Real Estate Investing News and Advice!

Welcome to your source for real estate investing news, insights, and guidance.

As industry experts, we stay up-to-date with real estate market trends, and actively work to stay ahead of changing market conditions. We’re excited to share our research and analysis with you! With these market insights, and real estate investing tips, you’ll have a competitive advantage over other investors in your local market.

The topics we cover include real estate news, interesting market trends, buying and selling real estate, and managing rental properties. We also share company news from Gatsby Investment, so you’ll have the inside track as Gatsby continues to expand operations.

Want to learn even more? Click the links to view educational articles, press releases, and explainer videos.

Residential Proptech: The Good, the Bad, and the Silly

Residential proptech (shorthand for “property technology”) has exploded over the last decade, bringing amazing innovations to the residential real estate space. But it’s not all good news. The increase in Proptech has also created some less desirable outcomes, as well as some “advancements” that are just plain silly.

Let’s explore some of the ways that proptech has forever changed residential real estate. Here’s the good, the bad, and the silly of residential proptech.

The Good in Proptech

There is a lot to be excited about in the world of residential proptech. Here are some of the most impressive applications for technology in today’s residential market:

1. Remote Online Notary (RON) Services

Prior to 2011, property owners were required to meet face-to-face to have a licensed notary witness their signatures on critical documents like deeds and loan docs. Virginia was the first state to authorize remote online notary (RON) services, which allowed notaries to witness signatures via live video feed with the signatories.

Other states were slow to follow suit, but the COVID-19 pandemic forced the issue when people were encouraged to stay home and handle their business online. As of 2023, only a handful of states are holding out on the RON revolution.

In states that allow RON, owners and buyers can sign docs without leaving home or wasting money on expensive courier services.

2. Automated Property Management

Today, tech automation can handle many of the tasks that were once completed by property managers manually. These include:

Rent collection tracking,
Email reminders to tenants with past due rent.
Applicant screening,
Maintenance appointment scheduling,
Renewal rate calculations,
Lease, renewal, and disclosure generation.

This allows property managers to work more efficiently to better serve their residents and increase their properties’ profitability.

3. Smart Home Features

Smart locks, smart lights, smart doorbells, and smart temperature control are making homes safer, more comfortable, and more energy efficient. Smart features allow residents to monitor and affect their home systems directly from their phones.

So, for example, if someone rings your doorbell, you can access the doorbell camera from your phone to see who’s there and decide if you want to unlock the door for them. No more leaving your keys with the neighborhood teen who waters your plants while you’re on vacation! You can simply open the door for them at the agreed-upon time. You can even schedule the door to automatically unlock at certain times, so you don’t have to interrupt your vacation!

4. Online Real Estate Investment Platforms

Tech-based real estate investment platforms have made it easier than ever for real estate investors to access pre-vetted, professionally managed real estate development deals. This has been particularly important in the growth of real estate crowdfunding services. With crowdfunding, investors can buy into a deal for a fraction of the capital that would be required for a traditional real estate investment. And, because the deals are professionally managed, you don’t need any prior experience or market knowledge to see strong returns from your investments.

For these reasons, the global crowdfunding market is expected to grow from $11 billion in 2021 to over $250 billion by the end of the decade according to Polaris Market Research.

Learn more about crowdfunding and find out how to invest in a crowdfunded real estate project.

5. “Generative AI” for Marketing and Management

Have you used ChatGPT to write correspondence to tenants? Have you used virtual staging software to insert digital furnishings into photos of your vacant units for market purposes? Those are both examples of generative AI.

“Generative AI” is something of a misnomer, implying that artificial intelligence is creating brand-new content. What’s actually happening is that sophisticated algorithms are predicting what characters or pixels should be used to fulfill a prompt, based on existing text, images, and videos online.

While this tech is still new, and the results can be unpredictable, the algorithms are getting better with use, so you can expect this tech to continue improving.

The Bad in Proptech

Here are some of the worst outcomes of recent proptech innovations:

1. Increased Application Fraud

Renters and homebuyers now have easy access to software that can generate fraudulent documents for their rental or loan applications. Pay stubs, tax returns, bank account statements, and any other document that has traditionally been used to confirm income and assets can now be faked, leading to an increase in fraudulent applications.

In 2021, property managers and rental property owners received an estimated 11 million fraudulent rental applications.

