two calendar days following the qualification date and sold membership interests as part of these offerings. Landa Series 1701 Summerwoods Lane and Landa Series 1741 Park Lane sold $35,364.29 and $12,690.49 worth of membership interests, respectively. Following the commencement of these offerings, the Company was advised of the view of the staff of the SEC that, in order to comply with Rule 251(d)(3)(i)(F), it must commence the offering of each qualified Series within two calendar days of qualification. As a result, the offer and sale of certain membership interests made pursuant to the Offering Statement may not have been made in compliance with Section 5 of the Securities Act. Therefore, we may be subject to claims for rescission or damages by holders of our Original Series, which could require that we refund the purchase price they paid for those membership interests. This would have an adverse effect on the financial condition of any affected Series and could result in such Series having insufficient funds to maintain their properties or being forced to seek additional equity or debt financing, which may not be available on attractive terms or at all, and which could result in dilution to existing investors or additional operating expense and risk of default, including foreclosure on the affected property.

 

New and existing regulations could harm our business.

 

We are subject to the same laws as other companies conducting business on and off the Internet. Today, there are still relatively few laws specifically directed towards online services. However, due to the increasing popularity and use of the Internet and online services, many laws relating to the Internet are being debated at all levels of government. In addition, it is not clear how existing laws apply to online businesses, and regulatory agencies or courts may claim or hold that we or the users of the Landa Mobile App are subject to licensure or that we are prohibited from conducting our business.

 

Our business could be negatively affected by the application of existing laws and regulations or the enactment of new laws or regulations applicable to our business. The cost to comply with such laws or regulations could be significant and would increase the Offered Series’ Operating Expenses (as defined below), which could negatively impact the amount distributable to you. Regulatory and licensure claims could result in costly litigation or could require us to change the way we do business in ways that increase costs and reduce revenues. We could also be subject to fines or other penalties, and any of these outcomes could harm our business. In addition, federal and state governmental or regulatory agencies may decide to impose taxes on services provided over the Internet. These taxes could discourage the use of the Internet as a means of raising capital, which would adversely affect the viability of the Landa Mobile App.

 

In addition, because the Landa Mobile App is viewable worldwide, although use of the Landa Mobile App by anyone outside of the United States is prohibited by our terms of use, foreign jurisdictions may claim that we are required to comply with their laws. Compliance may be more costly or may require us to change our business practices or restrict our service offerings relative to those in the United States. In addition, we may be subject to overlapping legal or regulatory regimes that impose conflicting requirements on us. Our failure to comply with foreign laws could subject us to penalties ranging from criminal prosecution to bans on our services.

 

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We are offering the Shares pursuant to recent amendments to Regulation A promulgated pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and we cannot be certain if the reduced disclosure requirements applicable to Tier 2 issuers will make the Shares less attractive to investors as compared to a registered offering.

 

As a Tier 2 issuer, are subject to scaled disclosure and reporting requirements which may make an investment in the Shares less attractive to investors who are accustomed to enhanced disclosure and more frequent financial reporting. In addition, given the relative lack of regulatory precedence regarding the recent amendments to Regulation A, there is a significant amount of regulatory uncertainty in regard to how the SEC or the individual state securities regulators will regulate both the offer and sale of our securities, as well as any ongoing compliance that the Offered Series may be subject to. If our scaled disclosure and reporting requirements, or regulatory uncertainty regarding Regulation A, reduce the attractiveness of the Shares, we may be unable to raise the funds necessary for one or more of the Offered Series to commence operations, or to acquire and manage one or more of the Properties.

 

There may be deficiencies with our internal controls that require improvements, and if we are unable to adequately evaluate internal controls, we may be subject to sanctions.

 

As a Tier 2 issuer, we do not need to provide a report on the effectiveness of our internal control over financial reporting, and we will be exempt from the auditor attestation requirements concerning any such report so long as we are a Tier 2 issuer. We are in the process of evaluating whether our internal control procedures are effective and therefore there is a greater likelihood of undiscovered errors in our internal controls or reported financial statements as compared to issuers that have conducted such evaluations.

