1-SA 1 ea165837-1sa_landaappllc.htm SEMIANNUAL REPORT

 

 

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, 2022

 

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

 

Delaware   85-1099443

(State or other jurisdiction of
incorporation or organization)

   (I.R.S. Employer
Identification No.)

 

6 W. 18th Street, New York, NY 10011
(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. 

 

Overview

 

Landa App 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 or Series Operating Agreement for such Series.

 

The purpose of the Series is to acquire, hold and manage residential rental properties, including a single-family homes and duplexes (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 App. 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.

 

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 securitize on the Landa Mobile App;

 

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

 

●continue to develop the Landa Mobile App 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.

 

1

 

 

Series with Qualified Shares as of June 30, 2022

 

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, 2022. For more information about each Series, please see the “Master Series Table” under “Current and Previous 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 LLC - 115 Sardis Street Barnesville GA LLC(2)   115 Sardis Street, Barnesville, GA 30204
Landa App LLC - 1394 Oakview Circle Forest Park GA LLC    1394 Oakview Circle, Forest Park, GA 30297
Landa App LLC - 1701 Summerwoods Lane Griffin GA LLC(3)   1701 Summerwoods Lane, Griffin, GA 30224
Landa App LLC - 1741 Park Lane Griffin GA LLC(3)   1741 Park Lane, Griffin, GA 30224
Landa App LLC - 209 Timber Wolf Trail Griffin GA LLC(2)   209 Timber Wolf Trail, Griffin, GA 30224
Landa App LLC - 2505 Oak Circle Ellenwood GA LLC(2)   2505 Oak Circle, Ellenwood, GA 30294
Landa App LLC - 271 Timber Wolf Trail Griffin GA LLC(2)   271 Timber Wolf Trail, Griffin, GA, 30224
Landa App LLC - 29 Holly Grove Road Griffin GA LLC(2)   29 Holly Grove Road, Griffin, GA 30224
Landa App LLC - 1703 Summerwoods Lane Griffin GA LLC   1703 Summerwoods Lane, Griffin, GA, 30224
Landa App LLC - 1712 Summerwoods Lane Griffin GA LLC   1712 Summerwoods Lane, Griffin, GA, 30224
Landa App LLC - 1743 Summerwoods Lane Griffin GA LLC   1743 Summerwoods Lane, Griffin, GA, 30224
Landa App LLC - 1750 Summerwoods Lane Griffin GA LLC   1750 Summerwoods Lane, Griffin, GA, 30224
Landa App LLC - 4267 High Park Lane East Point GA LLC   4267 High Park Lane, East Point, GA, 30344
Landa App LLC - 4474 Highwood Park Drive East Point GA LLC   4474 Highwood Park Drive, Atlanta, GA, 30344
Landa App LLC - 8569 Creekwood Way Jonesboro GA LLC   8569 Creekwood Way, Jonesboro, GA, 30238
Landa App LLC - 9439 Lakeview Road Union City GA LLC    9439 Lakeview Road, Union City, GA, 30291
Landa App LLC - 10167 Port Royal Court Jonesboro GA LLC   10167 Port Royal Court, Jonesboro, GA, 30238
Landa App LLC - 1246 Elgin Way Riverdale GA LLC   1246 Elgin Way, Riverdale, GA, 30296
Landa App LLC - 1910 Grove Way Hampton GA LLC   1910 Grove Way, Hampton, GA, 30228
Landa App LLC - 593 Country Lane Jonesboro GA LLC   593 Country Lane, Jonesboro, GA, 30238
Landa App LLC - 6436 Stone Terrace Morrow GA LLC   6436 Stone Terrace, Morrow, GA, 30260
Landa App LLC - 6440 Woodstone Terrace Morrow GA LLC   6440 Woodstone Terrace, Morrow, GA, 30260
Landa App LLC - 6848 Sandy Creek Drive Riverdale GA LLC   6848 Sandy Creek Drive, Riverdale, GA, 30274
Landa App LLC - 687 Utoy Court Jonesboro GA LLC   687 Utoy Court, Jonesboro, GA, 30238
Landa App LLC - 729 Winter Lane Jonesboro GA LLC   729 Winter Lane, Jonesboro, GA, 30238
Landa App LLC - 7349 Exeter Court Riverdale GA LLC   7349 Exeter Court, Riverdale, GA, 30296
Landa App LLC - 8645 Embrey Drive Jonesboro GA LLC   8645 Embrey Drive, Jonesboro, GA, 30236
Landa App LLC - 8780 Churchill Place Jonesboro GA LLC   8780 Churchill Place, Jonesboro, GA, 30238
Landa App LLC - 8796 Parliament Place Jonesboro GA LLC   8796 Parliament Place, Jonesboro, GA, 30238
Landa App LLC - 8641 Ashley Way Douglasville GA LLC   8641 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8651 Ashley Way Douglasville GA LLC   8651 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8652 Ashley Way Douglasville GA LLC   8652 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8653 Ashley Way Douglasville GA LLC   8653 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8654 Ashley Way Douglasville GA LLC   8654 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8655 Ashley Way Douglasville GA LLC   8655 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8659 Ashley Way Douglasville GA LLC   8659 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8662 Ashley Way Douglasville GA LLC   8662 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8668 Ashley Way Douglasville GA LLC   8668 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8670 Ashley Way Douglasville GA LLC   8670 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8674 Ashley Way Douglasville GA LLC   8674 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8675 Ashley Way Douglasville GA LLC   8675 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8677 Ashley Way Douglasville GA LLC   8677 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8678 Ashley Way Douglasville GA LLC   8678 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8679 Ashley Way Douglasville GA LLC   8679 Ashley Way, Douglasville, GA, 30134
Landa App LLC - 8683 Ashley Way Douglasville GA LLC   8683 Ashley Way, Douglasville, GA, 30134

 

(1)Each Series herein is also referred to below in shortened form as “Landa Series” followed by its street address only.
(2)This Series withdrew its offering and did not sell any of its Shares.
(3)This Series closed its offering prior to the sale of all 10,000 Shares. In April 2022, this Series sold and transferred title to its underlying Property to Landa Properties LLC (“Landa Properties”) and distributed the sale proceeds to each of the Series’ shareholders.

 

The Company, through its Series, commenced operations on July 10, 2020 (Inception).

 

2

 

 

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
07/08/2021       X   Notes
07/22/2021       X    
07/27/2021       X    
09/09/2021   X        
12/16/2021   X        
01/04/2022   X        
01/27/2022           Notes; Transfer of Title
02/01/2022   X   X    
02/25/2022   X        
03/01/2022   X   X    
03/11/2022           Liquidation/Dissolution
04/05/2022   X   X    
05/03/2022   X        
05/05/2022       X    
06/06/2022   X   X    
07/07/2022   X   X    
07/25/2022   X        
08/05/2022   X        
08/09/2022       X    
09/07/2022   X        

 

Market Outlook—Real Estate Finance Markets 

 

While the ongoing impact of COVID-19 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.

 

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.

 

3

 

 

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.

 

Recently, the US experienced the fastest increase in prices since 1981, leading to inflation exceeding nine percent (9%) in June 2022 according to the U.S. Bureau of Labor Statistics. In response, the Federal Reserve raised interest rates by the largest amount since 1994, ending a near four-decade trend of falling, near-zero interest rates. This shift in interest rates drove mortgage rates to their highest levels in nearly 14 years. We believe that the net result of these increases in interest rates further deter home purchase activity generally, but particularly among millennials who are more likely to require debt, which ultimately may lead to an increase in demand for rentals.

 

Rising inflation may adversely affect a Series by increasing costs of goods, materials, labor, and fuel, which may increase such Series’ operating expenses. In addition, higher interest rates, may make it difficult or expensive for a Series to refinance any outstanding indebtedness, including the Acquisition Notes (as defined in the Offering Circular), with a new mortgage or other debt financing. As of the date of this Offering Circular, neither the Company nor any of the Series has been materially impacted by inflationary pressures or rising interest rates. The Manager will continue to monitor and assess economic conditions, and intends to take reasonable steps to mitigate any impact on a Series and/or its underlying Property, or the Company in general. 

 

Impact of the COVID-19 Coronavirus Pandemic

 

The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. The extent to which this pandemic could continue to affect our financial condition, liquidity, and results of operations is difficult to predict and depends on evolving factors, including, but not limited to, duration, scope, government actions, and other social responses. Beginning in March 2020, many states in the U.S., including Georgia, where our current Properties are located, implemented stay-at-home and shutdown orders for all “non-essential” business and activity in an aggressive effort to mitigate the spread of COVID-19. These orders have continued to evolve resulting in a full or partial lifting of these restrictions at various points over the past two years. Vaccinations for the COVID-19 virus have been widely distributed among the general U.S. population which has resulted in a loosening of previously mandated restrictions. However, the potential emergence of vaccine-resistant variants of COVID-19 could trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements.

 

The pandemic’s duration and severity and the extent of the adverse health impact on the general population and on the local population where our Properties are and will be located are unknown. These, among other items, will likely impact the economy, the unemployment rate and our operations, and could materially affect our future combined results of operations, financial condition, liquidity, investments and overall performance. In addition, our business may be affected by our ability to hire and/or maintain adequate staffing and by disruption in the supply chain for building, construction and related goods and materials. For more information, please see the section entitled “Risk Factors – The COVID-19 pandemic may adversely affect our business” of our Offering Circular, which is incorporated herein by reference.

 

4

 

 

Results of Operations

 

The following table sets forth key components of our results of operations during the six months ended June 30, 2022 and the six months ended June 30, 2021.

 

   For the Six Months Ended June 30, 
   2022   2021 
Revenue        
Rental income  $253,134   $39,448 
Total revenue   253,134    39,448 
           
Expenses          
Management fee   20,098    3,149 
Repairs & maintenance   26,947    7,858 
Homeowners association fee   7,737    - 
Insurance expense   8,191    1,738 
Real estate taxes   30,079    4,651 
Depreciation expense   79,318    12,983 
Interest expense   79,602    4,677 
Other expenses   -    635 
Total expenses   251,972    35,690 
           
Net operating income  $1,162   $3,757 
           
Gain on sale of real estate   142,750    - 
Provision for income taxes   (28,720)   - 
           
Net income  $115,192   $3,757 

 

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. Our total revenue for all Series in the aggregate increased by $213,686, or 542%, to $253,134 for the six months ended June 30, 2022 from $39,448 for the six months ended June 30, 2021. The increase in revenue is primarily due to the addition of new Series with income-generating rental Properties.

 

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.

 

For the six months ended June 30, 2022 and for the six months ended June 30, 2021, the Series in the aggregate incurred $172,654 and $22,707, respectively, in Operating Expenses (on a total combined basis). The increase in expenses is primarily due to the addition of new Series.

 

The following table summarizes the Operating Expenses by category:

 

   For the Six Months Ended June 30, 
   2022   2021 
Operating Expenses        
Management fee  $20,098   $3,149 
Repairs & maintenance   26,947    7,858 
Homeowners association fee   7,737    - 
Insurance expense   8,191    1,738 
Real estate taxes   30,079    4,651 
Interest expense   79,602    4,677 
Other expenses   -    635 
Total Operating Expenses  $172,654   $22,707 

5

 

 

The following table summarizes the Operating Expenses for each Series:

 

   For the Six Months Ended June 30, 
Series  2022   2021 
Landa Series 115 Sardis Street  $2,644   $5,530 
Landa Series 1394 Oakview Circle   2,435    1,567 
Landa Series 1701 Summerwoods Lane(1)   2,209    2,895 
Landa Series 1741 Park Lane(1)   2,030    3,196 
Landa Series 209 Timber Wolf Trail   2,638    1,703 
Landa Series 2505 Oak Circle   3,235    2,601 
Landa Series 271 Timber Wolf Trail   2,753    2,067 
Landa Series 29 Holly Grove Road   3,157    3,147 
Landa Series 1703 Summerwoods Lane(2)   3,579    - 
Landa Series 1712 Summerwoods Lane(2)   3,317    - 
Landa Series 1743 Summerwoods Lane(2)   3,585    - 
Landa Series 1750 Summerwoods Lane(2)   3,614    - 
Landa Series 4267 High Park Lane(2)   5,851    - 
Landa Series 4474 Highwood Park Drive(2)   6,382    - 
Landa Series 8569 Creekwood Way(2)   2,921    - 
Landa Series 9439 Lakeview Road(2)   6,985    - 
Landa Series 10167 Port Royal Court(2)   3,353    - 
Landa Series 1246 Elgin Way(2)   3,909    - 
Landa Series 1910 Grove Way(2)   10,147    - 
Landa Series 593 Country Lane Drive(2)   3,216    - 
Landa Series 6436 Stone Terrace(2)   3,417    - 
Landa Series 6440 Woodstone Terrace(2)   9,232    - 
Landa Series 6848 Sandy Creek Drive(2)   4,582    - 
Landa Series 687 Utoy Court(2)   6,731    - 
Landa Series 729 Winter Lane(2)   4,694    - 
Landa Series 7349 Exeter Court(2)   3,152    - 
Landa Series 8645 Embrey Drive(2)   3,534    - 
Landa Series 8780 Churchill Place(2)   4,218    - 
Landa Series 8796 Parliament Place(2)   3,244    - 
Landa Series 8641 Ashley Way(2)   3,572    - 
Landa Series 8651 Ashley Way(2)   2,935    - 
Landa Series 8652 Ashley Way(2)   2,946    - 
Landa Series 8653 Ashley Way(2)   2,890    - 
Landa Series 8654 Ashley Way(2)   3,371    - 
Landa Series 8655 Ashley Way(2)   2,868    - 
Landa Series 8659 Ashley Way(2)   2,940    - 
Landa Series 8662 Ashley Way(2)   3,201    - 
Landa Series 8668 Ashley Way(2)   3,597    - 
Landa Series 8670 Ashley Way(2)   3,420    - 
Landa Series 8674 Ashley Way(2)   3,415    - 
Landa Series 8675 Ashley Way(2)   3,687    - 
Landa Series 8677 Ashley Way(2)   3,027    - 
Landa Series 8678 Ashley Way(2)   3,669    - 
Landa Series 8679 Ashley Way(2)   3,296    - 
Landa Series 8683 Ashley Way(2)   3,056    - 
Total Combined  $172,654   $22,707 

 

1.Operating expenses shown through April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224.

 

2.The series were qualified and commenced operations on January 9, 2022.

 

6

 

 

Gain on Sale

 

On April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224, each Series recognized a gain on sale, which is summarized in the table below:

 

The following table summarizes the gain on sale:

 

   For the Six Months Ended June 30, 
Series  2022   2021 
Gain on sale of real estate  $142,750   $- 
Total Gain on Sale  $142,750   $       - 

 

The following table summarizes the gain on sale for each Series:

 

   For the Six Months Ended June 30, 
Series  2022   2021 
Landa Series 115 Sardis Street  $-   $       - 
Landa Series 1394 Oakview Circle   -    - 
Landa Series 1701 Summerwoods Lane   70,269    - 
Landa Series 1741 Park Lane   72,481    - 
Landa Series 209 Timber Wolf Trail   -    - 
Landa Series 2505 Oak Circle   -    - 
Landa Series 271 Timber Wolf Trail   -    - 
Landa Series 29 Holly Grove Road   -    - 
Landa Series 1703 Summerwoods Lane   -    - 
Landa Series 1712 Summerwoods Lane   -    - 
Landa Series 1743 Summerwoods Lane   -    - 
Landa Series 1750 Summerwoods Lane   -    - 
Landa Series 4267 High Park Lane   -    - 
Landa Series 4474 Highwood Park Drive   -    - 
Landa Series 8569 Creekwood Way   -    - 
Landa Series 9439 Lakeview Road   -    - 
Landa Series 10167 Port Royal Court   -    - 
Landa Series 1246 Elgin Way   -    - 
Landa Series 1910 Grove Way   -    - 
Landa Series 593 Country Lane Drive   -    - 
Landa Series 6436 Stone Terrace   -    - 
Landa Series 6440 Woodstone Terrace   -    - 
Landa Series 6848 Sandy Creek Drive   -    - 
Landa Series 687 Utoy Court   -    - 
Landa Series 729 Winter Lane   -    - 
Landa Series 7349 Exeter Court   -    - 
Landa Series 8645 Embrey Drive   -    - 
Landa Series 8780 Churchill Place   -    - 
Landa Series 8796 Parliament Place   -    - 
Landa Series 8641 Ashley Way   -    - 
Landa Series 8651 Ashley Way   -    - 
Landa Series 8652 Ashley Way   -    - 
Landa Series 8653 Ashley Way   -    - 
Landa Series 8654 Ashley Way   -    - 
Landa Series 8655 Ashley Way   -    - 
Landa Series 8659 Ashley Way   -    - 
Landa Series 8662 Ashley Way   -    - 
Landa Series 8668 Ashley Way   -    - 
Landa Series 8670 Ashley Way   -    - 
Landa Series 8674 Ashley Way   -    - 
Landa Series 8675 Ashley Way   -    - 
Landa Series 8677 Ashley Way   -    - 
Landa Series 8678 Ashley Way   -    - 
Landa Series 8679 Ashley Way   -    - 
Landa Series 8683 Ashley Way   -    - 
Total Combined  $142,750   $- 

 

7

 

 

Net Income (Loss)

 

As a result of the cumulative effect of the foregoing factors, we generated aggregate net income of $115,192 and $3,757 for the six months ended June 30, 2022 and for the six months ended June 30, 2021, respectively.