2. Unfair Denials

Automated tenant screenings and mortgage borrower evaluations are intended to remove any human bias from determining who has access to housing. Unfortunately, the automation models are trained on existing approvals and denials, which often contain subliminal biases.

If, for example, applicants from a certain area code are historically less likely to qualify for a home loan, the evaluation algorithm may interpret this as a sign that applicants from this zip code should be given a lower eligibility score.

This can perpetuate biases while removing accountability from people who have the power to intervene for these unfairly denied borrowers or renters.

3. Obsolete Jobs

As with any technological advancement, some jobs become obsolete as tech automation replaces human labor. And, even if certain jobs aren’t made obsolete, you may need fewer workers if many of their tasks can be efficiently automated.

But there is a silver lining: studies show that tech advancements typically create as many new job opportunities as they displace.

The Silly in Proptech

And finally, here are the proptech “advancements” that are just silly:

1. Online Property Value Estimates

Having an algorithm calculate fair market values for individual properties is a brilliant idea in theory. But in practice, there are simply too many variables for online home value estimates to be accurate.

Take Zillow’s Zestimate as the industry benchmark. Zillow claims the nationwide median error rate for on-market homes is 2.4% (as of September 2023). That sounds impressive. But then you look more closely and find that:

This applies only to active listings, which have presumably been recently updated to reflect renovations and upgrades. When you look at off-market properties, the error rate jumps to 7.5%
It’s not uncommon for Zestimates to be 20% or more off from the actual market value.
The accuracy varies by market. In Pittsburg, for example, the median error rate is 12.7%.

As an example, if you have an off-market property in Detroit (where the median error rate is 8.7% and the Zestimate falls within 20% of the sales price only 78.2% of the time), a $1,000,000 Zestimate means that your home is most likely worth $800,000 to $1,200,000. But there’s still a 21.8% chance that the actual value falls outside of that range.

Unless we have bots physically combing properties to keep their conditions current, online property value estimates are a bit of a joke. You’re better off having a real estate agent complete a “comparative market analysis” to determine the real value of your home.

2. Gambling Obscene Amounts in Fad Tech

The first Bitcoin-backed mortgage originated in 2018. The first home transferred via NFT was purchased in 2022. But demand for both Bitcoin and NFTs has plummeted over the last year, providing a good lesson in the dangers of gambling large amounts of money in tech that has no proven track record of success.

While alternative investments can offer higher return potential than traditional investments, they also come with more risk. Investing more than you can afford to lose in untested proptech is just silly.

3. Dismissing Valuable Tech After One Failed Application

The NFT bust is a good example of promising tech that was improperly utilized. Without getting too technical, NFTs (non-fungible tokens) are simply unique strings of code that can be used to transfer ownership of an asset digitally. NFTs were notoriously used to create a marketplace of worthless digital cartoons. The ownership code could be bought and sold, but anyone could save a copy of the image and use it freely.

But there are legitimate proptech applications for NFTs. For example, NFTs could replace paper deeds to confirm ownership of real property. Furthermore, when combined with blockchain technology, NFTs could track ownership transfers over time, effectively eliminating the need for title searches and title insurance over time.

Don’t dismiss promising proptech because it was impractically applied.

The Bottom Line

Proptech is a broad category, with the potential to change the lives of property owners, investors, and renters. While there are a few downsides and silly uses, there is too much good in proptech to ignore.

TRD LA Real Estate Forum Event - Sponsored by Gatsby Investment

On September 21, 2023, The Real Deal hosted the annual Real Estate Forum event at the Londonderry in Los Angeles. – Sponsored by Gatsby Investment!

The Real Deal covers all the latest and greatest industry news in the City of Angels.
Over 500 real estate professionals came together attended this event to hear from the biggest names in SoCal real estate, mingle with top industry experts, and get inside intel on the next big news at the Los Angeles Forum.

A great panel of speakers gave their insight and analysis of current market conditions as well as projections for the next year. The panel included top speakers like:

Jason Oppenheim, President and Founder of The Oppenheim Group, recognized as the Best Real Estate Agent in the United States. Also, a star of two hit Netflix shows, Selling Sunset and Selling the OC. He gave insight into the luxury real estate market, as well as how the ULA mansion tax is affecting the market.

