The Modern Way of Investing In Real Estate!
The Modern Way of Investing In Real Estate!
Real estate is among the most profitable investments available. But traditional real estate investing requires experience, specialized knowledge, industry connections, time to manage your portfolio, large upfront capital, and exceptional credit.
With Gatsby Investment, a real estate syndication company, individual investors and fund companies can leverage the knowledge, skills, and resources of our real estate experts while we do the work for you. Your investment is completely passive! And, by pooling your funds with those from other investors, we can offer you a piece of a rare, high-valuable real estate project, for a low minimum investment amount.
Gatsby specializes in small to medium-sized projects with shorter timeframes and limited risk. We focus on value-add and ground-up construction projects where we can quickly raise the property value and increase the profitability of our investments under any market conditions.
We also partner with well-established developers and operators in different markets across the US to offer deal flow and diversification to investors. Learn more about Sponsor Partnership…
Investors have the option to invest in equity or debt. With the equity structure, you have an ownership stake in the underlying real estate. With the debt structure, you serve as a lender to the deal. With our flexible offerings, we have projects to match any of your investment goals!
Gatsby Investment’s Performance
House Flip #68A
House Flip #60A
Multi-Family Development #63A
Multi-Family Development #64A
Multi-Family Development #66A
Short and long-term investment options
With our low minimum investment amounts and flexible timeframes, you can spread your investments over multiple projects to create a diverse real estate portfolio.
Built to sell
Est. return 15% to 20%
Built to sell
Est. return 20% to 25%
Est. return 1.75x to 2.5x
Est. return 2.5x to 3.5x
Why you should invest in Los Angeles
The demand for Los Angeles real estate remains high year after year. With the largest manufacturing base in the country, a fast-growing tech industry, and an increasing number of venture capital startups, Los Angeles offers an exceptionally dynamic economy. Add the attraction of the entertainment industry, the appeal of year-round sunshine, and the desire to live in one of the most exciting cities in the world, and it’s easy to see why LA has a proven record of consistent demand.
Limited supply is another key factor in the value of the Southern California estate market. Housing in LA is sprawling and limited by geographic boundaries including the ocean to the west and the mountains to the north and east.
The high demand and low supply have driven LA to become a market leader in both rent growth and property appreciation.
10 Key Reasons to Invest with Gatsby Investment
Historical high returns:Annualized returns ranging from 10-25%. This is largely because of Gatsby’s proprietary software, automation, and proven business model we have developed over the years. Our projects are completed quickly and affordably. This efficiency leads to higher-than-normal returns.
Deal-by-deal control:Our projects are offered on a deal-by-deal basis, putting you in complete control of which properties you invest in. Before you invest, you’ll have access to the property details (including the address), financial breakdown, and a full description of what we are doing to maximize the value of the property.
Flexible terms:Choose from real estate investments ranging from 6 months to 7+ years. We even offer the option to continue your renovation or development investment into a long-term rental investment once the property is stabilized. This flexibility allows you to tailor a real estate portfolio that meets your personal goals.
Comparatively low minimum investments:Own a piece of L.A. real estate for as little as $10,000. Because of the systems Gatsby has in place, we can pool money from multiple investors to offer comparatively low minimum investments.
Valuable deals:Our industry connections allow us to locate deals with the greatest potential. Some of our acquisitions come from auction, some from broker relationships, and some are even off-market. Many of our projects would traditionally only be available to elite real estate investors using their connections to find deals that would have been inaccessible to the average investor. But with our innovative systems, Gatsby has made these deals available to the public.
Experienced professionals:Our team has successfully completed hundreds of real estate deals. By leveraging our experience, you automatically avoid the pitfalls of most real estate investors. From brokers to contractors and analysts to architects, our professionals are the best in the industry. You get to benefit from the experience, knowledge, and skill of some of the most accomplished experts in the LA market.
Security:Gatsby Investment is registered with the SEC (Securities and Exchange Commission) and files reports regularly.
Transparency:Gatsby offers complete transparency into our full track record. We allow all investors to view the financial details for every completed property.
