Gatsby Investment’s Formula for Success in an Evolving Housing Market

As we have just entered a new year, we wanted to give you an overview of our 2023 real estate investment performance as well as a sneak peek at our plans for 2024. 

There’s no denying that 2023 was one of the hardest years we’ve seen in real estate since the 2008 recession. Mortgage interest rates nearly doubled from 2022 to 2023. We experienced high inflation, over-priced listings, and an extremely low supply of homes available. Gatsby Investment had to work harder and smarter than ever before to find deals with strong enough profit margins for our investors. We pushed our limits in every way to make our projects as successful as possible. 

Many of the top real estate syndication companies in the country reported losses to their investors in 2023. These companies couldn’t pivot quickly enough to adequately deal with the interest rate changes, lack of inventory, or drop in demand for commercial spaces.

Despite the challenging conditions of 2023, Gatsby Investment is proud to report another year of 100% profitable deals! We managed to return an annualized average of 15.69% to our investors in 2023. And we found 16 new projects that met our strict requirements and acquired them for our investors. 

A combination of factors contributed to our success in 2023 and continues to set Gatsby apart from othersyndicates. First, we have a strong market niche, focusing on high-demand property types and ground-up construction projects with high return potential in Los Angeles. Secondly, we shifted to smaller builds that can be completed quickly and appeal to a larger pool of buyers. Finally, our experienced industry professionals and proprietary software streamlined each project from start to finish, maximizing return potential.

Our plan for 2024 is to continue focusing on value-add and ground-up construction projects to force appreciation and limited risk for our investors.  

At this point, the Federal Reserve has signaled an end to the interest rate hikes. This has incentivized more buyers to enter the market and encouraged more property owners to consider selling. This is a good sign that the most challenging phase of this market cycle is behind us. We have already started partnering with local real estate agents, brokers, and developers to find new deals throughout LA in the coming year. 

We hope to see more inventory, offer more deals to investors, and produce higher returns in 2024!

As we all know, it is impossible to perfectly time the real estate market; by the time you think the timing is right; it’s already too late. That’s why Gatsby believes in consistent investing and focusing on strategies that make the most of variable market conditions. 

We appreciate your trust in us as your local real estate investment experts. And we look forward to serving existing investors and new investors in 2024!

View our current investment opportunities and get started today.