UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 1−SA

 

☒ SEMIANNUAL REPORT PURSUANT TO REGULATION A

 

or

 

☐ SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A

 

For the fiscal semiannual period ended June 30, 2024

 

Landa App 2 LLC
(Exact name of issuer as specified in its charter)

 

Delaware   87-1767314
(State or other jurisdiction of
incorporation or organization)		   (I.R.S. Employer
Identification No.)

 

20 W. 22nd Street, New York, NY 10010
(Full mailing address of principal executive offices)

 

(646) 905-0931
(Issuer’s telephone number, including area code)

 

 

 

 

 

 

THIS SEMI-ANNUAL REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED HEREIN, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.

 

Factors that could cause or contribute to these differences include those contained in the section of THE COMPANY’s latest offering circular (the “Offering Circular”) FILED WITH the Securities and Exchange Commission (“SEC”) entitled “Risk Factors”, which section is incorporated herein by reference.

 

Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in this report. The series-level combined supplemental information is presented for purposes of additional analysis of the combined financial statements rather than to present the financial position, results of operations and cash flows of the individual series. 

 

Delay in Filing Annual Audited Financials on Form 1-K and Delay in Filing Form 1- POS

 

Dismissal of Independent Accounting Firm

 

On February 15, 2024, Marcum LLP (“Marcum”) was dismissed and on February 22, 2024 Morison Cogen ("Morison") was engaged as principal accountants. The decision to change accountants was approved by the Board of Directors of the Company. However, this has resulted in an unforeseen delay in the filing of the required Post-Qualification Offering Statement Amendment for the financial year ending on December 31, 2023. The Company is actively working to address the matter and ensure compliance with all applicable regulatory requirements soon.

 

Overview

 

Landa App 2 LLC (the “Company,” “we”, “us,” or “our”) is a Delaware series limited liability company. The Company was formed for the purpose of creating one or more series (a “Series”) and offering membership interests (“Shares”) in such Series and may form new Series from time to time. Each Series will be governed by the Master Agreement and the Series Designation for such Series.

 

The purpose of the Series is to acquire, hold and manage owner-occupied single-family homes (each a “Property”) and offer a unique investment opportunity for eligible investors to benefit from the performance of such Properties. The Series’ primary investment objective is to acquire desirable Properties that provide attractive, risk adjusted, returns.

 

We intend to acquire Properties located in “metropolitan statistical areas” that provide economic growth and strong rental demand. Our objective is to manage each of the Properties in an effort to maximize net rental income and the amount of cash flow that is distributed to the holders of the Shares of the applicable Series. To that end, we will target Properties that we believe are in a stable condition as we determine through due diligence during the acquisition process. We will seek to acquire Properties that we believe will provide monthly net income distributions to investors, without holding periods, and without charging asset management fees. Real estate acquisitions will be on an opportunistic basis. However, there is no assurance that our management or acquisition objectives will be realized. We expect that the Company’s, and each Series’, sole source of income will be from rental income and any profits on the appreciation of any Property, if there is a disposition of the Property.

 

Each Series has been engaged primarily in acquiring its underlying Property from Landa Properties, LLC (“Landa Properties”) financed initially through promissory notes issued to Landa Holdings, Inc. (the “Manager”) and developing the financial, offering and other materials to begin offering Shares in such Series through the Landa mobile application (available for download on both iOS and Android devices) as well as the Landa website (www.landa.app) (collectively, the “Landa Platform”). See the Offering Circular under the headings “Description of the Properties” and “Use of Proceeds”, which can be found here and here, respectively, and are incorporated herein by reference, for a description of each of the Properties and information about their acquisition and financing.

 

1

 

 

We are a development-stage company, as we are devoting substantially all our efforts to establishing and maintaining our business and planned principal operations have only recently commenced. As such, the reported financial information herein will likely not be indicative of future operating results or operating conditions. Because of our corporate structure, we are in large part reliant on the Manager and its employees to grow and support our business. There are a number of key factors that will have large potential impacts on our operating results going forward, including, but not limited to, the Manager’s ability to:

 

  ● continue to identify and acquire high quality, attractive Properties at competitive prices to offer on the Landa Platform;

 

  ● market the Landa Platform and our offerings in individual Series and attract investors to the Landa Platform;

 

  ● continue to develop the Landa Platform and provide the information and technology infrastructure to support the issuance of interests; and

 

  ● continue to build our existing infrastructure to manage the Properties at a decreasing marginal cost per Property.

 

Offering Results

 

As of June 30, 2024, the Company is offering up to total of $75,000,000 in the shares of its Series during the rolling twelve-month period under Regulation A (the “Offering”), which represent limited liability company interests in the Series of the Company (“Shares”), pursuant to its most recent Offering Circular. The Offering is being 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 occur sporadically over the term of the Offering. As of June 30, 2024, we have raised total gross offering proceeds of approximately $1,570,872 from settled subscriptions. The Company does not currently intend to list the Shares for trading on a stock exchange or other trading market.

 

Series(1)  Offering Status   Qualification Date   Opening Date  Closing Date  Total Number of Shares Outstanding 
Landa Series 303 Kellys Walk  Closed    12/2/2021  12/4/2021  4/19/2022  $10,000 
Landa Series 3192 Lake Monroe Road  Closed    12/2/2021  12/4/2021  4/19/2022  10,000 
Landa Series 45 Robertford Drive  Closed    12/2/2021  12/4/2021  4/19/2022  10,000 
Landa Series 4085 Springvale Way  Closed    12/2/2021  12/4/2021  8/31/2022  10,000 
Landa Series 126 Wildwood Road  Closed    12/2/2021  12/4/2021  8/17/2022  10,000 
Landa Series 2174 Scarbrough Road  Closed    12/2/2021  12/4/2021  4/4/2023  10,000 
Landa Series 153 Spring Valley Circle  Closed    12/2/2021  12/4/2021  4/26/2023  10,000 
Landa Series 137 Spring Valley Circle  Closed    12/2/2021  12/4/2021  4/26/2023  10,000 
Landa Series 1096 Vincent Drive  Open    4/13/2022  3/27/2023  -  8,218 
Landa Series 1120 9th Court  Open    4/19/2022  3/27/2023  -  7,363 
Landa Series 113 Hughes Avenue  Open    5/12/2022  3/27/2023  -  9,662 
Landa Series 1434 Shirley Drive  Open    3/31/2022  3/27/2023  -  6,454 
Landa Series 1625 W McFarland Avenue  Open    5/9/2022  3/27/2023  -  7,735 
Landa Series 1713 Alfen Street  Closed    5/5/2022  3/27/2023  10/4/2023  10,000 
Landa Series 1744 Mountain Drive  Open    4/28/2022  3/27/2023  -  9,213 
Landa Series 179 Poplar Springs Drive  Open    4/22/2022  3/27/2023  -  7,620 
Landa Series 200 15th Court Northwest  Closed    5/3/2022  3/27/2023  1/21/2024  10,000 
Landa Series 235 Celery Avenue North  Open    3/17/2022  3/27/2023  -  7,654 
Landa Series 28 E Hammon Drive  Open    4/7/2022  3/27/2023  -  7,276 
Landa Series 301 Woodstream Drive  Open    5/5/2022  3/27/2023  -  8,892 
Landa Series 3029 Cedaridge Drive  Open    5/9/2022  3/27/2023  -  7,850 
Landa Series 340 17th Avenue Northwest  Closed    6/23/2022  3/27/2023  10/1/2023  10,000 
Landa Series 4037 Stone Drive  Open    5/13/2022  3/27/2023  -  9,183 
Landa Series 4126 Oriely Drive West  Open    2/11/2022  3/27/2023  -  8,810 
Landa Series 4464 Willow Street  Open    5/9/2022  3/27/2023  -  9,573 
Landa Series 4601 Sylvaner Lane  Open    5/18/2022  3/27/2023  -  8,029 
Landa Series 503 8th Street South  Open    5/20/2022  3/27/2023  -  8,808 
Landa Series 503 East Robinson Street  Open    5/10/2022  3/27/2023  -  7,175 
Landa Series 580 Dorothy Street  Open    3/31/2022  3/27/2023  -  8,539 
Landa Series 5844 Willow Crest Drive  Open    4/28/2022  3/27/2023  -  8,664 
Landa Series 650 Willow Bend Lane  Open    4/28/2022  3/27/2023  -  7,885 
Landa Series 6716 Mopsy Lane  Open    4/7/2022  3/27/2023  -  8,845 
Landa Series 6820 66th Street South  Open    4/28/2022  3/27/2023  -  8,957 
Landa Series 7817 3rd Avenue South  Closed    4/26/2022  3/27/2023  8/2/2023  10,000 
Landa Series 8048 Old Plank Road  Open    4/19/2022  3/27/2023  -  9,475 
Landa Series 808 Home Trail  Open    5/4/2022  3/27/2023  -  9,786 
Landa Series 8990 Doris Lane  Closed    4/21/2022  3/27/2023  8/2/2023  10,000 
Landa Series 913 2nd Street  Open    5/10/2022  3/27/2023  -  5,205 
Landa Series 2150 Tishamingo Drive  Open    6/8/2022  3/27/2023  -  8,845 
            $345,716 

  

Distributions

 

The Series declared distributions for the six months period end June 30, 2024

 

Series  Amounts 
Landa Series 303 Kellys Walk  $2,619 
Landa Series 3192 Lake Monroe Road  1,959 
Landa Series 45 Robertford Drive  - 
Landa Series 4085 Springvale Way  2,207 
Landa Series 126 Wildwood Road  908 
Landa Series 2174 Scarbrough Road  2,157 
Landa Series 153 Spring Valley Circle  1,927 
Landa Series 137 Spring Valley Circle  685 
Landa Series 1096 Vincent Drive  1,954 
Landa Series 1120 9th Court  145 
Landa Series 113 Hughes Avenue  - 
Landa Series 1434 Shirley Drive  2,267 
Landa Series 1625 W McFarland Avenue  715 
Landa Series 1713 Alfen Street  2,412 
Landa Series 1744 Mountain Drive  519 
Landa Series 179 Poplar Springs Drive  1,690 
Landa Series 200 15th Court Northwest  1,026 
Landa Series 235 Celery Avenue North  2,364 
Landa Series 28 E Hammon Drive  1,048 
Landa Series 301 Woodstream Drive  - 
Landa Series 3029 Cedaridge Drive  1,292 
Landa Series 340 17th Avenue Northwest  1,134 
Landa Series 4037 Stone Drive  - 
Landa Series 4126 Oriely Drive West  451 
Landa Series 4464 Willow Street  921 
Landa Series 4601 Sylvaner Lane  841 
Landa Series 503 8th Street South  - 
Landa Series 503 East Robinson Street  1,237 
Landa Series 580 Dorothy Street  1,017 
Landa Series 5844 Willow Crest Drive  1,143 
Landa Series 650 Willow Bend Lane  499 
Landa Series 6716 Mopsy Lane  300 
Landa Series 6820 66th Street South  919 
Landa Series 7817 3rd Avenue South  - 
Landa Series 8048 Old Plank Road  - 
Landa Series 808 Home Trail  - 
Landa Series 8990 Doris Lane  2,196 
Landa Series 913 2nd Street  30 
Landa Series 2150 Tishamingo Drive  151 
Total Combined  $38,733 

  

Series with Qualified Shares as of June 30, 2023

 

Shares in the Series listed below were qualified under Regulation A (“Regulation A”) of Section 3(6) of the Securities Act of 1933, as amended, as of June 30, 2023. For more information about each Series, please see the “Master Series Table” under “Series Offerings” of our Offering Circular, which can be found here and is incorporated herein by reference and the section entitled “Recent Developments” of this Semiannual Report.

 

Series (1)   Property
Landa App 2 LLC - 2174 Scarbrough Road Stone Mountain GA LLC   2174 Scarbrough Road, Stone Mountain, GA, 30088
Landa App 2 LLC - 153 Spring Valley Circle Stockbridge GA LLC   153 Spring Valley Cir, Stockbridge, GA, 30281
Landa App 2 LLC - 126 Wildwood Road Stockbridge GA LLC   126 Wildwood Road, Stockbridge, GA, 30281
Landa App 2 LLC - 137 Spring Valley Circle Stockbridge GA LLC   137 Spring Valley Cir, Stockbridge, GA, 30281
Landa App 2 LLC - 3192 Lake Monroe Road Douglasville GA LLC   3192 Lake Monroe Road, Douglasville, GA, 30135
Landa App 2 LLC - 45 Robertford Drive Covington GA LLC   45 Robertford Drive, Covington, GA, 30016
Landa App 2 LLC - 303 Kellys Walk Locust Grove GA LLC   303 Kellys Walk, Locust Grove, GA, 30248
Landa App 2 LLC - 4085 Springvale Way McDonough GA LLC   4085 Springvale Way, McDonough, GA, 30252
Landa App 2 LLC - 235 Celery Avenue N Jacksonville FL LLC   235 Celery Avenue N, Jacksonville, FL, 32220
Landa App 2 LLC - 580 Dorothy Street Bartow FL LLC   580 Dorothy Street, Bartow, FL, 33830
Landa App 2 LLC - 28 E Hammon Drive Apopka FL LLC   28 E Hammon Drive, Apopka, FL, 32703
Landa App 2 LLC - 4126 Oriely Drive West Jacksonville FL LLC   4126 Oriely Drive West, Jacksonville, FL, 32210

 

2

 

 

Landa App 2 LLC - 6716 Mopsy Lane Jacksonville FL LLC   6716 Mopsy Lane, Jacksonville, FL, 32210
Landa App 2 LLC - 1434 Shirley Drive Lakeland FL LLC   1434 Shirley Drive, Lakeland, FL, 33810
Landa App 2 LLC - 8990 Doris Lane Jacksonville FL LLC   8990 Doris Lane, Jacksonville, FL, 32220
Landa App 2 LLC - 1096 Vincent Drive Mount Dora FL LLC   1096 Vincent Drive, Mount Dora, FL, 32757
Landa App 2 LLC - 301 Woodstream Drive Gastonia NC LLC   301 Woodstream Drive, Gastonia, NC, 28056
Landa App 2 LLC - 1120 9th Court Pleasant Grove AL LLC   1120 9th Court, Pleasant Grove, AL, 35127
Landa App 2 LLC - 808 Home Trail Gastonia NC LLC   808 Home Trail, Gastonia, NC, 28052
Landa App 2 LLC - 179 Poplar Springs Drive Mulga AL LLC   179 Poplar Springs Drive, Mulga, AL, 35118
Landa App 2 LLC - 4464 Willow Street Gardendale AL LLC   4464 Willow Street, Gardendale, AL, 35071
Landa App 2 LLC - 7817 3rd Avenue S Birmingham AL LLC   7817 3rd Avenue S, Birmingham, AL, 35206
Landa App 2 LLC - 1713 Alfen Street Jacksonville FL LLC   1713 Alfen Street, Jacksonville, FL, 32254
Landa App 2 LLC - 1744 Mountain Drive Tarrant AL LLC   1744 Mountain Drive, Tarrant, AL, 35217
Landa App 2 LLC - 6820 66th Street S Birmingham AL LLC   6820 66th Street S, Birmingham, AL, 35212
Landa App 2 LLC - 650 Willow Bend Ln Bessemer AL LLC   650 Willow Bend Ln, Bessemer, AL, 35023
Landa App 2 LLC - 113 Hughes Avenue Sanford FL LLC   113 Hughes Avenue, Sanford, FL, 32771
Landa App 2 LLC - 5844 Willow Crest Drive Pinson AL LLC   5844 Willow Crest Drive, Pinson, AL, 35126
Landa App 2 LLC - 1625 W McFarland Avenue Gastonia NC LLC   1625 W McFarland Avenue, Gastonia, NC, 28054
Landa App 2 LLC - 913 2nd Street Kings Mountain NC LLC   913 2nd Street, Kings Mountain, NC, 28086
Landa App 2 LLC - 200 15th Court NW Center Point AL LLC   200 15th Court NW, Center Point, AL, 35215
Landa App 2 LLC – 503 8th Street S Bessemer AL LLC    503 8th Street S, Bessemer, AL, 35020
Landa App 2 LLC - 503 E Robinson Street Dallas NC LLC   503 E Robinson Street, Dallas, NC, 28034
Landa App 2 LLC - 4037 Stone Drive Bessemer AL LLC   4037 Stone Drive, Bessemer, AL, 35022
Landa App 2 LLC - 4601 Sylvaner Lane Birmingham AL LLC   4601 Sylvaner Lane, Birmingham, AL, 35244
Landa App 2 LLC - 8048 Old Plank Road Jacksonville FL LLC   8048 Old Plank Road, Jacksonville, FL, 32220
Landa App 2 LLC - 340 17th Avenue Northwest Center Point AL LLC   340 17th Avenue Northwest, Center Point, AL 35215
Landa App 2 LLC - 2150 Tishamingo Drive Birmingham AL LLC   2150 Tishamingo Drive Birmingham, AL 35217
Landa App 2 LLC - 3029 Cedaridge Drive Tampa FL LLC   3029 Cedaridge Drive Tampa, FL 33618

 

(1)Each Series herein is also referred to below in shortened form as “Landa Series” followed by its street address only.

 

The Company, through each Series, commenced operations on December 8, 2021 (Inception).

 

3

 

 

Recent Developments

 

The tables below provide information with respect to recent developments of the Series including dividend payments, lease renewals, vacancies and defaults. These recent developments are incorporated by reference to their respective hyperlinked Form 1-U filed by the Company and incorporated herein by reference.

 

Form 1-U   Subject    
Filing Date and hyperlink   Leasing Status   Distributions   Other
01/09/2024 - X -
02/23/2024 - - Changes in Issuer’s Certifying Accountant
03/04/2024 - X -
04/26/2024 - - Change in Transfer Agent
05/13/2024 - X -
06/11/2024 - X -
07/05/2024 - X -
08/14/2024 - X -
09/05/2024 - X -
09/17/2024 X - -
10/07/2024 - - Changes in Issuer's Certifying Accountant
10/16/2024 - X -

 

Default

 

See Item 2. Other Information for information regarding potential defaults alleged by the lenders with respect to the Series that are subject to Bridge Loans and agreements with the Manager that could result in foreclosure of the properties subject to such Bridge Loans and replacement of the Manager by the lenders.

 

Market Outlook—Real Estate Finance Markets

 

While the ongoing impact of interest rate hikes has created uncertainty about the overall stability of the economic and financial market, we remain encouraged by the fundamentals of the residential housing market and believe there will be an increased demand for residential rental properties, including single-family homes and duplexes. As we look ahead the next three years, we believe improving fundamentals, transactions, and residential real estate lending activities will continue to strengthen in core United States metro markets. We also expect high foreign direct investment in United States markets and real estate assets to continue. Further, the assistance provided by governmental support programs and commitments is expected to support U.S. capital markets over the immediate future.

 

If markets continue to strengthen, the competition for risk-adjusted yield will become increasingly fierce. We believe that innovative funding options and quicker closing timelines from the Manager allow for greater financing availability in a period of rising competition amongst capital providers.

 

4

 

 

However, risks related to inflation, interest rate hikes and regulatory uncertainty could adversely affect growth and the values of our investments. In the event market fundamentals deteriorate, our real estate portfolio may be impaired as a result of lower occupancy, lower rental rates, and/or declining values. Further, these circumstances may materially impact the cost and availability of credit to borrowers, hampering the ability of the Manager to acquire new investments with attractive risk-reward dynamics.

 

Over the short term, we remain cautiously optimistic about the opportunity to acquire investments offering attractive risk-adjusted returns in our targeted investment markets. However, we recognize disruptions in financial markets can occur at any time. By targeting modest leverage and short target investment durations, we believe we will remain well positioned, as compared to our competitors, in the event current market dynamics deteriorate.

 

The U.S. saw inflation rise to over nine percent (9%) in June 2022, the highest since 1981, before moderating to six and a half percent (6.5%) in December 2022, according to the U.S. Bureau of Labor Statistics. In response, the Federal Reserve implemented the largest interest rate increases since 1994, ending nearly four decades of declining, near-zero rates. These rate hikes drove mortgage rates to their highest levels in 14 years, which we believe contributed to a decline in home purchasing, particularly among millennials reliant on debt, and may have increased demand for rentals.

 

5

 

 

Results of Operations

 

The following table sets forth key components of our results of operations for the six months ended June 30, 2024 and June 30, 2023.

 

   Six months ended
June 30,		 
Category  2024   2023 
Rental income  $208,710   $162,564 
Expenses        
Management fee   16,474    12,935 
HOA fee   158    238 
Insurance   20,328    9,440 
Real estate taxes   20,681    17,234 
Utilities   628    200 
Repairs & maintenance   8,363    14,548 
Depreciation expense   131,763    61,939 
Interest expense   340,639    140,767 
Net Operating income (loss) before income taxes   (330,323)   (94,737)
Other Income (expense)   -    - 
Provision for income taxes   3,868    - 
Net income (loss)  $(334,191)  $(94,737)

 

Revenues

 

Revenues are generated at the Series level and are derived from rental revenues. Rental revenues consist of rental amounts collected under the lease agreements related to each Series’ Property, net of any concessions and uncollectible amounts. Each Series enters into a lease agreement directly with the tenant. Each lease has a term of one year, and in certain cases, may extend to a month-to-month lease, and we expect to enter into new lease agreement with one-year terms as well.

