The idea of becoming a real estate investor for at least $ 5 looks great.
And for many Linda consumers, a propaganda company that just promised – this has been.
Linda Emerged from the stealth In August 2022, a total of 33 million finances were announced and the pledge to help Americans access to residential real estate investment through partial shares.
CEO Yashi Cohen and former CTO Amit Israf founded Linda in 2019 in an attempt to make real estate investment more comprehensive. The only requirement of the app was that users are over 18 years old and US residents. They can only start investing with $ 5, and see the real -time update about their properties from the Linda app, along with the purchase and sale of shares. (Assarf left the company in December 2023, according to his LinkedIn Profile. He has not responded to commentary requests.)
Today, Linda’s investment portal site is closed and its app is unbearable. Consumers claim that they cannot access their funds and have not been profitable in months. Startup is confused with litigation, including a preliminary project investor Viola case.
A preliminary user told the Tech Crunch that Linda stopped paying his profits in January. He said that when he asked Linda about it, he “killed the question.”
The user said, “I repeatedly emailed them about it and got only respondents, no truth.” “Then a few months later, the app became unusable. It will not open.”
The user then asked if he could delete his account, which he had opened in 2021, and selling shares. But he found that Linda had disabled his ability to sell shares.
The user said, “They have essentially frozen me with my funds and just closed the app.” “Where is the money? Why don’t they return it to me?”
More than 130 Suspension Linda has been filed against a better business bureau, in which dozens of people echo similar allegations. For example, on May 1st, a user who filed such a Complaint He jointly invested more than 8,000, through Linda, and stopped receiving profit over the previous fall. The user said that the Linda Customer Service responded to their emails, saying the company was “working on it.”
In mid-April, when Tech Crunch asked Linda about the problem-in which its lack of status and whether the company itself was closed-CEO Cohen said: “Of course not. The site will be backup.”
When asked why the app is not working and why consumers have not made a profit in months, Cohen’s terrace response still seems to be referring to the website, accusing the servers of the servers: “This is irrelevant to profit. It is with our servers. We are on it.”
After further additions, Cohen shared the following statement on April 18: “We are currently aware of the issues affecting our platform and products, and wanting all investors to assure that we are actively working to restore complete functionality as soon as possible. We have informed our investors and residents in our investment.
Cohen did not respond to our request for the status update on May 20. Investors NFX and 83North did not respond to our several requests for comment.
Tangled in legal fodder
These are not just those who are angry with Linda. The company’s basic lenders are prosecuting.
Viola Credit and L Finance filed Legal fodder In the New York State in November 2024 in the Supreme Court against Linda, he accused “numerous defaults”, which extended loans of more than $ 35 million to the company. (Viola is also an investor in Linda through his venture division.)
The lenders also accused him of losing property tax payments, which failed to sell these properties, ignore properties and even collect fares.
Legal fodder- Reported first Bisno – through the publication of the real estate industry, states that after more than a year to respect Linda to respect his promises, lenders removed Linda as a manager of houses and appointed an independent property manager and a chief organization new officer.
After further negotiations failed, the lenders later asked the court, and they were accepted, which stopped Linda from accessing bank accounts, interfered with business reorganization efforts, and re -claiming the money, which they say, including the sale of property.
Despite the order, the lenders returned to the court in January 2025, claiming that Linda claimed to send tenants to the tenants not under this decision. He discovered this while repairing the septic system of a property. He also accused the CEO of Linda of trying to sell or re -finance some properties.
The court ordered Linda to explain itself. Instead, in early March, Linda asked the court to order a prevention against Viola Credit and L Finance, and claimed that the independent manager was “installed illegally.”
Judge Jennifer G -shitors were not happy. In March, he ordered the two sides to find a solution, “It’s good for all your clients.” It refused Linda’s order request and ordered the company to pay about $ 100,000. A few weeks later, Linda filed a formal counter suit. The case is still pending.
Challenging model
Linda is one of many startups that offers real estate investment in recent years. This is apparently not the only one that has struggled – especially after the increase in mortgage interest rates in 2022.
grimace Collected millions of dollars Apparently “apparently before the AI agent is apparently anxious to automate finance and real estate tasks with human level performance. NothingIt also seems to have been offered, which allowed unidentified investors to buy unidentified investors in the city’s domestic equity market with at least $ 250, called “City Funds”. Its website now promotes a new tagline: “Get access to home equity to finance anything.”
Drunked Perhaps the pitcher had the most profile-and it seems that under the same model is actively operating. In May 2022, Tech Crunch reported that he arrived Million collected 25 million In a series, a funding round, including Bezos Expadations, allows people to buy shares in single -family fares with “at least $ 100”. According to its website, the date of the startup has been paid more than $ 13 million in profit and interest and has 766,000 registered investors.
As far as those who have invested with Linda, the future of their money looks uncertain. By May 23, Linda’s Investor Portal website is still attracted to a “coming back” message.