 

As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements, including the requirements for a board of directors or independent board committees.

 

As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements that an issuer conducting an offering on Form S-1 or listing on a national stock exchange would be. Accordingly, we do not have a board of directors, nor are we required to have (i) a board of directors of which a majority consists of “independent” directors under the listing standards of a national stock exchange, (ii) an audit committee composed entirely of independent directors and a written audit committee charter meeting a national stock exchange’s requirements, (iii) a nominating/corporate governance committee composed entirely of independent directors and a written nominating/corporate governance committee charter meeting a national stock exchange’s requirements, (iv) a compensation committee composed entirely of independent directors and a written compensation committee charter meeting the requirements of a national stock exchange, and (v) independent audits of our internal controls. Accordingly, you may not have the same protections afforded to holders of companies that are subject to all of the corporate governance requirements of a national stock exchange.

 

If our series limited liability company structure is not respected, then investors may have to share any liabilities of our Company with all investors and not just those who hold the same Series as them.

 

Our Company is structured as a Delaware series limited liability company that issues membership interests in a separate Series.  Each Series will merely be a separate series and not a separate legal entity.  Under Section 18-218 of the Delaware Limited Liability Company Act (the “LLC Act”), if certain conditions are met, the liability of investors holding interests in one Series is segregated from the liability of investors holding interests in another Series and the assets of one Series are not available to satisfy the liabilities of other series.  Although this limitation of liability is recognized by the courts of Delaware, there is no guarantee that if challenged in the courts of another U.S. state or a foreign jurisdiction, such courts will uphold a similar interpretation of Delaware law, and in the past certain jurisdictions have not honored such interpretation.  If our series limited liability company structure is not respected, then investors in a Series may have to share any liabilities of our Company with all investors and not just those who hold the same Shares of such Series as them.  Furthermore, while we intend to maintain separate and distinct records for each Series and account for them separately and otherwise meet the requirements of the LLC Act, it is possible a court could conclude that the methods used did not satisfy Section 18-218 of the LLC Act and thus potentially expose the assets of a Series to the liabilities of another Series.  The consequence of this is that the Series may have to bear higher than anticipated expenses which would adversely affect the value of the Shares or the likelihood of any distributions being made by a particular Offered Series to its investors.  In addition, we are not aware of any court case that has tested the limitations on inter-series liability provided by Section 18-218 in federal bankruptcy courts and it is possible that a bankruptcy court could determine that the assets of one Series should be applied to meet the liabilities of the other Series or the liabilities of our company generally where the assets of such other Series or of the Company generally are insufficient to meet our liability.

 

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Costs associated with complying with the Americans with Disabilities Act and similar laws may require us to make unanticipated capital expenditures that may decrease cash available for distributions to our investors.

 

The Properties may be subject to the Americans with Disabilities Act of 1990, as amended, or the ADA. Under the ADA, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. If one or more of the Properties are not in compliance with such laws, then we could be required to incur additional costs to bring the property into compliance. We cannot predict the ultimate amount of the cost of compliance with such laws. Noncompliance with these laws could also result in the imposition of fines or an award of damages to private litigants and could require an Offered Series to make significant unanticipated capital expenditures. Substantial costs incurred to comply with such laws, as well as fines or damages resulting from actual or alleged noncompliance with such laws, could adversely affect us, including our future results of operations and cash flows and an Offered Series’ ability to pay any monthly distributions on its Shares.

 

RISKS RELATED TO THE LANDA MOBILE APP

 

Our ability to implement our investment strategy depends, in part, upon our ability to successfully conduct Offerings through the Landa Mobile App, which makes an investment in an Offered Series more speculative.