 

The following table summarizes net income (loss) for each Series:

 

   For the Six Months Ended June 30, 
Series  2022   2021 
Landa Series 115 Sardis Street  $1,194   $(2,679)
Landa Series 1394 Oakview Circle   1,336    1,956 
Landa Series 1701 Summerwoods Lane(1)   56,896    1,385 
Landa Series 1741 Park Lane(1)   57,964    (760)
Landa Series 209 Timber Wolf Trail   293    1,202 
Landa Series 2505 Oak Circle   2,740    1,313 
Landa Series 271 Timber Wolf Trail   1,640    1,832 
Landa Series 29 Holly Grove Road   (363)   (491)
Landa Series 1703 Summerwoods Lane(2)   436    - 
Landa Series 1712 Summerwoods Lane(2)   280    - 
Landa Series 1743 Summerwoods Lane(2)   660    - 
Landa Series 1750 Summerwoods Lane(2)   25    - 
Landa Series 4267 High Park Lane(2)   (1,161)   - 
Landa Series 4474 Highwood Park Drive(2)   (1,714)   - 
Landa Series 8569 Creekwood Way(2)   647    - 
Landa Series 9439 Lakeview Road(2)   (2,735)   - 
Landa Series 10167 Port Royal Court(2)   1,048    - 
Landa Series 1246 Elgin Way(2)   1,317    - 
Landa Series 1910 Grove Way(2)   (9,515)   - 
Landa Series 593 Country Lane Drive(2)   1,049    - 
Landa Series 6436 Stone Terrace(2)   1,653    - 
Landa Series 6440 Woodstone Terrace(2)   (3,737)   - 
Landa Series 6848 Sandy Creek Drive(2)   1,022    - 
Landa Series 687 Utoy Court(2)   (2,923)   - 
Landa Series 729 Winter Lane(2)   (2,392)   - 
Landa Series 7349 Exeter Court(2)   1,496    - 
Landa Series 8645 Embrey Drive(2)   1,056    - 
Landa Series 8780 Churchill Place(2)   1,077    - 
Landa Series 8796 Parliament Place(2)   1,178    - 
Landa Series 8641 Ashley Way(2)   56    - 
Landa Series 8651 Ashley Way(2)   1,155    - 
Landa Series 8652 Ashley Way(2)   (508)   - 
Landa Series 8653 Ashley Way(2)   864    - 
Landa Series 8654 Ashley Way(2)   714    - 
Landa Series 8655 Ashley Way(2)   782    - 
Landa Series 8659 Ashley Way(2)   (742)   - 
Landa Series 8662 Ashley Way(2)   396    - 
Landa Series 8668 Ashley Way(2)   141    - 
Landa Series 8670 Ashley Way(2)   57    - 
Landa Series 8674 Ashley Way(2)   987    - 
Landa Series 8675 Ashley Way(2)   (1,069)   - 
Landa Series 8677 Ashley Way(2)   1,234    - 
Landa Series 8678 Ashley Way(2)   (757)   - 
Landa Series 8679 Ashley Way(2)   528    - 
Landa Series 8683 Ashley Way(2)   887    - 
Total Net Income (Loss)  $115,192   $3,757 

 

1.Net income shown through April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224.

 

2.The series were qualified and commenced operations on January 9, 2022.

 

8

 

 

Liquidity and Capital Resources

 

The Company commenced operations in July 2021. 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 such 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.

 

The Company expects to incur significant additional expenses and will be dependent on additional capital resources. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. See Note 1  of the Financial Statements included in this Semiannual Report.

 

Prior to the closing of the first offering of each Series, each Series will distribute all cash held by such Series to the Manager, except for the initial reserve allocation for such Series.

 

In connection with the acquisition, or expected acquisition of its Property from Landa Properties, each Series issues an Acquisition Note to the Manager. The Acquisition Notes represent unsecured related-party loans between each respective Series and Landa Holdings. The Acquisition Notes bear an interest rate of up to four and a half percent (4.5%) per annum, provided that interest will not accrue on the Acquisition Notes issued by each Series, and no payment of amounts outstanding under such Acquisition Notes will be due, prior to the transfer to the applicable Series of title to its Property, and if such title transfer does not occur prior to the maturity of such Acquisition Note, such Acquisition Note will terminate with no obligation for the Series to make any payment thereunder.

 

Each Acquisition Note includes payment to the Manager of an Acquisition Fee ranging from five percent (5%) to ten percent (10%) of the purchase cost of the Property. The Acquisition Fee for each Series is calculated by the Manager, acting in its sole discretion, based on several factors including the purchase cost of the Property, as well as sourcing and due diligence costs incurred in connection with the acquisition of the Property. Please see the “Form of Promissory Note, by and between Landa Holdings, Inc. and a Landa App LLC Series (Acquisition Note)” which is included as an exhibit to this Semiannual Report for more information.

 

Each Series uses substantially all of the net proceeds from its offering to pay down all or a portion of the balance of its Acquisition Note.

 

We expect that in most instances, each Series will seek to further refinance any outstanding indebtedness. The Manager may from time to time modify a Series’ financing policy in its discretion in light of then-current economic conditions, relative costs of debt and equity capital, market values of its Property, general conditions in the market for debt and equity securities, growth and acquisition opportunities or other factors. The Series cannot exceed the leverage limit of its leverage policy unless any excess in borrowing over such level is approved by the Manager.

 

We expect the Series to hold each of the Properties indefinitely; however, the Manager, acting in its sole discretion, may dispose of a Property and dissolve a Series pursuant to the terms of the Master Agreement.

 

Further, each Series has certain fixed Operating Expenses, which in the case of the Series will be regardless of whether it is able to raise substantial funds in its offering.

 

Each Series expects to use its capital resources to make certain payments to the Manager in connection with the management of its Property and costs incurred by the Manager in providing services to it.

 

The Manager will receive fees and expense reimbursements pursuant to the Series’ management agreement.

 

Neither the Manager nor its affiliates will receive any selling commissions or dealer manager fees in connection with the offer and sale of the membership interests.

 

The Manager or its affiliates may provide loans to the Series following its offering, which are used, among other things, to refinance any borrowings relating to such Series’ Property or, in the event a Series incurs a significant unforeseeable expense or vacancy, to be used by such Series to cover its debt obligations or other liabilities. In the case that the Manager provides a loan to a Series, the Series will be obligated to pay interest no greater than seven percent (7%) on that loan at a rate to be determined solely by the Manager.

 

9

 

 

Cash Balances

 

As of June 30, 2022 and December 31, 2021, the Company itself had no cash or cash equivalents on hand. On a total combined basis, as of June 30, 2022, the Series, in the aggregate, had $727,344 on hand, as compared to $79,897 on hand as of December 31, 2021.

 

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

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 115 Sardis Street  $5,750   $3,270 
Landa Series 1394 Oakview Circle   3,500    3,148 
Landa Series 1701 Summerwoods Lane   39,580    38,376 
Landa Series 1741 Park Lane   23,008    21,582 
Landa Series 209 Timber Wolf Trail   6,316    3,148 
Landa Series 2505 Oak Circle   8,536    3,723 
Landa Series 271 Timber Wolf Trail   7,100    3,649 
Landa Series 29 Holly Grove Road   4,881    3,001 
Landa Series 1703 Summerwoods Lane   3,462    - 
Landa Series 1712 Summerwoods Lane   48,596    - 
Landa Series 1743 Summerwoods Lane   3,705    - 
Landa Series 1750 Summerwoods Lane   2,717    - 
Landa Series 4267 High Park Lane   49,972    - 
Landa Series 4474 Highwood Park Drive   7,126    - 
Landa Series 8569 Creekwood Way   5,321    - 
Landa Series 9439 Lakeview Road   57,953    - 
Landa Series 10167 Port Royal Court   1,847    - 
Landa Series 1246 Elgin Way   2,663    - 
Landa Series 1910 Grove Way   12,753    - 
Landa Series 593 Country Lane Drive   1,653    - 
Landa Series 6436 Stone Terrace   1,093    - 
Landa Series 6440 Woodstone Terrace   2,420    - 
Landa Series 6848 Sandy Creek Drive   1,660    - 
Landa Series 687 Utoy Court   2,671    - 
Landa Series 729 Winter Lane   317    - 
Landa Series 7349 Exeter Court   1,961    - 
Landa Series 8645 Embrey Drive   1,945    - 
Landa Series 8780 Churchill Place   3,573    - 
Landa Series 8796 Parliament Place   32,905    - 
Landa Series 8641 Ashley Way   42,100    - 
Landa Series 8651 Ashley Way   5,370    - 
Landa Series 8652 Ashley Way   30,860    - 
Landa Series 8653 Ashley Way   5,451    - 
Landa Series 8654 Ashley Way   5,925    - 
Landa Series 8655 Ashley Way   44,779    - 
Landa Series 8659 Ashley Way   27,098    - 
Landa Series 8662 Ashley Way   41,028    - 
Landa Series 8668 Ashley Way   22,530    - 
Landa Series 8670 Ashley Way   16,528    - 
Landa Series 8674 Ashley Way   6,192    - 
Landa Series 8675 Ashley Way   48,907    - 
Landa Series 8677 Ashley Way   48,032    - 
Landa Series 8678 Ashley Way   18,749    - 
Landa Series 8679 Ashley Way   6,819    - 
Landa Series 8683 Ashley Way   11,992    - 
Total Cash and Cash Equivalents  $727,344   $79,897 

 

10

 

 

Escrow

 

As of June 30, 2022 and December 31, 2021, the Company itself had no escrow balances held on deposit with Lending One (the “Lender”). On a total combined basis, as of June 30, 2022 and December 31, 2021, respectively, the following Series, in the aggregate, had $39,546 and $0 held on deposit with the Lender.

 

The table below summarizes the escrow balances held on deposit with the Lender by the Series shown as of the dates indicated. Landa Series 115 Sardis Street, Landa Series 1701 Summerwoods Lane, and Landa Series 1741 Park Lane had no balances held on deposit as of either June 30, 2022 or December 31, 2021.

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 1394 Oakview Circle   852               - 
Landa Series 209 Timber Wolf Trail   461    - 
Landa Series 2505 Oak Circle   595    - 
Landa Series 271 Timber Wolf Trail   579    - 
Landa Series 29 Holly Grove Road   726    - 
Landa Series 1703 Summerwoods Lane   1,186    - 
Landa Series 1712 Summerwoods Lane   1,193    - 
Landa Series 1743 Summerwoods Lane   1,183    - 
Landa Series 1750 Summerwoods Lane   1,259    - 
Landa Series 4267 High Park Lane   794    - 
Landa Series 4474 Highwood Park Drive   1,061    - 
Landa Series 8569 Creekwood Way   623    - 
Landa Series 9439 Lakeview Road   1,196    - 
Landa Series 10167 Port Royal Court   1,121    - 
Landa Series 1246 Elgin Way   1,354    - 
Landa Series 1910 Grove Way   1,159    - 
Landa Series 593 Country Lane Drive   1,262    - 
Landa Series 6436 Stone Terrace   756    - 
Landa Series 6440 Woodstone Terrace   546    - 
Landa Series 6848 Sandy Creek Drive   273    - 
Landa Series 687 Utoy Court   904    - 
Landa Series 729 Winter Lane   1,075    - 
Landa Series 7349 Exeter Court   1,171    - 
Landa Series 8645 Embrey Drive   1,073    - 
Landa Series 8780 Churchill Place   1,197    - 
Landa Series 8796 Parliament Place   1,099    - 
Landa Series 8641 Ashley Way   1,006    - 
Landa Series 8651 Ashley Way   854    - 
Landa Series 8652 Ashley Way   907    - 
Landa Series 8653 Ashley Way   847    - 
Landa Series 8654 Ashley Way   913    - 
Landa Series 8655 Ashley Way   859    - 
Landa Series 8659 Ashley Way   890    - 
Landa Series 8662 Ashley Way   914    - 
Landa Series 8668 Ashley Way   1,072    - 
Landa Series 8670 Ashley Way   1,003    - 
Landa Series 8674 Ashley Way   927    - 
Landa Series 8675 Ashley Way   856    - 
Landa Series 8677 Ashley Way   823    - 
Landa Series 8678 Ashley Way   1,090    - 
Landa Series 8679 Ashley Way   1,008    - 
Landa Series 8683 Ashley Way   879    - 
Total Escrow  $39,546   $- 

 

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 non- interest-bearing and are an unsecured obligation of the applicable Series.

 

Series  Principal
Amount(1)		   Annual
Interest Rate		   Loan
Date(2)		  Current
Outstanding
Amount(3)		 
Landa Series 115 Sardis Street(4)  $117,304    0.00%  07/10/2020  $117,304 
Landa Series 1394 Oakview Circle  $80,088    0.00%  07/10/2020  $- 
Landa Series 1701 Summerwoods Lane(5)  $95,491    0.00%  07/10/2020  $- 
Landa Series 1741 Park Lane(5)  $116,574    0.00%  07/10/2020  $- 
Landa Series 209 Timber Wolf Trail(4)  $119,827    0.00%  07/10/2020  $58,077 
Landa Series 2505 Oak Circle(4)  $98,471    0.00%  07/10/2020  $21,770 
Landa Series 271 Timber Wolf Trail(4)  $123,412    0.00%  07/10/2020  $61,012 
Landa Series 29 Holly Grove Road(4)  $100,445    0.00%  07/10/2020  $15,945 
Landa Series 1712 Summerwoods Lane  $113,697    4.50%  07/12/2021  $- 
Landa Series 1743 Summerwoods Lane  $113,697    4.50%  07/12/2021  $- 
Landa Series 1750 Summerwoods Lane  $113,697    4.50%  07/12/2021  $- 
Landa Series 4267 High Park Lane  $151,875    4.50%  07/12/2021  $- 
Landa Series 4474 Highwood Park Drive  $136,648    4.50%  07/12/2021  $- 
Landa Series 8569 Creekwood Way  $83,351    4.50%  07/12/2021  $- 
Landa Series 9439 Lakeview Road  $181,134    4.50%  07/12/2021  $- 
Landa Series 10167 Port Royal Court  $110,600    4.50%  07/12/2021  $- 
Landa Series 1246 Elgin Way  $133,535    4.50%  07/12/2021  $- 
Landa Series 168 Brookview Drive  $105,126    4.50%  07/12/2021  $- 
Landa Series 1910 Grove Way  $104,562    4.50%  07/12/2021  $- 
Landa Series 268 Brookview Drive  $126,259    4.50%  07/12/2021  $- 
Landa Series 593 Country Lane  $95,842    4.50%  07/12/2021  $- 
Landa Series 6436 Stone Terrace  $60,479    4.50%  07/12/2021  $- 
Landa Series 6440 Woodstone Terrace  $64,744    4.50%  07/12/2021  $- 
Landa Series 6848 Sandy Creek Drive  $86,367    4.50%  07/12/2021  $- 
Landa Series 687 Utoy Court  $115,422    4.50%  07/12/2021  $- 
Landa Series 729 Winter Lane  $113,721    4.50%  07/12/2021  $- 
Landa Series 7349 Exeter Court  $110,638    4.50%  07/12/2021  $- 
Landa Series 773 Villa Way  $88,336    4.50%  07/12/2021  $- 
Landa Series 8645 Embrey Drive  $118,895    4.50%  07/12/2021  $- 
Landa Series 8780 Churchill Place  $132,557    4.50%  07/12/2021  $- 
Landa Series 8796 Parliament Place  $109,839    4.50%  07/12/2021  $- 
Landa Series 8641 Ashley Way  $146,307    4.50%  10/01/2021  $- 
Landa Series 8651 Ashley Way  $122,325    4.50%  10/01/2021  $- 
Landa Series 8652 Ashley Way  $136,029    4.50%  10/01/2021  $- 
Landa Series 8653 Ashley Way  $121,183    4.50%  10/01/2021  $- 
Landa Series 8654 Ashley Way  $136,029    4.50%  10/01/2021  $- 
Landa Series 8655 Ashley Way  $132,552    4.50%  10/01/2021  $- 
Landa Series 8658 Ashley Way  $136,029    4.50%  10/01/2021  $- 
Landa Series 8659 Ashley Way  $145,165    4.50%  10/01/2021  $- 
Landa Series 8662 Ashley Way  $140,597    4.50%  10/01/2021  $- 
Landa Series 8668 Ashley Way  $157,614    4.50%  10/01/2021  $- 
Landa Series 8670 Ashley Way  $158,870    4.50%  10/01/2021  $- 
Landa Series 8674 Ashley Way  $134,887    4.50%  10/01/2021  $- 
Landa Series 8675 Ashley Way  $132,603    4.50%  10/01/2021  $- 
Landa Series 8677 Ashley Way  $124,609    4.50%  10/01/2021  $- 
Landa Series 8678 Ashley Way  $168,006    4.50%  10/01/2021  $- 
Landa Series 8679 Ashley Way  $134,887    4.50%  10/01/2021  $- 
Landa Series 8683 Ashley Way  $128,971    4.50%  10/01/2021  $- 

 

(1)The principal amount will be 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, 2022.

 

(4)Before any securities were issued, the Company withdrew this Series.

 

(5)This Series closed its offering and made a liquidating distribution of expected proceeds from the sale of the underlying Property. For additional information, see the Form 1-U filed on March 11, 2022, available here.

 

12

 

 

Refinance Note

 

In January 2022, each of the following Series entered into a commercial promissory note (“Refinance Note”) with the Lender, the terms of which are listed in the table below. Each Refinance Note is secured by the Property underlying the respective Series.