 

The Series generated rental revenues for the six months ended June 30, 2024 and June 30, 2023, of $ 208,710 and $162,564, respectively. The following table summarizes the rental income by Series:

 

   Six months ended
June 30,		 
Series  2024   2023 
Landa Series 303 Kellys Walk  $13,506   $11,025 
Landa Series 3192 Lake Monroe Road   7,125    5,600 
Landa Series 45 Robertford Drive   -    13,444 
Landa Series 4085 Springvale Way   7,688    12,778 
Landa Series 126 Wildwood Road   6,328    9,195 
Landa Series 2174 Scarbrough Road   9,765    9,455 
Landa Series 153 Spring Valley Circle   11,239    10,050 
Landa Series 137 Spring Valley Circle   3,087    8,678 
Landa Series 1096 Vincent Drive   11,750    4,095 
Landa Series 1120 9th Court   6,750    2,190 
Landa Series 113 Hughes Avenue   1,775    3,728 
Landa Series 1434 Shirley Drive   5,700    3,780 
Landa Series 1625 W McFarland Avenue   1,675    3,150 
Landa Series 1713 Alfen Street   8,730    2,768 
Landa Series 1744 Mountain Drive   6,714    2,005 
Landa Series 179 Poplar Springs Drive   6,900    1,995 
Landa Series 200 15th Court Northwest   6,000    2,100 
Landa Series 235 Celery Avenue North   10,152    3,740 
Landa Series 28 E Hammon Drive   3,468    3,520 
Landa Series 301 Woodstream Drive   1,925    3,234 
Landa Series 3029 Cedaridge Drive   4,600    4,830 
Landa Series 340 17th Avenue Northwest   5,250    2,625 
Landa Series 4037 Stone Drive   -    2,677 
Landa Series 4126 Oriely Drive West   1,600    1,870 
Landa Series 4464 Willow Street   9,415    2,677 
Landa Series 4601 Sylvaner Lane   4,408    3,979 
Landa Series 503 8th Street South   -    1,995 
Landa Series 503 East Robinson Street   5,775    2,310 
Landa Series 580 Dorothy Street   9,560    3,339 
Landa Series 5844 Willow Crest Drive   4,640    3,045 
Landa Series 650 Willow Bend Lane   2,220    2,331 
Landa Series 6716 Mopsy Lane   9,300    3,000 
Landa Series 6820 66th Street South   5,196    2,047 
Landa Series 7817 3rd Avenue South   -    - 
Landa Series 8048 Old Plank Road   -    - 
Landa Series 808 Home Trail   -    1,644 
Landa Series 8990 Doris Lane   6,500    2,730 
Landa Series 913 2nd Street   5,900    2,415 
Landa Series 2150 Tishamingo Drive   4,070    2,520 
Total Revenue  $208,710   $162,564 

  

Operating Expenses

 

Expenses are incurred at the Series level. The Operating Expenses (defined in the Offering Circular) incurred by each Series prior to such Series acquiring title to its underlying Property from Landa Properties are paid by the Manager. For more information about the operating expenses of the Series and the Properties, please see “Description of our Business – Operating Expenses” of our Offering Circular, which can be found here and is incorporated herein by reference.

  

Each Series is responsible for its own Operating Expenses once it acquires title to its underlying Property.

 

If the Operating Expenses exceed the amount of revenues generated from a Series and cannot be covered by any Reserves of such Series, the Manager may (a) pay such Operating Expenses and seek reimbursement and/or (b) loan the amount of the Operating Expenses to the applicable Series and be entitled to reimbursement of such amount from future revenues generated by such Series. In the case that the Manager provides a loan to a Series, the Series will be obligated to pay interest on that loan at a rate to be determined solely by the Manager, but which will be no greater than SOFR + 3.5 percent.

 

For the six months ended June 30, 2024 and 2023, the Series incurred a total aggregate of $539,033 and $257,301 in Operating Expenses (calculated on a combined basis), respectively.

 

The following table summarizes the Operating Expenses by category:

 

   Six months ended
June 30,		 
Category  2024   2023 
Expenses      
Management fee  $16,474   $12,935 
HOA fee   158    238 
Insurance   20,328    9,440 
Real estate taxes   20,681    17,234 
Utilities   628    200 
Repairs & maintenance   8,363    14,548 
Depreciation expense   131,763    61,939 
Interest expense   340,639    140,767 
Total operating expenses  $539,033   $257,301 

  

6

 

 

The following table summarizes the Operating Expenses for each Series:

 

   Six months ended
June 30,		 
Category  2024   2023 
Landa Series 303 Kellys Walk  $8,960   $8,368 
Landa Series 3192 Lake Monroe Road   7,229    7,057 
Landa Series 45 Robertford Drive   10,276    11,262 
Landa Series 4085 Springvale Way   10,257    10,369 
Landa Series 126 Wildwood Road   8,041    8,020 
Landa Series 2174 Scarbrough Road   8,650    8,206 
Landa Series 153 Spring Valley Circle   8,753    9,078 
Landa Series 137 Spring Valley Circle   7,678    7,860 
Landa Series 1096 Vincent Drive   22,257    9,104 
Landa Series 1120 9th Court   11,818    4,187 
Landa Series 113 Hughes Avenue   21,461    8,595 
Landa Series 1434 Shirley Drive   16,403    7,579 
Landa Series 1625 W McFarland Avenue   17,233    6,624 
Landa Series 1713 Alfen Street   11,359    4,716 
Landa Series 1744 Mountain Drive   11,156    5,650 
Landa Series 179 Poplar Springs Drive   10,583    3,911 
Landa Series 200 15th Court Northwest   8,558    4,624 
Landa Series 235 Celery Avenue North   19,549    7,207 
Landa Series 28 E Hammon Drive   16,748    6,578 
Landa Series 301 Woodstream Drive   18,090    6,701 
Landa Series 3029 Cedaridge Drive   29,974    11,486 
Landa Series 340 17th Avenue Northwest   10,544    4,547 
Landa Series 4037 Stone Drive   13,503    6,357 
Landa Series 4126 Oriely Drive West   16,709    4,536 
Landa Series 4464 Willow Street   16,945    7,208 
Landa Series 4601 Sylvaner Lane   21,468    8,562 
Landa Series 503 8th Street South   9,410    3,802 
Landa Series 503 East Robinson Street   11,288    4,802 
Landa Series 580 Dorothy Street   17,468    6,390 
Landa Series 5844 Willow Crest Drive   16,169    9,098 
Landa Series 650 Willow Bend Lane   11,647    4,514 
Landa Series 6716 Mopsy Lane   16,488    6,443 
Landa Series 6820 66th Street South   11,889    4,409 
Landa Series 7817 3rd Avenue South   7,510    3,719 
Landa Series 8048 Old Plank Road   18,605    7,385 
Landa Series 808 Home Trail   20,105    5,266 
Landa Series 8990 Doris Lane   8,862    3,387 
Landa Series 913 2nd Street   12,155    4,275 
Landa Series 2150 Tishamingo Drive   13,234    5,419 
Operating Expenses - Series  $539,033   $257,301 

  

7

 

 

Interest Expense

 

The following table summarizes Interest Expense for each Series:

 

   Six months ended
June 30,		 
Category  2024   2023 
Landa Series 303 Kellys Walk  $3,173   $3,170 
Landa Series 3192 Lake Monroe Road   2,607    2,606 
Landa Series 45 Robertford Drive   4,338    4,338 
Landa Series 4085 Springvale Way   3,171    3,170 
Landa Series 126 Wildwood Road   2,790    2,790 
Landa Series 2174 Scarbrough Road   2,875    2,790 
Landa Series 153 Spring Valley Circle   2,799    2,790 
Landa Series 137 Spring Valley Circle   2,613    2,610 
Landa Series 1096 Vincent Drive   14,527    5,497 
Landa Series 1120 9th Court   7,323    2,823 
Landa Series 113 Hughes Avenue   14,946    5,471 
Landa Series 1434 Shirley Drive   10,847    4,206 
Landa Series 1625 W McFarland Avenue   12,293    4,663 
Landa Series 1713 Alfen Street   6,966    2,979 
Landa Series 1744 Mountain Drive   7,434    2,740 
Landa Series 179 Poplar Springs Drive   7,360    2,812 
Landa Series 200 15th Court Northwest   5,456    2,478 
Landa Series 235 Celery Avenue North   12,747    4,855 
Landa Series 28 E Hammon Drive   11,349    4,352 
Landa Series 301 Woodstream Drive   12,400    4,608 
Landa Series 3029 Cedaridge Drive   17,450    6,585 
Landa Series 340 17th Avenue Northwest   6,452    2,886 
Landa Series 4037 Stone Drive   10,368    3,782 
Landa Series 4126 Oriely Drive West   11,753    2,934 
Landa Series 4464 Willow Street   12,200    4,473 
Landa Series 4601 Sylvaner Lane   14,916    5,576 
Landa Series 503 8th Street South   6,685    2,478 
Landa Series 503 East Robinson Street   7,718    2,988 
Landa Series 580 Dorothy Street   10,672    3,887 
Landa Series 5844 Willow Crest Drive   11,399    4,239 
Landa Series 650 Willow Bend Lane   8,361    3,168 
Landa Series 6716 Mopsy Lane   10,569    3,841 
Landa Series 6820 66th Street South   8,374    3,085 
Landa Series 7817 3rd Avenue South   4,785    1,933 
Landa Series 8048 Old Plank Road   15,156    5,537 
Landa Series 808 Home Trail   14,819    3,640 
Landa Series 8990 Doris Lane   5,452    2,004 
Landa Series 913 2nd Street   7,067    2,858 
Landa Series 2150 Tishamingo Drive   8,430    3,125 
Total Interest Expenses  $340,639   $140,767 

  

Net Income (Loss)

 

As a result of the cumulative effect of the foregoing factors for the six months ended June 30, 2024 and 2023, the Series generated an aggregate net income (loss) of $334,191 and $(94,737) respectively. The following table summarizes net income/(loss) for each Series:

 

   Six months ended
June 30,		 
Series  2024   2023 
Landa Series 303 Kellys Walk  $2,951   $2,657 
Landa Series 3192 Lake Monroe Road   (378)    (1,457) 
Landa Series 45 Robertford Drive   (10,276)   2,182 
Landa Series 4085 Springvale Way   (2,570)   2,409 
Landa Series 126 Wildwood Road   (1,779)   1,175 
Landa Series 2174 Scarbrough Road   303    1,249 
Landa Series 153 Spring Valley Circle   1,365    972 
Landa Series 137 Spring Valley Circle   (4,591)   818 
Landa Series 1096 Vincent Drive   (10,507)   (5,009)
Landa Series 1120 9th Court   (5,068)   (1,997)
Landa Series 113 Hughes Avenue   (19,686)   (4,867)
Landa Series 1434 Shirley Drive   (10,703)   (3,799)
Landa Series 1625 W McFarland Avenue   (15,558)   (3,474)
Landa Series 1713 Alfen Street   (2,629)   (1,948)
Landa Series 1744 Mountain Drive   (4,442)   (3,645)
Landa Series 179 Poplar Springs Drive   (3,683)   (1,916)
Landa Series 200 15th Court Northwest   (2,558)   (2,524)
Landa Series 235 Celery Avenue North   (9,397)   (3,467)
Landa Series 28 E Hammon Drive   (13,280)   (3,058)
Landa Series 301 Woodstream Drive   (16,165)   (3,467)
Landa Series 3029 Cedaridge Drive   (25,374)   (6,656)
Landa Series 340 17th Avenue Northwest   (5,294)   (1,922)
Landa Series 4037 Stone Drive   (13,503)   (3,680)
Landa Series 4126 Oriely Drive West   (15,109)   (2,666)
Landa Series 4464 Willow Street   (7,530)   (4,531)
Landa Series 4601 Sylvaner Lane   (17,060)   (4,583)
Landa Series 503 8th Street South   (9,410)   (1,807)
Landa Series 503 East Robinson Street   (5,513)   (2,492)
Landa Series 580 Dorothy Street   (7,908)   (3,051)
Landa Series 5844 Willow Crest Drive   (11,529)   (6,053)
Landa Series 650 Willow Bend Lane   (9,427)   (2,183)
Landa Series 6716 Mopsy Lane   (7,188)   (3,443)
Landa Series 6820 66th Street South   (6,693)   (2,362)
Landa Series 7817 3rd Avenue South   (7,510)   (3,719)
Landa Series 8048 Old Plank Road   (18,605)   (7,385)
Landa Series 808 Home Trail   (20,105)   (3,622)
Landa Series 8990 Doris Lane   (2,362)   (657)
Landa Series 913 2nd Street   (6,255)   (1,860)
Landa Series 2150 Tishamingo Drive   (9,164)   (2,899)
Total Net Income/(Loss)  $(334,191)  $(94,737)

 

8

 

 

Liquidity and Capital Resources

 

The Company did not commence its operations prior to the qualification of its initial Offering Statement. In addition, no Series commences its operations prior to the qualification of an offering statement (or amendment) in which the Series is included and the transfer of title of each of the Properties from Landa Properties to the applicable Series. Once a Series commences its planned principal operations, it will incur significant additional expenses. Until such time as a Series has the capacity to generate cash flows from operations, it may seek additional capital, including from the Manager.

 

9

 

 

 

 

Cash Balances

 

As of June 30, 2024, the Company itself had no cash or cash equivalents on hand. Cash is held at the Series level. On a total combined basis, as of June 30, 2024 and December 31, 2023, the Series in the aggregate had $ 188,234 and $104,211 on hand, respectively.

 

The following table summarizes the cash and restricted cash by Series:

 

   Six months ended
June 30,		 
Series  2024   2023 
Landa Series 303 Kellys Walk  $22,274   $8,369 
Landa Series 3192 Lake Monroe Road   7,533    5,638 
Landa Series 45 Robertford Drive   31    25 
Landa Series 4085 Springvale Way   7,678    6,112 
Landa Series 126 Wildwood Road   11,948    3,870 
Landa Series 2174 Scarbrough Road   11,379    5,481 
Landa Series 153 Spring Valley Circle   16,807    4,623 
Landa Series 137 Spring Valley Circle   4,115    2,932 
Landa Series 1096 Vincent Drive   4,860    2,218 
Landa Series 1120 9th Court   4,102    1,712 
Landa Series 113 Hughes Avenue   180    42 
Landa Series 1434 Shirley Drive   4,389    6,178 
Landa Series 1625 W McFarland Avenue   239    3,650 
Landa Series 1713 Alfen Street   6,751    3,595 
Landa Series 1744 Mountain Drive   3,266    1,155 
Landa Series 179 Poplar Springs Drive   3,666    2,163 
Landa Series 200 15th Court Northwest   5,260    2,075 
Landa Series 235 Celery Avenue North   8,911    7,889 
Landa Series 28 E Hammon Drive   3,295    5,499 
Landa Series 301 Woodstream Drive   -   22 
Landa Series 3029 Cedaridge Drive   -   114 
Landa Series 340 17th Avenue Northwest   6,025    3,822 
Landa Series 4037 Stone Drive   76    49 
Landa Series 4126 Oriely Drive West   -   1,466 
Landa Series 4464 Willow Street   3,425    327 
Landa Series 4601 Sylvaner Lane   1,567    3,548 
Landa Series 503 8th Street South   49    49 
Landa Series 503 East Robinson Street   5,215    4,176 
Landa Series 580 Dorothy Street   8,502    2,247 
Landa Series 5844 Willow Crest Drive   1,438    2,277 
Landa Series 650 Willow Bend Lane   1,383    3,276 
Landa Series 6716 Mopsy Lane   4,443    137 
Landa Series 6820 66th Street South   15,748    1,515 
Landa Series 7817 3rd Avenue South   32    32 
Landa Series 8048 Old Plank Road   31    31 
Landa Series 808 Home Trail   22    22 
Landa Series 8990 Doris Lane   6,248    4,664 
Landa Series 913 2nd Street   5,506    748 
Landa Series 2150 Tishamingo Drive   1,841    2,463 
Cash Balances  $188,234   $104,211 

 

10

 

The following table summarizes Restricted Cash balances* by Series:

 

   Six months ended
June 30,		 
Series  2024   2023 
Landa Series 303 Kellys Walk  $-   $- 
Landa Series 3192 Lake Monroe Road   -    - 
Landa Series 45 Robertford Drive   -    - 
Landa Series 4085 Springvale Way   -    - 
Landa Series 126 Wildwood Road   -    - 
Landa Series 2174 Scarbrough Road   -    - 
Landa Series 153 Spring Valley Circle   -    - 
Landa Series 137 Spring Valley Circle   -    - 
Landa Series 1096 Vincent Drive   -    - 
Landa Series 1120 9th Court   -    - 
Landa Series 113 Hughes Avenue   -    - 
Landa Series 1434 Shirley Drive   156    156 
Landa Series 1625 W McFarland Avenue   -    - 
Landa Series 1713 Alfen Street   -    - 
Landa Series 1744 Mountain Drive   -    - 
Landa Series 179 Poplar Springs Drive   -    - 
Landa Series 200 15th Court Northwest   -    - 
Landa Series 235 Celery Avenue North   -    - 
Landa Series 28 E Hammon Drive   1,985    - 
Landa Series 301 Woodstream Drive   -   - 
Landa Series 3029 Cedaridge Drive   2,300   2,300 
Landa Series 340 17th Avenue Northwest   -    - 
Landa Series 4037 Stone Drive   -    - 
Landa Series 4126 Oriely Drive West   768   1,600 
Landa Series 4464 Willow Street   -    - 
Landa Series 4601 Sylvaner Lane   -    - 
Landa Series 503 8th Street South   -    - 
Landa Series 503 East Robinson Street   -    - 
Landa Series 580 Dorothy Street   1,590    1,590 
Landa Series 5844 Willow Crest Drive   -    - 
Landa Series 650 Willow Bend Lane   -    - 
Landa Series 6716 Mopsy Lane   1,500    1,500 
Landa Series 6820 66th Street South   -    - 
Landa Series 7817 3rd Avenue South   -    - 
Landa Series 8048 Old Plank Road   -    - 
Landa Series 808 Home Trail   -    - 
Landa Series 8990 Doris Lane   -    - 
Landa Series 913 2nd Street   1,025    1,025 
Landa Series 2150 Tishamingo Drive   -    - 
Restricted Cash Balances  $9,324   $8,171 

 

*The state law of North Carolina and Florida requires the Series to hold tenant deposits in a separate account. The tenant deposits here are therefore classified as restricted cash.

 

11

 

 

Loans

 

Acquisition Notes

 

Each Series financed 100% of the costs associated with the acquisition of its Property, including an acquisition fee and expenses associated with sourcing its Property, with an Acquisition Note issued by such Series to the Manager, the terms of which are listed in the table below. Each of these Acquisition Notes represents a related-party loan between each respective Series and the Manager. The Acquisition Notes are interest-bearing and are an unsecured obligation of the applicable Series.

 

The following table sets forth the net amounts as of June 30, 2024:

 

Series  Principal Amount(1)   Annual Interest Rate   Loan Date  Current Outstanding Amount(3) 
Landa Series 303 Kellys Walk  $237,426    4.50%  09/07/2021  $54 
Landa Series 3192 Lake Monroe Road  $168,519    4.50%  07/28/2021  $28 
Landa Series 45 Robertford Drive  $273,676    4.50%  07/28/2021  $- 
Landa Series 4085 Springvale Way  $245,767    4.50%  07/01/2021  $- 
Landa Series 126 Wildwood Road  $185,571    4.50%  07/28/2021  $- 
Landa Series 2174 Scarbrough Road  $183,204    4.50%  07/28/2021  $3,757 
Landa Series 153 Spring Valley Circle  $176,953    4.50%  07/28/2021  $404 
Landa Series 137 Spring Valley Circle  $201,557    4.50%  07/28/2021  $137 
Landa Series 1096 Vincent Drive  $315,357    4.50%  04/28/2023  $64,040 
Landa Series 1120 9th Court  $187,510    4.50%  04/28/2023  $65,216 
Landa Series 113 Hughes Avenue  $325,957    4.50%  04/28/2023  $108,330 
Landa Series 1434 Shirley Drive  $268,554    4.50%  04/28/2023  $48,222 
Landa Series 1625 W McFarland Avenue  $275,109    4.50%  04/28/2023  $62,398 
Landa Series 1713 Alfen Street  $182,221    4.50%  04/28/2023  $- 
Landa Series 1744 Mountain Drive  $188,821    4.50%  04/28/2023  $90,357 
Landa Series 179 Poplar Springs Drive  $178,994    4.50%  04/28/2023  $55,180 
Landa Series 200 15th Court Northwest  $168,568    4.50%  04/28/2023  $14,905 
Landa Series 235 Celery Avenue North  $280,599    4.50%  04/28/2023  $56,047 
Landa Series 28 E Hammon Drive  $271,393    4.50%  04/28/2023  $74,034 
Landa Series 301 Woodstream Drive  $290,432    4.50%  04/28/2023  $107,420 
Landa Series 3029 Cedaridge Drive  $393,284    4.50%  04/28/2023  $82,562 
Landa Series 340 17th Avenue Northwest  $189,141    4.50%  04/28/2023  $11,093 
Landa Series 4037 Stone Drive  $228,364    4.50%  04/28/2023  $81,253 
Landa Series 4126 Oriely Drive West  $251,465    4.50%  05/19/2023  $60,283 
Landa Series 4464 Willow Street  $243,829    4.50%  04/28/2023  $51,977 
Landa Series 4601 Sylvaner Lane  $345,886    4.50%  04/28/2023  $94,554 
Landa Series 503 8th Street South  $156,106    4.50%  04/28/2023  $57,153 
Landa Series 503 East Robinson Street  $184,476    4.50%  04/28/2023  $46,303 
Landa Series 580 Dorothy Street  $241,252    4.50%  04/28/2023  $75,305 
Landa Series 5844 Willow Crest Drive  $254,760    4.50%  04/28/2023  $76,733 
Landa Series 650 Willow Bend Lane  $184,132    4.50%  04/28/2023  $41,767 
Landa Series 6716 Mopsy Lane  $237,362    4.50%  04/28/2023  $79,846 
Landa Series 6820 66th Street South  $194,505    4.50%  04/28/2023  $74,567 
Landa Series 7817 3rd Avenue South  $135,983    4.50%  04/28/2023  $2,948 
Landa Series 8048 Old Plank Road  $299,140    4.50%  04/28/2023  $64,325 
Landa Series 808 Home Trail  $322,459    4.50%  05/19/2023  $107,233 
Landa Series 8990 Doris Lane  $136,785    4.50%  04/28/2023  $12,613 
Landa Series 913 2nd Street  $176,271    4.50%  04/28/2023  $13,055 
Landa Series 2150 Tishamingo Drive  $224,318    4.50%  04/28/2023  $114,812 
          $1,898,912 

  

(1) The principal amount is due and payable by the Series within 30 days after demand by the Manager, as lender, at any time prior to the liquidation, dissolution or winding up of the Series.
   
(2) Each Acquisition Note was entered into on the date set forth in the table above. Interest began to accrue on the Acquisition Notes when title to the Property was transferred to the Series.
   
(3) The Current Outstanding Amount as of June 30, 2024.

 

12

 

 

Refinance Notes (Mortgages)

 

The following table sets forth the terms and the net amounts of the Refinance Notes as of June 30, 2024.