 

We will conduct Offerings solely through the Landa Mobile App. The success of each Offering, and our ability to implement our business strategy, depends upon our ability to sell Shares to investors through the Landa Mobile App. If we are not successful in selling Shares through the Landa Mobile App, the ability of an Offered Series to raise proceeds through an Offering will be limited and it may not have adequate capital to implement its investment strategy.

 

Our business and the business of each Offered Series could be harmed if we are unable to maintain and grow the Landa Mobile App.

 

Our success and the success of each Offered Series depends on our investors’ confidence in our ability to provide reliable, secure, real-time access to the Landa Mobile App. If the functionality of the Landa Mobile App is not reliable, or otherwise fails to perform, we could experience disruptions in service, slow delivery times, and insufficient capacity. These consequences could result in our investors deciding to stop using or to reduce their use of the Landa Mobile App, either of which would have a material adverse effect on our business, financial condition, and results of operations.

 

We rely on the Manager’s ability to continually improve and upgrade the Landa Mobile App to accommodate increases in investment volumes, irregular or heavy use of the Landa Mobile App, especially during peak times, regulatory changes, and the development of new and enhanced features to the Landa Mobile App, functionalities and ancillary solutions. The maintenance and expansion of the Landa Mobile App requires, and will continue to require, substantial financial, operational, and technical resources. As our operations grow in both size and scope, these resources will typically need to be committed well in advance of any potential increase in our revenues. We cannot assure you that we will always be able to maintain the Landa Mobile App without failure or degradation of performance, especially during periods of abnormally high volumes. If the Manager does not successfully adapt our existing Platform to the requirements of our investors or to emerging industry standards, our business, financial condition, and results of operations could be materially adversely affected.

 

The occurrence of a cyber incident, or a deficiency in our cyber security, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information, or damage to our business relationships, all of which could negatively impact our financial results.

 

The Landa Mobile App processes certain confidential information provided by our investors and tenants in the Properties underlying each Offered Series. While we intend to take commercially reasonable measures to protect our investors’ confidential information and maintain appropriate cybersecurity, the security measures of the Landa Mobile App, our company’s information technology systems or those of the Manager or our service providers (including the Broker Dealer, the Custodian and North Capital) could be breached. A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity, or availability of information resources. More specifically, a cyber incident is an intentional attack or an unintentional event that can include gaining unauthorized access to systems to disrupt operations, corrupt data, or steal confidential information. Any accidental or willful breach or other unauthorized access could cause such information to be stolen and used for criminal purposes, in which case our investors and/or tenants would be subject to increased risk of fraud or identity theft. Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. In addition, many states have enacted laws requiring companies to notify individuals of data security breaches involving their personal data.  These mandatory disclosures regarding a security breach are costly to implement and often lead to widespread negative publicity, which may cause our investors to lose confidence in the effectiveness of our data security measures. As our reliance on technology has increased, so have the risks that could directly result from the occurrence of a cyber incident, including operational interruption, damage to our relationship with our tenants, and private data exposure, any of which could negatively impact our reputation and financial results.

 

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Any significant disruption in service on the Landa Mobile App or in its computer systems could reduce the attractiveness of the Landa Mobile App and result in a loss of users.

 

If a catastrophic event resulted in a platform outage and physical data loss, the Landa Mobile App’s ability to perform its functions would be adversely affected. Landa Mobile App’s hosting services infrastructure is provided by a third-party hosting provider (the “Hosting Provider”). We also maintain a backup system at a separate location that is owned and operated by a third party. Our operations depend on the Hosting Provider’s ability to protect its and our affiliate’s systems in its facilities against damage or interruption from natural disasters, power or telecommunications failures, air quality, temperature, humidity and other environmental concerns, computer viruses or other attempts to harm our systems, criminal acts and similar events. Any interruptions or delays in our service through the Landa Mobile App could materially affect our ability to perform any services for corresponding real estate investments or maintain accurate accounts, our relationships with users of the Landa Mobile App and our reputation. Additionally, in the event of damage or interruption, our insurance policies may not adequately compensate us for any losses that we may incur. We currently do not have a disaster recovery plan in place. Further, the Landa Mobile App has not been tested under actual disaster conditions, and we may not be able to recover all data and services in the event of an outage at a facility operated by the Hosting Provider. These factors could prevent us from processing or posting payments on the corresponding investments, damage our brand and reputation, divert our Manager’s attention and cause users to abandon the Landa Mobile App.