Jade Mills, from Coldwell Banker. Jade is currently ranked the #1 Agent Worldwide for Coldwell Banker and the #5 Agent Worldwide for all Brokerages. Jade has achieved the highest sales volume on record of any agent in Coldwell Banker history, just surpassing an astounding $8 Billion in career sales. Speaking on how the volume of deals is decreasing due to interest rates, and her opinion on why now may be the right time to buy.

Leo Pustilnikov, top real estate developer. He was speaking on difficulties he faces in the development industry, and how to find ways around challenges.

A great event where industry professionals could inspire and learn from each other!

Gatsby Investment was a proud sponsor of the event. All 500+ attendees wore the Gatsby Investment lanyard with our iconic blue logo.

We are looking forward to attend the next TRD Florida Forum event!

The Pros and Cons of Vacation Rentals for Real Estate Investors

According to a 2023 study of the vacation rental industry, an estimated 63% of family travelers reported that they prefer to stay in vacation rentals rather than hotels. This desire for an authentic experience in a travel destination equates to high profitability potential, with average rental rates sitting around $217 per night.

But is a vacation rental a better investment than a traditional long-term rental? And is it the right investment for you?

To help you decide if a short-term vacation rental is in your future, we’ve compiled a list of the pros and cons of vacation rentals for real estate investors.

Pros of Vacation Rentals

Let’s start with the benefits of vacation rentals as compared to long-term rentals.

1. Potential for High Rental Income

At an average rate of $217 per night, the per-night rate for vacation rentals is substantially higher than the rate for a long-term rental (which currently sits at $1,702 per month, equating to $55.96 per night). This can lead to higher cash flows with a vacation rental, even if the property sits vacant several nights per month.

2. Flexibility for Personal Use

Your vacation rental could serve double duty as both an income property and a vacation home for you. When the property is not occupied, you could stay there yourself or offer it to family and friends.

3. Peak Periods

Depending on the location, vacation rentals can experience peak periods of high demand. During holidays, spring break, or summer, for example, you might be able to charge premium rates to maximize income.

4. Quick Adjustment to Changing Rates

Unlike long-term rentals, which often come with one-year leases, vacation rentals may have a term of just a week (or even just one night). This provides flexibility to adjust rental rates and terms regularly based on market conditions and guest demand.

5. Tax Benefits

As with long-term income properties, short-term vacation rentals could qualify for various tax deductions and benefits. You might be able to deduct rental expenses and property depreciation from your income tax calculations.

Cons of Vacation Rentals

Now let’s consider the potential downsides of vacation rental investments.

1. Regulatory Challenges

Some cities have specific regulations governing vacation rentals (like New Orleans, which has a permit process and requires the property owner to live onsite). And many more cities are voting on new restrictions. So investors need to be aware of the existing regulations as well as the threat of increasing regulations.

2. High Operating Costs

The high turnover rate of vacation rentals means higher maintenance, cleaning, and marketing costs compared to long-term rentals. Keeping the property’s furnishings in good condition and keeping the property stocked with toiletries and pantry items adds to the expense.

3. Continuous Marketing and Guest Management

In addition to the financial cost, vacation rentals also come with a greater time commitment as they require ongoing marketing efforts and guest management to attract bookings, handle inquiries, coordinate check-ins, and address guest concerns. Handling this yourself is a time-consuming job, which is why many vacation rental owners hire property management companies.

4. Seasonal and Cyclical Nature

While vacation rental investors can take advantage of peak season demand, they are also susceptible to off-season lows. Reduced demand during slow seasons can result in periods of low occupancy and reduced rental income.

5. Potential Rental Risks

With so many guests coming through your property, there is an increased risk of rental cancellations or damage to the property. This can result in additional expenses for repairs, replacements, or lost rental income.

The Bottom Line

Vacation rentals come with substantial profitability potential, but they also represent a greater risk than traditional long-term rentals. Before you invest in a vacation rental, do your due diligence, have reserves ready to cover vacancies and maintenance, and prepare an exit strategy.

Buy Assets, Not Liabilities

Pop quiz: can you explain the difference between an asset and a liability?

Bonus points if you can name an asset you bought in the last year.

Here’s the answer key…

Assets are items that appreciate. This means they generally grow in value over time. Liabilities are everything else.