 

Series  Principal Amount   Annual Interest Rate   Loan Date  Maturity Date  Current Outstanding Amount  Monthly Mortgage Interest Expense  
Landa Series 303 Kellys Walk  $132,080    4.80%  12/08/2021  01/01/2027  $132,144   529 
Landa Series 3192 Lake Monroe Road  $108,750    4.80%  12/08/2021  01/01/2027  $108,594   434 
Landa Series 45 Robertford Drive  $180,750    4.80%  12/08/2021  01/01/2027  $180,750   723 
Landa Series 4085 Springvale Way  $157,500    4.80%  12/08/2021  01/01/2027  $132,080   528 
Landa Series 126 Wildwood Road  $116,250    4.80%  12/08/2021  01/01/2027  $116,250   465 
Landa Series 2174 Scarbrough Road  $122,250    4.80%  12/08/2021  01/01/2027  $116,250   465 
Landa Series 153 Spring Valley Circle  $116,250    4.80%  12/08/2021  01/01/2027  $116,265   465 
Landa Series 137 Spring Valley Circle  $122,500    4.80%  12/08/2021  01/01/2027  $108,750   435 
Total Refinance Note  $1,056,330          $1,011,083  $4,044 

 

(1)  The payment schedule for this Loan requires that on the Maturity Date, Borrower make a balloon payment of all unpaid principal, interest, charges, fees, costs and any other unpaid amounts.

 

13

 

 

Bridge Notes

 

Bridge Notes represent the short term high interest secured financing obtained from certain third party lenders by a Series in order to facilitate transfer of title from Landa Properties to the Series in the event of traditional long term financing being unavailable (see “Refinance Note”).

 

The following table sets forth the terms and the net amounts of the Bridge Notes as of June 30, 2024.

 

Series  Principal Amount (1)   Annual Interest Rate   Loan Date (2)  Maturity Date  Current Outstanding Amount (3) 
Landa Series 1096 Vincent Drive  $210,250    12.50%  04/28/2023  12/31/2025  $210,250 
Landa Series 1120 9th Court  $94,250    12.50%   04/28/2023  12/31/2025  $94,250 
Landa Series 113 Hughes Avenue  $201,550    12.50%   04/28/2023  12/31/2025  $201,550 
Landa Series 1434 Shirley Drive  $156,600    12.50%   04/28/2023  12/31/2025  $156,600 
Landa Series 1625 W McFarland Avenue  $175,450    12.50%   04/28/2023  12/31/2025  $175,450 
Landa Series 1713 Alfen Street  $112,375    12.50%   04/28/2023  12/31/2025  $112,375 
Landa Series 1744 Mountain Drive  $87,000    12.50%   04/28/2023  12/31/2025  $87,000 
Landa Series 179 Poplar Springs Drive  $98,238    12.50%   04/28/2023  12/31/2025  $98,238 
Landa Series 200 15th Court Northwest  $82,650    12.50%   04/28/2023  12/31/2025  $82,650 
Landa Series 235 Celery Avenue North  $184,875    12.50%   04/28/2023  12/31/2025  $184,875 
Landa Series 28 E Hammon Drive  $155,875    12.50%   04/28/2023  12/31/2025  $155,875 
Landa Series 301 Woodstream Drive  $160,950    12.50%   04/28/2023  12/31/2025  $160,950 
Landa Series 3029 Cedaridge Drive  $250,850    12.50%   04/28/2023  12/31/2025  $250,850 
Landa Series 340 17th Avenue Northwest  $100,050    12.50%   04/28/2023  12/31/2025  $100,050 
Landa Series 4037 Stone Drive  $137,750    12.50%   04/28/2023  12/31/2025  $137,750 
Landa Series 4126 Oriely Drive West  $167,610    12.50%   05/19/2023  12/31/2025  $167,610 
Landa Series 4464 Willow Street  $177,625    12.50%   04/28/2023  12/31/2025  $177,625 
Landa Series 4601 Sylvaner Lane  $205,900    12.50%   04/28/2023  12/31/2025  $205,900 
Landa Series 503 8th Street South  $87,000    12.50%   04/28/2023  12/31/2025  $87,000 
Landa Series 503 East Robinson Street  $107,300    12.50%   04/28/2023  12/31/2025  $107,300 
Landa Series 580 Dorothy Street  $137,750    12.50%   04/28/2023  12/31/2025  $137,750 
Landa Series 5844 Willow Crest Drive  $155,875    12.50%   04/28/2023  12/31/2025  $155,875 
Landa Series 650 Willow Bend Lane  $119,625    12.50%   04/28/2023  12/31/2025  $119,625 
Landa Series 6716 Mopsy Lane  $137,750    12.50%   04/28/2023  12/31/2025  $137,750 
Landa Series 6820 66th Street South  $108,025    12.50%   04/28/2023  12/31/2025  $108,025 
Landa Series 7817 3rd Avenue South  $76,125    12.50%   04/28/2023  12/31/2025  $76,125 
Landa Series 8048 Old Plank Road  $221,125    12.50%   04/28/2023  12/31/2025  $221,125 
Landa Series 808 Home Trail  $200,075    12.50%   05/19/2023  12/31/2025  $200,075 
Landa Series 8990 Doris Lane  $83,375    12.50%   04/28/2023  12/31/2025  $83,375 
Landa Series 913 2nd Street  $108,750    12.50%   04/28/2023  12/31/2025  $108,750 
Landa Series 2150 Tishamingo Drive  $94,250    12.50%   04/28/2023  12/31/2025  $94,250 
  $4,396,873           $4,396,873 

 

See Item 2. Other Information for information regarding potential defaults alleged by the lenders with respect to the Series that are subject to Bridge Loans and agreements with the Manager that could result in foreclosure of the properties subject to such Bridge Loans and replacement of the Manager by the lenders.

 

 

 

Off-Balance Sheet Arrangements

 

Neither the Company nor any of the Series had during the periods presented, and does not currently have, any off-balance sheet arrangements. 

 

Critical Accounting Policies and Estimates

 

The preparation of financial statements in conformity with GAAP requires the Manager to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management’s difficult, subjective or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements.

 

14

 

 

Revenue Recognition

 

The Company adopted ASU 2014-09, Revenue from Contracts with Customers, and its related amendments, effective December 8, 2021.

 

We determine revenue recognition through the following steps:

 

  ● identification of a contract with a customer;

 

  ● identification of the performance obligations in the contract;

 

  ● determination of the transaction price;

 

  ● allocation of the transaction price to the performance obligations in the contract; and

 

  ● recognition of revenue when or as the performance obligations are satisfied.

  

Fees to the Manager

 

Monthly Management Fee: Each Series pays the Manager a monthly management fee ranging from five percent (5%) to ten percent (10%) of Gross Monthly Rent for each Property.

 

Acquisition Fee: The Acquisition Notes issued by each Series to the Manager in connection with the acquisition of its Property included amounts attributable to an acquisition fee due to the Manager ranging from five percent (5%) to ten percent (10%) of the purchase price of the Property.

 

Property Diligence Expenses: The Acquisition Notes issued by each Series to the Manager in connection with the acquisition of its Property included amounts attributable to any and all fees, costs and expenses incurred in connection with the evaluation, discovery, and investigation of such Property incurred prior to such acquisition, including legal fees associated with the title insurance, appraisal costs and inspection costs, and any other expenses associated with the acquisition of a Property.

 

Special Servicing of Non-Performing Properties & Liquidation: Each Series will reimburse the Manager for any out-of-pocket expenses in connection with the special servicing of non-performing Properties and the liquidation of Properties.

 

Interest in standing cash: The manager shall be entitled to receive interest payments from the banking partner with respect to the standing cash balances

 

Legal, Maintenance & Construction Fee: The Manager may provide legal services to the Series in the course of its business such as required in the process of evicting a tenant, recovering rents in arrears, legal support fees for reaching a settlement with the delinquent tenant etc. The Manager may perform repairs, cleaning, painting, decorations and alterations, for example electrical, plumbing, carpentry, masonry, and such other routine repairs as are necessary or reasonably appropriate in the course of maintenance of the Property (subject to the limitations of this Agreement). The Manager will charge the Series a fee for such services provided at market rate.

 

Brokerage Fee: The broker of record for each Offering is expected to receive a brokerage fee equal to 1% of the amount raised from investors through each Series’ Offering. We comply with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of a Series’ Offering, offering costs are capitalized. The deferred offering costs are charged to members’ equity upon the completion of an Offering or to expense if the Offering is not completed.

 

Administrative Costs: In accordance with FASB ASC 720, administrative costs, including accounting fees and legal fees, are expensed as incurred. See “Item 1. Business—Operating Expenses” for additional information.

 

For more information about the fees payable to the Manager, please see “Description of our Business—Our Manager—Manager Compensation” of our Offering Circular, which can be found here and is incorporated herein by reference.

 

15

 

 

Fair Value of Financial Instruments

 

FASB guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

 

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

 

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

 

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

 

The carrying amounts reported in the balance sheets approximate their fair value.

 

Earnings (Loss) / Income per Membership Interest

 

Upon completion of an Offering, each Series intends to comply with accounting and disclosure requirements of ASC Topic 260, Earnings per Share. For each Series, earnings (loss) / income per interest will be computed by dividing net (loss) / income for a particular Series by the weighted average number of outstanding interests in that particular Series during the year.

 

Recently Issued Accounting Pronouncements

 

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability under most operating leases in its balance sheet. The ASU was effective for annual and interim periods beginning after December 15, 2019, including interim periods within those fiscal years. In April 2020, the FASB voted to defer the effective date of ASC 842 for private companies and certain not-for-profit entities for one year. For private companies and private NFPs, the leasing standard will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company adopted this standard as of January 1, 2022. The adoption of this standard did not impact the Company's financial reporting and disclosure as all of the Company's leases are twelve months or less and have no escalations in rental income.

 

In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as modified by FASB ASU No. 2019-10 and other subsequently issued related ASUs. The amendments in this Update affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this new guidance effective January 1, 2023 utilizing the modified retrospective transition method. The adoption of this standard did not have a material impact on the Company's financial statements, but did change how the allowance for credit losses is determined.

 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements.

 

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying combined and combining financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

 

16

 

 

Related Party Arrangements

 

For further information regarding “Related Party Arrangements,” please see Note 2, Summary of Significant Accounting Policies, in our financial statements

 

Subsequent Events

 

For further information regarding “Subsequent Events,” please see Note 10, Subsequent Events, in our financial statements.

 

Item 2. Other Information

 

Notice of Default

 

Certain Series, as listed below, entered into bridge loan agreements dated April 28, 2023, as amended (“Bridge Loans”), with the L Finance LLC as lender (“L Finance”). See Item 2. Loans – Bridge Notes. These Bridge Loans are mortgages on such Series properties and were entered into to refinance the prior mortgages that became due. In addition, the Manager had entered into a financing agreement with Viola GL (“GL”), dated August 19, 2021 (“Agreement”), as amended, for financing its operations and for the benefit of the Series. (each of L Finance and GL a “Lender” and collectively, the “Lenders”) The Agreement provide that upon a default by the Manager, GL has, among other rights, the right to replace the Manager with a substitute manager of GL's choosing with respect to all of the Series. On October 29, 2024, the Lenders issued a notice to these Series and the Manager alleging that they were in default under the Bridge Loans and the Agreement.

 

The following Series are subject to the Bridge Loans with L Finance (“Borrower Series”).

 

Landa App 2 LLC - 1434 Shirley Drive Lakeland Florida LLC

Landa App 2 LLC - 1096 Vincent Drive Mount Dora Florida LLC

Landa App 2 LLC - 1120 9th Court Pleasant Grove Alabama LLC

Landa App 2 LLC - 8048 Old Plank Road Jacksonville Florida LLC

Landa App 2 LLC - 580 Dorothy Street Bartow Florida LLC

Landa App 2 LLC - 340 17th Avenue Northwest Center Point Alabama LLC

Landa App 2 LLC - 301 Woodstream Drive Gastonia North Carolina LLC

Landa App 2 LLC - 1713 Alfen Street Jacksonville Florida LLC

Landa App 2 LLC - 1744 Mountain Drive Birmingham Alabama LLC

Landa App 2 LLC - 200 15th Court Northwest Center Point Alabama LLC

Landa App 2 LLC - 503 8th Street South Bessemer Alabama LLC

Landa App 2 LLC - 5844 Willow Crest Drive Pinson Alabama LLC

Landa App 2 LLC - 4601 Sylvaner Lane Birmingham Alabama LLC

Landa App 2 LLC - 913 2nd Street Kings Mountain North Carolina LLC

Landa App 2 LLC - 2150 Tishamingo Drive Birmingham Alabama LLC

Landa App 2 LLC - 503 East Robinson Street Dallas North Carolina LLC

Landa App 2 LLC - 650 Willow Bend Lane Bessemer Alabama LLC

Landa App 2 LLC - 28 E Hammon Drive Apopka Florida LLC

Landa App 2 LLC - 4464 Willow Street Gardendale Alabama LLC

Landa App 2 LLC - 113 Hughes Avenue Sanford Florida LLC

Landa App 2 LLC - 6820 66th Street South Birmingham Alabama LLC

Landa App 2 LLC - 3029 Cedaridge Drive Tampa Florida LLC

Landa App 2 LLC - 808 Home Trail Gastonia North Carolina LLC

Landa App 2 LLC - 4126 Oriely Drive West Jacksonville Florida LLC

Landa App 2 LLC - 4037 Stone Drive Bessemer Alabama LLC

Landa App 2 LLC - 235 Celery Avenue North Jacksonville Florida LLC

Landa App 2 LLC - 179 Poplar Springs Drive Sylvan Springs Alabama LLC

Landa App 2 LLC - 8990 Doris Lane Jacksonville Florida LLC

Landa App 2 LLC - 6716 Mopsy Lane Jacksonville Florida LLC

Landa App 2 LLC - 7817 3rd Avenue South Birmingham Alabama LLC

Landa App 2 LLC - 1625 W Mcfarland Avenue Gastonia North Carolina LLC

 

In their notice, the Lenders claimed that the default has entitled them to foreclose on the Borrower Series properties and exercise managerial control over the Series and direct its operations.

 

The Manager is disputing that a default has occurred and believes that the Lenders are not entitled to replace the Manager and assume control of the Series under the Agreement, nor foreclose on the properties that are subject to the Bridge Loans and the Agreement.

 

The Manager is currently in negotiation with the Lenders. If the Manager is unable to reach a settlement or the Lenders otherwise do not waive the default, the Lenders may take the following actions:

 

  ● Accelerate all amounts due under the Bridge Loans. As a result, the Lenders may be entitled to foreclose on each of the Borrower Series' Properties and force its sale to recover unpaid amounts under the Bridge Loans, which would likely result in a significant loss to investors of the Borrower Series. See “A Series may be unable to service its indebtedness, which may be secured by its Property, and could result in the Series being forced to sell its Property, which could result in a significant loss to investors in the particular Series” in the Company's Offering Statement here.

 

  ● Foreclose on the Manager's interest in all the Series and assume control of the Manager's operations and assume the Manager's role as manager of all the Series, even if a particular Series is not in default. This action could significantly impact the Series' management and investment outcomes. See “ Risk Factors – 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” in the Company's Offering Statement here

 

17

 

 

Item 3. Financial Statements

 

Index to the Unaudited Financial Statements of Landa App 2 LLC    
Combined and Combining Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023   F-2
Combined and Combining Statement of Operations (Unaudited) for the six months ended June 30, 2024 and June 30, 2023   F-16
Combined and Combining Statement of Members’ Equity (Unaudited) for the six months ended June 30, 2024 and June 30, 2023   F-30
Combined and Combing Statement of Cash Flows (Unaudited) for the six months ended June 30, 2024 and June 30, 2023   F-37
Notes to the Financial Statements as of June 30, 2024   F-51

 

F-1

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

 

   Landa App 2 LLC   Landa Series 126
Wildwood Road		   Landa Series 137
Spring Valley Circle		 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $-   $-   $11,948   $3,870   $4,115   $2,932 
Restricted cash   -    -    -    -    -    - 
Escrow   -    -    386    386    443    443 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    6,657    6,657    1,426    1,426 
Investments in single-family residential properties, net of depreciation   -    -    166,424    169,432    166,090    169,081 
                               
Total Assets  $-   $-   $185,415   $180,345   $172,074   $173,882 
                               
Liabilities                              
Due to related party  $-   $-   $12,691   $6,543   $8,505   $6,652 
Other liabilities   -    -    1,609    -    1,615    - 
Security deposit   -    -    1,400    1,400    1,325    1,325 
Acquisition note payable   -    -    -    -    137    137 
Bridge note payable   -    -    -    -    -    - 
Mortgage payable   -    -    116,250    116,250    108,750    108,750 
                               
Total Liabilities   -    -    131,950    124,193    120,332    116,864 
                               
Members’ equity   -    -    53,465    56,152    51,742    57,018 
                               
Total Liabilities and Members’ Equity  $      -   $      -   $185,415   $180,345   $172,074   $173,882 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-2

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 153 Spring Valley Circle   Landa Series 2174 Scarbrough Road   Landa Series 303 Kellys Walk 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $16,807   $4,623   $11,379   $5,481   $22,274   $8,369 
Restricted cash   -    -    -    -    -    - 
Escrow   478    478    742    472    2,126    2,126 
Accounts receivable   -    -    -    -    -    - 
Due from related party   6,921    6,921    5,271    5,271    56,374    56,374 
Investments in single-family residential properties, net of depreciation   172,166    175,267    157,788    160,631    164,210    167,174 
                               
Total Assets  $196,372   $187,289   $175,180   $172,125   $244,983   $234,043 
                               
Liabilities                              
Due to related party  $7,291   $403   $1,184   $567   $11,750   $2,126 
Other liabilities   2,757    -    2,742    -    7,611    4,577 
Security deposit   1,675    1,675    3,100    1,550    -    2,050 
Acquisition note payable   404    404    3,757    3,757    54    54 
Bridge note payable   -    -    -    -    -    - 
Mortgage payable   116,265    116,265    116,250    116,250    132,144    132,144 
                               
Total Liabilities   128,392    118,747    127,033    122,124    151,559    140,951 
                               
Members’ equity   67,980    68,542    48,147    50,001    93,424    93,092 
                               
Total Liabilities and Members’ Equity  $196,372   $187,289   $175,180   $172,125   $244,983   $234,043 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-3

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 3192 Lake Monroe Road   Landa Series 4085 Springvale Way   Landa Series 45 Robertford Drive 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $7,533   $5,638   $7,678   $6,112   $31   $25 
Restricted cash   -    -    -    -    -    - 
Escrow   94    94    400    400    830    830 
Accounts receivable   -    -    -    -    -    - 
Due from related party   8,260    8,260    6,669    6,669    8,476    8,476 
Investments in single-family residential properties, net of depreciation   144,106    146,702    222,202    226,206    238,654    242,951 
                               
Total Assets  $159,993   $160,694   $236,949   $239,387   $247,991   $252,282 
                               
Liabilities                              
Due to related party  $1,184   $954   $471   $233   $8,494   $4,041 
Other liabilities   2,482    1,076    4,339    2,238    3,005    1,473 
Security deposit   1,425    1,425    1,875    1,875    2,099    2,099 
Acquisition note payable   28    28    -    -    -    - 
Bridge note payable   -    -    -    -    -    - 
Mortgage payable   108,594    108,594    132,080    132,080    180,750    180,750 
                               
Total Liabilities   113,713    112,077    138,765    136,426    194,348    188,363 
                               
Members’ equity   46,280    48,617    98,184    102,961    53,643    63,919 
                               
Total Liabilities and Members’ Equity  $159,993   $160,694   $236,949   $239,387   $247,991   $252,282 

 

 The accompanying notes are an integral part of these combined and combining financial statements.

 

F-4

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1096 Vincent Drive   Landa Series 1120 9th Court   Landa Series 113 Hughes Avenue 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $4,860   $2,218   $4,102   $1,712   $180   $42 
Restricted cash   -    -    -    -    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   7,976    7,976    44,000    2,400    22,730    22,730 
Investments in single-family residential properties, net of depreciation   286,593    291,040    186,586    183,138    283,681    288,033 
                               
Total Assets  $299,429   $301,234   $234,688   $187,250   $306,590   $310,805 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $20,857   $11,019   $64,934   $12,303   $38,597   $23,742 
Other liabilities   818    -    20    -    617    - 
Security deposit   -    -    1,125    1,125    -    - 
Acquisition note payable   64,040    74,983    65,216    68,356    108,330    111,069 
Bridge note payable   210,250    210,250    94,250    94,250    201,550    201,550 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   295,965    296,252    225,545    176,034    349,094    336,361 
                               
Members’ equity (deficit)   3,464    4,982    9,143    11,216    (42,504)   (25,556)
                               
Total Liabilities and Members’ Equity  $299,429   $301,234   $234,688   $187,250   $306,590   $310,805 

 

 The accompanying notes are an integral part of these combined and combining financial statements.

 

F-5

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1434 Shirley Drive   Landa Series 1625 W McFarland Avenue   Landa Series 1713 Alfen Street 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $4,389   $6,178   $239   $3,650   $6,751   $3,595 
Restricted cash   156    156    -    -    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   33,066    33,066    4,497    4,497    18,855    18,855 
Investments in single-family residential properties, net of depreciation   219,055    222,528    253,165    257,080    160,812    163,307 
                               
Total Assets  $256,666   $261,928   $257,901   $265,227   $186,418   $185,757 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $16,153   $8,939   $21,726   $13,067   $13,105   $7,714 
Other liabilities   494    -    288    -    311    - 
Security deposit   156    156    -    -    -    - 
Acquisition note payable   48,222   59,485    62,398    66,742    -    - 
Bridge note payable   156,600    156,600    175,450    175,450    112,375    112,375 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   221,625    225,180    259,862    255,259    125,791    120,089 
                               
Members’ equity (deficit)   35,041    36,748    (1,961)   9,968    60,627    65,668 
                               
Total Liabilities and Members’ Equity  $256,666   $261,928   $257,901   $265,227   $186,418   $185,757 

 

 The accompanying notes are an integral part of these combined and combining financial statements.

 

F-6

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1744 Mountain Drive   Landa Series 179 Poplar Springs Drive   Landa Series 200 15th Court Northwest 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $3,266   $1,155   $3,666   $2,163   $5,260   $2,075 
Restricted cash   -    -    -    -    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   6,626    6,626    22,337    22,337    17,265    17,265 
Investments in single-family residential properties, net of depreciation   169,594    172,313    146,069    148,373    140,877    143,119 
                               
Total Assets  $179,486   $180,094   $172,072   $172,873   $163,402   $162,459 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $12,664   $8,383   $12,384   $7,823   $10,231   $5,751 
Other liabilities   72    -    11    -    47    - 
Security deposit   -    -    -    -    -    - 
Acquisition note payable   90,357    91,483    55,180    59,949    14,905    28,426 
Bridge note payable   87,000    87,000    98,238    98,238    82,650    82,650 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   190,093    186,866    165,813    166,010    107,833    116,827 
                               
Members’ equity (deficit)   (10,607)   (6,772)   6,259    6,863    55,569    45,632 
                               
Total Liabilities and Members’ Equity  $179,486   $180,094   $172,072   $172,873   $163,402   $162,459 

 

 The accompanying notes are an integral part of these combined and combining financial statements.