 

We rely on third-party banks and on third-party computer hardware and software. If we are unable to continue utilizing these services, our business and ability to service the corresponding equity investments may be adversely affected.

 

We and the Landa Mobile App rely on third-party and FDIC-insured depository institutions to process our transactions, including payments of corresponding equity investments, processing of subscriptions under each offering and distributions to our investors. Under the Automated Clearing House (ACH) rules, if we experience a high rate of reversed transactions (known as “chargebacks”), we may be subject to sanctions and potentially disqualified from using the system to process payments. The Landa Mobile App also relies on computer hardware purchased and software licensed from third parties. This purchased or licensed hardware and software may be physically located off-site, as is often the case with “cloud services.” This purchased or licensed hardware and software may not continue to be available on commercially reasonable terms, or at all. If the Manager cannot continue to obtain such services for the Landa Mobile App elsewhere, or if it cannot transition to another processor quickly, our ability to process payments will be materially affected and your ability to receive distributions will be delayed or impaired.

 

If there are design defects, errors, failures or delays in the Landa Mobile App, our business could suffer serious harm.

 

Despite testing, the Landa Mobile App may contain design defects and errors when first introduced or when major new updates or enhancements are released. Such errors or defects may cause the Landa Mobile App to operate incorrectly or less effectively. When problems occur, it might be difficult to identify the source of the problem. In addition, we could experience delays while developing and introducing new or enhanced features to the Landa Mobile App, primarily due to difficulties in technology development, obtaining any applicable regulatory approval, licensing data inputs, or adapting to new operating environments.

 

If design defects, errors or failures are discovered in the Landa Mobile App, we may not be able to correct or work around them in a cost-effective or timely manner or at all. The existence of design defects, errors, failures or delays that are significant, or are perceived to be significant, could also result in rejection or delay in market acceptance of the Landa Mobile App, damage to our reputation, loss of investors and related revenues, diversion of resources, product liability claims, regulatory actions or increases in costs, any of which could materially adversely affect our business, financial condition or results of operations.

 

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USE OF PROCEEDS

 

The tables included below set forth each Offered Series’ estimated use of proceeds for its respective Offering, assuming the Offered Series raises the Maximum Offering Amount for that Offering.

 

Initially, each Offered Series financed 100% of the costs associated with the acquisition of its Property, including Acquisition Fees, Property Diligence Expenses, and Reserves, with a promissory note issued by such Offered Series to the Manager (each an “Acquisition Note” and collectively the “Acquisition Notes”). Each Acquisition Note represents a related-party loan between each respective Offered Series and the Manager. The Acquisition Notes issued by each Offered Series bears an interest rate of up to 4.5% per annum, provided, however, that interest will not accrue on the Acquisition Notes issued by such Offered Series, and no payment of amounts outstanding under such Acquisition Notes will be due, prior to the transfer to the applicable Offered Series of title to its Property, and if such title transfer does not occur prior to the maturity of such Acquisition Note, such Acquisition Note will terminate with no obligation for the Offered Series to make any payment thereunder.

 

We expect each Offered Series will pay down, or otherwise discharge, the outstanding balance of its Acquisition Note with an interest-bearing note to the Manager (each a “Refinance Note” and collectively the “Refinance Notes”) to be issued after the qualification date of the offering statement of which this Offering Circular forms a part, and substantially all of the net proceeds from the Offered Series’ Offering.  We expect that each Refinance Note, if issued, will represent interest-bearing related-party loans between each respective Offered Series and the Manager.

