House Flip Information

House flips are a great option if you are looking for a short-term investment with the potential to yield great profits. We specialize in flipping distressed single-family houses under $1 million because of their high demand. These homes have great potential for added value and easy financing options for buyers, making them easier to sell.

The process

Before initiating a purchase, our experts identify the property’s potential for transformation. Our experts estimate the cost of construction in comparison to the anticipated sale price, to ensure a profitable result.

Each house is unique, so we look for ways to add the most value based on the individual property’s needs. All houses go through extensive interior and exterior renovations, as well as landscaping and hardscaping. We work with award-winning architects to produce our custom design, layout, and color combinations. Due to the size of our construction team, we can delegate our workers to different areas simultaneously, allowing us to complete projects in remarkable time.

Location

Los Angeles is one of the most dynamic economies in the world, with a fast-growing tech industry, the nation’s largest manufacturing base, and an increasing amount of venture capital investment startups.

The city has a winning combination of limited supply, proven demand, world recognition, strong geographics, and the best year-round weather. All this mitigates downside risk.

Time frame

A fix and flip project is approximately a 6- to 12-month investment. The timeline starts the day we open escrow, followed by purchasing, designing, permitting, renovation, and ends the day we close sale escrow. After that, the accounting team will calculate the profit and disburse the money to the investors within 10 days.

NOTE: Times frames are subject to change. Past performance does not assure future results.

Financials

The minimum investment requirement can vary for each house, starting at $10,000.

Each investment opportunity has a different estimated return percentage and service fee. Choose a property that interests you and click “View details” to see the financial breakdown.

Security

All properties are held through an 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.

Investment stages

To bring you the most lucrative house flip investment opportunities, Gatsby follows market trends closely and is always on the search for new deals. We want to keep you in the loop on potential investments as we find them.

Our projects follow three investment stages:

1. Coming soon

Coming soon investments offer you a sneak peek at deals we will be offering in the future. You can view the property description and estimated financials for projects that will be coming available in the future. You will be notified once these opportunities are open for investment.

2. Pre-investment

The pre-investment stage allows you to reserve a spot in an upcoming project while we are bidding on the next deal. There is no cost to hold a spot, no wire transfer is required, and you are under no obligation to activate the investment once a property is secured.

Some investments fill up quickly, so it’s best to reserve your spot at the pre-investment stage whenever possible.

Pre-investments also help us to understand what types of investments you’re most interested in, so we can focus on finding those deals. We will determine what project to open next based on the pre-investment amounts raised.

At the pre-investment stage, you’ll be able to view the estimated return percentage, time frame, and financials based on our track record of completed properties. Once a property has been selected, the return percentage, time frame, and financials will be updated to reflect the specific property, and the status will change to Open Investment. Investors who reserved a spot during the pre-investment stage will be notified via email when the project is open for investment, and you will have five business days to complete the wire transfer to activate your investment.

3. Open investment

Open investments are ready to accept funding today.

Open investments start with Gatsby creating an LLC to buy the property, putting down the required deposit, and getting the property under contract. We then offer the investment opportunity for up to 60 days or until the project is fully funded. If the full amount is not raised within this timeframe, Gatsby will invest the balance into the property and close the investment opportunity.

To place an investment, simply select the amount you wish to invest. You will have five business days to complete the wire transfer to activate your investment. You can then track the status of your investment from start to finish directly from your investor dashboard. You will receive a legal certificate to confirm your status as a member of the LLC that owns the particular property in which you invested. This certificate will also confirm the number of shares you own.

Do you want to learn more about our investment opportunities?