Easy-to-use online platform:You can invest quickly and securely from your computer or smartphone from anywhere.
100% profitable track record:At Gatsby Investment, we are proud of our track record! Since the start of the company in 2016, we have never lost money on a property.
What does Gatsby Investment do for investors?
Our team is made of specialized experts who handle every detail of your real estate investment, including:
Gatsby takes care of the real estate investment process from start to finish, allowing you to maximize your return on investment from the comfort of your home.
- Market research
- Location scouting
- Analyze potential deals
- Opening and managing LLCs
- Buying the property
- Handling escrow
- Securing the loan and refinancing
- Planning the architectural design
- Obtaining the appropriate city permits to build
- Identifying building materials
- Managing the construction team
- Renovating/building the structure
- Stabilize the property
- Handling the ongoing property management for rental properties
- Project status updates to investors
- Marketing and selling properties
- Handling all financials, accounting, and Schedule K-1 filing
- Making prompt proceed payments to investors
Gatsby invests alongside you!
Each investment starts with Gatsby creating an LLC to buy the property, putting down the required deposit, and getting the property under contract.
In some cases, when we need to close a deal quickly, Gatsby purchases the property upfront before opening the investment to investors via the website. Then, as investment funds are received, we replace Gatsby’s original funds with the investor’s funds.
In other cases, Gatsby puts down the deposit only, then keeps the investment open on the website and raises the funds from the investors directly. If any amount is not raised within a certain time frame, Gatsby will then invest the remaining balance to fully fund the investment. All investments are prorated based on the time you invest in the deal.
Gatsby Investment is backed up by over $100M in private capital. Gatsby has a stake in each deal!
Why Real Estate?
Diversifying your portfolio with real estate investments is the best way to balance risk and reward.
Real estate historically generates higher than average returns, and since it’s backed by a physical asset, it’s less likely to be affected by market uncertainties that cause stock prices to fluctuate. Unlike other asset classes, real estate can also help you hedge against inflation.
|High Cash Yield||—|
|Equity Build Up|
|Average Annual Return*||25.40%||12.0%||8.0%||6.4%||6.5%||2.6%|
*Data according to NCREIF, Bloomberg, Bankrate, NYU Stern School of Business, Federal Reserve Bank of St. Louis, and Gatsby Investment calculations. All calculations assume reinvestment of dividends.
Adding Only Real Estate
What is real estate syndication?
Real estate syndication is an alternative investment type, similar to real estate crowdfunding. Capital is pooled from multiple investors, allowing people to access high-value real estate deals with a low minimum investment amount. This gives everyday investors access to deals that would normally only be available to the wealthiest investors.
Unlike most real estate crowdfunding, real estate syndication offers a true ownership share in the underlying real estate. Gatsby will form and manage a separate limited liability company (“LLC”) for each real estate investment opportunity. For each LLC, the investors are the joint members and owners of the LLC, and thus, will each hold an indirect economic interest in the underlying real property asset. With Gatsby, you’re not just an investor in a fund; you’re an indirect owner of real property in which you want to specifically invest.
The LLC will offer Class A Units to prospective investors in accordance with a Subscription Agreement and the economics and management of the LLC will be governed by an Amended and Restated Operating Agreement to which each investor will agree to be bound when he/she/it invests in the LLC. Gatsby Investment acts as the managing member and owner of Class B Units in the LLC (and has all voting rights), and the investors are the members and owners of Class A Units in the LLC. As a holder of Class A Units, you have an indirect economic interest in the single real property asset held by the LLC, and the number of Class A Units issued to you is based on the amount you invest and the value of the equity in the underlying property at the time of investment.
Tax benefits: Depreciation – 100% of the property’s depreciation expense will pass through to the investors based on their respective ownership percentages.
Economic benefits: Appreciation – Investors will benefit from the increase in value of the property over time.
Tax reporting: Schedule K-1 – The LLC will issue to each investor a Schedule K-1 at the end of each fiscal year, which can be used by the investor to prepare his/her/its tax returns.