 

While we expect each Refinance Note to be issued for the principal amount and on the terms disclosed in this Offering Circular, it is in the Manager’s sole discretion to alter such amount and terms, or to decide whether such Series issues a Refinance Note at all, provided, however, in no event shall the interest rate on the Refinance Note exceed 4.5% per annum.

 

Each Refinance Note will require payments of interest only for the term of such note, with the principal balance due upon maturity. For more information on the principal amounts and terms of each Acquisition Note and the expected principal amounts and terms of each Refinance Note, see “Management’s Discussion and Analysis of Financial Condition and Results of Operation — Related Party Loans.”

 

The Offerings are being conducted on a “best efforts” basis with no minimum offering amount, and neither the Manager nor any other party has a firm commitment or obligation to purchase any of the Offered Series’ Shares. The amount disclosed in each of the tables below are the Maximum Offering Amounts for the applicable Offered Series. The actual proceeds raised in the respective Offerings may be lower, in which case the proceeds available to pay down the applicable Acquisition Note would also be lower and may result in lower distributions paid to holders.

 

Landa Series 1703 Summerwoods Lane

 

The total cost to acquire the Property located at 1703 Summerwoods Lane, Griffin, GA, 30224, including applicable fees, expenses and reserves is expected to be $113,697.  

 

This Offered Series issued an Acquisition Note in principal amount of $113,697 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $35,772, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

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The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note   Amount  
Purchase Price of the Property (1)   $ 104,640  
Acquisition Fee (2)   $ 6,279  
Property Diligence Expenses (3)   $ 685  
Cash Reserve (4)   $ 2,093  
Total Amount of Acquisition Note   $ 113,697  
Less:        
Expected Refinance Note (5)   $ 77,925  
Expected Payments on Acquisition Note from Offering Proceeds:   $ 35,772  

 

(1) This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2) Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3) Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 1712 Summerwoods Lane

 

The total cost to acquire the Property located at 1712 Summerwoods Lane, Griffin, GA, 30224, including applicable fees, expenses and reserves is expected to be $113,697.  

 

This Offered Series issued an Acquisition Note in principal amount of $113,697 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $35,772, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $104,640 
Acquisition Fee (2)  $6,279 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $2,093 
Total Amount of Acquisition Note  $113,697 
Less:     
Expected Refinance Note (5)  $77,925 
Expected Payments on Acquisition Note from Offering Proceeds:  $35,772 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 1743 Summerwoods Lane

 

The total cost to acquire the Property located at 1743 Summerwoods Lane, Griffin, GA, 30224, including applicable fees, expenses and reserves is expected to be $113,697.  

 

This Offered Series issued an Acquisition Note in principal amount of $113,697 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $35,772, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $104,640 
Acquisition Fee (2)  $6,279 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $2,093 
Total Amount of Acquisition Note  $113,697 
Less:     
Expected Refinance Note (5)  $77,925 
Expected Payments on Acquisition Note from Offering Proceeds:  $35,772 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 1750 Summerwoods Lane

 

The total cost to acquire the Property located at 1750 Summerwoods Lane, Griffin, GA, 30224, including applicable fees, expenses and reserves is expected to be $113,697.  

 

This Offered Series issued an Acquisition Note in principal amount of $113,697 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $35,772, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $104,640 
Acquisition Fee (2)  $6,279 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $2,093 
Total Amount of Acquisition Note  $113,697 
Less:     
Expected Refinance Note (5)  $77,925 
Expected Payments on Acquisition Note from Offering Proceeds:  $35,772 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 4267 High Park Lane

 

The total cost to acquire the Property located at 4267 High Park Lane, East Point, GA, 30344, including applicable fees, expenses and reserves is expected to be $151,875.  