 

F-7

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 2150 Tishamingo Drive   Landa Series 235 Celery Avenue North   Landa Series 28 E Hammon Drive 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $1,841   $2,463   $8,911   $7,889   $3,295   $5,499 
Restricted cash   -    -    -    -    1,985    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    8,511    8,511    11,151    11,151 
Investments in single-family residential properties, net of depreciation   220,102    223,785    253,443    257,417    241,992    245,802 
                               
Total Assets  $221,943   $226,248   $270,865   $273,817   $258,423   $262,452 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $23,001   $18,275   $22,153   $13,517   $16,659   $8,491 
Other liabilities   284    -    173    -    146    - 
Security deposit   -    -    -    -    1,985    - 
Acquisition note payable   114,812    115,727    56,047    62,540    74,034    79,752 
Bridge note payable   94,250    94,250    184,875    184,875    155,875    155,875 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   232,347    228,252    263,248    260,932    248,699    244,118 
                               
Members’ equity (deficit)   (10,404)   (2,004)   7,617    12,885    9,724    18,334 
                               
Total Liabilities and Members’ Equity  $221,943   $226,248   $270,865   $273,817   $258,423   $262,452 

  

 The accompanying notes are an integral part of these combined and combining financial statements.

 

F-8

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 301 Woodstream Drive   Landa Series 3029 Cedaridge Drive   Landa Series 340 17th Avenue Northwest 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $-  $22   $-  $114   $6,025   $3,822 
Restricted cash   -    -    2,300    2,300    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   11,724    11,724    8,898    8,898    -    - 
Investments in single-family residential properties, net of depreciation   259,742    263,850    358,988    364,512    182,930    185,932 
                               
Total Assets  $271,466   $275,596   $370,186   $375,824   $188,955   $189,754 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $20,981   $9,319   $37,866   $17,793   $17,182   $11,685 
Other liabilities   233    -    955    -    132    - 
Security deposit   -    -    2,300    2,300    -    - 
Acquisition note payable   107,420    108,879    82,562    94,175    11,093    11,093 
Bridge note payable   160,950    160,950    250,850    250,850    100,050    100,050 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   289,583    279,148    374,533    365,118    128,457    122,828 
                               
Members’ equity (deficit)   (18,118)   (3,552)   (4,347)   10,706    60,498    66,926 
                               
Total Liabilities and Members’ Equity  $271,466   $275,596   $370,186   $375,824   $188,955   $189,754 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-9

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 4037 Stone Drive   Landa Series 4126 Oriely Drive West   Landa Series 4464 Willow Street 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $76   $49   $-  $1,466   $3,425   $327 
Restricted cash   -    -    768    1,600    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   27,811    27,811    10,000    10,000    16,884    16,884 
Investments in single-family residential properties, net of depreciation   187,552    190,440    228,766    232,260    213,111    216,394 
                               
Total Assets  $215,439   $218,300   $239,533   $245,326   $233,420   $233,605 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $23,595   $13,200   $24,450   $14,431   $22,336   $14,230 
Other liabilities   247    -    397    -    160    - 
Security deposit   -    -    768    1,600    -    - 
Acquisition note payable   81,253    81,299    60,283    61,498    51,977    56,064 
Bridge note payable   137,750    137,750    167,610    167,610    177,625    177,625 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   242,845    232,249    253,508    245,139    252,098    247,919 
                               
Members’ equity (deficit)   (27,406)   (13,949)   (13,975)   187    (18,678)   (14,314)
                               
Total Liabilities and Members’ Equity  $215,439   $218,300   $239,533   $245,326   $233,420   $233,605 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-10

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 4601 Sylvaner Lane   Landa Series 503 8th Street South   Landa Series 503 East Robinson Street 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $1,567   $3,548   $49   $49   $5,215  $4,176  
Restricted cash   -    -    -    -    -   -  
Escrow   -    -    -    -    -   -  
Accounts receivable   -    -    -    -    -   -  
Due from related party   7,382    7,382    -    -    7,723   7,723  
Investments in single-family residential properties, net of depreciation   316,553    321,490    146,176    148,506    165,397   168,027  
                               
Total Assets  $325,502   $332,420   $146,225   $148,555   $178,335  $179,926  
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $27,170   $16,403   $17,479   $10,680   $12,442  $7,387  
Other liabilities   216    -    275    -    104   -  
Security deposit   -    -    -    -    -   -  
Acquisition note payable   94,554    99,987    57,153    58,296    46,303   51,629  
Bridge note payable   205,900    205,900    87,000    87,000    107,300   107,300  
Mortgage payable   -    -    -    -    -   -  
                               
Total Liabilities   327,840    322,290    161,913    155,976    166,149   166,316  
                               
Members’ equity (deficit)   (2,338)   10,130    (15,688)   (7,421)   12,186   13,610  
                               
Total Liabilities and Members’ Equity  $325,502   $332,420   $146,225   $148,555   $178,335  $179,926  

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-11

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 580 Dorothy Street   Landa Series 5844 Willow Crest Drive   Landa Series 650 Willow Bend Lane 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $8,502   $2,247   $1,438   $2,277   $1,383   $3,276 
Restricted cash   1,590    1,590    -    -    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    1,574    1,574    16,836    16,836 
Investments in single-family residential properties, net of depreciation   302,696    241,741    236,163    239,885    156,357    158,809 
                               
Total Assets  $312,788   $245,578   $239,175   $243,736   $174,576   $178,921 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $100,591   $24,497   $19,966   $12,017   $13,724   $8,247 
Other liabilities   41    -    162    -    104    - 
Security deposit   1,590    1,590    -    -    1,110    1,110 
Acquisition note payable   75,305    78,976    76,733    78,904    41,767    43,513 
Bridge note payable   137,750    137,750    155,875    155,875    119,625    119,625 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   315,277    242,813    252,736    246,796    176,330    172,495 
                               
Members’ equity (deficit)   (2,489)   2,765   (13,561)   (3,060)   (1,754)   6,426 
                               
Total Liabilities and Members’ Equity  $312,788   $245,578   $239,175   $243,736   $174,576   $178,921 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-12

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 6716 Mopsy Lane   Landa Series 6820 66th Street South   Landa Series 7817 3rd Avenue South 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $4,443   $137   $15,748   $1,515   $32   $32 
Restricted cash   1,500    1,500    -    -    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   10,843    10,843    20,426    20,426    -    - 
Investments in single-family residential properties, net of depreciation   220,048    216,175    162,945    165,480    156,281    158,858 
                               
Total Assets  $236,834   $228,655   $199,119   $187,421   $156,313   $158,890 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $29,001   $13,821   $15,815   $9,356   $44,775   $39,990 
Other liabilities   7,807    7,325    167    -    148    - 
Security deposit   1,500    1,500    -    -    -    - 
Acquisition note payable   79,846    81,409    74,567    74,567    2,948    2,948 
Bridge note payable   137,750    137,750    108,025    108,025    76,125    76,125 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   255,904    241,805    198,574    191,948    123,996    119,063 
                               
Members’ equity (deficit)   (19,070)   (13,150)   545   (4,527)   32,317    39,827 
                               
Total Liabilities and Members’ Equity  $236,834   $228,655   $199,119   $187,421   $156,313   $158,890 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-13

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8048 Old Plank Road   Landa Series 808 Home Trail   Landa Series 8990 Doris Lane 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023		 
Assets                        
Cash  $31   $31   $22   $22   $6,248   $4,664 
Restricted cash   -    -    -    -    -    - 
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   73,679    73,679    -    -    5,396    5,396 
Investments in single-family residential properties, net of depreciation   210,463    213,764    319,975    325,070    122,592    124,572 
                               
Total Assets  $284,173   $287,474   $319,997   $325,092   $134,236   $134,632 
                               
Liabilities and members’ equity (deficit)                              
Due to related party  $44,164   $29,008   $57,838   $43,019   $9,036   $5,089 
Other liabilities   148    -    191    -    215    - 
Security deposit   -    -    -    -    -    - 
Acquisition note payable   64,325    65,175    107,233    108,045    12,613    12,613 
Bridge note payable   221,125    221,125    200,075    200,075    83,375    83,375 
Mortgage payable   -    -    -    -    -    - 
                               
Total Liabilities   329,762    315,308    365,337    351,139    105,239    101,077 
                               
Members’ equity (deficit)   (45,589)   (27,834)   (45,340)   (26,047)   28,997    33,555 
                               
Total Liabilities and Members’ Equity  $284,173   $287,474   $319,997   $325,092   $134,236   $134,632 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-14

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 913
2nd Street		   Total Combined
Balance Sheets		 
   Unaudited
June 30, 2024		   December 31,
2023		   Unaudited
June 30, 2024		   December 31,
2023
Assets                
Cash  $5,506   $748   $188,234   $104,211 
Restricted cash   1,025    1,025    9,324    8,171 
Escrow   -    -    5,499    5,499 
Accounts receivable   -    -    -    - 
Due from related party   -    -    516,244    474,644 
Investments in single-family residential properties, net of depreciation   198,224    190,363    8,138,567    8,179,507 
                     
Total Assets  $204,755   $192,136   $8,857,867   $8,772,032 
                     
Liabilities and members’ equity (deficit)                    
Due to related party  $49,812   $31,003   $912,262   $491,718 
Other liabilities   95    -    41,238    16,689 
Security deposit   1,025    1,025    24,458    23,805 
Acquisition note payable   13,055    20,682    1,898,912    2,012,644 
Bridge note payable   108,750    108,750    4,396,873    4,396,873 
Mortgage payable   -    -    1,011,083    1,011,083 
                     
Total Liabilities   172,737    161,460    8,284,826    7,952,812 
                     
Members’ equity (deficit)   32,018    30,676    573,040    819,220 
                     
Total Liabilities and Members’ Equity  $204,755   $192,136   $8,857,867   $8,772,032 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-15

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

   Landa App 2 LLC   Landa Series 126 Wildwood Road   Landa Series 137 Spring Valley Circle 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $-   $-   $6,328   $9,195   $3,087   $8,678 
                               
Expenses                              
Management fee   -    -    494    723    235    689 
HOA fee   -    -    -    -    -    - 
Insurance   -    -    206    206    224   224 
Real estate taxes   -    -    1,543    1,286    1,615    1,346 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    -    -    -    -    - 
Depreciation expense   -    -    3,008    3,015    2,991    2,991 
Interest expense   -    -    2,790    2,790    2,613    2,610 
Total expenses   -    -    8,041    8,020    7,678    7,860 
                               
Net Income (loss) before provision for income tax   -    -    (1,713)   1,175   (4,591)   818 
                               
Provision for income taxes   -    -    66    -    -    - 
                               
Net Income (loss)  $-   $-   $(1,779)  $1,175  $(4,591)  $818 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-16

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 153 Spring Valley Circle   Landa Series 2174 Scarbrough Road   Landa Series 303 Kellys Walk 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $11,239   $10,050   $9,765   $9,455   $13,506   $11,025 
                               
Expenses                              
Management fee   884    804    781    744    1,080    882 
HOA fee   -    -    -    -    42    63 
Insurance   215    215    221    221    262   90 
Real estate taxes   1,636    1,363    1,930    1,608    1,439    1,199 
Utilities   -    200    -    -    -    - 
Repairs & maintenance   118    605    -    -    -    - 
Depreciation expense   3,101    3,101    2,843    2,843    2,964    2,964 
Interest expense   2,799    2,790    2,875    2,790    3,173    3,170 
Total expenses   8,753    9,078    8,650    8,206    8,960   8,368 
                               
Net Income (loss) before provision for income tax   2,486    972    1,115   1,249    4,546    2,657 
                               
Provision for income taxes   1,121    -    812    -    1,595    - 
                               
Net Income (loss)  $1,365   $972   $303  $1,249   $2,951   $2,657 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-17

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 3192 Lake Monroe Road   Landa Series 4085 Springvale Way   Landa Series 45 Robertford Drive 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $7,125   $5,600   $7,688   $12,778   $-   $13,444 
                               
Expenses                              
Management fee   570    448    600    1,005    -    1,058 
HOA fee   -    -    117    175    -    - 
Insurance   196    196    264    264    -    292 
Real estate taxes   1,132    943    2,101    1,751    1,532    1,277 
Utilities   128    -    -    -    -    - 
Repairs & maintenance   -    268    -    -    109    - 
Depreciation expense   2,596    2,596    4,004    4,004    4,297    4,297 
Interest expense   2,607    2,606    3,171    3,170    4,338    4,338 
Total expenses   7,229    7,057    10,257    10,369    10,276    11,262 
                               
Net Income (loss) before provision for income tax   (104)   (1,457)   (2,570)   2,409    (10,276)   2,182 
                               
Provision for income taxes   274    -    -    -    -    - 
                               
Net Income (loss)  $(378)  $(1,457)  $(2,570)  $2,409   $(10,276)  $2,182 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-18

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 1096 Vincent Drive   Landa Series 1120 9th Court   Landa Series 113 Hughes Avenue 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $11,750   $4,095   $6,750   $2,190   $1,775   $3,728 
                               
Expenses                              
Management fee   940    328    540    184    142    298 
HOA fee   -    -    -    -    -    - 
Insurance   1,525    577    333    94    254    576 
Real estate taxes   818    682    20    17    617    514 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    400    600    -    1,151    155 
Depreciation expense   4,447    1,620    3,002    1,069    4,352    1,581 
Interest expense   14,527    5,497    7,323    2,823    14,946    5,471 
Total expenses   22,257    9,104    11,818    4,187    21,461    8,595 
                               
Net Income (loss) before provision for income tax   (10,507)   (5,009)   (5,068)   (1,997)   (19,686)   (4,867)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(10,507)  $(5,009)  $(5,068)  $(1,997)  $(19,686)  $(4,867)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-19

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 1434 Shirley Drive   Landa Series 1625 W McFarland Avenue   Landa Series 1713 Alfen Street 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $5,700   $3,780   $1,675   $3,150   $8,730   $2,768 
                               
Expenses                              
Management fee   456    302    134    252    698    233 
HOA fee   -    -    -    -    -    - 
Insurance   1,132    432    603    162    889    340 
Real estate taxes   494    412    288    240    311    259 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    960    -    -    -    - 
Depreciation expense   3,473    1,267    3,915    1,307    2,495    905 
Interest expense   10,847    4,206    12,293    4,663    6,966    2,979 
Total expenses   16,403    7,579    17,233    6,624    11,359    4,716 
                               
Net Income (loss) before provision for income tax   (10,703)   (3,799)   (15,558)   (3,474)   (2,629)   (1,948)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(10,703)  $(3,799)  $(15,558)  $(3,474)  $(2,629)  $(1,948)

  

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-20

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 1744 Mountain Drive   Landa Series 179 Poplar Springs Drive   Landa Series 200 15th Court Northwest 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $6,714   $2,005   $6,900   $1,995   $6,000   $2,100 
                               
Expenses                              
Management fee   537    160    552    160    480    168 
HOA fee   -    -    -    -    -    - 
Insurance   394    101    357    92    333    163 
Real estate taxes   72    60    11    9    47    39 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    1,599    -    -    -    960 
Depreciation expense   2,719    990    2,304    838    2,242    816 
Interest expense   7,434    2,740    7,360    2,812    5,456    2,478 
Total expenses   11,156    5,650    10,583    3,911    8,558    4,624 
                               
Net Income (loss) before provision for income tax   (4,442)   (3,645)   (3,683)   (1,916)   (2,558)   (2,524)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(4,442)  $(3,645)  $(3,683)  $(1,916)  $(2,558)  $(2,524)

  

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-21

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 2150 Tishamingo Drive   Landa Series 235 Celery Avenue North   Landa Series 28 E Hammon Drive 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $4,070   $2,520   $10,152   $3,740   $3,468   $3,520 
                               
Expenses                              
Management fee   296    202    752    286    277    269 
HOA fee   -    -    -    -    -    - 
Insurance   381    98    1,248    474    1,165    444 
Real estate taxes   284    237    173    144    146    122 
Utilities   -    -    500    -    -    - 
Repairs & maintenance   160    430    155    -    -    - 
Depreciation expense   3,683    1,327    3,974    1,448    3,810    1,391 
Interest expense   8,430    3,125    12,747    4,855    11,349    4,352 
Total expenses   13,234    5,419    19,549    7,207    16,748    6,578 
                               
Net Income (loss) before provision for income tax   (9,164)   (2,899)   (9,397)   (3,467)   (13,280)   (3,058)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(9,164)  $(2,899)  $(9,397)  $(3,467)  $(13,280)  $(3,058)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-22

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

   Landa Series 301 Woodstream Drive   Landa Series 3029 Cedaridge Drive   Landa Series 340 17th Avenue Northwest 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $1,925   $3,234   $4,600   $4,830   $5,250   $2,625 
                               
Expenses                              
Management fee   140    247    368    386    420    210 
HOA fee   -    -    -    -    -    - 
Insurance   683    157    2,257    730    378    97 
Real estate taxes   233    194    955    796    132    110 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   525    -    3,420    1,100    160    161 
Depreciation expense   4,109    1,495    5,524    1,889    3,002    1,083 
Interest expense   12,400    4,608    17,450    6,585    6,452    2,886 
Total expenses   18,090    6,701    29,974    11,486    10,544    4,547 
                               
Net Income (loss) before provision for income tax   (16,165)   (3,467)   (25,374)   (6,656)   (5,294)   (1,922)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(16,165)  $(3,467)  $(25,374)  $(6,656)  $(5,294)  $(1,922)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-23

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 4037 Stone Drive   Landa Series 4126 Oriely Drive West   Landa Series 4464 Willow Street 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $-   $2,677   $1,600   $1,870   $9,415   $2,677 
                               
Expenses                              
Management fee   -    214    128    150    753    214 
HOA fee   -    -    -    -    -    - 
Insurance   -    122    627    263    550    138 
Real estate taxes   247    206    397    331    160    133 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    984    310    -    -    1,128 
Depreciation expense   2,888    1,049    3,494    858    3,283    1,122 
Interest expense   10,368    3,782    11,753    2,934    12,200    4,473 
Total expenses   13,503    6,357    16,709    4,536    16,945    7,208 
                               
Net Income (loss) before provision for income tax   (13,503)   (3,680)   (15,109)   (2,666)   (7,530)   (4,531)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(13,503)  $(3,680)  $(15,109)  $(2,666)  $(7,530)  $(4,531)

  

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-24

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 4601 Sylvaner Lane   Landa Series 503 8th Street South   Landa Series 503 East Robinson Street 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $4,408   $3,979   $-   $1,995   $5,775   $2,310 
                               
Expenses                              
Management fee   336    318    -    160    462    185 
HOA fee   -    -    -    -    -    - 
Insurance   743    197    -    88    374    118 
Real estate taxes   216    180    275    229    104    87 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   320    500    120    -    -    472 
Depreciation expense   4,937    1,791    2,330    847    2,630    952 
Interest expense   14,916    5,576    6,685    2,478    7,718    2,988 
Total expenses   21,468    8,562    9,410    3,802    11,288    4,802 
                               
Net Income (loss) before provision for income tax   (17,060)   (4,583)   (9,410)   (1,807)   (5,513)   (2,492)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(17,060)  $(4,583)  $(9,410)  $(1,807)  $(5,513)  $(2,492)

  

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-25

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 580 Dorothy Street   Landa Series 5844 Willow Crest Drive   Landa Series 650 Willow Bend Lane 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $9,560   $3,339   $4,640   $3,045   $2,220   $2,331 
                               
Expenses                              
Management fee   765    267    348    244    177    186 
HOA fee   -    -    -    -    -    - 
Insurance   1,027    381    538    135    393    108 
Real estate taxes   41    34    162    135    104    87 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    850    -    2,992    160    75 
Depreciation expense   4,963    971    3,722    1,353    2,452    890 
Interest expense   10,672    3,887    11,399    4,239    8,361    3,168 
Total expenses   17,468    6,390    16,169    9,098    11,647    4,514 
                               
Net Income (loss) before provision for income tax   (7,908)   (3,051)   (11,529)   (6,053)   (9,427)   (2,183)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(7,908)  $(3,051)  $(11,529)  $(6,053)  $(9,427)  $(2,183)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-26

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 6716 Mopsy Lane   Landa Series 6820 66th Street South   Landa Series 7817 3rd Avenue South 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $9,300   $3,000   $5,196   $2,047   $-   $- 
                               
Expenses                              
Management fee   720    252    416    164    -    - 
HOA fee   -    -    -    -    -    - 
Insurance   1,110    422    398    102    -    129 
Real estate taxes   482    402    167    139    148    123 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   155    309    -    -    -    600 
Depreciation expense   3,452    1,217    2,535    919    2,577    934 
Interest expense   10,569    3,841    8,374    3,085    4,785    1,933 
Total expenses   16,488    6,443    11,889    4,409    7,510    3,719 
                               
Net Income (loss) before provision for income tax   (7,188)   (3,443)   (6,693)   (2,362)   (7,510)   (3,719)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(7,188)  $(3,443)  $(6,693)  $(2,362)  $(7,510)  $(3,719)

  

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-27

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 8048 Old Plank Road   Landa Series 808 Home Trail   Landa Series 8990 Doris Lane 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Rental income  $-   $-   $-   $1,644   $6,500   $2,730 
                               
Expenses                              
Management fee   -    -    -    132    520    218 
HOA fee   -    -    -    -    -    - 
Insurance   -    525    -    100    695    268 
Real estate taxes   148    123    191    159    215    179 
Utilities   -    -    -    -    -    - 
Repairs & maintenance   -    -    -    -    -    - 
Depreciation expense   3,301    1,200    5,095    1,235    1,980    718 
Interest expense   15,156    5,537    14,819    3,640    5,452    2,004 
Total expenses   18,605    7,385    20,105    5,266    8,862    3,387 
                               
Net Income (loss) before provision for income tax   (18,605)   (7,385)   (20,105)   (3,622)   (2,362)   (657)
                               
Provision for income taxes   -    -    -    -    -    - 
                               
Net Income (loss)  $(18,605)  $(7,385)  $(20,105)  $(3,622)  $(2,362)  $(657)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-28

