Real estate Investment Comparison

Landa vs. Groundfloor

Wondering whether Landa or Groundfloor is a better investment? We put them both to the test to help you compare and decide where to invest your money.

vs.

Comparison Table
Landa
Groundfloor
Minimum Investment
$5
$10
Investment Holding Period
None
1-18 months
Early Withdrawal Penalties
None
Unavailable
Rent Payouts
Monthly
N/A
Avg. Yearly Returns
Undisclosed
10.5%
Accessibility
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Earning Potential
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Investment Liquidity
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Landa
Investment Quality Score
3.5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Groundfloor
Investment Quality Score
4.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Landa

The Bottom Line

Landa offers a great customer experience, liquidity, and decent returns, but has a worrisome lack of return projections and historical performance data.

Landa Pros:

Good user experience ๐Ÿ“ฑ

Landa's mobile app is easy, intuitive, and delightful.

Low minimums ย ๐Ÿ”‘

Investors can get started from just $5.

Some liquidity โฉ

Landa's secondary marketplace is one of the only in the space, making real liquidity a possibility.

โ€

Landa Cons:

Lack of documentation & projection data ๐Ÿ“‰

It's very difficult to fully understand what you're buying before you buy into a Landa property, and impossible to understand how Landa properties have performed in aggregate.

Investment Tip: Make sure to deeply understand an investment before you make it

Poor diversification options ๐Ÿ“

Most Landa properties are located in a single U.S. state, making investors vulnerable to market swings.

Investment Tip: Always ensure proper diversification across your investment portfolio

All properties are mortgaged ๐Ÿ’ธ

Landa buys properties outright before selling fractions back to their investors. Investors therefore carry the cost of financing the property.

Investment Tip: Keep an eye out for fees that benefit the investment provider rather than the investor

Trading only available during business hours โŒ›

You'll have to make trades on Landa's secondary market while you're at work .

Investment Tip: Make sure investment opportunities are flexible to your needs before making them

Groundfloor

The Bottom Line

Groundfloor provides decent returns in an accessible and easy to use product ideal for first-time real estate investors, but investors looking for higher returns may want to look elsewhere.

Groundfloor Pros:

Real estate knowledge not required ๐Ÿ 

Since Groundfloor offers real estate debt investments, investors needn't know much about real estate investing at all

Low minimums ย ๐Ÿ”‘

Investors can get started from just $10

Short investment terms โฉ

While you can't withdraw an investment early, Groundfloor investment terms are not typically longer than two years

Decent return record ๐Ÿ“œ

Average returns of over 10% is not spectacular, but it's solid

โ€

Groundfloor Cons:

Capped upside ๐Ÿงข

The loans Groundfloor investors finance don't give investors access to a property's cash flow or appreciation upside

Investment Tip: Make sure efforts to reduce risk don't disproportionately reduce potential gains too

Lump sum returns โ›ฐ๏ธ

Most investments operate on deferred payment, meaning investors are only paid out when the loan is paid back in full.

Investment Tip: Make sure you calculate in the timing of investment returns when calculating your long term gains

No opportunity to learn about real estate investing ๐Ÿ“‰

Groundfloor does well to make investing easy, but its debt structure means investors don't leave knowing more about how to earn more leveraging real estate.

Investment Tip: Look for opportunities to compound not only money, but investing skill as well

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Landa
Review
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Groundfloor
Review
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