 

This Offered Series issued an Acquisition Note in principal amount of $151,875 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $47,625, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $139,990 
Acquisition Fee (2)  $8,400 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $2,800 
Total Amount of Acquisition Note  $151,875 
Less:     
Expected Refinance Note (5)  $104,250 
Expected Payments on Acquisition Note from Offering Proceeds:  $47,625 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 4474 Highwood Park Drive

 

The total cost to acquire the Property located at 4474 Highwood Park Drive, East Point, GA, 30344, including applicable fees, expenses and reserves is expected to be $136,648.  

 

This Offered Series issued an Acquisition Note in principal amount of $136,648 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $42,898, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $125,891 
Acquisition Fee (2)  $7,554 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $2,518 
Total Amount of Acquisition Note  $136,648 
Less:     
Expected Refinance Note (5)  $93,750 
Expected Payments on Acquisition Note from Offering Proceeds:  $42,898 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 4809 / 4811 Pinedale Drive

 

The total cost to acquire the Property located at 4809 / 4811 Pinedale Drive, Forest Park, GA, 30297, including applicable fees, expenses and reserves is expected to be $182,331.  

 

This Offered Series issued an Acquisition Note in principal amount of $182,331 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $57,081, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $168,190 
Acquisition Fee (2)  $10,092 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $3,364 
Total Amount of Acquisition Note  $182,331 
Less:     
Expected Refinance Note (5)  $125,250 
Expected Payments on Acquisition Note from Offering Proceeds:  $57,081 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 5051 Maple Drive

 

The total cost to acquire the Property located at 5051 Maple Drive, Forest Park, GA, 30297, including applicable fees, expenses and reserves is expected to be $107,279.  

 

This Offered Series issued an Acquisition Note in principal amount of $107,279 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $33,779, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $98,698 
Acquisition Fee (2)  $5,922 
Property Diligence Expenses (3).  $685 
Cash Reserve (4)  $1,974 
Total Amount of Acquisition Note  $107,279 
Less:     
Expected Refinance Note (5)  $73,500 
Expected Payments on Acquisition Note from Offering Proceeds:  $33,779 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Related Party Loans.”

 

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Landa Series 8569 Creekwood Way

 

The total cost to acquire the Property located at 8569 Creekwood Way, Jonesboro, GA, 30238, including applicable fees, expenses and reserves is expected to be $83,351.  

 

This Offered Series issued an Acquisition Note in principal amount of $83,351 to the Manager to acquire this Property and expects to refinance a portion of the Acquisition Note with a Refinance Note.

 

We estimate that the net proceeds from the Offering of this Offered Series will be $26,351, assuming we raise the Maximum Offering Amount. Substantially all of such proceeds will be used to repay a portion of the outstanding balance under the Acquisition Note.

 

The Manager will be responsible for paying the Broker Fee to the Broker Dealer for this Offering.

 

Components of Indebtedness under Acquisition Note  Amount 
Purchase Price of the Property (1)  $76,542 
Acquisition Fee (2)  $4,593 
Property Diligence Expenses (3)  $685 
Cash Reserve (4)  $1,531 
Total Amount of Acquisition Note  $83,351 
Less:     
Expected Refinance Note (5)  $57,000 
Expected Payments on Acquisition Note from Offering Proceeds:  $26,351 

 

(1)This purchase price reflects the appraisal price of this Property. Please see the Master Series Table.

 

(2)Acquisition Fee equal to 6% of the purchase price of the Property (rounded to the nearest dollar).

 

(3)Amount for Property Diligence Expense. See “Plan of Distribution – Fees and Expenses – Property Diligence Expenses.”

 

(4) Approximately 2% of the purchase price of the Property allocated for Reserves. See “Plan of Distribution – Fees and Expenses – Reserves.” As of the date of this Offering Circular, this reserve amount has yet to be transferred from the Manager to the Offered Series, but such transfer will occur before the Closing of the initial Offering for this Offered Series.

 

(5) This Offered Series intends to refinance approximately 74.47% of the purchase price of the Property pursuant to a Refinance Note. For more information see “Management’s Discussion and Analysis of Financial Condition and Results of Operation &nda