 

 

  LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(CONTINUED)

 

   Landa Series 913
2nd Street		   Total Combined
Statements
of Operations		 
   Unaudited   Unaudited  
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		  
Rental income  $5,900   $2,415   $208,710   $162,564 
                     
Expenses                    
Management fee   472    193    16,474    12,935 
HOA fee   -    -    158    238 
Insurance   352    99    20,328    9,440 
Real estate taxes   95    79    20,681    17,234 
Utilities   -    -    628    200 
Repairs & maintenance   900    -    8,363    14,548 
Depreciation expense   3,269    1,046    131,763    61,939 
Interest expense   7,067    2,858    340,639    140,767 
Total expenses   12,155    4,275    539,033    257,301 
                     
Net Income (loss) before provision for income tax   (6,255)   (1,860)   (330,323)   (94,737)
                     
Provision for income taxes   -    -    3,868    - 
                     
Net Income (loss)  $(6,255)  $(1,860)  $(334,191)  $(94,737)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-29

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

 

   Landa App 2 LLC   Landa Series 126 Wildwood Road   Landa Series 137 Spring Valley Circle   Landa Series 153 Spring Valley Circle   Landa Series 2174 Scarbrough Road   Landa Series 303 Kellys Walk 
Balance at December 31, 2023  $   -   $56,152   $57,018   $68,542   $50,001   $93,092 
                               
Proceeds from sales of membership interests   -    -    -    -    -    - 
                               
Distributions   -    (908)   (685)   (1,927)   (2,157)   (2,619)
                               
Net income (loss)   -    (1,779)   (4,591)   1,365    303    2,951 
                               
Balance at June 30, 2024 (unaudited)  $-   $53,465   $51,742   $67,980   $48,147   $93,424 
                               
Balance at December 31, 2022  $-   $62,351   $37,413   $32,217   $48,864   $97,185 
                               
Proceeds from sales of membership interests   -    -    24,091    41,109    5,387    - 
                               
Distributions   -    (3,469)   (2,521)   (4,126)   (3,903)   (6,083)
                               
Net income (loss)   -    1,175   818    972    1,249   2,657 
                               
Balance at June 30, 2023 (unaudited)  $-   $60,057   $59,801   $70,172   $51,597   $93,759 

  

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-30

 

  

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

(CONTINUED)

 

   Landa Series 3192 Lake Monroe Road   Landa Series 4085 Springvale Way   Landa Series 45 Robertford Drive   Landa Series 1096 Vincent Drive   Landa Series 1120 9th Court   Landa Series 113 Hughes Avenue 
Balance at December 31, 2023  $48,617   $102,961   $63,919   $4,982   $11,216   $(25,556)
                               
Proceeds from sales of membership interests   -    -    -    10,944    3,140    2,739 
                               
Distributions   (1,959)   (2,207)   -   (1,954)   (145)   -
                               
Net income (loss)   (378)   (2,570)   (10,276)   (10,507)   (5,068)   (19,686)
                               
Balance at June 30, 2024 (unaudited)  $46,280   $98,184   $53,643   $3,464   $9,143   $(42,504)
                               
Balance at December 31, 2022  $53,013   $107,529   $83,700   $-   $-   $- 
                               
Proceeds from sales of membership interests   -    -    -    8,539    6,887    1,595 
                               
Distributions   (3,295)   (5,375)   (6,571)   (200)   (387)   (55)
                               
Net income (loss)   (1,457)   2,409    2,182    (5,009)   (1,997)   (4,867)
                               
Balance at June 30, 2023 (unaudited)  $48,261   $104,563   $79,311   $3,330   $4,503   $(3,327)

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-31

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

(CONTINUED)

 

   Landa Series 1434 Shirley Drive   Landa Series 1625 W McFarland Avenue    Landa Series 1713 Alfen Street   Landa Series 1744 Mountain Drive    Landa Series 179 Poplar Springs Drive    Landa Series 200 15th Court Northwest  
Balance at December 31, 2023  $36,748   $9,968   $65,668   $(6,772)  $6,863   $45,632 
                               
Proceeds from sales of membership interests   11,263    4,344    -    1,125    4,769    13,521 
                               
Distributions   (2,267)   (715)   (2,412)   (519)   (1,690)   (1,026)
                               
Net income (loss)   (10,703)   (15,558)   (2,629)   (4,442)   (3,683)   (2,558)
                               
Balance at June 30, 2024 (unaudited)  $35,041   $(1,961)  $60,627   $(10,607)  $6,259   $55,569 
                               
Balance at December 31, 2022  $-   $-   $-   $-   $-   $- 
                               
Proceeds from sales of membership interests   29,209    11,649    23,957    3,543    5,785    13,947 
                               
Distributions   (379)   (382)   (394)   (156)   (323)   (428)
                               
Net income (loss)   (3,799)   (3,474)   (1,948)   (3,645)   (1,916)   (2,524)
                               
Balance at June 30, 2022 (unaudited)  $25,031   $7,793   $21,615   $(258)  $3,546   $10,995 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-32

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

(CONTINUED)

 

   Landa Series 2150 Tishamingo Drive    Landa Series 235 Celery Avenue North    Landa Series 28 E Hammon Drive   Landa Series 301 Woodstream Drive    Landa Series 3029 Cedaridge Drive    Landa Series 340 17th Avenue Northwest  
Balance at December 31, 2023  $(2,004)  $12,885   $18,334   $(3,552)  $10,706   $66,926 
                               
Proceeds from sales of membership interests   915    6,493    5,718    1,599    11,613    - 
                               
Distributions   (151)   (2,364)   (1,048)   -   (1,292)   (1,134)
                               
Net income (loss)   (9,164)   (9,397)   (13,280)   (16,165)   (25,374)   (5,294)
                               
Balance at June 30, 2024 (unaudited)  $(10,404)  $7,617   $9,723   $(18,117)  $(4,347)  $60,498 
                               
Balance at December 31, 2022  $-   $-   $-   $-   $-   $- 
                               
Proceeds from sales of membership interests   4,604    9,418    11,530    3,928    19,518    13,726 
                               
Distributions   (362)   (593)   (518)   (269)   (25)   (645)
                               
Net income (loss)   (2,899)   (3,467)   (3,058)   (3,467)   (6,656)   (1,922)
                               
Balance at June 30, 2023 (unaudited)  $1,343   $5,358   $7,954   $192   $12,837   $11,159 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-33

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

(CONTINUED)

 

   Landa Series 4037 Stone Drive   Landa Series 4126 Oriely Drive West    Landa Series 4464 Willow Street   Landa Series 4601 Sylvaner Lane   Landa Series 503 8th Street South    Landa Series 503 East Robinson Street  
Balance at December 31, 2023  $(13,949)  $187   $(14,314)  $10,130   $(7,421)  $13,610 
                               
Proceeds from sales of membership interests   46    1,399    4,087    5,433    1,143    5,326 
                               
Distributions   -   (451)   (921)   (841)   -   (1,237)
                               
Net income (loss)   (13,503)   (15,109)   (7,530)   (17,060)   (9,410)   (5,513)
                               
Balance at June 30, 2024 (unaudited)  $(27,407)  $(13,975)  $(18,678)  $(2,337)  $(15,688)  $12,186 
                               
Balance at December 31, 2022  $-   $-   $-   $-   $-   $- 
                               
Proceeds from sales of membership interests   5,290    7,017    2,039    16,924    3,654    6,699 
                               
Distributions   (473)   (451)   (104)   (485)   (204)   (304)
                               
Net income (loss)   (3,680)   (2,666)   (4,531)   (4,583)   (1,807)   (2,492)
                               
Balance at June 30, 2023 (unaudited)  $1,137   $3,900   $(2,596)  $11,856   $1,643   $3,903 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-34

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

(CONTINUED)

 

   Landa Series 580 Dorothy Street   Landa Series 5844 Willow Crest Drive   Landa Series 650 Willow Bend Lane   Landa Series 6716 Mopsy Lane   Landa Series 6820 66th Street South   Landa Series 7817 3rd Avenue South 
Balance at December 31, 2023  $2,765   $(3,060)  $6,426   $(13,150)  $(4,527)  $39,827 
                               
Proceeds from sales of membership interests   3,671    2,171    1,746    1,568    12,684    - 
                               
Distributions   (1,017)   (1,143)   (499)   (300)   (919)   -
                               
Net income (loss)   (7,908)   (11,529)   (9,427)   (7,188)   (6,693)   (7,510)
                               
Balance at June 30, 2024 (unaudited)  $(2,489)  $(13,561)  $(1,754)  $(19,070)  $546   $32,317 
                               
Balance at December 31, 2022  $-   $-   $-   $-   $-   $- 
                               
Proceeds from sales of membership interests   1,413    5,953    4,094    6,603    3,253    54,330 
                               
Distributions   -    (556)   (301)   (212)   (152)   (534)
                               
Net income (loss)   (3,051)   (6,053)   (2,183)   (3,443)   (2,362)   (3,719)
                               
Balance at June 30, 2023 (unaudited)  $(1,638)  $(656)  $1,610   $2,948   $739   $50,077 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-35

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)

(CONTINUED)

 

   Landa Series 8048 Old Plank Road   Landa Series 808 Home Trail   Landa Series 8990 Doris Lane   Landa Series 913 2nd Street   Total Combined Members’ Equity 
Balance at December 31, 2023  $(27,834)  $(26,047)  $33,555   $30,676   $819,219 
                          
Proceeds from sales of membership interests   850    812    -    7,627    126,745 
                          
Distributions   -    -   (2,196)   (30)   (38,733)
                          
Net income (loss)   (18,605)   (20,105)   (2,362)   (6,255)   (334,191)
                          
Balance at June 30, 2024 (unaudited)  $(45,590)  $(45,340)  $28,997   $32,018   $573,040 
                          
Balance at December 31, 2022  $-   $-   $-   $-   $522,272 
                          
Proceeds from sales of membership interests   718    1,171    39,286    18,777    415,643 
                          
Distributions   -    (142)   (1,063)   (593)   (46,033)
                          
Net income (loss)   (7,385)   (3,622)   (657)   (1,860)   (94,737)
                          
Balance at June 30, 2023 (unaudited)  $(6,667)  $(2,593)  $37,566   $16,324   $797,145 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-36

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa App 2 LLC   Landa Series 126 Wildwood Road   Landa Series 137 Spring Valley Circle 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $-   $-   $(1,779)  $1,175   $(4,591)  $818 
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   -    -    3,008    3,015    2,991    2,991 
Provision for income taxes   -    -    66    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -   (1,913)   -   (1,810)
Accounts receivable   -    -    -   (1,544)   -    - 
Due from related party   -    -    -    6,657    -    - 
Due to related party   -    -    6,148    159    1,853    (24,917)
Other liabilities   -    -    1,543    1,492    1,615    1,571 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   -    -    8,986    9,041    1,868    (21,347)
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    (8,818)   -    - 
Net cash used in investing activities   -    -        (8,818)   -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   -    -    -    -    -    24,091 
Shareholder dividends   -    -    (908)   (3,469)   (685)   (2,521)
Repayment of acquisition note, related party   -    -    -    -    -    - 
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   -    -    (908)   (3,469)   (685)   21,570 
                               
Net change in cash and restricted cash   -    -    8,078    (3,246)   1,183    223 
Cash and restricted cash at beginning of year   -    -    3,870    6,470    2,932    4,397 
Cash and restricted cash at end of year  $-   $-   $11,948   $3,224   $4,115   $4,620 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $-   $-   $2,592   $2,790   $2,466   $2,610 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $-   $-   $-   $-   $- 
Acquisition notes payable for property acquisition, net  $-   $-   $-   $-   $-   $- 
Bridge note payable  $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-37

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 153 Spring Valley Circle   Landa Series 2174 Scarbrough Road   Landa Series 303 Kellys Walk 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $1,365   $972   $303   $1,249   $2,951   $2,657 
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   3,101    3,101    2,843    2,843    2,964    2,964 
Provision for income taxes   1,121    -    812    -    1,595    - 
Changes in assets and liabilities:                              
Escrow   -    (2,057)   -    (2,001)   -    (283)
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    533    -    826    -    1,971 
Due to related party   6,888    (42,134)   617    (6,427)   9,624    - 
Other liabilities   1,636    3,253    1,930    1,829    1,439    (870)
Tenant security deposits   -    -    1,550    -    (2,050)   - 
Net cash provided by (used in) operating activities   14,111    (36,332)   8,055    (1,681)   16,523    6,439 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   -    41,109    -    5,387    -    - 
Shareholder dividends   (1,927)   (4,126)   (2,157)   (3,903)   (2,619)   (6,083)
Repayment of acquisition note, related party   -    -    -    -    -    - 
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (1,927)   36,983    (2,157)   1,484    (2,619)   (6,083)
                               
Net change in cash and restricted cash   12,184    651    5,898    (197)   12,904    356 
Cash and restricted cash at beginning of year   4,623    4,165    5,481    4,998    8,369    7,225 
Cash and restricted cash at end of year  $16,807   $4,816   $11,379   $4,801   $22,273   $7,581 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $2,341   $2,790   $2,461   $2,790   $2,659   $3,171 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $-   $-   $-   $-   $- 
Acquisition notes payable for property acquisition, net  $-   $-   $-   $-   $-   $- 
Bridge note payable  $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-38

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 3192 Lake Monroe Road   Landa Series 4085 Springvale Way   Landa Series 45 Robertford Drive 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(378)  $(1,457)  $(2,570)  $2,409   $(10,276)  $2,182 
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   2,596    2,596    4,004    4,004    4,297    4,297 
Provision for income taxes   274    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    (820)   -    (2,840)   -    (1,732)
Accounts receivable   -    (75    -    -)   -    (2,204)
Due from related party   -    1,565    -    690    -    1,760 
Due to related party   230    -    238    -    4,453    - 
Other liabilities   1,132    303    2,101    1,768    1,532    1,012 
Tenant security deposits   -    (1,325)   -    -    -    - 
Net cash provided by (used in) operating activities   3,854    787    3,774    6,031    6    5,315 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   -    -    -    -    -    - 
Shareholder dividends   (1,959)   (3,295)   (2,207)   (5,375)   -    (6,571)
Repayment of acquisition note, related party   -    -    -    -    -    - 
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (1,959)   (3,295)   (2,207)   (5,375)   -    (6,571)
                               
Net change in cash and restricted cash   1,895    (2,508)   1,567    656    6    (1,256)
Cash and restricted cash at beginning of year   5,638    3,882    6,112    4,591    25    5,929 
Cash and restricted cash at end of year  $7,533   $1,374   $7,679   $5,247   $31   $4,673 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $2,190   $2,606   $3,171   $3,170   $-   $4,338 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $-   $-   $-   $-   $- 
Acquisition notes payable for property acquisition, net  $-   $-   $-   $-   $-   $- 
Bridge note payable  $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-39

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 1096 Vincent Drive   Landa Series 1120 9th Court   Landa Series 113 Hughes Avenue 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(10,507)  $(5,009)  $(5,068)  $(1,997)  $(19,686)  $(4,867)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   4,447    1,620    3,002    1,069    4,352    1,581 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    (3,782)
Due from related party   9,838    1,964    (41,600)   -    -    1,882 
Due to related party   -    -    52,631    515    14,855    - 
Other liabilities   818    1,413    20    158    617    4,479 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   4,596    (12)   8,985    (255)   137    (653)
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    (6,450)   -    -    - 
Net cash used in investing activities   -    -    (6,450)   -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   10,944    8,539    3,140    6,887    2,739    1,595 
Shareholder dividends   (1954)   (200)   (145)   (387)   -    (55)
Repayment of acquisition note, related party   (10,943)   (4,099)   (3,140)   (4,476)   (2,739)   (828)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (1,953)   4,240    (145)   2,042    -    712 
                               
Net change in cash and restricted cash   2,643    4,228    2,390    1,769    137    59 
Cash and restricted cash at beginning of year   2,218    -    1,712    -    42    - 
Cash and restricted cash at end of year  $4,861   $4,228   $4,102   $1,769   $179   $59 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $5,357   $3,259   $1,873   $1,936   $1,243   $- 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $307,392   $-   $193,328   $-   $303,230 
Acquisition notes payable for property acquisition, net  $-   $97,142   $-   $99,078   $-   $101,680 
Bridge note payable  $-   $210,250   $-   $94,250   $-   $201,550 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-40

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 1434 Shirley Drive   Landa Series 1625 W McFarland Avenue    Landa Series 1713 Alfen Street 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(10,703)  $(3,799)  $(15,558)  $(3,474)  $(2,629)  $(1,948)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   3,473    1,267    3,915    1,307    2,495    905 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    2,443    -    3,264    -    167 
Due to related party   7,214    -    8,659    -    5,391    - 
Other liabilities   494    1,785    288    1,071    311    603 
Tenant security deposits   -    156    -    -    -    - 
Net cash provided by (used in) operating activities   478    1,852    (2,696)   2,168    5,568    (273)
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   11,263    29,209    4,344    11,649    -    23,957 
Shareholder dividends   (2,267)   (379)   (715)   (382)   (2,412)   (394)
Repayment of acquisition note, related party   (11,263)   (24,308)   (4,344)   (8,945)   -    (19,514)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (2,267)   4,522    (715)   2,322    (2,412)   4,049 
                               
Net change in cash and restricted cash   (1,789)   6,374    (3,411)   4,490    3,156    3,776 
Cash and restricted cash at beginning of year   6,334    -    3,650    -    3,595    - 
Cash and restricted cash at end of year  $4,545   $6,374   $239   $4,490   $6,751   $3,776 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $4,011   $1,695   $3,701   $2,828   $1,988   $1,894 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $235,494   $-   $252,718   $-   $171,856 
Acquisition notes payable for property acquisition, net  $-   $78,894   $-   $77,268   $-   $59,481 
Bridge note payable  $-   $156,600   $-   $175,450   $-   $112,375 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-41

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 1744 Mountain Drive   Landa Series 179 Poplar Springs Drive   Landa Series 200 15th Court Northwest 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(4,442)  $(3,645)  $(3,683)  $(1,916)  $(2,558)  $(2,524)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   2,719    990    2,304    838    2,242    816 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    1,552    -    2,231    -    1,682 
Due to related party   4,281    -    4,561    -    4,480    - 
Other liabilities   72    -    11    335    47    107 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   2,630    (1,103)   3,192    1,488    4,211    81 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   1,125    3,543    4,769    5,785    13,521    13,947 
Shareholder dividends   (519)   (156)   (1,690)   (323)   (1,026)   (428)
Repayment of acquisition note, related party   (1,126)   (1,987)   (4,769)   (4,625)   (13,521)   (12,227)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (520)   1,400    (1,690)   837    (1,026)   1,292 
                               
Net change in cash and restricted cash   2,110    297    1,502    2,325    3,185    1,373 
Cash and restricted cash at beginning of year   1,155    -    2,163    -    2,075    - 
Cash and restricted cash at end of year  $3,265   $297   $3,665   $2,325   $5,260   $1,373 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $3,439   $1,954   $3,010   $1,848   $1,183   $1,730 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $182,194   $-   $156,659   $-   $151,320 
Acquisition notes payable for property acquisition, net  $-   $95,194   $-   $58,421   $-   $68,670 
Bridge note payable  $-   $87,000   $-   $98,238   $-   $82,650 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-42

 

 

 LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 2150 Tishamingo Drive    Landa Series 235 Celery Avenue North    Landa Series 28 E Hammon Drive 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(9,164)  $(2,899)  $(9,397)  $(3,467)  $(13,280)  $(3,058)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   3,683    1,327    3,974    1,448    3,810    1,391 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    -    3,651    -    2,023 
Due to related party   4,726    1,789    8,636    -    8,163    - 
Other liabilities   284    -    173    1,211    146    675 
Tenant security deposits   -    -    -    -    1,985    - 
Net cash provided by (used in) operating activities   (471)   217    3,386    2,843    829    1,031 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   915    4,604    6,493    9,418    5,718    11,530 
Shareholder dividends   (151)   (362)   (2,364)   (593)   (1,048)   (518)
Repayment of acquisition note, related party   (915)   (2,648)   (6,493)   (5,134)   (5,718)   (6,556)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (151)   1,594    (2,364)   3,691    (1,048)   4,456 
                               
Net change in cash and restricted cash   (622)   1,811    1,022    6,534    (219)   5,487 
Cash and restricted cash at beginning of year   2,463    -    7,889    -    5,499    - 
Cash and restricted cash at end of year  $1,841   $1,811   $8,911   $6,534   $5,280   $5,487 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $4,027   $2,328   $4,677   $2,897   $3,570   $2,789 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $234,988   $-   $272,095   $-   $260,255 
Acquisition notes payable for property acquisition, net  $-   $140,738   $-   $87,220   $-   $104,380 
Bridge note payable  $-   $94,250   $-   $184,875   $-   $155,875 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-43

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 301 Woodstream Drive    Landa Series 3029 Cedaridge Drive    Landa Series 340 17th Avenue Northwest  
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(16,165)  $(3,467)  $(25,374)  $(6,656)  $(5,294)  $(1,922)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   4,109    1,495    5,524    1,889    3,002    1,083 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    2,031    -    2,385    -    - 
Due to related party   11,662    -    20,073    -    5,497    2,810 
Other liabilities   233    564    955    2,857    132    289 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   (162)   623    1,178    475    3,337    2,260 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   1,599    3,928    11,613    19,518    -    13,726 
Shareholder dividends   -    (269)   (1,292)   (25)   (1,134)   (645)
Repayment of acquisition note, related party   (1,459)   (1,357)   (11,613)   (19,518)   -    (10,281)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   140    2,302    (1,292)   (25)   (1,134)   2,800 
                               
Net change in cash and restricted cash   (22)   2,925    (114)   450    2,203    5,060 
Cash and restricted cash at beginning of year   22    -    2,414    -    3,833    - 
Cash and restricted cash at end of year  $-   $2,925   $2,300   $450   $6,025   $5,060 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $2,069   $3,013   $6,685   $2,717   $1,291   $1,934 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $278,712   $-   $365,416   $-   $195,177 
Acquisition notes payable for property acquisition, net  $-   $117,762   $-   $114,566   $-   $95,127 
Bridge note payable  $-   $160,950   $-   $250,850   $-   $100,050 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-44