 
Series  Principal
Amount		   Annual
Interest Rate		   Loan Date  Maturity
Date		  Mortgage
Transfer(1)		   Transfer
Date(1)		   Current
Outstanding
Amount(2)		   Monthly
Mortgage
Interest
Expense		 
Landa Series 1394 Oakview Circle  $44,015    4.80%  1/18/22  *   -   -    44,015    176 
Landa Series 1701 Summerwoods Lane   52,703    4.80%  1/18/22  *   (52,703)  4/29/22    -    - 
Landa Series 1741 Park Lane   66,476    4.80%  1/18/22  *   (66,476)  4/29/22    -    - 
Landa Series 209 Timber Wolf Trail   61,750    4.80%  1/18/22  *   -   -    61,750    247 
Landa Series 2505 Oak Circle   76,700    4.80%  1/18/22  *   -   -    76,700    307 
Landa Series 271 Timber Wolf Trail   62,400    4.80%  1/18/22  *   -   -    62,400    250 
Landa Series 29 Holly Grove Road   84,500    4.80%  1/18/22  *   -   -    84,500    338 
Landa Series 1703 Summerwoods Lane   82,500    4.80%  1/12/22  *   -   -    82,500    330 
Landa Series 1712 Summerwoods Lane   95,250    4.80%  1/12/22  *   -   -    95,250    381 
Landa Series 1743 Summerwoods Lane   77,925    4.80%  1/12/22  *   -   -    77,925    312 
Landa Series 1750 Summerwoods Lane   67,535    4.80%  1/12/22  *   -   -    67,535    270 
Landa Series 4267 High Park Lane   77,925    4.80%  1/12/22  *   -   -    77,925    312 
Landa Series 4474 Highwood Park Drive   77,925    4.80%  1/12/22  *   -   -    77,925    312 
Landa Series 8569 Creekwood Way   82,500    4.80%  1/12/22  *   -   -    82,500    330 
Landa Series 9439 Lakeview Road   104,250    4.80%  1/12/22  *   -   -    104,250    417 
Landa Series 10167 Port Royal Court   93,750    4.80%  1/12/22  *   -   -    93,750    375 
Landa Series 1246 Elgin Way   71,250    4.80%  1/12/22  *   -   -    71,250    285 
Landa Series 1910 Grove Way   45,000    4.80%  1/13/22  *   -   -    45,000    180 
Landa Series 593 Country Lane Drive   46,500    4.80%  1/13/22  *   -   -    46,500    186 
Landa Series 6436 Stone Terrace   64,500    4.80%  1/13/22  *   -   -    64,500    258 
Landa Series 6440 Woodstone Terrace   82,500    4.80%  1/13/22  *   -   -    82,500    330 

 

13

 

 

Series  Principal
Amount		   Annual
Interest Rate		   Loan Date  Maturity
Date		  Mortgage
Transfer(1)		   Transfer
Date(1)		   Current
Outstanding
Amount		   Monthly
Mortgage
Interest
Expense		 
Landa Series 6848 Sandy Creek Drive   82,500    4.80%  1/13/22  *   -   -    82,500    330 
Landa Series 687 Utoy Court   71,500    4.80%  1/13/22  *   -   -    71,500    286 
Landa Series 729 Winter Lane   49,400    4.80%  1/12/22  *   -   -    49,400    198 
Landa Series 7349 Exeter Court   96,357    4.80%  1/13/22  *   -   -    96,357    385 
Landa Series 8645 Embrey Drive   84,750    4.80%  1/13/22  *   -   -    84,750    339 
Landa Series 8780 Churchill Place   80,424    4.80%  1/13/22  *   -   -    80,424    322 
Landa Series 8796 Parliament Place   76,700    4.80%  1/13/22  *   -   -    76,700    307 
Landa Series 8641 Ashley Way   68,250    4.80%  1/13/22  *   -   -    68,250    273 
Landa Series 8651 Ashley Way   89,529    4.80%  1/13/22  *   -   -    89,529    358 
Landa Series 8652 Ashley Way   71,500    4.80%  1/14/22  *   -   -    71,500    286 
Landa Series 8653 Ashley Way   81,900    4.80%  1/14/22  *   -   -    81,900    328 
Landa Series 8654 Ashley Way   84,500    4.80%  1/14/22  *   -   -    84,500    338 
Landa Series 8655 Ashley Way   99,392    4.80%  1/14/22  *   -   -    99,392    398 
Landa Series 8659 Ashley Way   94,250    4.80%  1/14/22  *   -   -    94,250    377 
Landa Series 8662 Ashley Way   87,750    4.80%  1/14/22  *   -   -    87,750    351 
Landa Series 8668 Ashley Way   87,253    4.80%  1/14/22  *   -   -    87,253    349 
Landa Series 8670 Ashley Way   81,942    4.80%  1/14/22  *   -   -    81,942    328 
Landa Series 8674 Ashley Way   104,000    4.80%  1/14/22  *   -   -    104,000    416 
Landa Series 8675 Ashley Way   88,770    4.80%  1/14/22  *   -   -    88,770    355 
Landa Series 8677 Ashley Way   81,183    4.80%  1/14/22  *   -   -    81,183    325 
Landa Series 8678 Ashley Way   94,500    4.80%  1/14/22  *   -   -    94,500    378 
Landa Series 8679 Ashley Way   78,750    4.80%  1/13/22  *   -   -    78,750    315 
Landa Series 8683 Ashley Way   124,425    4.80%  1/12/22  *   -   -    124,425    498 
Total Refinance Note   3,477,379               (119,179)       3,358,200    13,433 

 

(1)On April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224, each Series paid the holders of such Series a final distribution, based on such holder’s percentage ownership in such Series.

 

(2)The Current Outstanding Amount as of June 30, 2022

 

*This Refinance Note matures on the earlier of (i) February 1, 2027 and (ii) the date on which the unpaid principal balance of this Refinance Note becomes due and payable by acceleration or otherwise or the exercise by Lending One of any right or remedy under the Refinance Note and/or any other document or agreement entered into in connection with the Refinance Note.

 

14

 

 

Plan of Operations

 

We plan to launch an as of yet undetermined number of additional Series and related offerings in the next twelve (12) months with properties that we acquire from our affiliates, including Landa Properties. The proceeds from any additional offerings closed during the next twelve (12) months will be used for, among other things, the acquisition of Properties by the Series conducting the offerings. No investor in any Series will, by virtue of its interest in such Series, including its underlying Property, have any interest in, or rights to acquire an interest in, any other Series.

 

While each Series intends to hold its Property indefinitely, as each Property reaches what the Manager believes to be its optimum value, the Manager may consider disposing of such Property. Please see “Description of our Business – Our Manager – Disposition Policies” in our Offering Circular, which can be found here and is incorporated herein by reference, for more information about our disposition policy with respect to the Properties.

 

We expect that the rental income earned from each Series’ Property will satisfy each Series’ cash requirements. Each Series may seek additional capital in the form of debt financing from other financing sources to satisfy any additional cash requirements, including a related-party loan between each Series and the Manager.

 

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

 

Our accounting policies have been established to conform with U.S. Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates on the Company’s financial statements and the reported amounts of revenue and expenses during the reporting periods. We believe that we have made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these estimates and assumptions. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation of the financial statements. 

 

We believe our critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements.

 

For further information regarding “Related Party Arrangements,” please see Note 2, Summary of Significant Accounting Policies and Note 7, Related Party Transactions, in our financial statements.

 

Revenue Recognition

 

The Company adopted ASU 2014-09, Revenue from Contracts with Customers, and its related amendments, effective July 10, 2020.

 

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.

 

15

 

 

Operating Expenses

 

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 7%.

 

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.

 

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.

 

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.

 

16

 

 

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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the previous revenue recognition requirements in ASC Topic 605—Revenue Recognition and most industry-specific guidance throughout the ASC. The core principle within this ASU is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration expected to be received for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, which deferred the effective date for ASU 2014-09 by one year to fiscal years beginning after December 15, 2017, while providing the option to early adopt for fiscal years beginning after December 15, 2016. Transition methods under ASU 2014-09 must be through either (i) retrospective application to each prior reporting period presented or (ii) retrospective application with a cumulative effect adjustment at the date of initial application. We adopted this new standard upon formation in October 2019. The adoption of this standard did not have a material impact on our financial statements.

 

In February 2016, the FASB issued 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 is effective for annual and interim periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. We are continuing to evaluate the impact of this new standard on our financial reporting and disclosures.

 

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

 

Related Party Arrangements

 

For further information regarding “Related Party Arrangements,” please see Note 2, Summary of Significant Accounting Policies and Note 7, Related Party Transactions, in our financial statements.

 

Subsequent Events

 

For further information regarding “Subsequent Events,” please see Note 11, Subsequent Events, in our financial statements.

 

Item 2. Other Information

 

None.

 

17

 

 

Item 3. Financial Statements

 

Index to the Unaudited Financial Statements of Landa App LLC

    
Combined Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021   F-1
Combined Statements of Operations for the six months ended June 30, 2022 and 2021 (unaudited)   F-2
Combined Statements of Members’ Equity for the six months ended June 30, 2022 and 2021 (unaudited)   F-3
Combined Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)   F-4
Combining Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021   F-5
Combining Statements of Operations for the six months ended June 30, 2022 and 2021 (unaudited)   F-21
Combining Statements of Members’ Equity for the six months ended June 30, 2022 and 2021 (unaudited)   F-37
Combining Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)   F-47
Notes to the Financial Statements as of June 30, 2022   F-71

 

18

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINED BALANCE SHEET

 

   June 30,
2022		   December 31,
2021		 
   (Unaudited)     
Assets        
Cash & cash equivalents  $727,344   $79,897 
Escrow   39,546    - 
Accounts receivable, net   -    775 
Due from related party   -    25,956 
Investments in single-family residential properties   5,068,614    850,908 
Accumulated depreciation   (105,857)   (38,472)
           
Total Assets  $5,729,647   $919,064 
           
Liabilities          
Due to related party  $795,714   $- 
Other liabilities   44,674    24,459 
Security deposit   41,713    5,025 
Promissory note - related party   -    471,015 
Notes Payable - related party   -    344,523 
Acquisition note payable   274,108    - 
Mortgage payable   3,358,200    - 
           
Total Liabilities   4,514,409    845,022 
           
Members’ equity   1,215,238    74,042 
           
Total Liabilities and Members’ Equity  $5,729,647   $919,064 

 

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

 

F-1

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINED STATEMENT OF OPERATIONS

 

   For the six Months Ended 
   June 30,
2022		   June 30,
2021		 
   (Unaudited)   (Unaudited) 
         
Rental income  $   253,134   $     39,448 
           
Expenses          
Management fee   20,098    3,149 
Repairs & maintenance   26,947    7,858 
Homeowners association fee   7,737    - 
Insurance expense   8,191    1,738 
Real estate taxes   30,079    4,651 
Depreciation expense   79,318    12,983 
Interest expense   79,602    4,677 
Other expenses   -    635 
           
Total expenses   251,972    35,690 
           
Net operating income   1,162    3,757 
           
Gain on sale of real estate   142,750    - 
Provision for income taxes   (28,720)   - 
           
Net income  $115,192   $3,757 

 

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

 

F-2

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINED STATEMENT OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

 

   Total Combined Members’ Equity 
Opening balance December 31, 2021  $74,042 
      
Proceeds from members’ interest   1,259,017 
      
Distributions   (69,043)
      
Sale distribution   (128,537)
      
Distribution to manager   (35,434)
      
Net operating income for the six months ended June 30, 2022   1,162 
      
Gain on sale   142,750 
      
Provision for income taxes   (28,720)
      
Members’ equity as of June 30, 2022  $1,215,238 

  

   Total Combined Members’ Equity 
Opening balance December 31, 2020  $(10,586)
      
Net income for the six months ended June 30, 2021   3,757 
      
Members’ deficit as of June 30, 2021  $(6,829)

 

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

 

F-3

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINED STATEMENT OF CASH FLOWS

 

   For the six months ended June 30, 
   2022   2021 
   (Unaudited)   (Unaudited) 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $115,192   $3,757 
Adjustments to reconcile net income to net cash provided by operating activities-          
Depreciation   79,318    12,983 
Amortization of debt discount   -    4,677 
Gain on sale of real estate   (142,750)   - 
Changes in assets and liabilities-          
Increase in escrow   (39,546)   - 
Decrease in accounts receivable, net   775    - 
Decrease in other assets   -    842 
(Increase) decrease in due from related party   4,219    (12,031)
Increase in other liabilities   56,902    4,352 
Increase in due to related party   817,451    - 
Net cash provided by operating activities   891,561    14,581 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Decrease in investments   (4,425,886)   - 
Proceeds from sale of real estate   339,000    - 
           
Net cash used in investing activities   (4,086,886)   - 
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Shareholder Proceeds   1,259,017    - 
Shareholder Dividends   (233,014)   - 
Repayment of promissory note - related party   (203,865)   - 
Repayment of note - related party   (337,565)   - 
Proceeds from mortgage   3,475,262    - 
Repayment of mortgage   (117,062)   - 
           
Net cash provided by financing activities   3,842,773    - 
           
NET INCREASE IN CASH   647,447    14,581 
           
CASH BALANCE - BEGINNING OF PERIOD   79,897    18,432 
           
CASH BALANCE - END OF PERIOD  $727,344   $33,013 

 

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

 

F-4

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

 

   Landa App LLC   Landa Series 115 Sardis
Street		   Landa Series 1394
Oakview Circle		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $              -   $                 -   $5,750   $        3,270   $       3,500   $        3,148 
Escrow   -    -    -    -    852    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    -    -    6,022    7,451 
Investments in single-family residential properties   -    -    115,146    115,146    78,444    78,444 
Less: accumulated depreciation   -    -    (7,832)   (5,848)   (4,401)   (3,289)
                               
Total Assets  $-   $-   $113,064   $112,568   $84,417   $85,754 
                               
Liabilities                              
Due to related party  $-   $-   $564   $463   $-   $- 
Other liabilities   -    -    764    1,564    2,550    2,946 
Security deposit   -    -    -    -    500    500 
Promissory note - related party   -    -    -    64,789    -    44,015 
Notes payable - related party   -    -    -    52,515    -    - 
Acquisition note payable   -    -    117,304    -    -    - 
Mortgage payable   -    -    -    -    44,015    - 
                               
Total Liabilities   -    -    118,632    119,331    47,065    47,461 
                               
Members’ Equity / (Deficit)   -    -    (5,568)   (6,763)   37,352    38,293 
                               
Total Liabilities and Members’ Equity / (Deficit)  $-   $-   $113,064   $112,568   $84,417   $85,754 

 

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

 

F-5

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1701
Summerwoods Lane		   Landa Series 1741
Park Lane		   Landa Series 209
Timber Wolf Trail		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $39,580   $38,376   $23,008   $21,582   $6,316   $3,148 
Escrow   -    -    -    -    461    - 
Accounts receivable   -    -    -    -    -    775 
Due from related party   -    6,551    -    5,490    5,876    7,802 
Investments in single-family residential properties   -    93,794    -    114,386    118,126    118,126 
Less: accumulated depreciation   -    (4,134)   -    (5,604)   (6,807)   (5,088)
                               
Total Assets  $39,580   $134,587   $23,008   $135,854   $123,972   $124,763 
                               
Liabilities                              
Due to related party  $25,356   $-   $8,512   $-   $-   $- 
Other liabilities   14,224    3,169    14,496    2,649    1,369    2,453 
Security deposit   -    950    -    -    775    775 
Promissory note - related party   -    52,703    -    64,359    -    66,476 
Notes payable - related party   -    42,788    -    52,215    -    53,351 
Acquisition note payable   -    -    -    -    58,077    - 
Mortgage payable   -    -    -    -    61,750    - 
                               
Total Liabilities   39,580    99,610    23,008    119,223    121,971    123,055 
                               
Members’ equity / (deficit)   -    34,977    -    16,631    2,001    1,708 
                               
Total Liabilities and Members’ Equity / (Deficit)  $39,580   $134,587   $23,008   $135,854   $123,972   $124,763 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-6

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 2505
Oak Circle		   Landa Series 271
Timber Wolf Trail		   Landa Series 29 Holly
Grove Road		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $8,536   $3,723   $7,100   $3,649   $4,881   $3,001 
Escrow   595    -    579    -    726    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    3,181    4,282    1,562    3,762 
Investments in single-family residential properties   104,572    104,572    127,320    127,320    99,120    99,120 
Less: accumulated depreciation   (5,961)   (4,437)   (7,411)   (5,520)   (6,089)   (4,552)
                               
Total Assets  $107,742   $103,858   $130,769   $129,731   $100,200   $101,331 
                               
Liabilities                              
Due to related party  $10,433   $8,919   $-   $-   $-   $- 
Other liabilities   1,002    1,372    7,675    8,277    1,261    2,029 
Security deposit   1,250    1,250    950    950    600    600 
Promissory note - related party   -    54,728    -    68,227    -    55,718 
Notes payable - related party   -    43,742    -    55,185    -    44,727 
Acquisition note payable   21,770    -    61,012    -    15,945    - 
Mortgage payable   76,700    -    62,400    -    84,500    - 
                               
Total Liabilities   111,155    110,011    132,037    132,639    102,306    103,074 
                               
Members’ equity / (deficit)   (3,413)   (6,153)   (1,268)   (2,908)   (2,106)   (1,743)
                               
Total Liabilities and Members’ Equity / (Deficit)  $107,742   $103,858   $130,769   $129,731   $100,200   $101,331 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-7

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1703
Summerwoods Lane		   Landa Series 1712
Summerwoods Lane		   Landa Series 1743
Summerwoods Lane		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $3,462   $               -   $48,596   $             -   $3,705   $              - 
Escrow   1,186    -    1,193    -    1,183    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   1,597    -    -    -    -    - 
Investments in single-family residential properties   111,604    -    111,604    -    111,604    - 
Less: accumulated depreciation   (1,708)   -    (1,708)   -    (1,708)   - 
                               
Total Assets  $116,141   $-   $159,685   $-   $114,784   $- 
                               
Liabilities                              
Due to related party  $-   $-   $46,392   $-   $776   $- 
Other liabilities   998    -    -    -    -    - 
Security deposit   950    -    875    -    975    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   77,925    -    67,535    -    77,925    - 
                               
Total Liabilities   79,873    -    114,802    -    79,676    - 
                               
Members’ equity / (deficit)   36,268    -    44,883    -    35,108    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $116,141   $-   $159,685   $-   $114,784   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-8

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1750
Summerwoods Lane		   Landa Series 4267
High Park Lane		   Landa Series 4474
Highwood Park Drive		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $2,717   $     -   $49,972   $         -   $7,126   $          - 
Escrow   1,259    -    794    -    1,061    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    -    -    -    - 
Investments in single-family residential properties   111,604    -    149,075    -    134,130    - 
Less: accumulated depreciation   (1,708)   -    (2,282)   -    (2,053)   - 
                               
