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Landa promised real estate investing for $5. Now it’s gone dark.

Landa Site

The idea of becoming a real estate investor for as little as $5 may seem too good to be true.

And for many users of Landa, a proptech company that promised just that — it has been.

Landa emerged from stealth in August 2022, announcing a total of $33 million in funding and a pledge to help everyday Americans access residential real estate investment through fractional shares.

CEO Yishai Cohen and former CTO Amit Assaraf founded Landa in 2019 in an effort to make real estate investment more inclusive. The app’s only requirements were that users be over age 18 and U.S. residents. They could start investing with just $5, and buy and sell shares as well as see real-time updates on their properties from the Landa app. (Assaraf left the company in December of 2023, according to his LinkedIn profile. He has not responded to requests for comment.)

Today, Landa’s investment portal site is down and its app is inoperable. Users claim they can’t access their funds and haven’t been paid dividends in months. The startup is embroiled in litigation, including a lawsuit from its early venture investor Viola.

One early user told TechCrunch that Landa stopped paying dividends to him on his shares in January. When he asked Landa about it, they “punted the question,” he said.

“I repeatedly emailed them about it and just got deflecting answers, nothing real,” the user said. “Then a few months after that, the app became unusable. It would not open.”

The user then asked if he could delete his account, which he had opened in 2021, and sell the shares. But he found Landa had disabled his ability to sell shares.

“They have essentially frozen me out of my funds and just shut down the app,” the user said. “Where is the money? Why won’t they return it to me?”

Over 130 complaints have been filed against Landa to the Better Business Bureau, with dozens of people echoing similar allegations. For instance, on May 1, one user who filed such a complaint shared they had invested over $8,000 through Landa and stopped receiving dividends last fall. The user said Landa customer service replied to their emails by saying that the company is “working on it.” 

In mid-April, when TechCrunch asked Landa about the issue — including the status of its downed site and whether the company itself had shut down — CEO Cohen said:  “Of course not. The site will be back up.”

When asked why the app was not working and why users had not received dividends in months, Cohen’s terse reply still seemed to refer to the website, blaming the servers: “It’s unrelated to dividends. It’s from our servers. We are on it.”

Upon further prodding, Cohen on April 18 shared the following statement: “We are aware of the issues currently affecting our platform and product, and want to assure all investors that we are actively working to restore full functionality as soon as possible. We have kept investors informed through all updates, including the server access issue. We appreciate the continued support of our investors and resident community, and remain committed to delivering on our vision of making real estate investing accessible to everyone.”

Cohen did not respond to our request for a status update on May 20. Investors NFX and 83North did not respond to our multiple requests for comment. 

Embroiled in a lawsuit 

It’s not just users who are upset with Landa. The company’s primary lenders are suing. 

Viola Credit and L Finance filed a lawsuit in New York State Supreme Court against Landa in November 2024, accusing it of “numerous defaults” on more than $35 million worth of loans they extended to the company. (Viola is also an investor in Landa through its venture division.)

The lenders also accused it of missing property tax payments that led to the forced sale of those properties, neglecting properties, and even failing to collect rents.

The lawsuit — first reported by real estate industry publication Bisnow — states that after over a year of attempting to get Landa to honor their commitments, the lenders removed Landa as manager of the homes and appointed an independent property manager and a chief restructuring officer. 

After further negotiations failed, the creditors later asked the court for, and were granted, an injunction blocking Landa from accessing bank accounts, interfering with their attempts to restructure the business, and reclaiming money they say is owed — including proceeds from property sales.

Despite the injunction, the lenders returned to court in January 2025, claiming Landa told tenants to send rent payments to a different bank account not covered by the ruling. They discovered this while making repairs to one property’s septic system. They also accused Landa’s CEO of trying to sell or refinance some properties.

The court ordered Landa to explain itself. Instead, in early March, Landa asked the court for a restraining order against Viola Credit and L Finance, claiming the independent manager was “installed unlawfully.” 

Judge Jennifer G. Schecter was not pleased. In March, she ordered both sides to find a solution “that’s good for all of your clients.” She denied Landa’s request for an injunction and ordered the company to pay nearly $100,000. A few weeks later, Landa filed a formal countersuit. The case is still pending.

Challenging model

Landa is just one of several startups that emerged in recent years offering fractional real estate investing. It is also apparently not the only one that has struggled — especially after mortgage interest rates began soaring in 2022. 

Fintor raised millions of dollars before seemingly pivoting to offer an “AI Agent to automate finance and real estate operations with human level performance.” Dallas-based Nada, which offered index-like real estate investment products called “Cityfunds,” allowing non-accredited investors to buy into a city’s home equity market with as little as $250, also appears to have pivoted. Its website now promotes a new tagline: “Access home equity to finance anything.” 

