Multi-family rental information
Rental properties are a good investment because they generate passive rental income as the property appreciates in value. This allows you to build equity over time. You can also benefit from property depreciation as a tax write-off every year.
Why invest in rental properties?
StabilityReal estate is less volatile and has historically outperformed the S&P 500.
Cash flowTenants pay monthly rent which can help cover expenses and provide profit to the investors.
AmortizationTenants help pay down the debt which increases your equity, creating long term wealth.
AppreciationReal estate appreciates in value over time.
Gatsby investment takes care of the full process from start to finish. We find the deal, negotiate the purchase price and financing options, secure the loan, buy, and sell the property. We oversee the Trust and property management company, as well as handle the accounting services and investor distributions.
Before purchasing a property, our experts look at the neighborhood’s market value, rental pricing, and occupancy rates. We review all financials and calculate the rent-to-value ratio, interest rates, as well as projected rent increase and appreciation for the next five years, to ensure a profitable result.
We focus on Los Angeles County, specifically, due to its shortage of homes and high demand. Los Angeles is a market leader in property appreciation and rental increase.
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.
A rental property is typically a five-year investment. Once the first five-year period is over, Gatsby Investment has the right to decide whether to renew for an additional five years or sell the property.
If Gatsby decides to sell, we put the property on the market for sale and close the investment. If Gatsby extends the investment for another five years, investors have the option to renew. Every investor in the series can choose to either renew the investment or sell their share. However, their shares can only be sold to the existing investors in the series, at fair market value. If no investors in the series want to buy the other shareholder out, Gatsby will sell the property.
The minimum investment requirement can vary for each house, starting at $50,000.
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.
Profit from the rental income, if any, is disbursed on a quarterly basis.
Profit from the sale of the property, if any, along with the initial investment, is disbursed 10 days after closing escrow.
All properties are held through a Delaware Statutory Trust. The Trust provides limited protections to the investors so that their personal assets are not at risk for Trust liabilities. Every property within a Trust is held in its own series under the terms of the Master Trust Agreement.
Our investments are offered in three different stages. We do this to give you better insight to our current and upcoming opportunities. Below you will find a detailed explanation of each stage.
Pre-investments are for upcoming investment opportunities. If you would like to participate in the next project, we recommend that you submit a pre-investment request to reserve your spot. To reserve a spot is free, and you are under no obligation to activate the investment request.
Pre-investments have no property assigned to the project. The return percentage, time frame, and financials are estimated based on our historical data. Once a property is selected, the return percentage, time frame and financials will be updated to reflect the specific property, and the project moves to “Open investment.” At that point, you will be notified, and you will have 3 business days to complete the wire transfer to activate your investment request.
Open investments are ready for investment today. These projects have a property assigned and the return percentage, time frame, and financials are updated to reflect the actual property. The specifics of the property can be found by clicking “View details” on the investment page.
You can select the investment amount and initiate a wire transfer. You have 3 business days to complete your wire transfer to activate your investment.
When an open investment has been fully funded it moves to “In progress” and is no longer open for investment. You can track the status of your investments from start to finish directly from your investor dashboard.
The “Coming soon” projects are future investment opportunities. You will be notified once these projects become available.