Total Assets  $113,872   $-   $197,559   $-   $140,264   $- 
                               
Liabilities                              
Due to related party  $164   $-   $47,108   $-   $4,664   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   875    -    1,207    -    1,125    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   77,925    -    104,250    -    93,750    - 
                               
Total Liabilities   78,964    -    152,565    -    99,539    - 
                               
Members’ equity / (deficit)   34,908    -    44,994    -    40,725    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $113,872   $-   $197,559   $-   $140,264   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-9

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8569
Creekwood Way		   Landa Series 9439
Lakeview Road		   Landa Series 10167
Port Royal Court		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $5,321   $           -   $57,953   $           -   $1,847   $           - 
Escrow   623    -    1,196    -    1,121    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party        -    -    -    872    - 
Investments in single-family residential properties   81,820    -    177,792    -    108,564    - 
Less: accumulated depreciation   (1,252)   -    (2,722)   -    (1,662)   - 
                               
Total Assets  $86,512   $-   $234,219   $-   $110,742   $- 
                               
Liabilities                              
Due to related party  $3,099   $-   $57,719   $-   $-   $- 
Other liabilities   -    -    100    -    -    - 
Security deposit   835    -    1,207    -    1,050    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   49,400    -    124,425    -    82,500    - 
                               
Total Liabilities   53,334    -    183,451    -    83,550    - 
                               
Members’ equity / (deficit)   33,178    -    50,768    -    27,192    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $86,512   $-   $234,219   $-   $110,742   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-10

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 1246
Elgin Way		   Landa Series 1910
Grove Way		   Landa Series 593
Country Lane Drive		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $2,663   $               -   $12,753   $              -   $1,653   $              - 
Escrow   1,354    -    1,159    -    1,262    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   751    -    -    -    534    - 
Investments in single-family residential properties   131,074    -    102,638    -    94,079    - 
Less: accumulated depreciation   (2,006)   -    (1,571)   -    (1,440)   - 
                               
Total Assets  $133,836   $-   $114,979   $-   $96,088   $- 
                               
Liabilities                              
Due to related party  $-   $-   $19,658   $-   $-   $- 
Other liabilities   -    -    15    -    -    - 
Security deposit   1,150    -    1,250    -    971    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   95,250    -    82,500    -    71,250    - 
                               
Total Liabilities   96,400    -    103,423    -    72,221    - 
                               
Members’ equity / (deficit)   37,436    -    11,556    -    23,867    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $133,836   $-   $114,979   $-   $96,088   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-11

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 6436
Stone Terrace		   Landa Series 6440
Woodstone Terrace		   Landa Series 6848
Sandy Creek Drive		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $1,093   $              -   $2,420   $              -   $1,660   $              - 
Escrow   756    -    546    -    273    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   1,063    -    -    -    195    - 
Investments in single-family residential properties   59,371    -    63,557    -    84,780    - 
Less: accumulated depreciation   (904)   -    (967)   -    (1,290)   - 
                               
Total Assets  $61,379   $-   $65,556   $-   $85,618   $- 
                               
Liabilities                              
Due to related party  $-   $-   $4,913   $-   $-   $- 
Other liabilities   -    -    220    -    -    - 
Security deposit   1,000    -    1,100    -    1,025    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   45,000    -    46,500    -    64,500    - 
                               
Total Liabilities   46,000    -    52,733    -    65,525    - 
                               
Members’ equity / (deficit)   15,379    -    12,823    -    20,093    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $61,379   $-   $65,556   $-   $85,618   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-12

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 687
Utoy Court		   Landa Series 729
Winter Lane		   Landa Series 7349
Exeter Court		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $2,671   $              -   $317   $              -   $1,961   $              - 
Escrow   904    -    1,075    -    1,171    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    -    -    819    - 
Investments in single-family residential properties   113,297    -    111,627    -    108,601    - 
Less: accumulated depreciation   (1,724)   -    (1,699)   -    (1,653)   - 
                               
Total Assets  $115,148   $-   $111,320   $-   $110,899   $- 
                               
Liabilities                              
Due to related party  $3,533   $-   $578   $-   $-   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   975    -    1,060    -    1,060    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   82,500    -    82,500    -    71,500    - 
                               
Total Liabilities   87,008    -    84,138    -    72,560    - 
                               
Members’ equity / (deficit)   28,140    -    27,182    -    38,339    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $115,148   $-   $111,320   $-   $110,899   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-13

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8645
Embrey Drive		   Landa Series 8780
Churchill Place		   Landa Series 8796
Parliament Place		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $1,945   $              -   $3,573   $              -   $32,905   $              - 
Escrow   1,073    -    1,197    -    1,099    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   930    -         -    -    - 
Investments in single-family residential properties   116,705    -    130,114    -    107,817    - 
Less: accumulated depreciation   (1,776)   -    (1,980)   -    (1,641)   - 
                               
Total Assets  $118,877   $-   $132,904   $-   $140,180   $- 
                               
Liabilities                              
Due to related party  $-   $-   $42   $-   $30,198   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   1,103    -    1,260    -    1,050    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   84,750    -    94,500    -    78,750    - 
                               
Total Liabilities   85,853    -    95,802    -    109,998    - 
                               
Members’ equity / (deficit)   33,024    -    37,102    -    30,182    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $118,877   $-   $132,904   $-   $140,180   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-14

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8641
Ashley Way		   Landa Series 8651
Ashley Way		   Landa Series 8652
Ashley Way		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $42,100   $              -   $5,370   $              -   $30,860   $              - 
Escrow   1,006    -    854    -    907    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    782    -    -    - 
Investments in single-family residential properties   139,774    -    116,872    -    129,960    - 
Less: accumulated depreciation   (2,127)   -    (1,779)   -    (1,978)   - 
                               
Total Assets  $180,753   $-   $122,099   $-   $159,749   $- 
                               
Liabilities                              
Due to related party  $49,033   $-   $-   $-   $59,438   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   975    -    800    -    925    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   96,357    -    80,424    -    76,700    - 
                               
Total Liabilities   146,365    -    81,224    -    137,063    - 
                               
Members’ equity / (deficit)   34,388    -    40,875    -    22,686    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $180,753   $-   $122,099   $-   $159,749   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-15

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8653
Ashley Way		   Landa Series 8654
Ashley Way		   Landa Series 8655
Ashley Way		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $5,451   $              -   $5,925   $              -   $44,779   $              - 
Escrow   847    -    913    -    859    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   5,209    -    999    -    -    - 
Investments in single-family residential properties   115,782    -    129,959    -    121,234    - 
Less: accumulated depreciation   (1,762)   -    (1,978)   -    (1,835)   - 
                               
Total Assets  $125,527   $-   $135,818   $-   $165,037   $- 
                               
Liabilities                              
Due to related party  $-   $-   $-   $-   $60,212   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   925    -    1,050    -    950    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   68,250    -    89,529    -    71,500    - 
                               
Total Liabilities   69,175    -    90,579    -    132,662    - 
                               
Members’ equity / (deficit)   56,352    -    45,239    -    32,375    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $125,527   $-   $135,818   $-   $165,037   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-16

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8659
Ashley Way		   Landa Series 8662
Ashley Way		   Landa Series 8668
Ashley Way		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $27,098   $              -   $41,028   $              -   $22,530   $              - 
Escrow   890    -    914    -    1,072    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    -    -    -    - 
Investments in single-family residential properties   138,683    -    134,321    -    144,137    - 
Less: accumulated depreciation   (2,099)   -    (2,033)   -    (2,181)   - 
                               
Total Assets  $164,572   $-   $174,230   $-   $165,558   $- 
                               
Liabilities                              
Due to related party  $65,240   $-   $55,101   $-   $59,307   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   900    -    975    -    1,025    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   81,900    -    84,500    -    99,392    - 
                               
Total Liabilities   148,040    -    140,576    -    159,724    - 
                               
Members’ equity / (deficit)   16,532    -    33,654    -    5,834    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $164,572   $-   $174,230   $-   $165,558   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-17

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8670
Ashley Way		   Landa Series 8674
Ashley Way		   Landa Series 8675
Ashley Way		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $16,528   $              -   $6,192   $              -   $48,907   $              - 
Escrow   1,003    -    927    -    856    - 
Accounts receivable        -    -    -    -    - 
Due from related party        -    722    -    -    - 
Investments in single-family residential properties   151,771    -    128,869    -    126,687    - 
Less: accumulated depreciation   (2,297)   -    (1,950)   -    (1,917)   - 
                               
Total Assets  $167,005   $-   $134,760   $-   $174,533   $- 
                               
Liabilities                              
Due to related party  $63,859   $-   $-   $-   $44,496   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   1,000    -    1,110    -    950    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   94,250    -    87,750    -    87,253    - 
                               
Total Liabilities   159,109    -    88,860    -    132,699    - 
                               
Members’ equity / (deficit)   7,896    -    45,900    -    41,834    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $167,005   $-   $134,760   $-   $174,533   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-18

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8677
Ashley Way		   Landa Series 8678
Ashley Way		   Landa Series 8679
Ashley Way		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)       (Unaudited)     
Assets                        
Cash & cash equivalents  $48,032   $              -   $18,749   $              -   $6,819   $              - 
Escrow   823    -    1,090    -    1,008    - 
Accounts receivable   -    -    -    -    -    - 
Due from related party   -    -    -    -    5    - 
Investments in single-family residential properties   119,053    -    160,496    -    128,869    - 
Less: accumulated depreciation   (1,802)   -    (2,429)   -    (1,950)   - 
                               
Total Assets  $166,106   $-   $177,906   $-   $134,751   $- 
                               
Liabilities                              
Due to related party  $41,447   $-   $64,713   $-   $-   $- 
Other liabilities   -    -    -    -    -    - 
Security deposit   1,050    -    925    -    1,000    - 
Promissory note - related party   -    -    -    -    -    - 
Notes payable - related party   -    -    -    -    -    - 
Acquisition note payable   -    -    -    -    -    - 
Mortgage payable   81,942    -    104,000    -    88,770    - 
                               
Total Liabilities   124,439    -    169,638    -    89,770    - 
                               
Members’ equity / (deficit)   41,667    -    8,268    -    44,981    - 
                               
Total Liabilities and Members’ Equity / (Deficit)  $166,106   $-   $177,906   $-   $134,751   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-19

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING BALANCE SHEETS

(CONTINUED)

 

   Landa Series 8683
Ashley Way		   Total Combining
Balance Sheet		 
   June 30,
2022		   December 31,
2021		   June 30,
2022		   December 31,
2021		 
   (Unaudited)       (Unaudited)     
Assets                
Cash & cash equivalents  $11,992   $              -   $727,344   $79,897 
Escrow   879    -    39,546    - 
Accounts receivable   -    -    -    775 
Due from related party   -    -    31,119    35,338 
Investments in single-family residential properties   117,962    -    5,068,614    850,908 
Less: accumulated depreciation   (1,785)   -    (105,857)   (38,472)
                     
Total Assets  $129,048   $-   $5,760,766   $928,446 
                     
Liabilities                    
Due to related party  $278   $-   $826,833   $9,382 
Other liabilities   -    -    44,674    24,459 
Security deposit   975    -    41,713    5,025 
Promissory note - related party   -    -    -    471,015 
Notes payable - related party   -    -    -    344,523 
Acquisition note payable   -    -    274,108    - 
Mortgage payable   81,183    -    3,358,200    - 
                     
Total Liabilities   82,436    -    4,545,528    854,404 
                     
Members’ equity / (deficit)   46,612    -    1,215,238    74,042 
                     
Total Liabilities and Members’ Equity / (Deficit)  $129,048   $-   $5,760,766   $928,446 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-20

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

 

   Landa App LLC   Landa Series 115
Sardis Street		   Landa Series 1394
Oakview Circle		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $                 -   $                 -   $5,822   $4,840   $4,883   $4,650 
                               
Expenses                              
Management fee   -    -    402    387    390    372 
Repairs & maintenance   -    -    -    3,115    -    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   -    -    206    231    193    200 
Real estate taxes   -    -    471    540    784    606 
Depreciation expense   -    -    1,984    1,988    1,112    1,128 
Interest expense   -    -    1,565    1,257    1,068    389 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   -    -    4,628    7,519    3,547    2,694 
                               
Net operating income (loss)   -    -    1,194    (2,679)   1,336    1,956 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $-   $-   $1,194   $(2,679)  $1,336   $1,956 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-21

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1701
Summerwoods Lane(1)		   Landa Series 1741
Park Lane(1)		   Landa Series 209
Timber Wolf Trail		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $3,990   $5,700   $3,273   $4,350   $4,650   $4,650 
                               
Expenses                              
Management fee   319    456    243    348    372    372 
Repairs & maintenance   149    948    -    881    -    - 
Homeowners association fee   200    -    -    -    180    - 
Insurance expense   108    206    124    227    161    224 
Real estate taxes   591    671    605    864    415    410 
Depreciation expense   930    1,420    1,264    1,914    1,719    1,745 
Interest expense   842    314    1,058    876    1,510    530 
Other expenses   -    300    -    -    -    168 
                               
Total expenses   3,139    4,315    3,294    5,110    4,357    3,449 
                               
Net operating income (loss)   851    1,385    (21)   (760)   293    1,202 
                               
Gain on sale of real estate   70,269    -    72,481    -    -    - 
Provision for income taxes   (14,224)   -    (14,496)   -    -    - 
                               
Net income (loss)  $56,896   $1,385   $57,964   $(760)  $293   $1,202 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-22

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 2505
Oak Circle		   Landa Series 271
Timber Wolf Trail		   Landa Series 29
Holly Grove Road		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $7,500   $5,338   $6,284   $5,700   $4,331   $4,220 
                               
Expenses                              
Management fee   600    420    479    456    346    338 
Repairs & maintenance   134    1,314    -    -    -    1,599 
Homeowners association fee   -    -    180    -    -    - 
Insurance expense   155    227    135    224    164    200 
Real estate taxes   538    453    431    426    666    681 
Depreciation expense   1,525    1,424    1,891    1,801    1,537    1,564 
Interest expense   1,808    187    1,528    794    1,981    329 
Other expenses   -    -    -    168    -    - 
                               
Total expenses   4,760    4,025    4,644    3,868    4,694    4,711 
                               
Net operating income (loss)   2,740    1,313    1,640    1,832    (363)   (491)
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $2,740   $1,313   $1,640   $1,832   $(363)  $(491)

 

The accompanying notes are an integral part of these combining unaudited financial statements

  

F-23

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

    Landa Series 1703
Summerwoods Lane(2)		     Landa Series 1712
Summerwoods Lane(2)		     Landa Series 1743
Summerwoods Lane(2)		  
    For the
Six Months
Ended
June 30,
2022		     For the
Six Months
Ended
June 30,
2021		     For the
Six Months
Ended
June 30,
2022		     For the
Six Months
Ended
June 30,
2021		     For the
Six Months
Ended
June 30,
2022		     For the
Six Months
Ended
June 30,
2021		  
Rental income   $ 5,723     $         -     $ 5,305     $      -     $ 5,953     $          -  
                                                 
Expenses                                                
Management fee     458       -       424       -       468       -  
Repairs & maintenance     -       -       -       -       -       -  
Homeowners association fee     300       -       300       -       300       -  
Insurance expense     168       -       175       -       164       -  
Real estate taxes     887       -       887       -       887       -  
Depreciation expense     1,708       -       1,708       -       1,708       -  
Interest expense     1,766       -       1,531       -       1,766       -  
Other expenses     -       -       -       -       -       -  
                                                 
Total expenses     5,287       -       5,025       -       5,293       -  
                                                 
Net operating income     436       -       280       -       660       -  
                                                 
Gain on sale of real estate     -       -       -       -       -       -  
Provision for income taxes     -       -       -       -       -       -  
                                                 
Net income   $ 436     $ -     $ 280     $ -     $ 660     $ -  

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-24

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

    Landa Series 1750
Summerwoods Lane(2)		     Landa Series 4267
High Park Lane(2)		     Landa Series 4474
Highwood Park Drive(2)		  
    For the
Six Months
Ended
June 30,
2022		     For the
Six Months
Ended
June 30,
2021		     For the
Six Months
Ended
June 30,
2022		     For the
Six Months
Ended
June 30,
2021		     For the
Six Months
Ended
June 30,
2022		     For the
Six Months
Ended
June 30,
2021		  
Rental income   $ 5,347     $       -     $ 6,972     $         -     $ 6,721     $          -  
                                                 
Expenses                                                
Management fee     428       -       558       -       538       -  
Repairs & maintenance     -       -       862       -       1,647       -  
Homeowners association fee     300       -       900       -       900       -  
Insurance expense     233       -       192       -       192       -  
Real estate taxes     887       -       976       -       980       -  
Depreciation expense     1,708       -       2,282       -       2,053       -  
Interest expense     1,766       -       2,363       -       2,125       -  
Other expenses     -       -       -       -       -       -  
                                                 
Total expenses     5,322       -       8,133       -       8,435       -  
                                                 
Net operating income (loss)     25       -       (1,161 )     -       (1,714 )     -  
                                                 
Gain on sale of real estate     -       -       -       -       -       -  
Provision for income taxes     -       -       -       -       -       -  
                                                 
Net income (loss)   $ 25     $ -     $ (1,161 )   $ -     $ (1,714 )   $ -  

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-25

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8569
Creekwood Way(2)		   Landa Series 9439
Lakeview Road(2)		   Landa Series 10167
Port Royal Court(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $4,820   $      -   $6,972   $       -   $6,063   $        - 
                               
Expenses                              
Management fee   386    -    558    -    485    - 
Repairs & maintenance   -    -    1,855    -    -    - 
Homeowners association fee   834    -    478    -    -    - 
Insurance expense   226    -    184    -    200    - 
Real estate taxes   355    -    1,090    -    798    - 
Depreciation expense   1,252    -    2,722    -    1,662    - 
Interest expense   1,120    -    2,820    -    1,870    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   4,173    -    9,707    -    5,015    - 
                               
Net operating income (loss)   647    -    (2,735)   -    1,048    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $647   $-   $(2,735)  $-   $1,048   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-26