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 4037 Stone Drive    Landa Series 4126 Oriely Drive West    Landa Series 4464 Willow Street  
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(13,503)  $(3,680)  $(15,109)  $(2,666)  $(7,530)  $(4,531)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   2,888    1,049    3,494    858    3,283    1,122 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    1,733    -    2,603    -    929 
Due to related party   10,395    -    10,019    -    8,106    - 
Other liabilities   247    700    397    -    160    2,227 
Tenant security deposits   -    -    (833)   1,710    -    - 
Net cash provided by (used in) operating activities   27    (198)   (2,031)   2,505    4,018    (253)
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   46    5,290    1,399    7,017    4,087    2,039 
Shareholder dividends   -    (473)   (451)   (451)   (921)   (104)
Repayment of acquisition note, related party   (46)   (1,104)   (1,215)   (5,164)   (4,087)   (1,044)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   -    3,713    (267)   1,402    (921)   891 
                               
Net change in cash and restricted cash   27    3,515    (2,298)   3,907    3,097    638 
Cash and restricted cash at beginning of year   49    -    3,066    -    327    - 
Cash and restricted cash at end of year  $76   $3,515   $768   $3,907   $3,424   $638 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $-   $2,361   $2,694   $2,599   $4,492   $1,720 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $200,553   $-   $246,875   $-   $216,825 
Acquisition notes payable for property acquisition, net  $-   $62,803   $-   $79,265   $-   $39,200 
Bridge note payable  $-   $137,750   $-   $167,610   $-   $177,625 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-45

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 4601 Sylvaner Lane   Landa Series 503 8th Street South    Landa Series 503 East Robinson Street  
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(17,060)  $(4,583)  $(9,410)  $(1,807)  $(5,513)  $(2,492)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   4,937    1,791    2,330    847    2,630    952 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    (1,995)   -    - 
Due from related party   -    2,469    -    -    -    1,410 
Due to related party   10,767    -    6,805    691    5,055    - 
Other liabilities   216    1,029    275    909    104    1,181 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   1,140    706    -    (1,355)   2,276    1,051 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   5,433    16,924    1,143    3,654    5,326    6,699 
Shareholder dividends   (841)   (485)   -    (204)   (1,237)   (304)
Repayment of acquisition note, related party   (5,433)   (16,924)   (1,143)   (1,974)   (5,326)   (3,584)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (841)   (485)   -    1,476    (1,237)   2,811 
                               
Net change in cash and restricted cash   (1,981)   221    -    121    1,039    3,862 
Cash and restricted cash at beginning of year   3,548    -    49    -    4,176    - 
Cash and restricted cash at end of year  $1,567   $221   $49   $121   $5,215   $3,862 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $4,732   $3,547   $-   $1,024   $2,973   $1,203 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $338,514   $-   $156,828   $-   $176,761 
Acquisition notes payable for property acquisition, net  $-   $132,614   $-   $69,828   $-   $69,461 
Bridge note payable  $-   $205,900   $-   $87,000   $-   $107,300 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-46

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 580 Dorothy Street   Landa Series 5844 Willow Crest Drive    Landa Series 650 Willow Bend Lane  
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(7,908)  $(3,051)  $(11,529)  $(6,053)  $(9,427)  $(2,183)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   4,963    971    3,722    1,353    2,452    890 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    934    -    -    -    828 
Due to related party   76,094    -    7,949    1,900    5,477    - 
Other liabilities   41    2,260    162    1,660    104    752 
Tenant security deposits   -    1,590    -    -    -    1,110 
Net cash provided by (used in) operating activities   73,190    2,704    304    (1,140)   (1,394)   1,397 
                               
Cash flows from investing activities:                              
Additions to building and improvements   (65,918)   -    -    -    -    - 
Net cash used in investing activities   (65,918)   -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   3,671    1,413    2,171    5,953    1,746    4,094 
Shareholder dividends   (1,017)   -    (1,143)   (556)   (499)   (301)
Repayment of acquisition note, related party   (3,671)   (634)   (2,171)   (4,230)   (1,746)   (1,502)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (1,017)   779    (1,143)   1,167    (499)   2,291 
                               
Net change in cash and restricted cash   6,255    3,483    (839)   27    (1,893)   3,688 
Cash and restricted cash at beginning of year   3,837    -    2,277    -    3,276    - 
Cash and restricted cash at end of year  $10,092   $3,483   $1,438   $27   $1,383   $3,688 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $3,293   $801   $3,630   $1,804   $3,104   $1,906 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $187,275   $-   $253,191   $-   $167,299 
Acquisition notes payable for property acquisition, net  $-   $49,525   $-   $97,316   $-   $47,674 
Bridge note payable  $-   $137,750   $-   $155,875   $-   $119,625 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-47

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 6716 Mopsy Lane   Landa Series 6820 66th Street South    Landa Series 7817 3rd Avenue South  
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(7,188)  $(3,443)  $(6,693)  $(2,362)  $(7,510)  $(3,719)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   3,452    1,217    2,535    919    2,577    934 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    984    -    2,311    -    - 
Due to related party   15,180    -    6,459    -    4,785    275 
Other liabilities   482    1,495    167    384    148    1,019 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   11,926    253    2,468    1,252    -    (1,491)
                               
Cash flows from investing activities:                              
Additions to building and improvements   (7,325)   -    -    -    -    - 
Net cash used in investing activities   (7,325)   -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   1,568    6,603    12,684    3,253    -    54,330 
Shareholder dividends   (300)   (212)   (919)   (152)   -    (534)
Repayment of acquisition note, related party   (1,563)   (4,435)   -    (1,985)   -    (51,828)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   (295)   1,956    11,765    1,116    -    1,968 
                               
Net change in cash and restricted cash   4,306    2,209    14,233    2,368    -    477 
Cash and restricted cash at beginning of year   1,637    -    1,515    -    32    - 
Cash and restricted cash at end of year  $5,943   $2,209   $15,748   $2,368   $32   $477 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $3,355   $1,566   $2,073   $2,017   $-   $673 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $228,944   $-   $174,083   $-   $167,519 
Acquisition notes payable for property acquisition, net  $-   $91,194   $-   $66,058   $-   $91,394 
Bridge note payable  $-   $137,750   $-   $108,025   $-   $76,125 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-48

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 8048 Old Plank Road   Landa Series 808 Home Trail   Landa Series 8990 Doris Lane 
   Unaudited   Unaudited   Unaudited 
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		 
Cash flows from operating activities:                        
Net income (loss)  $(18,605)  $(7,385)  $(20,105)  $(3,622)  $(2,362)  $(657)
Adjustments to reconcile net income (loss) to net cash                              
provided by (used in) operating activities:                              
Depreciation   3,301    1,200    5,095    1,235    1,980    718 
Provision for income taxes   -    -    -    -    -    - 
Changes in assets and liabilities:                              
Escrow   -    -    -    -    -    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    963    -    -    -    1,072 
Due to related party   15,156    -    14,819    1,826    3,947    - 
Other liabilities   148    4,914    191    704    215    797 
Tenant security deposits   -    -    -    -    -    - 
Net cash provided by (used in) operating activities   -    (308)   -    143    3,780    1,930 
                               
Cash flows from investing activities:                              
Additions to building and improvements   -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    - 
                               
Cash flows from financing activities:                              
Shareholder proceeds   850    718    812    1,171    -    39,286 
Shareholder dividends   -    -    -    (142)   (2,196)   (1,063)
Repayment of acquisition note, related party   (850)   (323)   (812)   (1,171)   -    (36,797)
Repayment of mortgage   -    -    -    -    -    - 
Net cash provided by (used in) financing activities   -    395    -    (142)   (2,196)   1,426 
                               
Net change in cash and restricted cash   -    87    -    1    1,584    3,356 
Cash and restricted cash at beginning of year   31    -    22    -    4,664    - 
Cash and restricted cash at end of year  $31   $87   $22   $1   $6,248   $3,356 
                               
Supplemental disclosure of cash flow information:                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $- 
Cash paid for interest  $-   $-   $-   $2,283   $1,840   $1,056 
                               
Supplemental disclosure of non-cash investing and financing activities:                              
Property acquisition, related party  $-   $225,468   $-   $342,718   $-   $131,389 
Acquisition notes payable for property acquisition, net  $-   $4,343   $-   $142,643   $-   $48,014 
Bridge note payable  $-   $221,125   $-   $200,075   $-   $83,375 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-49

 

 

LANDA APP 2 LLC AND SERIES

COMBINED AND COMBINING STATEMENT OF CASH FLOWS

(CONTINUED)

 

   Landa Series 913
2nd Street		   Total Combined
Cash Flows		 
   Unaudited   Unaudited  
   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		   For the six
months ended
June 30, 2024		   For the six
months ended
June 30, 2023		  
Cash flows from operating activities:                
Net income (loss)  $(6,255)  $(1,860)  $(334,191)  $(94,737)
Adjustments to reconcile net income (loss) to net cash                    
provided by (used in) operating activities:                    
Depreciation   3,269    1,046    131,763    61,939 
Provision for income taxes   -    -    3,868    - 
Changes in assets and liabilities:                    
Escrow   -    -    -    (13,456)
Accounts receivable   -    -    -    (9,546)
Due from related party   -    -    (31,762)   55,513 
Due to related party   18,809    1,281    410,706    (62,232)
Other liabilities   95    640    20,681    46,576 
Tenant security deposits   -    -    653    3,241 
Net cash provided by (used in) operating activities   15,918    1,107    201,718    (12,702)
                     
Cash flows from investing activities:                    
Additions to building and improvements   (11,130)   -    (90,823)   (8,818)
Net cash used in investing activities   (11,130)   -    (90,823)   (8,818)
                     
Cash flows from financing activities:                    
Shareholder proceeds   7,627    18,777    126,745    415,643 
Shareholder dividends   (30)   (593)   (38,733)   (46,033)
Repayment of acquisition note, related party   (7,627)   (15,543)   (113,732)   (274,745)
Repayment of mortgage   -    -    -    - 
Net cash provided by (used in) financing activities   (30)   2,641    (25,720)   94,865 
                     
Net change in cash and restricted cash   4,758    3,748    85,175    73,345 
Cash and restricted cash at beginning of year   1,773    -    112,382    41,657 
Cash and restricted cash at end of year  $6,531   $3,748   $197,557   $115,002 
                     
Supplemental disclosure of cash flow information:                    
Cash paid for income taxes  $-   $-   $-   $- 
Cash paid for interest  $1,470   $1,777   $99,660   $83,146 
                     
Supplemental disclosure of non-cash investing and financing activities:                    
Property acquisition, related party  $-   $189,199   $-   $6,964,275 
Acquisition notes payable for property acquisition, net  $-   $80,449   $-   $2,567,402 
Bridge note payable  $-   $108,750   $-   $4,396,873 

 

The accompanying notes are an integral part of these combined and combining financial statements.

 

F-50

 

 

 

1. ORGANIZATION, NATURE OF ACTIVITIES AND GOING CONCERN

 

Landa App 2 LLC (”App 2”) is currently a Delaware series limited liability company organized in June 2021. The Company is a wholly owned subsidiary of Landa Holdings, Inc. and currently operates under an operating arrangement with Landa Holdings, Inc. (the “Manager”). The Manager serves as the asset manager for the real estate properties owned by the Company and each underlying Series (as defined below).

 

App 2 was formed to engage in the business of acquiring, managing and renting residential properties (each a “Property,” and collectively, the “Properties”). App 2 has created, and it is expected that App 2 will continue to create, separate series of interests registered under the Company (each a “Series,” and collectively, the “Series”), that each Property will be owned by a separate Series and that the assets and liabilities of each Series will be separate in accordance with Delaware law. Investors acquire membership interest, or shares, in each Series and will be entitled to share in the return of that particular Series but will not be entitled to share in the return of any other Series. App 2 intends to treat each Series as a separate entity for U.S. federal income tax purposes and will elect to be treated as a corporation. Landa Holdings, Inc is the managing member and has controlling interest in Landa App 2 LLC and each individual Series, collectively referred to as the Company.

 

On May 19, 2020, the Company filed Certificates of Registered Series Limited Liability Company with the Secretary of State of the State of Delaware to register each of the Series.

 

On December 8, 2021, the initial set of Properties were acquired from a related party by each of the respective Series. The acquisitions were accounted for as a commonly controlled transaction and recorded, accordingly at their carryover basis.

 

Each Series has commenced its planned operations. However, each Series is dependent upon additional capital resources from its planned offering. Each Series is subject to significant risks and uncertainties, including failing to secure funding to commence the Series' planned operations or failing to profitably operate the business.

 

F-51

 

 

2. Substantial Doubt about the Company's Ability to continue as a Going Concern

 

The accompanying combined and combining financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has a lack of liquidity, nominal cash, and losses from operations since inception. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. The Company's ability to continue as a going concern for the next twelve months from the date of this Annual Report is dependent upon their ability to continue to generate cash flow from their rental Properties and/or obtain financing from the Manager. However, there are no assurances that the Company can continue to generate cash flow from their rental Properties or that the Manager will always be in the position to provide funding when needed. The combined and combining financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

 

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). The Company has adopted a calendar year as its fiscal year.

 

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act, enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements; however, the Company may adopt accounting standards based on the effective dates for public entities.

 

The combined and combining financial statements of Landa App 2 LLC and each of the Series are being presented on a combined basis, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810, Consolidation, due to common control by Landa Holdings, Inc., in its capacity as managing member to the Company and each Series.

 

Series Name   Series
Inception Date		   Acquisition
Date
Landa Series 2174 Scarbrough Road   June 15, 2021   December 08, 2021
Landa Series 153 Spring Valley Circle   June 15, 2021   December 08, 2021
Landa Series 126 Wildwood Road   June 15, 2021   December 08, 2021
Landa Series 137 Spring Valley Circle   June 15, 2021   December 08, 2021
Landa Series 3192 Lake Monroe Road   June 15, 2021   December 08, 2021
Landa Series 45 Robertford Drive   June 15, 2021   December 08, 2021
Landa Series 303 Kellys Walk   June 15, 2021   December 08, 2021
Landa Series 4085 Springvale Way   June 15, 2021   December 08, 2021
Landa Series 1096 Vincent Drive   May 25, 2022   April 28, 2023
Landa Series 1120 9th Court   May 25, 2022   April 28, 2023
Landa Series 113 Hughes Avenue   May 25, 2022   April 28, 2023
Landa Series 1434 Shirley Drive   May 25, 2022   April 28, 2023
Landa Series 1625 W Mcfarland Avenue   May 25, 2022   April 28, 2023
Landa Series 1713 Alfen Street   May 25, 2022   April 28, 2023
Landa Series 1744 Mountain Drive   May 25, 2022   April 28, 2023
Landa Series 179 Poplar Springs Drive   May 25, 2022   April 28, 2023
Landa Series 200 15th Court Northwest   May 25, 2022   April 28, 2023
Landa Series 2150 Tishamingo Drive   June 27, 2022   April 28, 2023
Landa Series 235 Celery Avenue North   May 25, 2022   April 28, 2023
Landa Series 28 E Hammon Drive   May 25, 2022   April 28, 2023
Landa Series 301 Woodstream Drive   May 25, 2022   April 28, 2023
Landa Series 3029 Cedaridge Drive   July 19, 2022   April 28, 2023
Landa Series 340 17th Avenue Northwest   June 27, 2022    April 28, 2023
Landa Series 4037 Stone Drive   May 25, 2022   April 28, 2023
Landa Series 4126 Oriely Drive West   May 25, 2022   May 19, 2023
Landa Series 4464 Willow Street   May 25, 2022   April 28, 2023
Landa Series 4601 Sylvaner Lane   May 25, 2022   April 28, 2023
Landa Series 503 8th Street South   May 25, 2022   April 28, 2023
Landa Series 503 East Robinson Street   May 25, 2022   April 28, 2023
Landa Series 580 Dorothy Street   May 25, 2022   April 28, 2023
Landa Series 5844 Willow Crest Drive   May 25, 2022   April 28, 2023
Landa Series 650 Willow Bend Lane   May 25, 2022   April 28, 2023
Landa Series 6716 Mopsy Lane   May 25, 2022   April 28, 2023
Landa Series 6820 66th Street South   May 25, 2022   April 28, 2023
Landa Series 7817 3rd Avenue South   May 25, 2022   April 28, 2023
Landa Series 8048 Old Plank Road   May 25, 2022   April 28, 2023
Landa Series 808 Home Trail   May 25, 2022   May 19, 2023
Landa Series 8990 Doris Lane   May 25, 2022   April 28, 2023
Landa Series 913 2nd Street   May 25, 2022   April 28, 2023

 

F-52

 

 

Principles of Combination

 

The combined and combining financial statements include the accounts of Landa App 2 LLC and each Series listed in the table above. All inter-company transactions and balances have been eliminated in the combined and combining financial statements.

 

Significant Risks and Uncertainties

 

The Company is subject to customary risks and uncertainties with development of new technology including, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, costs of services provided by third parties, the need to obtain additional financing, and limited operating history.

 

Use of Estimates

 

The preparation of the combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates inherent in the preparation of these financial statements include, but are not limited to, useful life of assets and depreciation expenses.

 

Restricted cash

 

Each Series held the following amount of restricted cash as of June 30, 2024:

 

   Six months ended
June 30,		 
Series  2024   2023 
Landa Series 303 Kellys Walk  $-   $- 
Landa Series 3192 Lake Monroe Road   -    - 
Landa Series 45 Robertford Drive   -    - 
Landa Series 4085 Springvale Way   -    - 
Landa Series 126 Wildwood Road   -    - 
Landa Series 2174 Scarbrough Road   -    - 
Landa Series 153 Spring Valley Circle   -    - 
Landa Series 137 Spring Valley Circle   -    - 
Landa Series 1096 Vincent Drive   -    - 
Landa Series 1120 9th Court   -    - 
Landa Series 113 Hughes Avenue   -    - 
Landa Series 1434 Shirley Drive   156    156 
Landa Series 1625 W McFarland Avenue   -    - 
Landa Series 1713 Alfen Street   -    - 
Landa Series 1744 Mountain Drive   -    - 
Landa Series 179 Poplar Springs Drive   -    - 
Landa Series 200 15th Court Northwest   -    - 
Landa Series 235 Celery Avenue North   -    - 
Landa Series 28 E Hammon Drive   1,985    - 
Landa Series 301 Woodstream Drive   -   - 
Landa Series 3029 Cedaridge Drive   2,300   2,300 
Landa Series 340 17th Avenue Northwest   -    - 
Landa Series 4037 Stone Drive   -    - 
Landa Series 4126 Oriely Drive West   768   1,600 
Landa Series 4464 Willow Street   -    - 
Landa Series 4601 Sylvaner Lane   -    - 
Landa Series 503 8th Street South   -    - 
Landa Series 503 East Robinson Street   -    - 
Landa Series 580 Dorothy Street   1,590    1,590 
Landa Series 5844 Willow Crest Drive   -    - 
Landa Series 650 Willow Bend Lane   -    - 
Landa Series 6716 Mopsy Lane   1,500    1,500 
Landa Series 6820 66th Street South   -    - 
Landa Series 7817 3rd Avenue South   -    - 
Landa Series 8048 Old Plank Road   -    - 
Landa Series 808 Home Trail   -    - 
Landa Series 8990 Doris Lane   -    - 
Landa Series 913 2nd Street   1,025    1,025 
Landa Series 2150 Tishamingo Drive   -    - 
Restricted Cash Balances  $9,324   $8,171 

 

F-53

 

 

Restricted cash is made up of security deposits.

 

As a matter of performing its duties, the Manager, at times, will collect and hold cash on behalf of the Series.

 

Concentration of Credit Risk Involving Cash

 

The Company maintains cash and restricted cash balances at multiple financial institutions. As of December 31, 2023, and December 31, 2022, all cash balances were within the federally insured limit of $250,000 per depositor under the Federal Deposit Insurance Corporation (FDIC).

 

Revenue

 

The Company adopted FASB ASC 606, Revenue form Contracts with Customers, and its related amendments, effective at inception using the modified retrospective transition approach applied to all contracts. There are no cumulative impacts there were made. The Company determines revenue recognition through the following steps:

 

  ● Identification of a contract with a customer;

 

  ● Identification of the performance obligations in the contract;

 

  ● Determination of the transaction price;

 

  ● Allocation of the transaction price to the performance obligations in the contract; and

 

  ● Recognition of revenue when or as the performance obligations are satisfied

 

Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the Company’s customers in an amount that reflects the consideration expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance.

 

Revenues are generated at the Series level. Rental revenue is generated from annual or month to month leases of the single-family homes. The Company recognizes rental revenue on a monthly basis when earned.

 

Accounts Receivables

 

Accounts receivable are uncollateralized obligations due under normal rental terms generally requiring payment within 1 to 30 days from the start of the month. Accounts receivable are presented net of an allowance for credit losses, which is an estimate of amounts that may not be collectible. Management estimates the allowance for credit losses using a loss rate approach based on historical loss information, adjusted for management's expectations about current and future economic conditions, as the basis to determine expected credit losses. Management exercises significant judgment in determining expected credit losses. Key inputs include macroeconomic factors, industry trends, the creditworthiness of counterparties, historical experience, the financial conditions of the customers, and the amount and age of past due accounts. Management believes that the composition of receivables at year end is consistent with historical conditions as credit terms and practices and the client base has not changed significantly. The Company evaluates accounts receivable on a case to case basis to determine expected credit losses. The Company does not record rental revenue when recovery is uncertain.

 

The Company determined it was not necessary to record an allowance for credit losses as of June 30, 2024 and 2023.

 

Real Estate Property Acquisitions

 

Upon acquisition from a third-party, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, our purchases of homes are treated as asset acquisitions and are recorded at their purchase price, which is allocated between land, building and improvements, and in-place lease intangibles (when a resident is in place at the acquisition date) based upon their relative fair values at the date of acquisition. 

 

Fair value is determined in accordance with ASC 820, Fair Value Measurements and Disclosures, and is primarily based on unobservable data inputs. In making estimates of fair values for purposes of allocating the purchase price of individually acquired properties subject to an existing lease, the Company utilizes its own market knowledge obtained from historical transactions, its internal construction program and published market data. In this regard, the Company also utilizes information obtained from county tax assessment records to assist in the determination of the fair value of the land and building.

 

The value of acquired lease-related intangibles is estimated based upon the costs we would have incurred to lease the property under similar terms. Such costs are capitalized and amortized over the remaining life of the lease. Acquired leases are generally short-term in nature (less than one year).

 

Upon acquisition from a related party, the Company considers this transaction between entities under common control. Under ASC 805-50-30-5, when accounting for a transfer of assets or exchange of shares between entities under common control, the entity that receives the net assets or the equity interests, in this case, the Series, will initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer.