Take your home, for example. If you own your home, you have an asset. Over the long term, your home will increase in value. This will give you options in the future. You could sell the home to downsize to a more manageable property or enjoy a retirement community, giving you a surplus of cash to draw on in your retirement. Or, you could live in the home, “rent-free,” paying just property taxes, insurance, and maintenance. If you rent your home, you never receive the ownership benefits in the future; you continue to pay ever-increasing rental rates, even on a fixed income in retirement.

So what about your car? Super necessary, right? Unless you live in a city with a serious public transportation system, you probably need a vehicle. But that doesn’t make it an asset! Your car is still losing value every year. No matter how much you paid for it, it’s going to be worth just a fraction of that amount in a few years.

Assets vs. Liabilities

Let’s consider a few assets and a few liabilities that many American adults own.

Assets:

Real estate (your home, rental properties, land, etc.)
Financial assets (stock, bonds, mutual funds, REITs, etc.)
Intangible assets (patents, trademarks, intellectual property, copyrights, licenses, etc.)
Businesses (proprietary systems, client lists, franchises, etc.)
Collectibles (art, wine, sports memorabilia, quality furnishings, etc.)

Liabilities:

Tangible liabilities (cars, boats, electronics, mass-produced furnishings, etc.)
Intangible liabilities (loan balances, credit card balances, etc.)

Notice that many of the liabilities are useful in our everyday lives. But, just because something is useful doesn’t make it an asset.

Buying liabilities reduces your net worth.

So, one of the most widely used principles among the wealthy is this: buy assets, not liabilities.

How to Buy Assets, Not Liabilities IRL

In real life, you need to buy useful liabilities regularly. Not everything you buy will be an asset. But, you have control over your discretionary money, and you can choose to waste it on liabilities or invest it in assets.

Bonus tip: instead of flat-out buying a liability you want, buy an asset that will pay for the liability!

Example:

Let's say you have a luxury item you desperately want: a fancy watch, designer handbag, or new VR set. You plan to spend around $5,000 on this splurge. If you spend your paycheck on that item, you've traded your cash for the item, and now you watch it lose value as you enjoy it.

Instead, what if you invested in a real estate development that would generate the $5K you need? Now, you can get the liability you want plus an asset that can generate income and grow in value over time!

Win, win!

How ADUs are Changing the Landscape of Housing in CA

Accessory Dwelling Units (ADUs) have exploded in popularity over the past decade, providing numerous benefits for residents and transforming the housing landscape in California. ADUs are secondary housing units, located on the same lot as the primary residence. These units can be attached to the main house, converted from existing structures such as garages or basements, or built as standalone structures in the backyard.

Also known as guest houses, granny flats, in-law suites, or casitas, these innovative dwellings are helping to ease the housing shortage in CA while creating environmentally friendly, affordable housing. Additionally, with the state of California easing regulations and streamlining the approval process, ADUs have become a viable financial opportunity for homeowners and investors.

Adding Units to California’s Low Inventory

The well-documented California housing crisis prompted lawmakers to implement various policies with the intent of reducing barriers to constructing new units. In the late 2010s and into the 2020s, the state passed several laws that simplified ADU regulations, including reducing parking requirements, streamlining the approval process, and reducing minimum lot sizes. The state even created grants and other financial incentives to help owners fund construction.

These new units can be used to house Californians in multiple living situations. Here is a look at the demographics most likely to benefit from living in ADUs:

Students,
Young professionals,
Downsizers, and
Multi-generational households looking for separate living spaces.

And, by increasing the available inventory of units for rent, we are also stabilizing the rate of rental growth that had become untenable in recent years. In Los Angeles, for example, US Census Data shows an increase of 15.9% in the median rental rate from 2019 to 2022. While these additional units will likely not be enough to trigger any decrease in California’s high rents, they may be enough to bring the growth rate back to sustainable levels.

Promoting Sustainable Living

ADUs also provide environmental benefits. By utilizing existing infrastructure and avoiding the need for large planned community developments (complete with new roadways, electricity lines, and sewer connections), ADUs reduce carbon footprints and promote sustainable living.

Additionally, by concentrating residents in existing neighborhoods, we can build more walkable neighborhoods around a more dense populous, rather than continuing the development of sprawling suburbs. This reduces reliance on private vehicles and encourages public transportation infrastructure. Consider LA’s new Metro expansion as an example. With enough residents living centrally, more people are willing and able to use public transport, prompting investment in new rail lines.

Providing Opportunities for Homeowners and Investors

And, finally, ADUs are changing the landscape of housing in CA by allowing homeowners and investors to quickly add value to their properties.

