Is Landa.app new Debt (or Lend) program worth investing in? This product came out a few months ago. I first found out about it in May and decided to give it a try based on the Landa.app site was showing. Now let me start off by sharing that I was well aware Landa intended to do what they do best and that is ensure they get paid before anyone else. Here I took a little screenshot from the website today that shows how they are trying to frame this product. you can clearly see the interest rate shows 7.05% but if you do the math using what is displayed for the May Dividend and the total used you will see that the return rate via dividend would be 5.4%.
This wouldn't be a bad return, but it is definitely not what I received. I had purchased 10 shares of Landa debt product (so it was an even $100.00) in May when the product first came out. I understood that it would take a bit of time to fund the first loan so I wasn't too worried, but some of the numbers are just not adding up. In July Landa gave me a 0.31 cent dividend for what I assume is the Landa debt product.
This is an example of what Landa gave me to show the payment. It's very generic. Keep in mind that is .31 for my 10 shares of the product. If we do the math on this and the return stays consistent at .31 the investment would net me a grand total of 3.72% over the course of a 1 year period. This is of course a risky investment with no insurance to protect my capital investment. Just in case anyone is wondering redneck bank has a money-market account that will pay 5%, and it's insured.
I am hopeful that this item will get better, and it's only rough because of the initial offering. I will post updates as I progress.
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