Arrived was perhaps the highest-profile of the bunch — and the only one that seems to be actively operating under the same model. In May of 2022, TechCrunch reported that Arrived raised $25 million in a Series A funding round including Bezos Expeditions, to allow people to buy shares in single-family rentals with “as little as $100.” According to its website, the startup has to date paid out over $13 million in dividends and interest and has 766,000 registered investors.

As for those people who invested with Landa, the future of their money appears uncertain. As of May 23, Landa’s investor portal website still redirects to a “come-back-soon” maintenance message. 

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Technology

Former SpaceX manager alleges harassment, retaliation, and security violations in lawsuit

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A former SpaceX security manager, who was privy to top secret information on U.S. government programs, is suing the company and one of its senior employees for alleged discrimination, sexual harassment, and retaliation. 

Jenna Shumway, who was promoted to Senior Contractor Program Security Officer after being hired in 2022, also alleges the senior employee — Daniel Collins, a former Defense Department official hired to run security compliance for the company’s government work — violated top secret protocols and then concealed this information from the government. 

Lawyers for Shumway, Collins, and SpaceX did not immediately respond to TechCrunch’s request for comment. 

Collins made the news in December 2024 when The New York Times reported SpaceX was under federal review for sloppy security protocols. Collins discouraged reporting security clearance violations and allowed executives without proper clearances into classified meetings, according to the NYT. This and other allegations triggered at least three federal reviews of the company’s security procedures, the NYT found. 

According to Shumway’s complaint, she was passed over for the director position that Collins ultimately was hired to without being given the opportunity to apply for it. Her “work environment entirely changed” when Collins was hired as her superior in spring 2024, according to the complaint. Shumway claims Collins effectively waged a campaign of harassment against her, which included stripping her of her responsibilities over a period of months and ultimately leading to her termination in October 2024.

Collins’ harassment extended to other female employees too, the complaint alleges. The discrimination included preventing female staff from doing required security work, allegedly setting them up for non-compliance, staring at one employee’s chest during a meeting, and asking a subordinate female employee if she wanted to “get shitty together” over after-work drinks. 

Shumway and other female employees repeatedly reported Collins to SpaceX Human Resources, the lawsuit states. The company ignored these complaints, the suit alleges, and didn’t take any action beyond suggesting the employees avoid being alone with Collins. Shumway is seeking unspecified damages.

This is not the first time SpaceX has been sued over claims that it enables sexual discrimination. Previous lawsuits have alleged similar stories of bias against female employees and a hostile work environment that enabled gender-based harassment. The company is also battling investigations from the California Civil Rights Department and the National Labor Relations Board over similar claims. 

The lawsuit was filed in late May in the Los Angeles County Superior Court; it was later moved to federal court on June 30 at SpaceX’s request. It is filed in the federal Central District of California court under case number 2:22-cv-05959.

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Technology

Congress just greenlit a NASA moon plan opposed by Musk and Isaacman

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Legacy aerospace giants scored a win Tuesday when the U.S. Senate passed President Trump’s budget reconciliation bill that earmarks billions more for NASA’s flagship Artemis program. 

The $10 billion addition to the Artemis architecture, which includes funding for additional Space Launch System rockets and an orbiting station around the moon called Gateway, is a rebuke to critics who wished to see alternative technologies used instead. Among those critics are SpaceX CEO Elon Musk and billionaire entrepreneur Jared Isaacman, who Musk proposed as the next NASA administrator. 

There’s no sign the souring relations between Musk and Trump are recovering. If Trump signs the bill, the fallout, which began after the president’s abrupt revocation of Isaacman’s nomination, will likely continue — if not escalate.

Musk in particular has taken aim at the Space Launch System (SLS) rocket on the grounds that it is fully expendable. Unlike SpaceX’s family of rockets, which are all designed to be reusable, SLS is one-time use only. As Musk put it back in 2020, that means “a billion dollar rocket is blown up” every time it is launched. Even that may have been an understatement; more recent figures from NASA’s watchdog put recurring production costs closer to $2.5 billion each.

A total of around $24 billion has been poured into SLS production to date, funds that have primarily gone to a consortium of aerospace primes, including Boeing, L3Harris’ Aerojet Rocketdyne, and Northrop Grumman, which leads construction of the major rocket components. 

During his recent confirmation hearings with the Senate, Isaacman questioned the massive sums. He affirmed using SLS for the next two Artemis missions, but ultimately said he didn’t think the rocket was “the long‑term way to get to and from the moon and to Mars with great frequency.”

Congress — and Trump, if he decides to sign the bill into law — have decided to press ahead. Around $4.1 billion of the $10 billion total added to the document will go toward additional SLS rockets for Artemis missions 4 and 5. Meanwhile, around $2.6 billion will go toward completion of the Gateway station.

Notably, the president’s fiscal year budget request for NASA submitted in May proposed to “phase out the Space Launch System and Orion spacecraft after the Artemis III mission is complete.” This new funding flies in the face of that proposal, which was submitted before Musk and Trump’s public fallout in June. 

