Single-family home renovations offer the opportunity to get in and out of a deal quickly with a low minimum investment and the potential for high returns.
Our team of real estate experts invested several years in developing a proven system to maximize profits. It starts with scouting properties with the most potential. We focus on single-family houses under $1 million, which are in high demand in Los Angeles due to low inventory. Through our industry connections, we find properties that many investors might not have access to including pocket listings, homes at auction, and even off-market properties.
Buying distressed homes through our carefully developed system allows our experienced team of architects, builders, and designers to quickly add value. And now you can take advantage of our business model for efficiently optimizing renovations and producing high yields.
The benefits of investing in single-family renovations
Comparatively low minimum investment amounts.Investors can buy into these single-family renovation investments deals for as little as $25,000. With Gatsby’s automated platform and established system for handling renovations, we make it possible for investors to take advantage of low minimum amounts.
Short-term.With the average renovation taking between 6 and 12 months, you can get in and out without tying up your capital for a long period.
Long-term options for recurring income.If you’d rather keep your money invested to benefit from passive rental income, simply choose one of our single-family renovation projects with the rental option.
Deal-by-deal control.Our projects are offered on a deal-by-deal basis, putting you in complete control of which properties you invest in. Before you invest, you’ll have access to the property details (including the address), financial breakdown, and a full description of what we are doing to maximize the value of the property.
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 single-family renovation investing
Before initiating a purchase, our experts analyze hundreds of homes to find one with the potential for great transformation. We estimate the cost of construction in comparison to the anticipated sales price to ensure a profitable result. We negotiate to buy the property under the most favorable terms possible. The home then goes through extensive interior and exterior renovations. We work with award-winning architects, Landry Design Group, to create our custom design, layout, and color combinations to create a stunning before and after result. Each house is unique, so we look for ways to add the most value based on the individual property’s needs. This could mean changing the layout, landscaping, hardscaping, adding square footage, building a brand-new ADU (Accessory Dwelling Unit), or all the above. Because we have a large construction team, we can delegate workers to different projects simultaneously, allowing us to complete projects in remarkable time.
The option to continue into a rental investment
If you’re interested in long-term cash flow and appreciation, we have an interesting investment option for you. Some of our single-family home remodels with an option to continue your investment into a long-term rental.
Our real estate analysts will determine if a renovation project should be held in our long-term portfolio based on rental income potential and appreciation. If it makes sense financially, we will offer investors the opportunity to continue into a rental investment. By continuing into rental, you take advantage of tax benefits, property appreciation, and passive rental income.
Another benefit of continuing into rental is that we can pull money out of the deal. A house remodel project is an all-cash deal. When we convert the investment to a rental, we secure a mortgage loan. This way we only need to keep the down payment of the property and can disburse the balance back to the investors.
If you decide to continue into a rental holding, this will be a five-year investment. Our professional property managers will then handle the day-to-day operations of the property.
At the end of the hold period, you may have the option once again to continue the investment for another five years or to sell your shares in the property.
See our single-family rental page for more information on rentals.
The option to exit after the renovation 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 renovation 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 single-family renovation 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.