As home values have skyrocketed, enterprising homeowners have used ADUs as a house-hacking strategy to generate income from their property. This can be used to help offset mortgage expenses and make homeownership more affordable. Or, as is the case with many “free and clear” homeowners, the passive rental income from an ADU can be used to help cover living expenses in retirement.

Investors are also finding impressive returns through ADUs as a value-add project. Take house flippers, for example. In a traditional flip, the investor would purchase a distressed property, renovate it, and resell it, hoping to make a profit. Today’s house flippers can build an ADU in addition to renovating the primary structure, thereby adding the value of a second unit without the expense of buying two separate properties. This is exactly how one group of investors earned over 19% on a 13-month project in Los Angeles.

The Bottom Line

As California continues to tackle its housing crisis, ADUs have emerged as a practical solution to increase the housing supply, create sustainable communities, and provide unique opportunities for homeowners and investors.

Whether you’re a renter, homeowner, or real estate investor, you will see ADUs change the landscape of housing in California over the coming decades.

Why “Timing the Market” Doesn’t Work

How many times have you heard stories of real estate investors buying at the bottom of the market and selling at the peak, making a killing in the process?

Before you dive into real estate investing looking to replicate the success of those investors, let’s do a quick reality check. Get-rich-quick schemes, even those based on legit investment models like real estate investing, result in losses and frustration more often than they result in impressive gains.

Now look, I’m not saying you can’t make money quickly in real estate. In fact, some real estate investors averaged returns of over 24% per year from 2017-2022 making smart investments.

What I am saying is that you should be wary of anyone who claims they know how to time the market. I guarantee luck played a bigger factor than those investors are willing to admit!

Let’s get real about timing the market. I’ll show you why it’s a fool’s errand. And what you should do instead!

By the Time You Find “The Right Time,” It’s Too Late

The real estate market is influenced by countless factors that are as unpredictable as the weather. Economic conditions, interest rates, supply and demand, and local market trends all come into play. Sure, you can watch the trends and base your investment decisions on hard data. But trends take time to show themselves. By the time you recognize something as a trend, you’ve missed the peak or valley.

Take the insane pandemic-era housing market as an example.

In April 2020, as news of the COVID outbreak spread, creating serious economic uncertainty worldwide, we watched the housing market stutter. Buyers were afraid to make a move, listings were sitting on the market longer, and home values started dipping. No one could have predicted that. All data pointed to an impending housing market stagnation.

Then, just as suddenly, and just as shockingly, buyers showed up to the market in droves as the Fed lowered interest rates to unprecedented levels. And the buying frenzy began.

In May 2020, the median sales price in the US was $299,000. By May 2022, the median was $431,830.

Buyers who waited for signs that the market was ok ended up paying more than they would have in the spring of 2020. And those who waited for the frenzy to pass ended up paying higher purchase prices and getting substantially higher interest rates.

How to Work the Market Without Timing It

If you focus on a long-term real estate investment strategy, you will always come out ahead. Why? Because real property always appreciates in the long run, even if it stumbles periodically in the short term. Think about the investors who bought at the worst time in modern history: right before the housing market collapse. The average buyer in Q1 2007 saw their property value plummet from $250K to $208K over two years. Those properties are now worth over $436K. And, those who invested in rental properties all those years ago have been enjoying the explosion in rental rates for over a decade!

Having said that, it is also possible to capitalize on short-term real estate projects. If you’re going to focus on short-term gains, don’t expect the market to do the work for you; get in there and force appreciation by adding value to your properties! This will grow the value of your properties, even in a stagnant market.

Only amateurs try to time the market. Real investors focus on strategies that work under any market conditions.

How the Work-from-Home Revolution is Shaping Urban Housing

According to a WFH Research data-collection project, nearly 30% of all work was completed from home in January 2023.

Perhaps, with the technological advancements of the last several decades, the work-from-home revolution was an inevitability. But there’s no question that the COVID pandemic of 2020 rapidly increased the revolution’s timeline. The 30% of work done from home in January 2023 represents a six-fold increase in the 2019 work-from-home rate.

Naturally, this dramatic shift in the way so many Americans work is impacting the housing market.

In this article, we will explore how the work-from-home revolution is shaping urban housing. Are remote workers really leaving cities in droves? How are new construction floorplans catering to the work-from-home crowd? And is there a way for real estate investors to capitalize on the changing needs of renters and homeowners?

