Luxury Home Development Information
For these development projects, we build new luxury homes from the ground up. By focusing on luxury estates in the $5 million to $15 million range, we’re able to access a wide range of buyers and renters once the development is complete.
The Los Angeles real estate market is a prime location for luxury new construction. Submarkets like Beverly Hills, Bel Air, Pacific Palisades, Brentwood, and the Hollywood Hills are full of buyers looking for a piece of luxury real estate. Investors can enjoy the opportunity to profit from investing early in these developments.
We offer you a chance to own a share of a one-of-a-kind luxury development in one of the most exclusive neighborhoods of LA.
The benefits of investing in a luxury home development
The rare opportunity to own a share of a prestigious development in LA.Luxury real estate is typically reserved for investors with the means to fund the project independently. With Gatsby, you can own a share of these unique properties.
Access to high-value luxury deals for a low minimum amount.Because we pool funds from multiple investors, you can buy into a multi-million-dollar luxury development for a low minimum investment.
Potential for higher-than-average returns.With our investment model of building from the ground up, our luxury homes have exceptional profitability potential.
Deal-by-deal control.Choose which specific properties you want to invest in with Gatsby. You get access to the property details (including the address), financial breakdown, and development plan for each of our projects.
The process of luxury home development investing
The process of building a luxury home starts with finding a suitable land to build on. Our real estate experts analyze dozens of properties in exclusive zip codes before choosing one with the highest potential yields. We consider vacant lots as well as lots with existing structures that can be removed to build a luxury home from the ground up.
We analyze the location, zoning code, lot size, and buildable square footage, as well as the neighborhood’s market value. Our experts also estimate the building costs in comparison to the after-construction value to ensure a profitable result. We negotiate the most favorable terms for the purchase of the property on which to develop our luxury estate. Then we begin the permit process, which can take several years for new construction projects in prime locations. Only when we have the permits to build do we start accepting investor funding. This allows us to give investors a better idea of the expected time frame, financial details, and return on investment.
In most cases, we tear down an existing structure and grade the lot for the new structure according to design plans. We work with the award-winning architects Landry Design Group to create our custom home designs. For more than 30 years, they have created world-class homes with innovative architecture and uncompromising quality. Every year since 2000, they have been listed among “The world’s top 100 greatest architects.”
Our construction team then gets to work building the structure on the prepared lot in accordance with the architect’s design. Because we have the most skilled construction team in the area, we can complete high-quality builds in reasonable time frames, leading to less uncertainty and faster payouts for our investors.
Then our interior design and staging teams get the property market-ready for today’s high-end luxury buyers and renters.
The option to continue into a rental investment
Our luxury development projects come with two different options. If you want to invest your money in the development phase and exit once it is complete, that is possible. But some of our properties also come with an option to continue into a long-term luxury rental investment.
Our real estate analysts will review the rental income and appreciation potential of each development to determine if it should be held in our long-term portfolio. If it makes financial sense for the investors, we will offer the option for you to continue with the next phase of the property as we rent it to qualified tenants. This allows you to take advantage of tax benefits, property appreciation, and passive rental income.
Another benefit of continuing into a rental investment is that you can choose to reinvest your profits from the development (to compound your interest in the rental phase of the project) or to pull them out of the deal and continue only with the initial investment amount. Please note that your shares may be deluded based on the amount you invest in the rental phase of the deal.
If you decide to continue your investment from the development phase into the rental phase, you can lock in a five-year investment. Every five years, we will reevaluate the property and give investors the option to continue their investment for another five years.
See our luxury home rental page for more information on rentals.
The option to exit after the development phase
If you prefer a short-term investment and don’t want to continue into a long-term rental, you can exit the investment once the development phase is complete. New investors will then have the chance to purchase your shares based on the property’s new appraised value.
To bring you the most lucrative luxury home development 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:
- Coming soon. A sneak peek at the potential deals we’re lining up for the future.
- Pre-investment. A no-cost, no-obligation way to reserve your spot in an investment type until we have secured a property.
- Open investment. The project is open to investors. You can transfer your investment funds and confirm your ownership stake in the property right away.