The new funding includes $700 million for a new Mars Telecommunications Orbiter, $1.25 billion for additional operation of the International Space Station, and $325 million to SpaceX for the development of a spacecraft to de-orbit the ISS at the end of the decade. (The total award for that de-orbit spacecraft is $843 million.)  

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Technology

US Senate removes controversial ‘AI moratorium’ from budget bill

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U.S. senators voted overwhelmingly on Tuesday to remove a controversial 10-year ban on states’ abilities to regulate AI from the Trump administration’s “Big Beautiful Bill,” reports Axios.

The provision to the reconciliation bill was introduced by Sen. Ted Cruz (R-TX). Many prominent Silicon Valley executives — including OpenAI’s Sam Altman, Anduril’s Palmer Luckey, and a16z’s Marc Andreessen — were in favor of the so-called “AI moratorium,” which they said would prevent states from forming an unworkable patchwork of regulation that could stifle AI innovation.

Opposition to the provision became a bipartisan issue, as most Democrats and many Republicans warned that the ban on state regulation would harm consumers, and let powerful AI companies operate with little oversight. Critics also objected to Cruz’s plan to tie compliance with federal broadband funding.

After going back and forth over the provision, Sen. Marsha Blackburn (R-TN) on Monday offered an amendment to strip the provision alongside Sen. Maria Cantwell (D-WA). 

Blackburn originally opposed the provision, but came to an agreement with Cruz over the weekend that shortened the proposed ban from ten years to five. Blackburn then pulled her support for the provision entirely on Monday.

The Senate voted 99-1 to strip the AI moratorium.

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This Joanna Gaines Wayfair Rug Is on Sale from $32

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Kris Jenner pushed for Khloé Kardashian, Kendall and Kylie to be invited to Jeff Bezos, Lauren Sánchez’s wedding

Momager to the rescue. Khloé Kardashian, Kendall Jenner and Kylie Jenner were not originally invited to Jeff Bezos and Lauren...

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Who Was Lauren Sánchez’s Maid of Honor During Wedding to Jeff Bezos?

NEED TO KNOW When Lauren Sánchez wed Jeff Bezos in a lavish Venice celebration, it was a family affair Vogue...

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Andrew Cuomo headed on ‘getaway’ with mystery girlfriend

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Justin Bieber and Hailey Bieber Share Photos from Family Vacation

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Katy Perry skips Jeff Bezos and Lauren Sánchez’s wedding as Orlando Bloom attends solo after breakup

Katy Perry and Orlando Bloom have officially called it quits and the timing couldn’t be more high-profile. As Orlando partied...

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Billy Crudup and Mary-Louise Parker’s Son, 21, Makes Rare Appearance

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Katy Perry hints at ‘mood’ as Orlando Bloom attends Jeff Bezos, Lauren Sánchez wedding

Katy Perry shared her “mood” as her ex Orlando Bloom parties in Venice, Italy. Getty Images for Variety She’ll cry...

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Lorde Got An Unexpected Seal of Approval from Jack Harlow While Creating New Album

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‘Bachelor’ alum Madi Prewett admits she struggled to ‘break free from porn and masturbation’ addictions

“Bachelor” alum Madi Prewett admitted she once struggled to “break free” form her addictions to porn and masturbation. “Thankfully, by...

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Usher and Jenn Goicoechea Arrive at Jeff Bezos and Lauren Sánchez’s Wedding Welcome Party

NEED TO KNOW Usher and his wife, Jenn Goicoechea, were spotted en route to Jeff Bezos and Lauren Sánchez’s glamorous...

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Lola Consuelos shares ‘amazing’ fashion advice mom Kelly Ripa once gave her

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See Photos of Jeff Bezos, Lauren Sánchez, Kendall Jenner and More

Stars have been everywhere this week. In Venice, Italy, Jeff Bezos and bride-to-be Lauren Sánchez arrive in style in anticipation...

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Scott Wolf files for restraining order against estranged wife Kelley

Scott Wolf filed for a temporary restraining order against his estranged wife, Kelley Wolf, in the latest development of their...

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Rob Kardashian Makes Rare Appearance on Instagram: See the Photos!

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Jeff Bezos and Lauren Sánchez keeping A-list guests in the dark about top-secret wedding events

Jeff Bezos and Lauren Sánchez’s wedding details are so shrouded in mystery, even their A-list guests are being kept in...

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Taylor Swift Supports Travis Kelce in Preppy WAG Look and $4,350 Hand Chain

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Taylor Swift performs live for the first time since reclaiming her masters at Travis Kelce’s Nashville gig

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Niecy Nash-Betts Explains Why She’s Still Holding a ‘Grudge Against’ Colman Domingo After He Officiated Her Wedding

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Lauren Sánchez may have run into beauty blunder days before wedding

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