Despite Urban Exodus Claims, Metro Areas are Still in High-Demand

Many have speculated that the ability to work from home has led remote workers to flee cities in search of more affordable homes with more space. While there is some evidence to support this theory, a look at the data shows that the “urban exodus” has been exaggerated in the media.

Some urban markets have indeed seen a notable decline in population, particularly tech hubs like San Francisco, which saw a population decrease of 17.74% from 2020 to early 2023. But the decline in most urban markets has been negligible. And other urban areas, including Phoenix, Las Vegas, and San Antonio, are still growing.

It’s interesting to note that the vast majority of people who leave large cities aren’t going far. Instead, they’re relocating to the suburbs. The suburbs offer larger floor plans at more affordable prices, while still being close to the amenities of the city. This also allows for flexible remote work, serving workers who are in-office some days and working remotely other days. So while proximity to the office isn’t as important as it once was, it’s still a consideration for many remote workers.

More Urban Floorplans Feature a Designated Office

As people work more hours from home, we’re seeing greater interest in floorplans with designated home office spaces. Not only is this a tax deduction for the resident, but it also provides a separation of work space and living space that many remote workers find critical for their mental well-being.

We’re now seeing lofts, dens, and additional bedrooms marketed as office spaces. And new developments are being designed to include designated office spaces.

Live/Work Lofts Provide an All-in-One Solution for Professionals

Live/work lofts are an exciting option for today’s work-from-home professionals. Knowing that fully-remote workers often miss the personal connection opportunities provided by traditional office space, innovative real estate developers are creating residential structures that incorporate shared workspaces as well as spaces for socialization.

Take the Gatsby Residence in Los Angeles, for example. This luxury live/work/play building combines private living spaces with shared work areas and resort-style amenities. With the work-from-home trend expected to continue, this type of high-end lifestyle accommodation may just be the future of urban real estate development.

The Truth Behind the Los Angeles Exodus

Media outlets have been promoting the narrative of “The Great California Exodus” since the beginning of the COVID pandemic in 2020, with a special focus on residents “fleeing” Los Angeles.

And yet, census data show increases in the population of the Los Angeles Metro Area every year since 2019.

So what is really happening here? Are we living through an LA exodus? Is the LA Exodus a myth? Or is something else going on?

The Case for the Exodus

It’s true that the population of Los Angeles County has dipped a bit. But not by as much as you might think.

Census data indicates that LA County lost around 90,000 residents from 2021 to 2022. That sounds like a lot. Until you remember that LA County is home to over 9.72 million residents. This 90,000-person exodus amounts to a loss of less than one percent.

But if you feel like everyone is leaving Los Angeles, you’re not alone. Over the last few years, we’ve all seen many media reports of another high-profile move from LA to Texas. Matthew McConaughey, Sandra Bullock, Joe Rogan, Elon Musk…even Emma Stone left La La Land for the Lone Star State.

This string of reports has cultivated an availability bias in the zeitgeist. The availability heuristic says that humans give more weight to events that we can quickly recall. With these highly visible relocations away from LA, it’s easier to recall an instance of people leaving the city than staying happily in LA (which millions of people do every year, but there’s nothing newsworthy about that).

The Case Against the Exodus

The population of LA County may have ticked down, but the population of the LA Metro Area is up.

Consider the following data, compiled by Macrotrends:

The current metro area population of Los Angeles in 2023 is 12,534,000, a 0.37% increase from 2022.
The metro area population of Los Angeles in 2022 was 12,488,000, a 0.23% increase from 2021.
The metro area population of Los Angeles in 2021 was 12,459,000, a 0.1% increase from 2020.

What does this tell us? It tells us that people might be stepping outside of Los Angeles County, but they still want to be part of the LA Community, so they’re staying close.

Take Riverside County, just east of LA County, for example. From 2020 to 2022, the population of Riverside Countygrew from 2.423 million to 2.474 million. That’s more than 1% growth per year.

The Verdict: People Want to Be in LA; They Just Need a Place to Live

The growth of Riverside County is significant because it supports the idea that people are leaving LA in search of more affordable housing. Mayor Garcetti pointed to the high cost of housing as a key factor in losing residents of the City of Los Angeles to neighboring areas where more affordable housing can be found.