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1246
Elgin Way(2)		   Landa Series 1910
Grove Way(2)		   Landa Series 593
Country Lane Drive(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $7,232   $     -   $2,203   $        -   $5,705   $       - 
                               
Expenses                              
Management fee   550    -    167    -    484    - 
Repairs & maintenance   -    -    6,541    -    -    - 
Homeowners association fee   -    -    225    -    -    - 
Insurance expense   215    -    389    -    184    - 
Real estate taxes   985    -    955    -    933    - 
Depreciation expense   2,006    -    1,571    -    1,440    - 
Interest expense   2,159    -    1,870    -    1,615    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   5,915    -    11,718    -    4,656    - 
                               
Net operating income (loss)   1,317    -    (9,515)   -    1,049    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $1,317   $-   $(9,515)  $-   $1,049   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-27

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 6436
Stone Terrace(2)		   Landa Series 6440
Woodstone Terrace(2)		   Landa Series 6848
Sandy Creek Drive(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $5,974   $         -   $6,462   $     -   $6,894   $      - 
                               
Expenses                              
Management fee   462    -    508    -    551    - 
Repairs & maintenance   -    -    5,748    -    1,555    - 
Homeowners association fee   1,320    -    1,320    -    -    - 
Insurance expense   166    -    158    -    200    - 
Real estate taxes   455    -    450    -    823    - 
Depreciation expense   904    -    967    -    1,290    - 
Interest expense   1,014    -    1,048    -    1,453    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   4,321    -    10,199    -    5,872    - 
                               
Net operating income (loss)   1,653    -    (3,737)   -    1,022    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $1,653   $-   $(3,737)  $-   $1,022   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-28

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 687
Utoy Court(2)		   Landa Series 729
Winter Lane(2)		   Landa Series 7349
Exeter Court(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $5,532   $       -   $4,001   $           -   $6,301   $        - 
                               
Expenses                              
Management fee   450    -    320    -    504    - 
Repairs & maintenance   3,618    -    1,560    -    -    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   188    -    209    -    211    - 
Real estate taxes   616    -    746    -    826    - 
Depreciation expense   1,724    -    1,699    -    1,653    - 
Interest expense   1,859    -    1,859    -    1,611    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   8,455    -    6,393    -    4,805    - 
                               
Net operating income (loss)   (2,923)   -    (2,392)   -    1,496    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $(2,923)  $-   $(2,392)  $-   $1,496   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-29

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8645
Embrey Drive(2)		   Landa Series 8780
Churchill Place(2)		   Landa Series 8796
Parliament Place(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $6,366   $        -   $7,275   $          -   $6,063   $     - 
                               
Expenses                              
Management fee   509    -    582    -    485    - 
Repairs & maintenance   161    -    458    -    -    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   217    -    228    -    206    - 
Real estate taxes   737    -    833    -    778    - 
Depreciation expense   1,776    -    1,980    -    1,641    - 
Interest expense   1,910    -    2,117    -    1,775    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   5,310    -    6,198    -    4,885    - 
                               
Net operating income   1,056    -    1,077    -    1,178    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income  $1,056   $-   $1,077   $-   $1,178   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-30

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8641
Ashley Way(2)		   Landa Series 8651
Ashley Way(2)		   Landa Series 8652
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $5,755   $       -   $5,869   $      -   $4,416   $       - 
                               
Expenses                              
Management fee   460    -    470    -    353    - 
Repairs & maintenance   171    -    -    -    171    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   172    -    150    -    163    - 
Real estate taxes   598    -    503    -    531    - 
Depreciation expense   2,127    -    1,779    -    1,978    - 
Interest expense   2,171    -    1,812    -    1,728    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   5,699    -    4,714    -    4,924    - 
                               
Net operating income (loss)   56    -    1,155    -    (508)   - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $56   $-   $1,155   $-   $(508)  $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-31

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8653
Ashley Way(2)		   Landa Series 8654
Ashley Way(2)		   Landa Series 8655
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $5,516   $      -   $6,063   $     -   $5,485   $     - 
                               
Expenses                              
Management fee   441    -    485    -    439    - 
Repairs & maintenance   264    -    171    -    171    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   151    -    165    -    156    - 
Real estate taxes   496    -    533    -    500    - 
Depreciation expense   1,762    -    1,978    -    1,835    - 
Interest expense   1,538    -    2,017    -    1,602    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   4,652    -    5,349    -    4,703    - 
                               
Net operating income   864    -    714    -    782    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income  $864   $-   $714   $-   $782   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-32

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8659
Ashley Way(2)		   Landa Series 8662
Ashley Way(2)		   Landa Series 8668
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $4,297   $        -   $5,630   $            -   $5,919   $             - 
                               
Expenses                              
Management fee   344    -    450    -    473    - 
Repairs & maintenance   80    -    160    -    80    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   170    -    167    -    177    - 
Real estate taxes   511    -    531    -    641    - 
Depreciation expense   2,099    -    2,033    -    2,181    - 
Interest expense   1,835    -    1,893    -    2,226    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   5,039    -    5,234    -    5,778    - 
                               
Net operating income (loss)   (742)   -    396    -    141    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $(742)  $-   $396   $-   $141   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-33

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8670
Ashley Way(2)		   Landa Series 8674
Ashley Way(2)		   Landa Series 8675
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $5,774   $-   $6,352   $-   $4,535   $- 
                               
Expenses                              
Management fee   462    -    508    -    363             - 
Repairs & maintenance   80             -    234             -    717    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   183    -    165    -    161    - 
Real estate taxes   584    -    542    -    492    - 
Depreciation expense   2,297    -    1,950    -    1,917    - 
Interest expense   2,111    -    1,966    -    1,954    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   5,717    -    5,365    -    5,604    - 
                               
Net operating income (loss)   57    -    987    -    (1,069)   - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $57   $-   $987   $-   $(1,069)  $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-34

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8677
Ashley Way(2)		   Landa Series 8678
Ashley Way(2)		   Landa Series 8679
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $6,063   $-   $5,341   $-   $5,774   $- 
                               
Expenses                              
Management fee   485             -    427             -    462             - 
Repairs & maintenance   80    -    80    -    80    - 
Homeowners association fee   -    -    -    -    -    - 
Insurance expense   155    -    189    -    162    - 
Real estate taxes   471    -    643    -    604    - 
Depreciation expense   1,802    -    2,429    -    1,950    - 
Interest expense   1,836    -    2,330    -    1,988    - 
Other expenses   -    -    -    -    -    - 
                               
Total expenses   4,829    -    6,098    -    5,246    - 
                               
Net operating income (loss)   1,234    -    (757)   -    528    - 
                               
Gain on sale of real estate   -    -    -    -    -    - 
Provision for income taxes   -    -    -    -    -    - 
                               
Net income (loss)  $1,234   $-   $(757)  $-   $528   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-35

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF OPERATIONS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8683
Ashley Way(2)		   Total Combining
Statements of
Operations		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Rental income  $5,728   $      -   $253,134   $39,448 
                     
Expenses                    
Management fee   450    -    20,098    3,149 
Repairs & maintenance   120    -    26,947    7,858 
Homeowners association fee   -    -    7,737    - 
Insurance expense   154    -    8,191    1,738 
Real estate taxes   514    -    30,079    4,651 
Depreciation expense   1,785    -    79,318    12,983 
Interest expense   1,818    -    79,602    4,677 
Other expenses   -    -    -    635 
                     
Total expenses   4,841    -    251,972    35,690 
                     
Net operating income   887    -    1,162    3,757 
                     
Gain on sale of real estate   -    -    142,750    - 
Provision for income taxes   -    -    (28,720)   - 
                     
Net income  $887   $-   $115,192   $3,757 

 

1.Operations shown through April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224.

 

2.The series were qualified and commenced operations on January 9, 2022.

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-36

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED)

 

   Landa App LLC   Landa
Series
115
Sardis
Street		   Landa
Series
1394
Oakview
Circle		   Landa
Series
1701
Summerwoods Lane(1)		   Landa
Series
1741
Park Lane(1)		 
Opening balance December 31, 2021  $        -   $(6,763)  $38,293   $34,977   $16,631 
Proceeds from sales of members’ interest   -    -    -    43    - 
Distributions   -    -    (2,277)   (1,722)   (818)
Sale distribution   -    -    -    (87,854)   (40,683)
Distribution to manager   -    -    -    (2,340)   (33,094)
Net operating income (loss) for the six months ended June 30, 2022   -    1,194    1,336    851    (21)
Gain on sale   -    -    -    70,269    72,481 
Provision for income taxes   -    -    -    (14,224)   (14,496)
Members’ equity / (deficit) as of June 30, 2022  $-   $(5,568)  $37,352   $-   $- 
                          
Opening balance December 31, 2020  $-   $(3,563)  $1,292   $(596)  $8 
Net operating income (loss) for the six months ended June 30, 20221   -    (2,679)   1,956    1,385    (760)
Members’ equity / (deficit) as of June 30, 2021  $-   $(6,242)  $3,248   $789   $(752)

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-37

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series 209
Timber
Wolf Trail		   Landa
Series
2505
Oak Circle		   Landa
Series
271
Timber
Wolf Trail		   Landa
Series
29
Holly
Grove
Road		   Landa
Series
1703
Summerwoods Lane(2)		 
Opening balance December 31, 2021  $1,708   $(6,153)  $(2,908)  $(1,743)  $- 
Proceeds from sales of members’ interest   -    -    -    -    37,293 
Distributions   -    -    -    -    (1,461)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   293    2,740    1,640    (363)   436 
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $2,001   $(3,413)  $(1,268)  $(2,106)  $36,268 
                          
Opening balance December 31, 2020  $687   $(2,086)  $(5,166)  $(1,162)  $- 
Net operating income (loss) for the six months ended June 30, 20221   1,202    1,313    1,832    (491)   - 
Members’ equity / (deficit) as of June 30, 2021  $1,889   $(773)  $(3,334)  $(1,653)  $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-38

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
1712
Summerwoods
Lane(2)		   Landa
Series
1743
Summerwoods
Lane(2)		   Landa
Series
1750
Summerwoods
Lane(2)		   Landa
Series
4267
High
Park
Lane(2)		   Landa
Series
4474
Highwood
Park Drive(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   46,207    35,846    35,840    47,597    43,401 
Distributions   (1,604)   (1,398)   (957)   (1,442)   (962)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   280    660    25    (1,161)   (1,714)
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $44,883   $35,108   $34,908   $44,994   $40,725 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-39

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
8569
Creekwood
Way(2)		   Landa
Series
9439
Lakeview
Road(2)		   Landa
Series
10167
Port
Royal
Court(2)		   Landa
Series
1246
Elgin
Way(2)		   Landa
Series
1910
Grove
Way(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   34,032    54,576    28,100    38,184    22,062 
Distributions   (1,501)   (1,073)   (1,956)   (2,065)   (991)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   647    (2,735)   1,048    1,317    (9,515)
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $33,178   $50,768   $27,192   $37,436   $11,556 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-40

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
593
Country
Lane
Drive(2)		   Landa
Series
6436
Stone
Terrace(2)		   Landa
Series
6440
Woodstone
Terrace(2)		   Landa
Series
6848
Sandy
Creek
Drive(2)		   Landa
Series
687
Utoy
Court(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   24,592    15,481    18,243    21,867    32,865 
Distributions   (1,774)   (1,755)   (1,683)   (2,796)   (1,802)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   1,049    1,653    (3,737)   1,022    (2,923)
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $23,867   $15,379   $12,823   $20,093   $28,140 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-41

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
729
Winter
Lane(2)		   Landa
Series
7349
Exeter
Court(2)		   Landa
Series
8645
Embrey
Drive(2)		   Landa
Series
8780
Churchill
Place(2)		   Landa
Series
8796
Parliament
Place(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   31,220    39,133    34,212    38,058    31,083 
Distributions   (1,646)   (2,290)   (2,244)   (2,033)   (2,079)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   (2,392)   1,496    1,056    1,077    1,178 
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $27,182   $38,339   $33,024   $37,102   $30,182 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-42

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
8641
Ashley
Way(2)		   Landa
Series
8651
Ashley
Way(2)		   Landa
Series
8652
Ashley
Way(2)		   Landa
Series
8653
Ashley
Way(2)		   Landa
Series
8654
Ashley
Way(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   35,779    41,951    24,893    57,383    46,500 
Distributions   (1,447)   (2,231)   (1,699)   (1,895)   (1,975)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   56    1,155    (508)   864    714 
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $34,388   $40,875   $22,686   $56,352   $45,239 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-43

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
8655
Ashley
Way(2)		   Landa
Series
8659
Ashley
Way(2)		   Landa
Series
8662
Ashley
Way(2)		   Landa
Series
8668
Ashley
Way(2)		   Landa
Series
8670
Ashley
Way(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   33,527    18,905    35,061    7,300    9,505 
Distributions   (1,934)   (1,631)   (1,803)   (1,607)   (1,666)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   782    (742)   396    141    57 
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $32,375   $16,532   $33,654   $5,834   $7,896 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-44

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
8674
Ashley
Way(2)		   Landa
Series
8675
Ashley
Way(2)		   Landa
Series
8677
Ashley
Way(2)		   Landa
Series
8678
Ashley
Way(2)		   Landa
Series
8679
Ashley
Way(2)		 
Opening balance December 31, 2021  $-   $-   $-   $-   $- 
Proceeds from sales of members’ interest   47,178    44,557    42,664    10,119    46,153 
Distributions   (2,265)   (1,654)   (2,231)   (1,094)   (1,700)
Sale distribution   -    -    -    -    - 
Distribution to manager   -    -    -    -    - 
Net operating income (loss) for the six months ended June 30, 2022   987    (1,069)   1,234    (757)   528 
Gain on sale   -    -    -    -    - 
Provision for income taxes   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2022  $45,900   $41,834   $41,667   $8,268   $44,981 
                          
Opening balance December 31, 2020  $-   $-   $-   $-   $- 
Net operating income (loss) for the six months ended June 30, 20221   -    -    -    -    - 
Members’ equity / (deficit) as of June 30, 2021  $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-45

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF MEMBERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED)

AND JUNE 30, 2021 (UNAUDITED) (CONTINUED)

 

   Landa
Series
8683
Ashley
Way(2)		   Landa
Series
Total
Combined		 
Opening balance December 31, 2021  $-   $74,042 
Proceeds from sales of members’ interest   47,607    1,259,017 
Distributions   (1,882)   (69,043)
Sale distribution   -    (128,537)
Distribution to manager   -    (35,434)
Net operating income (loss) for the six months ended June 30, 2022   887    1,162 
Gain on sale   -    142,750 
Provision for income taxes   -    (28,720)
Members’ equity / (deficit) as of June 30, 2022  $46,612   $1,215,238 
           
Opening balance December 31, 2020  $-   $(10,586)
Net operating income (loss) for the six months ended June 30, 20221   -    3,757 
Members’ equity / (deficit) as of June 30, 2021  $-   $(6,829)

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

1.Operations shown through April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224.

 

2.The series were qualified and commenced operations on January 9, 2022.

 

F-46

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   Landa App LLC   Landa Series 115
Sardis Street		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $        -   $       -   $1,194   $(2,679)
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   -    -    1,984    1,988 
Amortization of debt discount   -    -    -    1,257 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   -    -    -    - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    810 
Decrease in due from related party   -    -    -    1,580 
Increase (decrease) in other liabilities   -    -    (800)   540 
Increase in due to related party   -    -    101    - 
Net cash provided by operating activities   -    -    2,479    3,497 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Increase in investments   -    -    -    - 
Proceeds from sale of real estate   -    -    -    - 
Net cash provided by investing activities   -    -    -    - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   -    -    -    - 
Shareholder Dividends   -    -    -    - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   -    -    -    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   -    -    -    - 
                     
NET INCREASE IN CASH   -    -    2,480    3,497 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    3,270    624 
                     
CASH BALANCE - END OF PERIOD  $-   $-   $5,750   $4,121 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-47

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1394
Oakview Circle		   Landa Series 1701
Summerwoods Lane(1)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $1,336   $1,956   $56,896   $1,385 
Adjustments to reconcile net income to net cash provided by (used in) operating activities-                    
Depreciation   1,112    1,128    930    1,420 
Amortization of debt discount   -    389    -    314 
Gain on sale of real estate   -    -    (70,269)   - 
Changes in assets and liabilities-   -    -    -    - 
Increase in escrow   (852)   -    -    - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
(Increase) decrease in due from related party   1,429    (3,296)   6,551    (4,127)
Increase (decrease) in other liabilities   (396)   605    10,105    671 
Increase in due to related party   -    -    25,356    - 
Net cash provided by (used in) operating activities   2,629    781    29,569    (337)
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   -    -    -    - 
Proceeds from sale of real estate   -    -    159,000    - 
Net cash provided by investing activities   -    -    159,000    - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   -    -    43    - 
Shareholder Dividends   (2,277)   -    (91,916)   - 
Repayment of promissory note - related party   (44,015)   -    (95,491)   - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   44,015    -    52,703    - 
Repayment of mortgage   -    -    (52,703)   - 
Net cash used in financing activities   (2,277)   -    (187,364)   - 
                     
NET INCREASE (DECREASE) IN CASH   352    781    1,204    (337)
                     
CASH BALANCE - BEGINNING OF PERIOD   3,148    3,066    38,376    4,802 
                     
CASH BALANCE - END OF PERIOD  $3,500   $3,847   $39,580   $4,465 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-48

