Single-Family Development
Single-Family Development
Opportunistic - Ground-Up Construction
- Single-family homes
- 18–24 months
- Build-to-sell
Investing in Single-Family New Developments
Gatsby’s single-family development projects are built from the ground up. We focus on markets with a shortage of homes, which allows us to meet the demand of a wide range of buyers. We have experience in affordable builds, luxury builds, and everything in between. We match our development designs to the demand in the local market to maximize return potential.
Gatsby proudly offers you a chance to own a share of a home development with a low investment amount. And, because the professionals at Gatsby handle every detail for you, your returns are completely passive.
The Benefits of Investing in Single-Family Home Development
Single-Family Development Transformations
The Process of Single-Family Development Investing
Choosing the Right Lot
The process of building a single-family home starts with finding a suitable parcel of land. Our real estate experts analyze dozens of properties in growing neighborhoods before choosing the one with the highest potential yields. We consider raw land and vacant lots with the right zoning to build a home from the ground up. In some cases, we also target larger lots with two parcels, in which we do a subdivision of the lot and build two separate properties.
We evaluate the location, zoning code, lot size, and buildable square footage, as well as the neighborhood’s market value and demand. Our experts also estimate the building costs in comparison to the after-construction value to ensure a profitable result and negotiate the most favorable terms for the purchase of the property.
Securing the Property
When our real estate experts are satisfied that we have a winning property for our investors, we complete the final round of due diligence work. This is when we make sure the title to the property is clear, and that there are no permit restrictions. We then open the ownership LLC in which the property will be held, secure any financing needed, complete all title and escrow documents, and successfully close the deal.
Designing the Property
For affordable homes, we stick to reasonably-priced materials and appliances that are still of good quality. We limit amenities and focus on functional homes that can meet a wide range of budget-conscious buyers.
For luxury homes, we consider adding custom amenities, including pools, home theaters, fitness studios, and smart home technologies, to exceed high-end buyer expectations and add further value to the development.
Building the House
When the designs are complete, we begin the permit process. Once the building permits are approved, our construction team can get to work building the structure on the prepared lot in accordance with the architect’s design.
Selling the Property
When the construction is complete, we stage the home, take final photos of the property, list the property on the market for sale, and advertise it to qualified buyers.
Timeframe
A home development project takes approximately 18-24 months. The timeline starts the day we open escrow for purchasing the property, followed by designing and permitting, construction, and then finishing with the property sale. Once the property has sold and escrow closed, Gatsby sends the disbursements to investors within 30 business days.
Placing and Tracking an Investment
All investment opportunities are offered directly on the website under the tab “Invest” when clicking “View All Investments.”
You can click on any investment project to view detailed information about that specific deal. Details include the property address, financial breakdown, estimated timeframe, investment strategy, area comps, and photos of the property. There is also an ROI calculator feature available for each project that states the minimum and maximum investment available. This calculator also allows you to enter an investment amount and view your estimated target share in the property and projected ROI.
Placing an investment is easy! The website will guide you step-by-step to finalize your investment request. Once your investment has been placed, you will be given the wire transfer and ACH instructions. You will then have five business days to send the funds and secure your place in the investment.
Once the investment is active, you can track your investment from start to finish through the user-friendly online dashboard. You’ll be able to see the project’s progress bar as well as progress photos of the renovation and ADU construction. We also send email updates when the project moves from one status to another.
When a project is completed and sold, you will receive your disbursements via wire transfer. After receiving the funds, you can enjoy your proceeds or look for new investment opportunities to continue to grow!