This leads to a singular conclusion: creating more dwelling units to ease the housing shortage and bring rent growth to more sustainable levels, and people will gladly return to Los Angeles.

Through new multi-family developments, and the addition of ADUs (accessory dwelling units) on single-family lots, we can create more housing and help Angelinos come back home. If you build it, they will come.

Biggest Regrets of Today’s Seniors

So, we all talk about “living life to the fullest” and “no regrets!” and (for those of a certain generation) “YOLO!”
But people are still finding themselves with big regrets later in life. And, get this: half of the top six biggest regrets of today’s senior citizens are about finances.

The 6 Biggest Regrets People Have Later in Life

Here’s what people regret:

Not having invested earlier.
Being unhealthy.
Not investing in real estate.
Not saving for retirement.
Spending too little time with family.
Not sharing their feelings with others.

As a real estate investment company, Gatsby Investment isn’t going to tell you how to improve your health, spend more time with family, or express your emotions. But we can tell you how to avoid the financial regrets that so many people have!

How to Invest Earlier

Look, we get why people don’t invest earlier - when you’re young, you’re extra broke. Between student loans, car payments, increasing rent, general inflation, and wage stagnation, there’s not much money left for investing.

But here’s the thing - the money you invest when you’re young and broke has the most time to grow. You get to leverage the power of compounding interest to grow your wealth passively over decades!

Here are three tricks to make investing earlier more realistic:

Start small. Commit to setting aside just 2-3% of each paycheck for investments.
Grow your investment percentage over time. Every 6-12 months, bump up your investments by another percent of each paycheck. Before you know it, you’re saving a healthy 10-12% for investments!
Automate. Arrange to have your investment contributions pulled from your account and deposited into your investment account automatically just after payday. This way, you can’t spend the amount you’re committed to investing!

How to Save for Retirement

Look, upcoming generations have zero guarantees of social security income in the future. We have to take care of our own retirement.

Luckily, this works the same way as the “investing earlier” tips we mentioned above.

All you have to do is set up your retirement account and funnel some of your investment savings into that account each paycheck.

If you’re employed, you might have access to an “employer-sponsored retirement plan” (like a 401k). Your employer might even offer to match your contributions, basically giving you free money for retirement!

If you don’t have access to that time of retirement account, you can set up independent accounts (like a Solo 401k or IRA). Then automate those contributions so your retirement fund can grow without a single thought!

How to Start Investing in Real Estate

Regret #2: not investing in real estate. Back in the day, most Americans would invest in real estate by buying their own home. That’s still a smart move. If you have good credit, you might qualify for a home loan with just a 3% down payment, making homeownership more accessible. And then you can watch your home appreciate and own the place free and clear so you don’t have a house payment or rent to worry about in retirement!

But sky-high prices in many markets have made homeownership less affordable for Gen Z and beyond. So, people are getting creative. They’re:

Buying land and building tiny homes,
House hacking by purchasing duplexes and renting out the other unit to help cover their own housing costs, and
Investing in real estate without buying property (yep, it’s possible - we actually list 10 different ways to do it in that article!)

No Regrets!

Now that you know how to avoid the biggest financial regrets of the older generation, you can create a brighter financial future for yourself. And maybe work on your health and relationships along the way too ;)

Gatsby Investment at the NYC Real Deal Showcase + Forum 2023

Gatsby Investment had the opportunity to sponsor the Real Deal Showcase + Forum 2023 at the Metropolitan Pavilion in New York on May 4, 2023. The showcase brought together more than 3,000 real estate professionals, developers, investors, brokers, owners, architects, exhibitors and sponsors for a day of exchanges and meetings on the current and future environment of the real estate market.

Speakers like Jody Durst, President of the Durst Organization, Marty Burger, President and CEO of Silverstein Properties, Inc., and Nathan Berman, Founding Director of Metro Loft, shared their views on the post-COVID era and the latest industry trends and news.

Gatsby Investment had the pleasure of sponsoring the event with Gatsby lanyards for all 3000 attendees.

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Gatsby Investment’s Track Record

Since our founding in 2016, Gatsby Investment has successfully acquired over 85 properties as of February 1, 2025. We proudly maintain a 100% profitable track record, with no losses on any deal to date. View completed deals

19k+

Registered members on the platform

22%

Average annualized net return to investors from 2016–2024

Successfully acquired deals