Multi-family rentals are an incredible investment vehicle for people who want the cash flow from rental income plus the appreciation of the property over time. And if you don’t have the experience, time, or desire to manage a multi-family rental on your own, investing with Gatsby gives you access to our team of professionals who will manage all of this for you.
Since we pool capital from multiple investors, you can own a share of a multi-million-dollar property without the burden of funding the project on your own. With a low minimum investment, you can own a piece of a multi-family rental property in the elite Los Angeles real estate market. You get to benefit from all the advantages that come with this type of investment, including tax benefits, passive rental income, and property appreciation.
When you receive your share of the rental income each quarter, you have the option to reinvest the funds into new projects, which will quickly build and diversify your real estate holdings.
This is a five-year investment, with the option to renew the investment every five years.
The Los Angeles multi-family rental market experiences consistently high demand and comparatively low supply. This drives growth in both rental rates and property values, making LA multi-family a desirable investment option.
The benefits of investing in multi-family rentals
Stability.Real estate is less volatile than the stock market and has historically outperformed the S&P 500.
Cash flow.Tenants pay monthly rent to help cover property expenses and can provide profit to the investors.
Amortization.Tenants help pay down the mortgage debt, which increases your equity and can ultimately create long-term wealth.
Appreciation.Investors benefit from the growth of real estate values over time.
Tax advantages.Claim deductions on your income taxes for your real estate holdings.
Deal-by-deal control.Unlike many other real estate crowdfunding investments that simply offer a share in a fund of several unknown properties, Gatsby allows you to view the details for each individual property you want to invest in (including the address and financial breakdown).
Ownership of a piece of LA real estate.With Gatsby, you don’t just own debt-equity; you actually own a stake in the underlying real estate.
The process of multi-family rental investing
At this stage, the construction of the property has already been completed. We have filled the units with creditworthy tenants, stabilized the property, appraised it, and refinanced the loan. We then convert the investment from a multi-family renovation or development to a multi-family rental investment and offer the original investors the option to exit the investment or to continue into the ongoing rental. If any of the original investors decide to exit, we will offer their shares to new investors on a first-come, first-served basis.
Our experienced team handles every aspect of the process from start to finish. We negotiate financing options, secure the loan, oversee the property management company, handle the accounting services, quarterly investor distributions, and Schedule K-1 filings.
Two ways to get into a multi-family rental investment
- You invest early during the multi-family development or mutli-family renovation phase of the investment. After the renovation/development phase is complete, you’ll have the option to continue your shares into a five-year rental investment.
- You invest during the rental phase. This is only possible if investors in the multi-family renovation/development phase decide to sell their shares after the construction is complete. If shares are available, they will be offered to investors on a first-come, first-served basis. Please note that if all investors from the renovation/development phase decide to continue their investment into the rental phase, direct rental investments will not be available.
The option to exit or continue for another five years
Multi-family rentals are a five-year investment. Three months before the end of a five-year period, we will get a new appraisal and may refinance the property based on the interest rate and appreciation growth. When the appraisal is complete, we will contact investors to give you the option to sell your shares or to continue another five-year investment. Depending on the new financing, Gatsby may pull money out of the deal and disburse funds back to the investors that continue the investment. The process is then repeated the same way every five years.
To bring you the most lucrative 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.