 

The properties were acquired from a related party by each of the respective Series. The acquisitions were accounted for as a commonly controlled transaction and recorded, accordingly at their carryover basis.

 

F-54

 

 

Real Estate Depreciation

 

Investments in real estate are stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of buildings, improvements, and other assets. Buildings are depreciated over twenty-seven and half years and improvements and other assets are depreciated over their estimated economic useful lives, generally three to twenty-seven and one half (27.5) years.

 

Once a property is ready for its intended use, expenditures for ordinary maintenance and repairs are expensed to operations as incurred. The Company capitalizes expenditures above a pre-determined threshold that improve or extend the life of a property. 

 

Real Estate and Impairment

 

The Company continuously evaluates, by property, whether there are any events or changes in circumstances indicating that the carrying amount of the Series’ single-family residential properties may not be recoverable. To the extent an event or change in circumstance is identified, a residential property is considered to be impaired only if its carrying value cannot be recovered through estimated future undiscounted cash flows from the use and eventual disposition of the property. To the extent an impairment has occurred, the carrying amount of our investment in a property is adjusted to its estimated fair value. The process whereby we assess our single-family residential properties for impairment requires significant judgment and assessment of factors that are, at times, subject to significant uncertainty. We evaluate multiple information sources and perform a number of internal analyses, each of which are important components of our process with no one information source or analysis being necessarily determinative. No impairments on any property were recorded as of June 30, 2024 and December 31, 2023. 

 

Escrow

 

Escrow represents escrow accounts held by the mortgagee on behalf of the company for the future payment of real estate taxes and property insurance premiums associated with the mortgaged property. These escrow account balances are periodically reviewed and adjusted as necessary. The Company recognizes the applicable expense when the escrow funds are disbursed by the mortgagee.

 

Income Taxes

 

The Company intends to be taxed as a “disregarded entity” for federal income tax purposes and will not make any election or take any action that could cause it to be separately treated as an association taxable as a corporation under Subchapter C of the Internal Revenue Code of 1986. The elements of income and expense are included on the tax returns of the entity’s members.

 

Each individual Series has elected to be treated as a corporation for tax purposes. Each separate Series intends to be accounted for as described in ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

The Series recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. There were no uncertain tax positions as of June 30, 2024 and December 31, 2023.

 

The Series’ determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof.

 

The Series is subject to incomes taxes for US Federal purposes and in the state of Georgia. The Series’ tax years are open for examinations for all periods since inception.

 

Organization and Offering Costs

 

In accordance with FASB ASC 720, Organizational Costs, including accounting fees, legal fees, and costs of incorporation, are expensed as incurred.

 

Comprehensive Income (Loss)

 

The Company follows FASB ASC 220 in reporting comprehensive income (loss). Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss).

 

F-55

 

 

Recent Accounting Standards

 

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability under most operating leases in its balance sheet. The ASU was effective for annual and interim periods beginning after December 15, 2019, including interim periods within those fiscal years. In April 2020, the FASB voted to defer the effective date of ASC 842 for private companies and certain no-for-profit entities for one year. For private companies and private NFPs, the leasing standard will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. For public NFPs the leasing standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are continuing to evaluate the impact of this new standard on our financial reporting and disclosures.The Company adopted this standard as of January 1, 2022. The adoption of this standard did not impact the Company's financial reporting and disclosure as all of the Company's leases are twelve (12) months or less and have no escalations in rental income.

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as modified by FASB ASU No. 2019-10 and other subsequently issued related ASUs. The amendments in this Update affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this new guidance effective January 1, 2023 utilizing the modified retrospective transition method. The adoption of this standard did not have a material impact on the Company's combined and combining financial statements, but did change how the allowance for credit losses is determined.

 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the impact of this accounting standard on its combined and combining financial statements.

 

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

 

4. FAIR VALUE MEASUREMENTS

 

Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows:

 

Level 1 - Observable inputs, such as quoted prices for identical assets or liabilities in active markets;

 

Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly, such as quoted prices for similar assets or liabilities, or market-corroborated inputs; and

 

Level 3 - Unobservable inputs for which there is little or no market data which require the reporting entity to develop its own assumptions about how market participants would price the assets or liabilities.

 

The valuation techniques that may be used to measure fair value are as follows:

 

Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

 

Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models, and excess earnings method.

 

Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).

 

As of June 30, 2024, each of the Series’ significant financial instruments consist of cash and cash equivalents, and related party payables. The carrying amount of each of the Series’ financial instruments approximates their fair values due to their short-term nature.

 

F-56

 

 

5. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES

 

The following table sets forth the land, building and accumulated depreciation associated with each Series’ Property as of June 30, 2024.

 

Series   Land     Building & improvements     Total gross investments     Less: accumulated depreciation     Investments in single-family residential properties, net  
Landa Series 303 Kellys Walk   $ 16,482     $ 163,044     $ 179,526     $ 15,316     $ 164,210  
Landa Series 3192 Lake Monroe Road     14,751       142,768       157,519       13,413       144,106  
Landa Series 45 Robertford Drive     24,501       236,356       260,857       22,203       238,654  
Landa Series 4085 Springvale Way     22,662       220,227       242,889       20,687       222,202  
Landa Series 126 Wildwood Road     16,186       165,450       181,636       15,212       166,424  
Landa Series 2174 Scarbrough Road     16,132       156,343       172,475       14,687       157,788  
Landa Series 153 Spring Valley Circle     17,634       170,554       188,188       16,022       172,166  
Landa Series 137 Spring Valley Circle     17,030       164,514       181,544       15,454       166,090  
Landa Series 1096 Vincent Drive     52,814       244,578       297,392       10,799       286,593  
Landa Series 1120 9th Court     25,372       168,406       193,778       7,192       186,586  
Landa Series 113 Hughes Avenue     54,850       239,380       294,230       10,549       283,681  
Landa Series 1434 Shirley Drive     36,467       191,027       227,494       8,439       219,055  
Landa Series 1625 W McFarland Avenue     47,349       215,302       262,651       9,486       253,165  
Landa Series 1713 Alfen Street     29,618       137,238       166,856       6,044       160,812  
Landa Series 1744 Mountain Drive     26,655       149,539       176,194       6,600       169,594  
Landa Series 179 Poplar Springs Drive     24,946       126,713       151,659       5,590       146,069  
Landa Series 200 15th Court Northwest     23,015       123,305       146,320       5,443       140,877  
Landa Series 235 Celery Avenue North     44,525       218,570       263,095       9,652       253,443  
Landa Series 28 E Hammon Drive     41,703       209,552       251,255       9,263       241,992  
Landa Series 301 Woodstream Drive     43,741       225,971       269,712       9,971       259,741  
Landa Series 3029 Cedaridge Drive     68,577       303,814       372,391       13,403       358,988  
Landa Series 340 17th Avenue Northwest     25,047       165,130       190,177       7,247       182,930  
Landa Series 4037 Stone Drive     35,700       158,853       194,553       7,001       187,552  
Landa Series 4126 Oriely Drive West     44,703       192,172       236,875       8,109       228,766  
Landa Series 4464 Willow Street     40,520       180,553       221,073       7,962       213,111  
Landa Series 4601 Sylvaner Lane     57,003       271,511       328,514       11,961       316,553  
Landa Series 503 8th Street South     23,700       128,128       151,828       5,652       146,176  
Landa Series 503 East Robinson Street     27,112       144,649       171,761       6,364       165,397  
Landa Series 580 Dorothy Street     34,653       278,458       313,111       10,415       302,696  
Landa Series 5844 Willow Crest Drive     40,507       204,684       245,191       9,028       236,163  
Landa Series 650 Willow Bend Lane     27,417       134,882       162,299       5,942       156,357  
Landa Series 6716 Mopsy Lane     37,777       190,492       228,269       8,221       220,048  
Landa Series 6820 66th Street South     29,660       139,423       169,083       6,138       162,945  
Landa Series 7817 3rd Avenue South     20,798       141,721       162,519       6,238       156,281  
Landa Series 8048 Old Plank Road     36,931       181,537       218,468       8,005       210,463  
Landa Series 808 Home Trail     51,514       280,204       331,718       11,743       319,975  
Landa Series 8990 Doris Lane     18,486       108,903       127,389       4,797       122,592  
Landa Series 913 2nd Street     24,902       180,727       205,629       7,405       198,224  
Landa Series 2150 Tishamingo Drive     26,434       202,554       228,988       8,886       220,102  
Total combined   $ 1,267,874     $ 7,257,232     $ 8,525,106     $ 386,539     $ 8,138,567  

 

F-57

 

 

For the six months ended June 30, 2024, each Series recognized the following depreciation expense:

 

Series  Amounts 
Landa Series 303 Kellys Walk  $2,964 
Landa Series 3192 Lake Monroe Road  2,596 
Landa Series 45 Robertford Drive  4,297 
Landa Series 4085 Springvale Way  4,004 
Landa Series 126 Wildwood Road  3,008 
Landa Series 2174 Scarbrough Road  2,843 
Landa Series 153 Spring Valley Circle  3,101 
Landa Series 137 Spring Valley Circle  2,991 
Landa Series 1096 Vincent Drive  4,447 
Landa Series 1120 9th Court  3,002 
Landa Series 113 Hughes Avenue  4,352 
Landa Series 1434 Shirley Drive  3,473 
Landa Series 1625 W McFarland Avenue  3,915 
Landa Series 1713 Alfen Street  2,495 
Landa Series 1744 Mountain Drive  2,719 
Landa Series 179 Poplar Springs Drive  2,304 
Landa Series 200 15th Court Northwest  2,242 
Landa Series 235 Celery Avenue North  3,974 
Landa Series 28 E Hammon Drive  3,810 
Landa Series 301 Woodstream Drive  4,109 
Landa Series 3029 Cedaridge Drive  5,524 
Landa Series 340 17th Avenue Northwest  3,002 
Landa Series 4037 Stone Drive  2,888 
Landa Series 4126 Oriely Drive West  3,494 
Landa Series 4464 Willow Street  3,283 
Landa Series 4601 Sylvaner Lane  4,937 
Landa Series 503 8th Street South  2,330 
Landa Series 503 East Robinson Street  2,630 
Landa Series 580 Dorothy Street  4,963 
Landa Series 5844 Willow Crest Drive  3,722 
Landa Series 650 Willow Bend Lane  2,452 
Landa Series 6716 Mopsy Lane  3,452 
Landa Series 6820 66th Street South  2,535 
Landa Series 7817 3rd Avenue South  2,577 
Landa Series 8048 Old Plank Road  3,301 
Landa Series 808 Home Trail  5,095 
Landa Series 8990 Doris Lane  1,980 
Landa Series 913 2nd Street  3,269 
Landa Series 2150 Tishamingo Drive  3,683 
Total Combined  $131,763 

 

F-58

 

 

6. RELATED PARTY TRANSACTIONS

 

Landa Holdings Inc., Manager

 

Acquisition Notes

 

Each Series financed 100% of the costs associated with the acquisition of its Property, including an acquisition fee and expenses associated with sourcing its Property, with an Acquisition Note issued by such Series to the Manager, the terms of which are listed in the table below. Each of these Acquisition Notes represents a related-party loan between each respective Series and the Manager. The Acquisition Notes are non-interest-bearing and are an unsecured obligation of the applicable Series. The interest expense related to the Acquisition Notes as of June 30, 2024 is $43,825.

 

The following table sets forth the net amounts as of June 30, 2024:

 

Series  Principal Amount(1)   Annual Interest Rate   Loan Date  Current Outstanding Amount(3) 
Landa Series 303 Kellys Walk  $237,426    4.50%  09/07/2021  $54 
Landa Series 3192 Lake Monroe Road  $168,519    4.50%  07/28/2021  $28 
Landa Series 45 Robertford Drive  $273,676    4.50%  07/28/2021  $- 
Landa Series 4085 Springvale Way  $245,767    4.50%  07/01/2021  $- 
Landa Series 126 Wildwood Road  $185,571    4.50%  07/28/2021  $- 
Landa Series 2174 Scarbrough Road  $183,204    4.50%  07/28/2021  $3,757 
Landa Series 153 Spring Valley Circle  $176,953    4.50%  07/28/2021  $404 
Landa Series 137 Spring Valley Circle  $201,557    4.50%  07/28/2021  $137 
Landa Series 1096 Vincent Drive  $315,357    4.50%  04/28/2023  $64,040 
Landa Series 1120 9th Court  $187,510    4.50%  04/28/2023  $65,216 
Landa Series 113 Hughes Avenue  $325,957    4.50%  04/28/2023  $108,330 
Landa Series 1434 Shirley Drive  $268,554    4.50%  04/28/2023  $48,222 
Landa Series 1625 W McFarland Avenue  $275,109    4.50%  04/28/2023  $62,398 
Landa Series 1713 Alfen Street  $182,221    4.50%  04/28/2023  $- 
Landa Series 1744 Mountain Drive  $188,821    4.50%  04/28/2023  $90,357 
Landa Series 179 Poplar Springs Drive  $178,994    4.50%  04/28/2023  $55,180 
Landa Series 200 15th Court Northwest  $168,568    4.50%  04/28/2023  $14,905 
Landa Series 235 Celery Avenue North  $280,599    4.50%  04/28/2023  $56,047 
Landa Series 28 E Hammon Drive  $271,393    4.50%  04/28/2023  $74,034 
Landa Series 301 Woodstream Drive  $290,432    4.50%  04/28/2023  $107,420 
Landa Series 3029 Cedaridge Drive  $393,284    4.50%  04/28/2023  $82,562 
Landa Series 340 17th Avenue Northwest  $189,141    4.50%  04/28/2023  $11,093 
Landa Series 4037 Stone Drive  $228,364    4.50%  04/28/2023  $81,253 
Landa Series 4126 Oriely Drive West  $251,465    4.50%  05/19/2023  $60,283 
Landa Series 4464 Willow Street  $243,829    4.50%  04/28/2023  $51,977 
Landa Series 4601 Sylvaner Lane  $345,886    4.50%  04/28/2023  $94,554 
Landa Series 503 8th Street South  $156,106    4.50%  04/28/2023  $57,153 
Landa Series 503 East Robinson Street  $184,476    4.50%  04/28/2023  $46,303 
Landa Series 580 Dorothy Street  $241,252    4.50%  04/28/2023  $75,305 
Landa Series 5844 Willow Crest Drive  $254,760    4.50%  04/28/2023  $76,733 
Landa Series 650 Willow Bend Lane  $184,132    4.50%  04/28/2023  $41,767 
Landa Series 6716 Mopsy Lane  $237,362    4.50%  04/28/2023  $79,846 
Landa Series 6820 66th Street South  $194,505    4.50%  04/28/2023  $74,567 
Landa Series 7817 3rd Avenue South  $135,983    4.50%  04/28/2023  $2,948 
Landa Series 8048 Old Plank Road  $299,140    4.50%  04/28/2023  $64,325 
Landa Series 808 Home Trail  $322,459    4.50%  05/19/2023  $107,233 
Landa Series 8990 Doris Lane  $136,785    4.50%  04/28/2023  $12,613 
Landa Series 913 2nd Street  $176,271    4.50%  04/28/2023  $13,055 
Landa Series 2150 Tishamingo Drive  $224,318    4.50%  04/28/2023  $114,812 
          $1,898,912 

  

(1) The principal amount shall be due and payable by the Series within 30 days after demand by Landa Holdings, as lender, at any time prior to the liquidation, dissolution or winding up of the Series.

(2) As of June 30, 2024.

F-59

 

 

(Due to)/ from Related Party

 

The Manager will provide short term non-interest-bearing loans to the Series to be repaid from operating cash flow. The following table sets forth the net amounts as of June 30, 2024 and Dec 2023.

 

   Related Party Transactions - Due to Related Party Loans 
Series  June 30, 2024   December 31, 2023 
Landa Series 303 Kellys Walk  $44,624   $54,248 
Landa Series 3192 Lake Monroe Road   7,076    7,306 
Landa Series 45 Robertford Drive   (18)   4,435 
Landa Series 4085 Springvale Way   6,198    6,436 
Landa Series 126 Wildwood Road   (6,034)   114 
Landa Series 2174 Scarbrough Road   4,087    4,704 
Landa Series 153 Spring Valley Circle   (370)   6,518 
Landa Series 137 Spring Valley Circle   (7,079)   (5,226)
Landa Series 1096 Vincent Drive   (12,881)   (3,043)
Landa Series 1120 9th Court   (20,934)   (9,903)
Landa Series 113 Hughes Avenue   (15,867)   (1,012)
Landa Series 1434 Shirley Drive   16,913    24,127 
Landa Series 1625 W McFarland Avenue   (17,229)   (8,570)
Landa Series 1713 Alfen Street   5,750    11,141 
Landa Series 1744 Mountain Drive   (6,038)   (1,757)
Landa Series 179 Poplar Springs Drive   9,953    14,514 
Landa Series 200 15th Court Northwest   7,034    11,514 
Landa Series 235 Celery Avenue North   (13,642)   (5,006)
Landa Series 28 E Hammon Drive   (5,508)   2,660 
Landa Series 301 Woodstream Drive   (9,257)   2,405 
Landa Series 3029 Cedaridge Drive   (28,968)   (8,895)
Landa Series 340 17th Avenue Northwest   (17,182)   (11,685)
Landa Series 4037 Stone Drive   4,216    14,611 
Landa Series 4126 Oriely Drive West   (14,450)   (4,431)
Landa Series 4464 Willow Street   (5,452)   2,654 
Landa Series 4601 Sylvaner Lane   (19,788)   (9,021)
Landa Series 503 8th Street South   (17,485)   (10,680)
Landa Series 503 East Robinson Street   (4,719)   336 
Landa Series 580 Dorothy Street   (100,591)   (24,497)
Landa Series 5844 Willow Crest Drive   (18,392)   (10,443)
Landa Series 650 Willow Bend Lane   3,112    8,589 
Landa Series 6716 Mopsy Lane   (18,158)   (2,978)
Landa Series 6820 66th Street South   4,611    11,070 
Landa Series 7817 3rd Avenue South   (44,775)   (39,990)
Landa Series 8048 Old Plank Road   29,515    44,671 
Landa Series 808 Home Trail   (57,838)   (43,019)
Landa Series 8990 Doris Lane   (3,640)   307 
Landa Series 913 2nd Street   (49,812)   (31,003)
Landa Series 2150 Tishamingo Drive   (23,001)   (18,275)
Combined  $(396,018)  $(17,074)

 

 

Management Fee

 

The Manager receives fees, reimbursements, and compensation in connection with the acquisition and Property management of the Series' real estate investments. The following shows the amounts incurred from each Series for property management fees: The management fee is calculated as 8% on earned rental income.

 

 

   Six months ended
June 30,		 
Series  2024   2023 
Landa Series 303 Kellys Walk  $1,080   $882 
Landa Series 3192 Lake Monroe Road   570    448 
Landa Series 45 Robertford Drive   -    1,058 
Landa Series 4085 Springvale Way   600    1,005 
Landa Series 126 Wildwood Road   494    723 
Landa Series 2174 Scarbrough Road   781    744 
Landa Series 153 Spring Valley Circle   884    804 
Landa Series 137 Spring Valley Circle   235    689 
Landa Series 1096 Vincent Drive   940    328 
Landa Series 1120 9th Court   540    184 
Landa Series 113 Hughes Avenue   142    298 
Landa Series 1434 Shirley Drive   456    302 
Landa Series 1625 W McFarland Avenue   134    252 
Landa Series 1713 Alfen Street   698    233 
Landa Series 1744 Mountain Drive   537    160 
Landa Series 179 Poplar Springs Drive   552    160 
Landa Series 200 15th Court Northwest   480    168 
Landa Series 235 Celery Avenue North   752    286 
Landa Series 28 E Hammon Drive   277    269 
Landa Series 301 Woodstream Drive   140   247 
Landa Series 3029 Cedaridge Drive   368   386 
Landa Series 340 17th Avenue Northwest   420    210 
Landa Series 4037 Stone Drive   -    214 
Landa Series 4126 Oriely Drive West   128   150 
Landa Series 4464 Willow Street   753    214 
Landa Series 4601 Sylvaner Lane   336    318 
Landa Series 503 8th Street South   -    160 
Landa Series 503 East Robinson Street   462    185 
Landa Series 580 Dorothy Street   765    267 
Landa Series 5844 Willow Crest Drive   348    244 
Landa Series 650 Willow Bend Lane   177    186 
Landa Series 6716 Mopsy Lane   720    252 
Landa Series 6820 66th Street South   416    164 
Landa Series 7817 3rd Avenue South   -    - 
Landa Series 8048 Old Plank Road   -    - 
Landa Series 808 Home Trail   -    132 
Landa Series 8990 Doris Lane   520    218 
Landa Series 913 2nd Street   472    193 
Landa Series 2150 Tishamingo Drive   296    202 
Total Management Fee  $16,474   $12,935 

 

7. NOTES PAYABLE

 

Refinance Notes

 

Each Series issued a Refinance Note to Lending One LLC , the terms of which are listed in the table below. Each Refinance Note is secured by the Property underlying the respective Series. Each Series paid down, or otherwise discharged, a portion of the outstanding balance of its Acquisition Note with the Refinance Note. Each Refinance Note is secured by the Property underlying the respective Series.

 

The following table sets forth the terms and the net amounts of the Refinance Notes as of June 30, 2024.

 

Series  Principal Amount   Annual Interest Rate   Loan Date  Maturity Date  Current Outstanding Amount  Monthly Mortgage Interest Expense  
Landa Series 303 Kellys Walk  $132,080    4.80%  12/08/2021  01/01/2027  $132,144   529 
Landa Series 3192 Lake Monroe Road  $108,750    4.80%  12/08/2021  01/01/2027  $108,594   434 
Landa Series 45 Robertford Drive  $180,750    4.80%  12/08/2021  01/01/2027  $180,750   723 
Landa Series 4085 Springvale Way  $157,500    4.80%  12/08/2021  01/01/2027  $132,080   528 
Landa Series 126 Wildwood Road  $116,250    4.80%  12/08/2021  01/01/2027  $116,250   465 
Landa Series 2174 Scarbrough Road  $122,250    4.80%  12/08/2021  01/01/2027  $116,250   465 
Landa Series 153 Spring Valley Circle  $116,250    4.80%  12/08/2021  01/01/2027  $116,265   465 
Landa Series 137 Spring Valley Circle  $122,500    4.80%  12/08/2021  01/01/2027  $108,750   435 
Total Refinance Note  $1,056,330          $1,011,083  $4,044 

(1) As of June 20, 2024

 

Bridge Notes

 

Bridge Notes represent the short term high interest secured financing obtained from certain third party lenders by a Series in order to facilitate transfer of title from Landa Properties to the Series in the event of traditional long term financing being unavailable (see “Refinance Note”).