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1741
Park Lane(1)		   Landa Series 209
Timber Wolf Trail		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $57,964   $(760)  $293   $1,202 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   1,264    1,914    1,719    1,745 
Amortization of debt discount   -    876    -    530 
Gain on sale of real estate   (72,481)               
Changes in assets and liabilities-                    
Increase in escrow   -         (461)     
Decrease in accounts receivable, net   -    -    775    - 
Increase in other assets   -    -    -    (775)
(Increase) decrease in due from related party   5,489    (1,439)   1,926    (2,097)
Increase (decrease) in other liabilities   11,847    864    (1,084)   409 
Increase in due to related party   8,512    -    -    - 
Net cash provided by operating activities   12,595    1,455    3,168    1,014 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   -    -    -    - 
Proceeds from sale of real estate   180,000    -    -    - 
Net cash provided by investing activities   180,000    -    -    - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   -    -    -    - 
Shareholder Dividends   (74,595)   -    -    - 
Repayment of promissory note - related party   (64,359)   -    -    - 
Repayment of note - related party   (52,215)   -    (61,750)   - 
Proceeds from mortgage   64,359    -    61,750    - 
Repayment of mortgage   (64,359)   -    -    - 
Net cash used in financing activities   (191,169)   -    -    - 
                     
NET INCREASE IN CASH   1,426    1,455    3,168    1,014 
                     
CASH BALANCE - BEGINNING OF PERIOD   21,582    2,137    3,148    3,737 
                     
CASH BALANCE - END OF PERIOD  $23,008   $3,592   $6,316   $4,751 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-49

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 2505
Oak Circle		   Landa Series 271
Timber Wolf Trail		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $2,740   $1,313   $1,640   $1,832 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,525    1,424    1,891    1,801 
Amortization of debt discount   -    187    -    794 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (595)   -    (579)   - 
Decrease in accounts receivable, net   -    -    -    - 
(Increase) decrease in other assets   -    (1,083)   -    1,900 
(Increase) decrease in due from related party   -    (20)   1,101    (2,075)
Increase (decrease) in other liabilities   (371)   453    (602)   426 
Increase in due to related party   1,514    -    -    - 
Net cash provided by operating activities   4,813    2,274    3,451    4,678 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   -    -    -    - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   -    -    -    - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   -    -    -    - 
Shareholder Dividends   -    -    -    - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   (76,700)   -    (62,400)   - 
Proceeds from mortgage   76,700    -    62,400    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   -    -    -    - 
                     
NET INCREASE IN CASH   4,813    2,274    3,451    4,678 
                     
CASH BALANCE - BEGINNING OF PERIOD   3,723    70    3,649    1,230 
                     
CASH BALANCE - END OF PERIOD  $8,536   $2,344   $7,100   $5,908 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-50

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 29
Holly Grove Road		   Landa Series 1703
Summerwoods Lane(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(363)  $(491)  $436   $        - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   1,537    1,564    1,708    - 
Amortization of debt discount   -    329    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (726)   -    (1,186)   - 
Decrease in accounts receivable, net   -    -    -    - 
Increase in other assets   -    (10)   -    - 
(Increase) decrease in due from related party   2,201    (557)   (1,597)   - 
Increase (decrease) in other liabilities   (768)   384    1,948    - 
Increase in due to related party   -    -    -    - 
Net cash provided by operating activities   1,881    1,219    1,309    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   -    -    (111,604)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   -    -    (111,604)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   -    -    37,293    - 
Shareholder Dividends   -    -    (1,461)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   (84,500)   -    -    - 
Proceeds from mortgage   84,500    -    77,925    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   -    -    113,757    - 
                     
NET INCREASE IN CASH   1,880    1,219    3,462    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   3,001    2,766    -    - 
                     
CASH BALANCE - END OF PERIOD  $4,881   $3,985   $3,462   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-51

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1712
Summerwoods Lane(2)		   Landa Series 1743
Summerwoods Lane(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $280   $      -   $660   $      - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,708    -    1,708    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,193)   -    (1,183)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   875    -    975    - 
Increase in due to related party   46,392    -    776    - 
Net cash provided by operating activities   48,062    -    2,936    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (111,604)   -    (111,604)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (111,604)   -    (111,604)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   46,207    -    35,846    - 
Shareholder Dividends   (1,604)   -    (1,398)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   67,535    -    77,925    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   112,138    -    112,373    - 
                     
NET INCREASE IN CASH   48,596    -    3,705    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $48,596   $-   $3,705   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-52

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1750
Summerwoods Lane(2)		   Landa Series 4267
High Park Lane(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $25   $         -   $(1,161)  $       - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   1,708    -    2,282    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,259)   -    (794)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   875    -    1,207    - 
Increase in due to related party   164    -    47,108    - 
Net cash provided by operating activities   1,513    -    48,642    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (111,604)   -    (149,075)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (111,604)   -    (149,075)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   35,840    -    47,597    - 
Shareholder Dividends   (957)   -    (1,442)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   77,925    -    104,250    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   112,808    -    150,405    - 
                     
NET INCREASE IN CASH   2,717    -    49,972    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $2,717   $-   $49,972   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-53

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 4474
Highwood Park Drive(2)		   Landa Series 8569
Creekwood Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(1,714)  $      -   $647   $        - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   2,053    -    1,252    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,061)   -    (623)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   1,125    -    835    - 
Increase in due to related party   4,664    -    3,099    - 
Net cash provided by operating activities   5,067    -    5,210    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (134,130)   -    (81,820)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (134,130)   -    (81,820)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   43,401    -    34,032    - 
Shareholder Dividends   (962)   -    (1,501)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   93,750    -    49,400    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   136,189    -    81,931    - 
                     
NET INCREASE IN CASH   7,126    -    5,321    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $7,126   $-   $5,321   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-54

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 9439
Lakeview Road(2)		   Landa Series 10167
Port Royal Court(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(2,735)  $        -   $1,048   $           - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   2,722    -    1,662    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,196)   -    (1,121)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    (872)   - 
Increase in other liabilities   1,307    -    1,050    - 
Increase in due to related party   57,719    -    -    - 
Net cash provided by operating activities   57,817    -    1,767    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (177,792)   -    (108,564)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (177,792)   -    (108,564)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   54,576    -    28,100    - 
Shareholder Dividends   (1,073)   -    (1,956)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   124,425    -    82,500    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   177,928    -    108,644    - 
                     
NET INCREASE IN CASH   57,953    -    1,847    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $57,953   $-   $1,847   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-55

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 1246
Elgin Way(2)		   Landa Series 1910
Grove Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $1,317   $        -   $(9,515)  $            - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   2,006    -    1,571    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,354)   -    (1,159)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   (751)   -    -    - 
Increase in other liabilities   1,150    -    1,265    - 
Increase in due to related party   -    -    19,658    - 
Net cash provided by operating activities   2,368    -    11,820    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (131,074)   -    (102,638)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (131,074)   -    (102,638)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   38,184    -    22,062    - 
Shareholder Dividends   (2,065)   -    (991)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   95,250    -    82,500    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   131,369    -    103,571    - 
                     
NET INCREASE IN CASH   2,663    -    12,753    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $2,663   $-   $12,753   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-56

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 593
Country Lane Drive(2)		   Landa Series 6436
Stone Terrace(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $1,049   $       -   $1,653   $       - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,440    -    904    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,262)   -    (756)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   (534)   -    (1,063)   - 
Increase in other liabilities   971    -    1,000    - 
Increase in due to related party   -    -    -    - 
Net cash provided by operating activities   1,664    -    1,738    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (94,079)   -    (59,371)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (94,079)   -    (59,371)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   24,592    -    15,481    - 
Shareholder Dividends   (1,774)   -    (1,755)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   71,250    -    45,000    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   94,068    -    58,726    - 
                     
NET INCREASE IN CASH   1,653    -    1,093    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $1,653   $-   $1,093   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-57

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 6440
Woodstone Terrace(2)		   Landa Series 6848
Sandy Creek Drive(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(3,737)  $       -   $1,022   $       - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   967    -    1,290    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (546)   -    (273)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    (195)   - 
Increase in other liabilities   1,320    -    1,025    - 
Increase in due to related party   4,913    -    -    - 
Net cash provided by operating activities   2,917    -    2,869    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (63,557)   -    (84,780)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (63,557)   -    (84,780)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   18,243    -    21,867    - 
Shareholder Dividends   (1,683)   -    (2,796)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   46,500    -    64,500    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   63,060    -    83,571    - 
                     
NET INCREASE IN CASH   2,420    -    1,660    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $2,420   $-   $1,660   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-58

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 687
Utoy Court(2)		   Landa Series 729
Winter Lane(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(2,923)  $      -   $(2,392)  $      - 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities-                    
Depreciation   1,724    -    1,699    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (904)   -    (1,075)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   975    -    1,060    - 
Increase in due to related party   3,533    -    578    - 
Net cash provided by (used in) operating activities   2,405    -    (130)   - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (113,297)   -    (111,627)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (113,297)   -    (111,627)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   32,865    -    31,220    - 
Shareholder Dividends   (1,802)   -    (1,646)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   82,500    -    82,500    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   113,563    -    112,074    - 
                     
NET INCREASE IN CASH   2,671    -    317    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $2,671   $-   $317   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-59

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 7349
Exeter Court(2)		   Landa Series 8645
Embrey Drive(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $1,496   $       -   $1,056   $         - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,653    -    1,776    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,171)   -    (1,073)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   (819)   -    (930)   - 
Increase in other liabilities   1,060    -    1,103    - 
Increase in due to related party   -    -    -    - 
CASH FLOWS FROM INVESTING ACTIVITIES:   2,219    -    1,932    - 
Decrease in investments                    
Proceeds from sale of real estate                    
Net cash used in investing activities   (108,601)   -    (116,705)   - 
    -    -    -    - 
CASH FLOWS FROM FINANCING ACTIVITIES:   (108,601)   -    (116,705)   - 
Shareholder Proceeds                    
Shareholder Dividends                    
Repayment of promissory note - related party   39,133    -    34,212    - 
Repayment of note - related party   (2,290)   -    (2,244)   - 
Proceeds from mortgage   -    -    -    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   71,500    -    84,750    - 
    -    -    -    - 
NET INCREASE IN CASH   108,343    -    116,718    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   1,961    -    1,945    - 
                     
CASH BALANCE - END OF PERIOD   -    -    -    - 
                     
CASH FLOWS FROM OPERATING ACTIVITIES:  $1,961   $-   $1,945   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-60

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8780
Churchill Place(2)		   Landa Series 8796
Parliament Place(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $1,077   $          -   $1,178   $          - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,980    -    1,641    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,197)   -    (1,099)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   1,260    -    1,050    - 
Increase in due to related party   42    -    30,198    - 
Net cash provided by operating activities   3,162    -    32,968    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (130,114)   -    (107,817)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used ininvesting activities   (130,114)   -    (107,817)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   38,058    -    31,083    - 
Shareholder Dividends   (2,033)   -    (2,079)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   94,500    -    78,750    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   130,525    -    107,754    - 
                     
NET INCREASE IN CASH   3,573    -    32,905    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $3,573   $-   $32,905   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-61

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8641
Ashley Way(2)		   Landa Series 8651
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $56   $        -   $1,155   $          - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   2,127    -    1,779    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,006)   -    (854)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    (782)   - 
Increase in other liabilities   975    -    800    - 
Increase in due to related party   49,033    -    -    - 
Net cash provided by operating activities   51,185    -    2,098    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (139,774)   -    (116,872)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (139,774)   -    (116,872)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   35,779    -    41,951    - 
Shareholder Dividends   (1,447)   -    (2,231)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   96,357    -    80,424    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   130,689    -    120,144    - 
                     
NET INCREASE IN CASH   42,100    -    5,370    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $42,100   $-   $5,370   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-62

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8652
Ashley Way(2)		   Landa Series 8653
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(508)  $        -   $864   $          - 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities-                    
Depreciation   1,978    -    1,762    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (907)   -    (847)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    (5,209)   - 
Increase in other liabilities   800    -    925    - 
Increase in due to related party   59,438    -    -    - 
Net cash provided by (used in) operating activities   60,926    -    (2,505)   - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (129,960)   -    (115,782)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (129,960)   -    (115,782)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   24,893    -    57,383    - 
Shareholder Dividends   (1,699)   -    (1,895)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   76,700    -    68,250    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   99,894    -    123,738    - 
                     
NET INCREASE IN CASH   30,860    -    5,451    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $30,860   $-   $5,451   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-63

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8654
Ashley Way(2)		   Landa Series 8655
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $714   $          -   $782   $        - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,978    -    1,835    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (913)   -    (859)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   (999)   -    -    - 
Increase in other liabilities   1,050    -    950    - 
Increase in due to related party   -    -    60,212    - 
Net cash provided by operating activities   1,830    -    62,920    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (129,959)   -    (121,234)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (129,959)   -    (121,234)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   46,500    -    33,527    - 
Shareholder Dividends   (1,975)   -    (1,934)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   89,529    -    71,500    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   134,054    -    103,093    - 
                     
NET INCREASE IN CASH   5,925    -    44,779    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $5,925   $-   $44,779   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-64

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8659
Ashley Way(2)		   Landa Series 8662
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $(742)  $       -   $396   $        - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   2,099    -    2,033    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (890)   -    (914)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   900    -    975    - 
Increase in due to related party   65,240    -    55,101    - 
Net cash provided by operating activities   66,607    -    57,591    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (138,683)   -    (134,321)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (138,683)   -    (134,321)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   18,905    -    35,061    - 
Shareholder Dividends   (1,631)   -    (1,803)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   81,900    -    84,500    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   99,174    -    117,758    - 
                     
NET INCREASE IN CASH   27,098    -    41,028    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $27,098   $-   $41,028   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-65

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8668
Ashley Way(2)		   Landa Series 8670
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $141   $       -   $57   $       - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   2,181    -    2,297    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,072)   -    (1,003)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   1,025    -    1,000    - 
Increase in due to related party   59,307    -    63,859    - 
Net cash provided by operating activities   61,582    -    66,210    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (144,137)   -    (151,771)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (144,137)   -    (151,771)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   7,300    -    9,505    - 
Shareholder Dividends   (1,607)   -    (1,666)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   99,392    -    94,250    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by (used in) financing activities   105,085    -    102,089    - 
                     
NET INCREASE IN CASH   22,530    -    16,528    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $22,530   $-   $16,528   $- 

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-66

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8674
Ashley Way(2)		   Landa Series 8675
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $987   $      -   $(1,069)  $      - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   1,950    -    1,917    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (927)   -    (856)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   (722)   -    -    - 
Increase in other liabilities   1,110    -    950    - 
Increase in due to related party   -    -    44,496    - 
Net cash provided by operating activities   2,398    -    45,438    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (128,869)   -    (126,687)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (128,869)   -    (126,687)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   47,178    -    44,557    - 
Shareholder Dividends   (2,265)   -    (1,654)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   87,750    -    87,253    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   132,663    -    130,156    - 
                     
NET INCREASE IN CASH   6,192    -    48,907    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $6,192   $-   $48,907   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-67

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8677
Ashley Way(2)		   Landa Series 8678
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss)  $1,234   $        -   $(757)  $       - 
Adjustments to reconcile net income (loss) to net cash provided by operating activities-                    
Depreciation   1,802    -    2,429    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (823)   -    (1,090)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   -    -    -    - 
Increase in other liabilities   1,050    -    925    - 
Increase in due to related party   41,447    -    64,713    - 
Net cash provided by operating activities   44,710    -    66,220    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (119,053)   -    (160,496)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (119,053)   -    (160,496)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   42,664    -    10,119    - 
Shareholder Dividends   (2,231)   -    (1,094)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   81,942    -    104,000    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   122,375    -    113,025    - 
                     
NET INCREASE IN CASH   48,032    -    18,749    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $48,032   $-   $18,749   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-68

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Landa Series 8679
Ashley Way(2)		   Landa Series 8683
Ashley Way(2)		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income  $528   $       -   $887   $          - 
Adjustments to reconcile net income to net cash provided by operating activities-                    
Depreciation   1,950    -    1,785    - 
Amortization of debt discount   -    -    -    - 
Gain on sale of real estate   -    -    -    - 
Changes in assets and liabilities-                    
Increase in escrow   (1,008)   -    (879)   - 
Decrease in accounts receivable, net   -    -    -    - 
Decrease in other assets   -    -    -    - 
Increase in due from related party   (5)   -    -    - 
Increase in other liabilities   1,000    -    975    - 
Increase in due to related party   -    -    278    - 
Net cash provided by operating activities   2,465    -    3,046    - 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Decrease in investments   (128,869)   -    (117,962)   - 
Proceeds from sale of real estate   -    -    -    - 
Net cash used in investing activities   (128,869)   -    (117,962)   - 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Shareholder Proceeds   46,153    -    47,607    - 
Shareholder Dividends   (1,700)   -    (1,882)   - 
Repayment of promissory note - related party   -    -    -    - 
Repayment of note - related party   -    -    -    - 
Proceeds from mortgage   88,770    -    81,183    - 
Repayment of mortgage   -    -    -    - 
Net cash provided by financing activities   133,223    -    126,908    - 
                     
NET INCREASE IN CASH   6,819    -    11,992    - 
                     
CASH BALANCE - BEGINNING OF PERIOD   -    -    -    - 
                     
CASH BALANCE - END OF PERIOD  $6,819   $-   $11,992   $- 

  

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-69

  

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

COMBINING STATEMENTS OF CASH FLOWS

(UNAUDITED)

(CONTINUED)

 

   Total Combined
Cash Flows		 
   For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
         
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income  $115,192   $3,757 
Adjustments to reconcile net income to net cash provided by operating activities-          
Depreciation   79,318    12,983 
Amortization of debt discount   -    4,677 
Gain on sale of real estate   (142,750)   - 
Changes in assets and liabilities-          
Increase in escrow   (39,546)   - 
Decrease in accounts receivable, net   775    - 
Decrease in other assets   -    842 
(Increase) decrease in due from related party   4,219    (12,031)
Increase in other liabilities   56,902    4,352 
Increase in due to related party   817,451    - 
Net cash provided by operating activities   891,561    14,581 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Decrease in investments   (4,425,886)   - 
Proceeds from sale of real estate   339,000    - 
Net cash used in investing activities   (4,086,886)   - 
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Shareholder Proceeds   1,259,017    - 
Shareholder Dividends   (233,014)   - 
Repayment of promissory note - related party   (203,865)   - 
Repayment of note - related party   (337,565)   - 
Proceeds from mortgage   3,475,262    - 
Repayment of mortgage   (117,062)   - 
Net cash provided by financing activities   3,842,773    - 
           
NET INCREASE IN CASH   647,447    14,581 
           
CASH BALANCE - BEGINNING OF PERIOD   79,897    18,432 
           
CASH BALANCE - END OF PERIOD  $727,344   $33,013 

  

1.Activity shown through April 15, 2022, in connection with the planned sale of the Property underlying Landa Series 1701 Summerwoods Lane, located at 1701 Summerwoods Lane, Griffin, GA 30224, and the Property underlying Landa Series 1741 Park Lane, located at 1741 Park Lane, Griffin, GA 30224.