 

The Bridge Loan Agreements include customary representations, warranties, covenants and terms and conditions for transactions of this type, including limitations on incurrence of debt, liens and asset sales and dispositions, covenants to preserve corporate existence and comply with laws, covenants on the application of proceeds of the Loans and default provisions, including defaults for non–payment, breach of representations and warranties, insolvency, sale or other disposition of a substantial portion of assets and failure to pay other outstanding debt. The occurrence of an event of default under a Loan Agreement could result in the applicable Loan becoming immediately due and payable.

 

Each Loan is secured by the single family rental property (each a “Property”) held as the primary asset of each Series, as well as the assets associated with such Property, including, but not limited to, the capital reserve account established pursuant to the terms of each Loan Agreement, and all personal property attached to each Property. All the bridge loans are interest only, with no prepayment penalty.

 

Failure to make interest payments on time would constitute an event of default under the Note, permitting the lender to require the immediate payment of all amounts outstanding under the Note, and if the Company is unable to pay all such amounts, the lender would be entitled to foreclose on the applicable Property

 

Interest expense for the bridge loans for the six-month period ended in June 30, 2024 and 2023 totaled $272,547 and $95,026, respectively.

 

The following table sets forth the terms and the net amounts of the Bridge Notes as of June 30, 2024.

 

Series  Principal Amount (1)   Annual Interest Rate   Loan Date (2)  Maturity Date  Current Outstanding Amount (3) 
Landa Series 1096 Vincent Drive  $210,250    12.50%  04/28/2023  12/31/2025  $210,250 
Landa Series 1120 9th Court  $94,250    12.50%   04/28/2023  12/31/2025  $94,250 
Landa Series 113 Hughes Avenue  $201,550    12.50%   04/28/2023  12/31/2025  $201,550 
Landa Series 1434 Shirley Drive  $156,600    12.50%   04/28/2023  12/31/2025  $156,600 
Landa Series 1625 W McFarland Avenue  $175,450    12.50%   04/28/2023  12/31/2025  $175,450 
Landa Series 1713 Alfen Street  $112,375    12.50%   04/28/2023  12/31/2025  $112,375 
Landa Series 1744 Mountain Drive  $87,000    12.50%   04/28/2023  12/31/2025  $87,000 
Landa Series 179 Poplar Springs Drive  $98,238    12.50%   04/28/2023  12/31/2025  $98,238 
Landa Series 200 15th Court Northwest  $82,650    12.50%   04/28/2023  12/31/2025  $82,650 
Landa Series 235 Celery Avenue North  $184,875    12.50%   04/28/2023  12/31/2025  $184,875 
Landa Series 28 E Hammon Drive  $155,875    12.50%   04/28/2023  12/31/2025  $155,875 
Landa Series 301 Woodstream Drive  $160,950    12.50%   04/28/2023  12/31/2025  $160,950 
Landa Series 3029 Cedaridge Drive  $250,850    12.50%   04/28/2023  12/31/2025  $250,850 
Landa Series 340 17th Avenue Northwest  $100,050    12.50%   04/28/2023  12/31/2025  $100,050 
Landa Series 4037 Stone Drive  $137,750    12.50%   04/28/2023  12/31/2025  $137,750 
Landa Series 4126 Oriely Drive West  $167,610    12.50%   05/19/2023  12/31/2025  $167,610 
Landa Series 4464 Willow Street  $177,625    12.50%   04/28/2023  12/31/2025  $177,625 
Landa Series 4601 Sylvaner Lane  $205,900    12.50%   04/28/2023  12/31/2025  $205,900 
Landa Series 503 8th Street South  $87,000    12.50%   04/28/2023  12/31/2025  $87,000 
Landa Series 503 East Robinson Street  $107,300    12.50%   04/28/2023  12/31/2025  $107,300 
Landa Series 580 Dorothy Street  $137,750    12.50%   04/28/2023  12/31/2025  $137,750 
Landa Series 5844 Willow Crest Drive  $155,875    12.50%   04/28/2023  12/31/2025  $155,875 
Landa Series 650 Willow Bend Lane  $119,625    12.50%   04/28/2023  12/31/2025  $119,625 
Landa Series 6716 Mopsy Lane  $137,750    12.50%   04/28/2023  12/31/2025  $137,750 
Landa Series 6820 66th Street South  $108,025    12.50%   04/28/2023  12/31/2025  $108,025 
Landa Series 7817 3rd Avenue South  $76,125    12.50%   04/28/2023  12/31/2025  $76,125 
Landa Series 8048 Old Plank Road  $221,125    12.50%   04/28/2023  12/31/2025  $221,125 
Landa Series 808 Home Trail  $200,075    12.50%   05/19/2023  12/31/2025  $200,075 
Landa Series 8990 Doris Lane  $83,375    12.50%   04/28/2023  12/31/2025  $83,375 
Landa Series 913 2nd Street  $108,750    12.50%   04/28/2023  12/31/2025  $108,750 
Landa Series 2150 Tishamingo Drive  $94,250    12.50%   04/28/2023  12/31/2025  $94,250 
  $4,396,873           $4,396,873 

 

Notice of Default

 

The abovementioned Series entered into bridge loan agreements dated April 28, 2023, as amended (“Bridge Loans”), with the L Finance LLC as lender (“L Finance”). See Item 2. Loans – Bridge Notes. These Bridge Loans are mortgages on such Series properties and were entered into to refinance the prior mortgages that became due. In addition, the Manager had entered into a financing agreement with Viola GL (“GL”), dated August 19, 2021 (“Agreement”), as amended, for financing its operations and for the benefit of the Series. (each of L Finance and GL a “Lender” and collectively, the “Lenders”) The Agreement provide that upon a default by the Manager, GL has, among other rights, the right to replace the Manager with a substitute manager of GL's choosing with respect to all of the Series. On October 29, 2024, the Lenders issued a notice to these Series and the Manager alleging that they were in default under the Bridge Loans and the Agreement.

 

In their notice, the Lenders claimed that the default has entitled them to foreclose on the Borrower Series properties and exercise managerial control over the Series and direct its operations.

 

The Manager is disputing that a default has occurred and believes that the Lenders are not entitled to replace the Manager and assume control of the Series under the Agreement, nor foreclose on the properties that are subject to the Bridge Loans and the Agreement.

 

The Manager is currently in negotiation with the Lenders. If the Manager is unable to reach a settlement or the Lenders otherwise do not waive the default, the Lenders may take the following actions:

 

  ● Accelerate all amounts due under the Bridge Loans. As a result, the Lenders may be entitled to foreclose on each of the Borrower Series' Properties and force its sale to recover unpaid amounts under the Bridge Loans, which would likely result in a significant loss to investors of the Borrower Series. See “A Series may be unable to service its indebtedness, which may be secured by its Property, and could result in the Series being forced to sell its Property, which could result in a significant loss to investors in the particular Series” in the Company's Offering Statement here

 

  ● Foreclose on the Manager's interest in all the Series and assume control of the Manager's operations and assume the Manager's role as manager of all the Series, even if a particular Series is not in default. This action could significantly impact the Series' management and investment outcomes. See “ Risk Factors – 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” in the Company's Offering Statement here

 

8. MEMBER’S EQUITY

 

The Company is organized as a series limited liability company. As such, the liability of the members of the Company for the financial obligations of the Company is limited to each member’s contribution of capital. 

 

Series  # of membership units issued   Net proceeds from the issuance of membership interests  
Landa Series 303 Kellys Walk  $-   $- 
Landa Series 3192 Lake Monroe Road   -    - 
Landa Series 45 Robertford Drive   -    - 
Landa Series 4085 Springvale Way   -    - 
Landa Series 126 Wildwood Road   -    - 
Landa Series 2174 Scarbrough Road   -    - 
Landa Series 153 Spring Valley Circle   -    - 
Landa Series 137 Spring Valley Circle   -    - 
Landa Series 1096 Vincent Drive   803    10,944 
Landa Series 1120 9th Court   388    3,140 
Landa Series 113 Hughes Avenue   183    2,739 
Landa Series 1434 Shirley Drive   810    11,263 
Landa Series 1625 W McFarland Avenue   355    4,344 
Landa Series 1713 Alfen Street   -    - 
Landa Series 1744 Mountain Drive   149    1,125 
Landa Series 179 Poplar Springs Drive   666    4,769 
Landa Series 200 15th Court Northwest   2,020    13,521 
Landa Series 235 Celery Avenue North   535    6,493 
Landa Series 28 E Hammon Drive   492    5,718 
Landa Series 301 Woodstream Drive   125   1,599 
Landa Series 3029 Cedaridge Drive   689   11,613 
Landa Series 340 17th Avenue Northwest   -    - 
Landa Series 4037 Stone Drive   5    46 
Landa Series 4126 Oriely Drive West   117   1,399 
Landa Series 4464 Willow Street   419    4,087 
Landa Series 4601 Sylvaner Lane   357    5,433 
Landa Series 503 8th Street South   184    1,143 
Landa Series 503 East Robinson Street   637    5,326 
Landa Series 580 Dorothy Street   280    3,671 
Landa Series 5844 Willow Crest Drive   213    2,171 
Landa Series 650 Willow Bend Lane   200    1,746 
Landa Series 6716 Mopsy Lane   146    1,568 
Landa Series 6820 66th Street South   1,630    12,684 
Landa Series 7817 3rd Avenue South   -    - 
Landa Series 8048 Old Plank Road   71    850 
Landa Series 808 Home Trail   52    812 
Landa Series 8990 Doris Lane   -    - 
Landa Series 913 2nd Street   832    7,627 
Landa Series 2150 Tishamingo Drive   102    915 
  $12,460   $126,745 

 

9. Commitments and Contingencies

 

Legal Proceedings

 

There are no legal proceedings material to the Company's business or financial condition pending and, management is not aware of any legal proceedings contemplated or threatened other than as set forth in Note 10. Subsequent Events and Item 2. Other Information

 

10. SUBSEQUENT EVENTS

 

The Company has evaluated events that occur after the balance sheet date through the date the unaudited financial statements are available to be issued. Management has evaluated events through November 19, 2024, the date these unaudited financial statements were available to be issued. The significant events are disclosed below:

 

Notice of Default

 

Certain Series, as listed below, entered into bridge loan agreements dated April 28, 2023, as amended (“Bridge Loans”), with the L Finance LLC as lender (“L Finance”). See Item 2. Loans – Bridge Notes. These Bridge Loans are mortgages on such Series properties and were entered into to refinance the prior mortgages that became due. In addition, the Manager had entered into a financing agreement with Viola GL (“GL”), dated August 19, 2021 (“Agreement”), as amended, for financing its operations and for the benefit of the Series. (each of L Finance and GL a “Lender” and collectively, the “Lenders”) The Agreement provide that upon a default by the Manager, GL has, among other rights, the right to replace the Manager with a substitute manager of GL's choosing with respect to all of the Series. On October 29, 2024, the Lenders issued a notice to these Series and the Manager alleging that they were in default under the Bridge Loans and the Agreement.

 

The following Series are subject to the Bridge Loans with L Finance (“Borrower Series”).

 

Landa App 2 LLC - 1434 Shirley Drive Lakeland Florida LLC

Landa App 2 LLC - 1096 Vincent Drive Mount Dora Florida LLC

Landa App 2 LLC - 1120 9th Court Pleasant Grove Alabama LLC

Landa App 2 LLC - 8048 Old Plank Road Jacksonville Florida LLC

Landa App 2 LLC - 580 Dorothy Street Bartow Florida LLC

Landa App 2 LLC - 340 17th Avenue Northwest Center Point Alabama LLC

Landa App 2 LLC - 301 Woodstream Drive Gastonia North Carolina LLC

Landa App 2 LLC - 1713 Alfen Street Jacksonville Florida LLC

Landa App 2 LLC - 1744 Mountain Drive Birmingham Alabama LLC

Landa App 2 LLC - 200 15th Court Northwest Center Point Alabama LLC

Landa App 2 LLC - 503 8th Street South Bessemer Alabama LLC

Landa App 2 LLC - 5844 Willow Crest Drive Pinson Alabama LLC

Landa App 2 LLC - 4601 Sylvaner Lane Birmingham Alabama LLC

Landa App 2 LLC - 913 2nd Street Kings Mountain North Carolina LLC

Landa App 2 LLC - 2150 Tishamingo Drive Birmingham Alabama LLC

Landa App 2 LLC - 503 East Robinson Street Dallas North Carolina LLC

Landa App 2 LLC - 650 Willow Bend Lane Bessemer Alabama LLC

Landa App 2 LLC - 28 E Hammon Drive Apopka Florida LLC

Landa App 2 LLC - 4464 Willow Street Gardendale Alabama LLC

Landa App 2 LLC - 113 Hughes Avenue Sanford Florida LLC

Landa App 2 LLC - 6820 66th Street South Birmingham Alabama LLC

Landa App 2 LLC - 3029 Cedaridge Drive Tampa Florida LLC

Landa App 2 LLC - 808 Home Trail Gastonia North Carolina LLC

Landa App 2 LLC - 4126 Oriely Drive West Jacksonville Florida LLC

Landa App 2 LLC - 4037 Stone Drive Bessemer Alabama LLC

Landa App 2 LLC - 235 Celery Avenue North Jacksonville Florida LLC

Landa App 2 LLC - 179 Poplar Springs Drive Sylvan Springs Alabama LLC

Landa App 2 LLC - 8990 Doris Lane Jacksonville Florida LLC

Landa App 2 LLC - 6716 Mopsy Lane Jacksonville Florida LLC

Landa App 2 LLC - 7817 3rd Avenue South Birmingham Alabama LLC

Landa App 2 LLC - 1625 W Mcfarland Avenue Gastonia North Carolina LLC

 

In their notice, the Lenders claimed that the default has entitled them to foreclose on the Borrower Series properties and exercise managerial control over the Series and direct its operations.

 

The Manager is disputing that a default has occurred and believes that the Lenders are not entitled to replace the Manager and assume control of the Series under the Agreement, nor foreclose on the properties that are subject to the Bridge Loans and the Agreement.

 

The Manager is currently in negotiation with the Lenders. If the Manager is unable to reach a settlement or the Lenders otherwise do not waive the default, the Lenders may take the following actions:

 

  ● Accelerate all amounts due under the Bridge Loans. As a result, the Lenders may be entitled to foreclose on each of the Borrower Series' Properties and force its sale to recover unpaid amounts under the Bridge Loans, which would likely result in a significant loss to investors of the Borrower Series. See “A Series may be unable to service its indebtedness, which may be secured by its Property, and could result in the Series being forced to sell its Property, which could result in a significant loss to investors in the particular Series” in the Company's Offering Statement here.

 

  ● Foreclose on the Manager's interest in all the Series and assume control of the Manager's operations and assume the Manager's role as manager of all the Series, even if a particular Series is not in default. This action could significantly impact the Series' management and investment outcomes. See “ Risk Factors – 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” in the Company's Offering Statement here

 

F-60

 

 

Item 4. Exhibit Index

 

No.   Exhibit Description
2.1   Certificate of Formation of Landa 2 LLC (incorporated by reference to the copy thereof filed as Exhibit 2.1 to the Company’s Form 1-A filed on September 17, 2021)*
2.2   Amended and Restated Limited Liability Company Operating Agreement of Landa App 2 LLC (incorporated by reference to the copy submitted thereof as an exhibit to the Company's Form 1-U filed on May 3, 2022)*
3.1   Series Operating Agreement of Landa App 2 LLC – 2174 Scarbrough Road Stone Mountain GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.1 to the Company’s Form 1-A filed on September 17, 2021)*
3.2   Series Operating Agreement of Landa App 2 LLC - 153 Spring Valley Circle Stockbridge GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.2 to the Company’s Form 1-A filed on September 17, 2021)*
3.3   Series Operating Agreement of Landa App 2 LLC - 126 Wildwood Road Stockbridge GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.3 to the Company’s Form 1-A filed on September 17, 2021)*
3.4   Series Operating Agreement of Landa App 2 LLC - 137 Spring Valley Circle Stockbridge GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.4 to the Company’s Form 1-A filed on September 17, 2021)*
3.5   Series Operating Agreement of Landa App 2 LLC - 3192 Lake Monroe Road Douglasville GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.5 to the Company’s Form 1-A filed on September 17, 2021)*
3.6   Series Operating Agreement of Landa App 2 LLC - 45 Robertford Drive Covington GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.6 to the Company’s Form 1-A filed on September 17, 2021)*
3.7   Series Operating Agreement of Landa App 2 LLC - 303 Kellys Walk Locust Grove GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.7 to the Company’s Form 1-A filed on September 17, 2021)*
3.8   Series Operating Agreement of Landa App 2 LLC - 4085 Springvale Way McDonough GA LLC (incorporated by reference to the copy thereof filed as Exhibit 3.8 to the Company’s Form 1-A filed on September 17, 2021)*
3.9   Series Designation for each applicable Series (incorporated by reference to the copies thereof filed as Exhibits 3.36 through 3.63 to the Company’s Form 1-A POS filed on June 7, 2022)*
3.10   Series Designation for each applicable Series (incorporated by reference to the copies thereof filed as Exhibits 3.62 and 3.63 to the Company’s Form 1-A POS filed on June 29, 2022)*

 

18

 

 

3.11   Series Designation for Landa Series 3029 Cedaridge Drive (incorporated by reference to the copies thereof filed as Exhibit 3.61 to the Company’s Form 1-A POS filed on July 27, 2022)*
4.1   Form of Subscription Agreement (incorporated by reference to the copy thereof filed as Exhibit 4.1 to the Company’s Form 1-A filed on September 17, 2021)*
6.1   Form of Management Agreement (incorporated by reference to the copy thereof filed as Exhibit 6.1 to the Company’s Form 1-A filed on September 17, 2021)*
6.2   Broker Dealer Services Agreement, dated July 20, 2021, by and between Dalmore Group, LLC and Landa App 2 LLC (incorporated by reference to the copy thereof filed as Exhibit 6.2 to the Company’s Form 1-A filed on September 17, 2021)*
6.3   Landa Mobile App License Agreement, dated July 29, 2021, by and between Landa Holdings, Inc., Landa App 2 LLC, and each of the Series listed thereto (incorporated by reference to the copy thereof filed as Exhibit 6.3 to the Company’s Form 1-A filed on September 17, 2021)*
6.4   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 2174 Scarbrough Road Stone Mountain GA LLC, dated July 28, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.4 to the Company’s Form 1-A filed on September 17, 2021)*
6.4-A   Amendment No 1 to the Promissory Note, by and between Landa Holdings, Inc. And Landa App 2 LLC – 2174 Scarbrough Road Stone Mountain GA LLC (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s 1-U filed on April 19, 2022)
6.5   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 153 Spring Valley Circle Stockbridge GA LLC, dated July 28, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.5 to the Company’s Form 1-A filed on September 17, 2021)*
6.6   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 126 Wildwood Road Stockbridge GA LLC, dated July 28, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.6 to the Company’s Form 1-A filed on September 17, 2021)*
6.7   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 137 Spring Valley Circle Stockbridge GA LLC, dated July 28, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.7 to the Company’s Form 1-A filed on September 17, 2021)*
6.7-A   Amendment No 1 to the Promissory Note by and between Landa Holdings, Inc. And Landa App 2 LLC – 137 Spring Valley Circle Stockbridge GA LLC (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s 1-U filed on April 19, 2022).
6.8   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 3192 Lake Monroe Road Douglasville GA LLC, dated July 28, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.8 to the Company’s Form 1-A filed on September 17, 2021)*
6.9   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 45 Robertford Drive Covington GA LLC, dated July 28, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.9 to the Company’s Form 1-A filed on September 17, 2021)*
6.10   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 303 Kellys Walk Locust Grove GA LLC, dated September 7, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.10 to the Company’s Form 1-A filed on September 17, 2021)*
6.11   Promissory Note, by and between Landa Holdings, Inc. and Landa App 2 LLC - 4085 Springvale Way McDonough GA LLC, dated September 7, 2021 (incorporated by reference to the copy thereof filed as Exhibit 6.11 to the Company’s Form 1-A filed on September 17, 2021)*
6.12   Form of GA Lease Agreement (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-A POS filed on May 4, 2022)*

 

19

 

 

6.13   Form of FL Lease Agreement (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-A POS filed on May 4, 2022)*
6.14   Form of NC Lease Agreement (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-A POS filed on December 8, 2022)*
6.15   Form of AL Lease Agreement (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-A POS filed on December 8, 2022)*
6.16   Form of Florida Secured Note, by and between L Finance LLC and each Series (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-U filed on May 4, 2023)*
6.17   Form of Alabama Commercial Promissory Note, by and between L Finance LLC and each applicable Series (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-U filed on May 4, 2023)*
6.18   Form of North Carolina Commercial Promissory Note, by and between L Finance LLC and each applicable Series (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-U filed on May 4, 2023)*
6.19   Form of North Carolina Commercial Promissory Note, by and between L Finance and each applicable Series (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-U filed on June 12, 2023)*
6.20   Form of Florida Secured Note, by and between L Finance and each applicable Series (incorporated by reference to the copy thereof submitted as an exhibit to the Company’s Form 1-U filed on June 12, 2023)*
6.21   PPEX ATS Company Agreement, by and among North Capital Private Securities Corporation, Landa App 2 LLC and each of the Series set forth therein (incorporated by reference to the copy thereof filed as Exhibit 6.20 to the Company’s Form 1-A filed on September 17, 2021)*

 

* Previously filed

 

20

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer has duly caused this Semiannual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Landa App 2 LLC
   
  By: Landa Holdings, Inc., its Manager
   
  By: /s/ Yishai Cohen
  Name:  Yishai Cohen
  Title: Chief Executive Officer

 

Date: November 19, 2024

 

Pursuant to the requirements of Regulation A, this Semiannual Report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.

 

Signature   Title   Date
         
/s/ Yishai Cohen   Chairman, Chief Executive Officer and   November 19, 2024
Yishai Cohen   President of Landa Holdings, Inc.
(Principal Executive Officer)		    
         
/s/ Sagiv Korenfeld Amar   Head of Finance of Landa Holdings, Inc.   November 19, 2024
Sagiv Korenfeld Amar   (Principal Financial Officer and Principal Accounting Officer)    

 

 

21

 

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