 

2.The series were qualified and commenced operations on January 9, 2022.

 

The accompanying notes are an integral part of these combining unaudited financial statements

 

F-70

 

LANDA APP LLC (LANDA APP)

LANDA APP SERIES GROUP (SERIES)

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

 

1. ORGANIZATION, NATURE OF ACTIVITIES AND GOING CONCERN

 

Landa App LLC (the “Company,” “us,” “we,” or “our”), is currently a Delaware series limited liability company organized on November 25, 2019. On April 30, 2020, the Company changed its name from Landa Properties A LLC. The Company is a wholly owned subsidiary of Landa Holdings, Inc. and currently operates under an operating agreement 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). The Company was formed to engage in the business of acquiring, managing and renting commercial and residential properties (the “Property”, and collectively, the “Properties”). The Company has created, and it is expected that the Company will continue to create, separate series of interests registered under the Company (each a “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. The Company 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. The Company and each Series grouped together, (the “Landa App Series Group,”) are herein, referred to as (the “Combined Group.”)

 

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 July 10, 2020, 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.

 

The Company is a business that has not commenced planned principal operations and has not generated revenues or profits since inception. Once the Company commences its planned principal operations which will occur after qualification, it will incur significant additional expenses. The Company is dependent upon additional capital resources for the commencement of its planned principal operations and is subject to significant risks and uncertainties, including failing to secure funding to commence the Company’s planned operations or failing to profitably operate the business.

 

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

 

As a result, the accompanying financial statements for the Combined Group 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.

 

Going Concern

 

The Combined Group’s ability to continue as a going concern for the next twelve months is dependent upon, among other things, the ability to successfully implement the business model, raise sufficient capital from outside investors and deploy such to produce profitable operating results. No assurance can be given that the Combined Group will be successful in these efforts. These factors, among others, raise substantial doubt about the ability of the Combined Group to continue as a going concern for the next twelve months from the date the financial statements are issued.

 

The financial statements do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Combined Group be unable to continue as a going concern.

 

F-71

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The combined financial statements of Landa App LLC and each of the Series are being presented on a combined basis, in accordance with U.S. GAAP (ASC 810, Consolidation) due to common control by Landa Holdings, Inc., in its capacity as manager to the Company and each Series. 

 

The combined financial statements include the forty-five (45) single-family homes located in the Atlanta metropolitan area in the state of Georgia. Each Property was acquired by each respective Series as set forth in the table below:

 

Series Name   Series Inception Date   Acquisition Date
1 Landa Series 115 Sardis Street   May 19, 2020   July 10, 2020
2 Landa Series 1394 Oakview Circle   May 19, 2020   July 10, 2020
3 Landa Series 1701 Summerwoods Lane   May 19, 2020   July 10, 2020
4 Landa Series 1741 Park Lane   May 19, 2020   July 10, 2020
5 Landa Series 209 Timber Wolf Trail   May 19, 2020   July 10, 2020
6 Landa Series 2505 Oak Circle   May 19, 2020   July 10, 2020
7 Landa Series 271 Timber Wolf Trail   May 19, 2020   July 10, 2020
8 Landa Series 29 Holly Grove Road   May 19, 2020   July 10, 2020
9 Landa Series 1703 Summerwoods Lane   January 9, 2022   January 12, 2022
10 Landa Series 1712 Summerwoods Lane   January 9, 2022   January 12, 2022
11 Landa Series 1743 Summerwoods Lane   January 9, 2022   January 12, 2022
12 Landa Series 1750 Summerwoods Lane   January 9, 2022   January 12, 2022
13 Landa Series 4267 High Park Lane   January 9, 2022   January 12, 2022
14 Landa Series 4474 Highwood Park Drive   January 9, 2022   January 12, 2022
15 Landa Series 8569 Creekwood Way   January 9, 2022   January 12, 2022
16 Landa Series 9439 Lakeview Road   January 9, 2022   January 12, 2022
17 Landa Series 10167 Port Royal Court   January 9, 2022   January 12, 2022
18 Landa Series 1246 Elgin Way   January 9, 2022   January 12, 2022
19 Landa Series 1910 Grove Way   January 9, 2022   January 12, 2022
20 Landa Series 593 Country Lane Drive   January 9, 2022   January 12, 2022
21 Landa Series 6436 Stone Terrace   January 9, 2022   January 13, 2022
22 Landa Series 6440 Woodstone Terrace   January 9, 2022   January 13, 2022
23 Landa Series 6848 Sandy Creek Drive   January 9, 2022   January 13, 2022
24 Landa Series 687 Utoy Court   January 9, 2022   January 13, 2022
25 Landa Series 729 Winter Lane   January 9, 2022   January 13, 2022
26 Landa Series 7349 Exeter Court   January 9, 2022   January 13, 2022
27 Landa Series 8645 Embrey Drive   January 9, 2022   January 13, 2022
28 Landa Series 8780 Churchill Place   January 9, 2022   January 14, 2022
29 Landa Series 8796 Parliament Place   January 9, 2022   January 13, 2022
30 Landa Series 8641 Ashley Way   January 9, 2022   January 13, 2022
31 Landa Series 8651 Ashley Way   January 9, 2022   January 13, 2022
32 Landa Series 8652 Ashley Way   January 9, 2022   January 13, 2022
33 Landa Series 8653 Ashley Way   January 9, 2022   January 13, 2022
34 Landa Series 8654 Ashley Way   January 9, 2022   January 13, 2022
35 Landa Series 8655 Ashley Way   January 9, 2022   January 14, 2022
36 Landa Series 8659 Ashley Way   January 9, 2022   January 14, 2022
37 Landa Series 8662 Ashley Way   January 9, 2022   January 14, 2022
38 Landa Series 8668 Ashley Way   January 9, 2022   January 14, 2022
39 Landa Series 8670 Ashley Way   January 9, 2022   January 14, 2022
40 Landa Series 8674 Ashley Way   January 9, 2022   January 14, 2022
41 Landa Series 8675 Ashley Way   January 9, 2022   January 14, 2022
42 Landa Series 8677 Ashley Way   January 9, 2022   January 14, 2022
43 Landa Series 8678 Ashley Way   January 9, 2022   January 14, 2022
44 Landa Series 8679 Ashley Way   January 9, 2022   January 14, 2022
45 Landa Series 8683 Ashley Way   January 9, 2022   January 14, 2022

 

F-72

 

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.

 

Cash and Cash Equivalents

 

Each Series held the following amount of cash and cash equivalents as of June 30, 2022 and December 31, 2021:

 

Series   June 30,
2022		     December 31,
2021		  
Landa Series 115 Sardis Street   $ 5,750     $ 3,270  
Landa Series 1394 Oakview Circle     3,500       3,148  
Landa Series 1701 Summerwoods Lane     39,580       38,376  
Landa Series 1741 Park Lane     23,008       21,582  
Landa Series 209 Timber Wolf Trail     6,316       3,148  
Landa Series 2505 Oak Circle     8,536       3,723  
Landa Series 271 Timber Wolf Trail     7,100       3,649  
Landa Series 29 Holly Grove Road     4,881       3,001  
Landa Series 1703 Summerwoods Lane     3,462       -  
Landa Series 1712 Summerwoods Lane     48,596       -  
Landa Series 1743 Summerwoods Lane     3,705       -  
Landa Series 1750 Summerwoods Lane     2,717       -  
Landa Series 4267 High Park Lane     49,972       -  
Landa Series 4474 Highwood Park Drive     7,126       -  
Landa Series 8569 Creekwood Way     5,321       -  
Landa Series 9439 Lakeview Road     57,953       -  
Landa Series 10167 Port Royal Court     1,847       -  
Landa Series 1246 Elgin Way     2,663       -  
Landa Series 1910 Grove Way     12,753       -  
Landa Series 593 Country Lane Drive     1,653       -  
Landa Series 6436 Stone Terrace     1,093       -  
Landa Series 6440 Woodstone Terrace     2,420       -  
Landa Series 6848 Sandy Creek Drive     1,660       -  
Landa Series 687 Utoy Court     2,671       -  
Landa Series 729 Winter Lane     317       -  
Landa Series 7349 Exeter Court     1,961       -  
Landa Series 8645 Embrey Drive     1,945       -  
Landa Series 8780 Churchill Place     3,573       -  
Landa Series 8796 Parliament Place     32,905       -  
Landa Series 8641 Ashley Way     42,100       -  
Landa Series 8651 Ashley Way     5,370       -  
Landa Series 8652 Ashley Way     30,860       -  
Landa Series 8653 Ashley Way     5,451       -  
Landa Series 8654 Ashley Way     5,925       -  
Landa Series 8655 Ashley Way     44,779       -  
Landa Series 8659 Ashley Way     27,098       -  
Landa Series 8662 Ashley Way     41,028       -  
Landa Series 8668 Ashley Way     22,530       -  
Landa Series 8670 Ashley Way     16,528       -  
Landa Series 8674 Ashley Way     6,192       -  
Landa Series 8675 Ashley Way     48,907       -  
Landa Series 8677 Ashley Way     48,032       -  
Landa Series 8678 Ashley Way     18,749       -  
Landa Series 8679 Ashley Way     6,819       -  
Landa Series 8683 Ashley Way     11,992       -  
Total Combined   $ 727,344     $ 79,897  

 

Cash includes all cash balances. Restricted cash includes tenant security deposits.

 

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

 

F-73

 

Revenue

 

Revenues are generated at the Series level. Rental revenue, net of concessions, is recognized on a straight-line basis over the term of the lease. We will periodically review the collectability of the resident receivables and record an allowance for doubtful accounts for any estimated probable losses. Bad debt expenses will be recorded within property operating and maintenance expenses in the combined financial statements.

 

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, shall initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer.

 

In July 2020, 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.

 

Real Estate Depreciation

 

Real estate properties 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 thirty years.

 

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

 

F-74

 

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, 2021 and December 31, 2020.

 

Earnings per Share

 

Basic earnings per share is calculated on the basis of weighted-average number of common shares outstanding during the year. Basic earnings per share is computed by dividing income available to members by the weighted-average common shares outstanding during the year.

 

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, 2021 and December 31, 2020.

 

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

 

The Manager will pay all costs incurred in connection with each Series’ organization, including, the Series’ registration fee and franchise tax in the states of Delaware and Georgia. In addition, the Manager will pay all costs incurred in connection with each Offering.

 

F-75

 

3. 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.

 

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, 2021 and December 31, 2020, 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-76

 

5. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES

 

The following table sets forth the net carrying amounts associated with each Series’ property by component as of June 30, 2022 and December 31, 2021.

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 115 Sardis Street  $107,314   $109,298 
Landa Series 1394 Oakview Circle   74,043    75,155 
Landa Series 1701 Summerwoods Lane   -    89,660 
Landa Series 1741 Park Lane   -    108,782 
Landa Series 209 Timber Wolf Trail   111,319    113,038 
Landa Series 2505 Oak Circle   98,611    100,135 
Landa Series 271 Timber Wolf Trail   119,909    121,800 
Landa Series 29 Holly Grove Road   93,031    94,568 
Landa Series 1703 Summerwoods Lane   109,896    - 
Landa Series 1712 Summerwoods Lane   109,896    - 
Landa Series 1743 Summerwoods Lane   109,896    - 
Landa Series 1750 Summerwoods Lane   109,896    - 
Landa Series 4267 High Park Lane   146,793    - 
Landa Series 4474 Highwood Park Drive   132,077    - 
Landa Series 8569 Creekwood Way   80,568    - 
Landa Series 9439 Lakeview Road   175,070    - 
Landa Series 10167 Port Royal Court   106,902    - 
Landa Series 1246 Elgin Way   129,068    - 
Landa Series 1910 Grove Way   101,067    - 
Landa Series 593 Country Lane Drive   92,639    - 
Landa Series 6436 Stone Terrace   58,467    - 
Landa Series 6440 Woodstone Terrace   62,590    - 
Landa Series 6848 Sandy Creek Drive   83,490    - 
Landa Series 687 Utoy Court   111,573    - 
Landa Series 729 Winter Lane   109,928    - 
Landa Series 7349 Exeter Court   106,948    - 
Landa Series 8645 Embrey Drive   114,929    - 
Landa Series 8780 Churchill Place   128,134    - 
Landa Series 8796 Parliament Place   106,176    - 
Landa Series 8641 Ashley Way   137,647    - 
Landa Series 8651 Ashley Way   115,093    - 
Landa Series 8652 Ashley Way   127,982    - 
Landa Series 8653 Ashley Way   114,020    - 
Landa Series 8654 Ashley Way   127,981    - 
Landa Series 8655 Ashley Way   119,399    - 
Landa Series 8659 Ashley Way   136,584    - 
Landa Series 8662 Ashley Way   132,288    - 
Landa Series 8668 Ashley Way   141,956    - 
Landa Series 8670 Ashley Way   149,474    - 
Landa Series 8674 Ashley Way   126,919    - 
Landa Series 8675 Ashley Way   124,770    - 
Landa Series 8677 Ashley Way   117,251    - 
Landa Series 8678 Ashley Way   158,067    - 
Landa Series 8679 Ashley Way   126,919    - 
Landa Series 8683 Ashley Way   116,177    - 
Totals  $4,962,757   $812,436 

 

F-77

 

During the six months ended from June 30, 2022 and June 30, 2021, each Series recognized the following in depreciation expense:

 

Series  For the
Six Months
Ended
June 30,
2022		   For the
Six Months
Ended
June 30,
2021		 
Landa Series 115 Sardis Street  $1,984   $1,988 
Landa Series 1394 Oakview Circle   1,112    1,128 
Landa Series 1701 Summerwoods Lane   930    1,420 
Landa Series 1741 Park Lane   1,264    1,914 
Landa Series 209 Timber Wolf Trail   1,719    1,745 
Landa Series 2505 Oak Circle   1,525    1,424 
Landa Series 271 Timber Wolf Trail   1,891    1,801 
Landa Series 29 Holly Grove Road   1,537    1,564 
Landa Series 1703 Summerwoods Lane   1,708    - 
Landa Series 1712 Summerwoods Lane   1,708    - 
Landa Series 1743 Summerwoods Lane   1,708    - 
Landa Series 1750 Summerwoods Lane   1,708    - 
Landa Series 4267 High Park Lane   2,282    - 
Landa Series 4474 Highwood Park Drive   2,053    - 
Landa Series 8569 Creekwood Way   1,252    - 
Landa Series 9439 Lakeview Road   2,722    - 
Landa Series 10167 Port Royal Court   1,662    - 
Landa Series 1246 Elgin Way   2,006    - 
Landa Series 1910 Grove Way   1,571    - 
Landa Series 593 Country Lane Drive   1,440    - 
Landa Series 6436 Stone Terrace   904    - 
Landa Series 6440 Woodstone Terrace   967    - 
Landa Series 6848 Sandy Creek Drive   1,290    - 
Landa Series 687 Utoy Court   1,724    - 
Landa Series 729 Winter Lane   1,699    - 
Landa Series 7349 Exeter Court   1,653    - 
Landa Series 8645 Embrey Drive   1,776    - 
Landa Series 8780 Churchill Place   1,980    - 
Landa Series 8796 Parliament Place   1,641    - 
Landa Series 8641 Ashley Way   2,127    - 
Landa Series 8651 Ashley Way   1,779    - 
Landa Series 8652 Ashley Way   1,978    - 
Landa Series 8653 Ashley Way   1,762    - 
Landa Series 8654 Ashley Way   1,978    - 
Landa Series 8655 Ashley Way   1,835    - 
Landa Series 8659 Ashley Way   2,099    - 
Landa Series 8662 Ashley Way   2,033    - 
Landa Series 8668 Ashley Way   2,181    - 
Landa Series 8670 Ashley Way   2,297    - 
Landa Series 8674 Ashley Way   1,950    - 
Landa Series 8675 Ashley Way   1,917    - 
Landa Series 8677 Ashley Way   1,802    - 
Landa Series 8678 Ashley Way   2,429    - 
Landa Series 8679 Ashley Way   1,950    - 
Landa Series 8683 Ashley Way   1,785    - 
Totals  $79,318   $12,983 

 

F-78

 

6. MEMBERS' EQUITY (DEFICIT)

 

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.

 

7. 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 following table sets forth the net amounts as of June 30, 2022 and December 31, 2021.

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 115 Sardis Street  $117,304   $52,515 
Landa Series 1394 Oakview Circle   -    - 
Landa Series 1701 Summerwoods Lane   -    42,788 
Landa Series 1741 Park Lane   -    52,215 
Landa Series 209 Timber Wolf Trail   58,077    53,351 
Landa Series 2505 Oak Circle   21,770    43,742 
Landa Series 271 Timber Wolf Trail   61,012    55,185 
Landa Series 29 Holly Grove Road   15,945    44,727 
Landa Series 1703 Summerwoods Lane   -    - 
Landa Series 1712 Summerwoods Lane   -    - 
Landa Series 1743 Summerwoods Lane   -    - 
Landa Series 1750 Summerwoods Lane   -    - 
Landa Series 4267 High Park Lane   -    - 
Landa Series 4474 Highwood Park Drive   -    - 
Landa Series 8569 Creekwood Way   -    - 
Landa Series 9439 Lakeview Road   -    - 
Landa Series 10167 Port Royal Court   -    - 
Landa Series 1246 Elgin Way   -    - 
Landa Series 1910 Grove Way   -    - 
Landa Series 593 Country Lane Drive   -    - 
Landa Series 6436 Stone Terrace   -    - 
Landa Series 6440 Woodstone Terrace   -    - 
Landa Series 6848 Sandy Creek Drive   -    - 
Landa Series 687 Utoy Court   -    - 
Landa Series 729 Winter Lane   -    - 
Landa Series 7349 Exeter Court   -    - 
Landa Series 8645 Embrey Drive   -    - 
Landa Series 8780 Churchill Place   -    - 
Landa Series 8796 Parliament Place   -    - 
Landa Series 8641 Ashley Way   -    - 
Landa Series 8651 Ashley Way   -    - 
Landa Series 8652 Ashley Way   -    - 
Landa Series 8653 Ashley Way   -    - 
Landa Series 8654 Ashley Way   -    - 
Landa Series 8655 Ashley Way   -    - 
Landa Series 8659 Ashley Way   -    - 
Landa Series 8662 Ashley Way   -    - 
Landa Series 8668 Ashley Way   -    - 
Landa Series 8670 Ashley Way   -    - 
Landa Series 8674 Ashley Way   -    - 
Landa Series 8675 Ashley Way   -    - 
Landa Series 8677 Ashley Way   -    - 
Landa Series 8678 Ashley Way   -    - 
Landa Series 8679 Ashley Way   -    - 
Landa Series 8683 Ashley Way   -    - 
Total Combined  $274,108   $344,523 

 

F-79

 

Related Party Refinance Notes

 

Each Series paid down, or otherwise discharged, a portion of the outstanding balance of its Acquisition Note with the proceeds from a related party refinance note issued by such Series to the Manager. Each of these related party refinance notes represented a related-party loan between each respective Series and the Manager. The related party refinance notes bore an interest rate of 4.50% and were an unsecured obligation of the applicable Series. In January 2022, the related party refinance notes were paid off with the Lender. See Note 9 below for further detail.

 

The following table sets forth the net amounts as of June 30, 2022 and December 31, 2021.

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 115 Sardis Street  $     -   $64,789 
Landa Series 1394 Oakview Circle   -    44,015 
Landa Series 1701 Summerwoods Lane   -    52,703 
Landa Series 1741 Park Lane   -    64,359 
Landa Series 209 Timber Wolf Trail   -    66,476 
Landa Series 2505 Oak Circle   -    54,728 
Landa Series 271 Timber Wolf Trail   -    68,227 
Landa Series 29 Holly Grove Road   -    55,718 
Landa Series 1703 Summerwoods Lane   -    - 
Landa Series 1712 Summerwoods Lane   -    - 
Landa Series 1743 Summerwoods Lane   -    - 
Landa Series 1750 Summerwoods Lane   -    - 
Landa Series 4267 High Park Lane   -    - 
Landa Series 4474 Highwood Park Drive   -    - 
Landa Series 8569 Creekwood Way   -    - 
Landa Series 9439 Lakeview Road   -    - 
Landa Series 10167 Port Royal Court   -    - 
Landa Series 1246 Elgin Way   -    - 
Landa Series 1910 Grove Way   -    - 
Landa Series 593 Country Lane Drive   -    - 
Landa Series 6436 Stone Terrace   -    - 
Landa Series 6440 Woodstone Terrace   -    - 
Landa Series 6848 Sandy Creek Drive   -    - 
Landa Series 687 Utoy Court   -    - 
Landa Series 729 Winter Lane   -    - 
Landa Series 7349 Exeter Court   -    - 
Landa Series 8645 Embrey Drive   -    - 
Landa Series 8780 Churchill Place   -    - 
Landa Series 8796 Parliament Place   -    - 
Landa Series 8641 Ashley Way   -    - 
Landa Series 8651 Ashley Way   -    - 
Landa Series 8652 Ashley Way   -    - 
Landa Series 8653 Ashley Way   -    - 
Landa Series 8654 Ashley Way   -    - 
Landa Series 8655 Ashley Way   -    - 
Landa Series 8659 Ashley Way   -    - 
Landa Series 8662 Ashley Way   -    - 
Landa Series 8668 Ashley Way   -    - 
Landa Series 8670 Ashley Way   -    - 
Landa Series 8674 Ashley Way   -    - 
Landa Series 8675 Ashley Way   -    - 
Landa Series 8677 Ashley Way   -    - 
Landa Series 8678 Ashley Way   -    - 
Landa Series 8679 Ashley Way   -    - 
Landa Series 8683 Ashley Way   -    - 
Total Combined  $-   $471,015 

 

F-80

 

Due from (Due to) 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, 2022 and December 31, 2021.

 

   June 30,
2022		   December 31,
2021		 
Series  Due From
(Due to)
Related
Party
(net)		   Due From
(Due to)
Related
Party
(net)		 
Landa Series 115 Sardis Street  $(564)  $(463)
Landa Series 1394 Oakview Circle   6,022    7,451 
Landa Series 1701 Summerwoods Lane   (25,356)   6,551 
Landa Series 1741 Park Lane   (8,512)   5,490 
Landa Series 209 Timber Wolf Trail   5,876    7,802 
Landa Series 2505 Oak Circle   (10,433)   (8,919)
Landa Series 271 Timber Wolf Trail   3,181    4,282 
Landa Series 29 Holly Grove Road   1,562    3,762 
Landa Series 1703 Summerwoods Lane   1,597    - 
Landa Series 1712 Summerwoods Lane   (46,392)   - 
Landa Series 1743 Summerwoods Lane   (776)   - 
Landa Series 1750 Summerwoods Lane   (164)   - 
Landa Series 4267 High Park Lane   (47,108)   - 
Landa Series 4474 Highwood Park Drive   (4,664)   - 
Landa Series 8569 Creekwood Way   (3,099)   - 
Landa Series 9439 Lakeview Road   (57,719)   - 
Landa Series 10167 Port Royal Court   872    - 
Landa Series 1246 Elgin Way   751    - 
Landa Series 1910 Grove Way   (19,658)   - 
Landa Series 593 Country Lane Drive   534    - 
Landa Series 6436 Stone Terrace   1,063    - 
Landa Series 6440 Woodstone Terrace   (4,913)   - 
Landa Series 6848 Sandy Creek Drive   195    - 
Landa Series 687 Utoy Court   (3,533)   - 
Landa Series 729 Winter Lane   (578)   - 
Landa Series 7349 Exeter Court   819    - 
Landa Series 8645 Embrey Drive   930    - 
Landa Series 8780 Churchill Place   (42)   - 
Landa Series 8796 Parliament Place   (30,198)   - 
Landa Series 8641 Ashley Way   (49,033)   - 
Landa Series 8651 Ashley Way   782    - 
Landa Series 8652 Ashley Way   (59,438)   - 
Landa Series 8653 Ashley Way   5,209    - 
Landa Series 8654 Ashley Way   999    - 
Landa Series 8655 Ashley Way   (60,212)   - 
Landa Series 8659 Ashley Way   (65,240)   - 
Landa Series 8662 Ashley Way   (55,101)   - 
Landa Series 8668 Ashley Way   (59,307)   - 
Landa Series 8670 Ashley Way   (63,859)   - 
Landa Series 8674 Ashley Way   722    - 
Landa Series 8675 Ashley Way   (44,496)   - 
Landa Series 8677 Ashley Way   (41,447)   - 
Landa Series 8678 Ashley Way   (64,713)   - 
Landa Series 8679 Ashley Way   5    - 
Landa Series 8683 Ashley Way   (278)   - 
Total Combined  $(795,714)  $25,956 

 

F-81

 

8. OTHER LIABILITIES

 

Each of the Series’ balance in other liabilities is as follows:

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 115 Sardis Street  $764   $1,564 
Landa Series 1394 Oakview Circle   2,550    2,946 
Landa Series 1701 Summerwoods Lane   14,224    3,169 
Landa Series 1741 Park Lane   14,496    2,649 
Landa Series 209 Timber Wolf Trail   1,369    2,453 
Landa Series 2505 Oak Circle   1,002    1,372 
Landa Series 271 Timber Wolf Trail   7,675    8,277 
Landa Series 29 Holly Grove Road   1,261    2,029 
Landa Series 1703 Summerwoods Lane   998    - 
Landa Series 1712 Summerwoods Lane   -    - 
Landa Series 1743 Summerwoods Lane   -    - 
Landa Series 1750 Summerwoods Lane   -    - 
Landa Series 4267 High Park Lane   -    - 
Landa Series 4474 Highwood Park Drive   -    - 
Landa Series 8569 Creekwood Way   -    - 
Landa Series 9439 Lakeview Road   100    - 
Landa Series 10167 Port Royal Court   -    - 
Landa Series 1246 Elgin Way   -    - 
Landa Series 1910 Grove Way   15    - 
Landa Series 593 Country Lane Drive   -    - 
Landa Series 6436 Stone Terrace   -    - 
Landa Series 6440 Woodstone Terrace   220    - 
Landa Series 6848 Sandy Creek Drive   -    - 
Landa Series 687 Utoy Court   -    - 
Landa Series 729 Winter Lane   -    - 
Landa Series 7349 Exeter Court   -    - 
Landa Series 8645 Embrey Drive   -    - 
Landa Series 8780 Churchill Place   -    - 
Landa Series 8796 Parliament Place   -    - 
Landa Series 8641 Ashley Way   -    - 
Landa Series 8651 Ashley Way   -    - 
Landa Series 8652 Ashley Way   -    - 
Landa Series 8653 Ashley Way   -    - 
Landa Series 8654 Ashley Way   -    - 
Landa Series 8655 Ashley Way   -    - 
Landa Series 8659 Ashley Way   -    - 
Landa Series 8662 Ashley Way   -    - 
Landa Series 8668 Ashley Way   -    - 
Landa Series 8670 Ashley Way   -    - 
Landa Series 8674 Ashley Way   -    - 
Landa Series 8675 Ashley Way   -    - 
Landa Series 8677 Ashley Way   -    - 
Landa Series 8678 Ashley Way   -    - 
Landa Series 8679 Ashley Way   -    - 
Landa Series 8683 Ashley Way   -    - 
Totals  $44,674   $24,459 

 

F-82

 

9. REFINANCE NOTE

 

In January 2022, each of the following Series entered into a commercial promissory note (“Refinance Note”) with the Lender, which bear an interest rate of 4.80%. Each Refinance Note is secured by the Property underlying the respective Series.

 

The following table sets forth the net amounts as of June 30, 2022 and December 31, 2021.

 

Series  June 30,
2022		   December 31,
2021		 
Landa Series 115 Sardis Street  $-   $- 
Landa Series 1394 Oakview Circle   44,015    - 
Landa Series 1701 Summerwoods Lane   -    - 
Landa Series 1741 Park Lane   -    - 
Landa Series 209 Timber Wolf Trail   61,750    - 
Landa Series 2505 Oak Circle   76,700    - 
Landa Series 271 Timber Wolf Trail   62,400    - 
Landa Series 29 Holly Grove Road   84,500    - 
Landa Series 1703 Summerwoods Lane   77,925    - 
Landa Series 1712 Summerwoods Lane   67,535    - 
Landa Series 1743 Summerwoods Lane   77,925    - 
Landa Series 1750 Summerwoods Lane   77,925    - 
Landa Series 4267 High Park Lane   104,250    - 
Landa Series 4474 Highwood Park Drive   93,750    - 
Landa Series 8569 Creekwood Way   49,400    - 
Landa Series 9439 Lakeview Road   124,425    - 
Landa Series 10167 Port Royal Court   82,500    - 
Landa Series 1246 Elgin Way   95,250    - 
Landa Series 1910 Grove Way   82,500    - 
Landa Series 593 Country Lane Drive   71,250    - 
Landa Series 6436 Stone Terrace   45,000    - 
Landa Series 6440 Woodstone Terrace   46,500    - 
Landa Series 6848 Sandy Creek Drive   64,500    - 
Landa Series 687 Utoy Court   82,500    - 
Landa Series 729 Winter Lane   82,500    - 
Landa Series 7349 Exeter Court   71,500    - 
Landa Series 8645 Embrey Drive   84,750    - 
Landa Series 8780 Churchill Place   94,500    - 
Landa Series 8796 Parliament Place   78,750    - 
Landa Series 8641 Ashley Way   96,357    - 
Landa Series 8651 Ashley Way   80,424    - 
Landa Series 8652 Ashley Way   76,700    - 
Landa Series 8653 Ashley Way   68,250    - 
Landa Series 8654 Ashley Way   89,529    - 
Landa Series 8655 Ashley Way   71,500    - 
Landa Series 8659 Ashley Way   81,900    - 
Landa Series 8662 Ashley Way   84,500    - 
Landa Series 8668 Ashley Way   99,392    - 
Landa Series 8670 Ashley Way   94,250    - 
Landa Series 8674 Ashley Way   87,750    - 
Landa Series 8675 Ashley Way   87,253    - 
Landa Series 8677 Ashley Way   81,942    - 
Landa Series 8678 Ashley Way   104,000    - 
Landa Series 8679 Ashley Way   88,770    - 
Landa Series 8683 Ashley Way   81,183    - 
Total Combined  $3,358,200   $- 

 

F-83

 

10. COMMITMENTS AND CONTINGENCIES

 

Legal Proceedings

 

There are no legal proceedings material to our business or financial condition pending and, to the best of our knowledge, there are no such legal proceedings contemplated or threatened.

 

11. 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 September 27, 2022, the date these unaudited financial statements were available to be issued. All significant events have been disclosed.

 

F-84

 

Item 4. Exhibit Index

 

Exhibit No.   Exhibit Description
     
2.1   Certificate of Formation of Landa Properties A LLC (incorporated by reference to the copy thereof filed as Exhibit 2.1 to the Company’s Form 1-A dated December 1, 2020)*
2.2   Certificate of Amendment to the Certificate of Formation of Landa Properties A LLC (incorporated by reference to the copy thereof filed as Exhibit 2.2 to the Company’s Form 1-A dated December 1, 2020)*
2.3   Certificate of Amendment to the Certificate of Formation of Landa Properties A LLC (incorporated by reference to the copy thereof filed as Exhibit 2.3 to the Company’s Form 1-A dated December 1, 2020)*
2.4   Amended and Restated Limited Liability Company Operating Agreement of Landa App LLC (incorporated by reference to the copy thereof filed as Exhibit 2.4 to the Company’s Form 1-A dated August 2, 2022)*
2.5   Form of Certificate of Registered Series of a Limited Liability Company for Landa App LLC**  (see the Master Series Table in the Company’s Form 1-A POS filed December 20, 2021 and “Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments”  in this Form 1-SA for material terms of each Certificate of Registered Series of a Limited Liability Company for Landa App LLC)
3.1   Form of Series Operating Agreement** (see the Master Series Table in the Company’s Form 1-A POS filed December 20, 2021 and “Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments”  in this Form 1-SA for material terms of each Series Operating Agreement)
3.2   Form of Series Designation (incorporated by reference to the copy thereof filed as Exhibit 3.1 to the Company’s Form 1-A dated August 2, 2022)* (see “Description of the Properties and the Series” in Appendix B of the Company’s Form 1-A/A dated September 15, 2022 and “Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments”  in this Form 1-SA for material terms of each Series Designation)
4.1   Form of Subscription Agreement (incorporated by reference to the copy thereof filed as Exhibit 4.1 to the Company’s Post-Effective Amendment to Form 1-A dated October 7, 2021)*
6.1   Form of Management Agreement (incorporated by reference to the copy thereof filed as Exhibit 6.30 to the Company’s Post-Effective Amendment to Form 1-A dated July 14, 2021)*
6.2   Broker Dealer Services Agreement, dated August 1, 2022, by and between Dalmore Group, LLC and Landa App LLC (incorporated by reference to the copy thereof filed as Exhibit 6.2 to the Company’s Form 1-A dated August 2, 2022)*
6.3   Landa App License Agreement, dated October 2, 2020, by and between Landa Holdings, Inc. and each of the Series listed thereto (incorporated by reference to the copy thereof filed as Exhibit 6.25 to the Company’s Form 1-A dated December 1, 2020)*
6.4   Form of Promissory Note, by and between Landa Holdings, Inc. and a Landa App Series (Acquisition Note) (incorporated by reference to the copy thereof filed as Exhibit 6.4 to the Company’s Form 1-A dated August 2, 2022)* (see “Interest of Management and Others in Certain Transactions – Related Party Loans” in the Company’s Form 1-A POS filed December 20, 2021, “Description of the Properties and the Series – Loans” in Appendix B of the Company’s Form 1-A/A dated September 15, 2022 and “Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments”  in this Form 1-SA for material terms of each Promissory Note with respect to each Series) 
6.5   PPEX ATS Company Agreement, by and among North Capital Private Securities Corporation, Landa App LLC and each of the Series set forth therein (incorporated by reference to the copy thereof filed as Exhibit 6.1 to the Company’s Form 1-U dated June 29, 2021)*
6.6   Form of GA Lease Agreement (incorporated by reference to the copy thereof submitted as Exhibit 6.1 to the Company’s Form 1-U dated June 6, 2022)* (see “Current and Previous Series Offerings – Master Series Table” in the Company’s Form 1-A POS dated December 17, 2021, the Master Series Table in Appendix A of the Company’s Form 1-A/A dated September 15, 2022 and “Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments”  in this Form 1-SA for information with respect to material business terms of each Lease Agreement with respect to each Series) 

 

* Previously filed
** Filed herewith

 

19

 

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 LLC
   
  By: Landa Holdings, Inc.,
its Manager
   
  By:

/s/ Yishai Cohen

  Name:  Yishai Cohen
  Title: Chief Executive Officer

 

Date: September 27, 2022

 

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   September 27, 2022
Yishai Cohen   President of Landa Holdings, Inc.
(Principal Executive Officer)		    
         

/s/ Charles Tomlinson

   Head of Finance of Landa Holdings, Inc.   September 27, 2022
Charles Tomlinson   (Principal Financial Officer and Principal Accounting Officer)    

 

 

20