We offer investment opportunities ranging from six months to five years. Many of our long-term rentals offer the option to continue your investment in five-year increments after the initial investment period.
The time frame starts on the day we get a property under contract and ends the day we close escrow on the sale of the property (or the day we close on the refinancing of the property).
The time frame for each project is listed on the details page of each investment offering.
NOTE: All time frames represent our best estimate of the time it will take to complete an investment. Time frames cannot be guaranteed.
ROI does not consider any time frame; it only states how much return on investment a project made as a whole. The annualized return shows the ROI over a 12-month period. The annual return is useful when comparing investments because it allows investors to see how each investment performs over a standard one-year period.
The pre-investment stage allows you to reserve a spot in an upcoming project while we are bidding on the next deal. There is no cost to hold a spot, no wire transfer is required, and you are under no obligation to activate the investment once a property is secured.
Some investments fill up quickly, so it’s best to reserve your spot at the pre-investment stage whenever possible.
Pre-investments also help us to understand what types of investments you’re most interested in, so we can focus on finding those deals. We will determine what project to open next based on the pre-investment amounts raised.
At the pre-investment stage, you’ll be able to view the estimated return percentage, time frame, and financials based on our track record of completed properties. Once a property has been selected, the return percentage, time frame, and financials will be updated to reflect the specific property, and the status will change to Open Investment. Investors who reserved a spot during the pre-investment stage will be notified via email when the project is open for investment, and you will have five business days to complete the wire transfer to activate your investment.
Open investments are ready to accept funding today. You can view the property details, financial breakdown, and a full description of our plans for the property. And you can wire your investment to join the project with an ownership stake.
Coming soon investments offer a sneak peek at deals we will be offering in the future. You can view the property description and estimated financials for projects that will be coming available. You will be notified once these opportunities are open for investment.
At the coming soon investment stage, you’ll be able to view the estimated return percentage, time frame, and financials based on our track record of completed properties as well as projections for the upcoming project. Once a property has been selected, the return percentage and financials will be updated to reflect the specific property, and the status will change to “Open Investment.”
Selected projects come with an option to continue your investment in the initial development/renovation into a long-term rental investment. If you are interested in long-term investments, please check each opportunity for details, and simply choose a property that comes with the option to continue into the rental phase.
To invest with Gatsby Investment, you need to be 18 or older and be verified as an accredited investor.
There are four different ways to qualify as an accredited investor. If you meet any one of these four requirements, you can be verified:
- Individuals who have earned $200,000 or more in gross income, each year, for the past two years and expect to continue to do so.
- Individuals whose gross income, when combined with a spouse's income, totals $300,000 or more, each year, for the past two years and expect to continue to do so.
- Individuals who maintain a net worth of $1 million or more, excluding the value of his or her primary residence.
- An entity with at least $5 million in assets, or a business in which all equity owners are accredited investors.
Gatsby offers free verification through a confidential third-party service, Verify Investor. Once you create your Gatsby account, you will be guided step-by-step to the online accredited investor application.
Before you start the accredited application, please make sure you have at least one of the following documents available:
Individuals and retirement accounts:
- Proof of income for the past 2 years (W-2, Schedule K-1, or 1099)
- Proof of income, combined with your spouse, for the past 2 years (W-2, Schedule K-1, or 1099)
- A verification letter, signed by a CPA or licensed attorney within the last 90 days
- Documentation of assets proving you have a net worth of at least $1,000,000, excluding your primary residence (documentation could include a property deed or other evidence of ownership, bank statements or letter from a financial institution, or vehicle title that shows ownership along with a professional valuation)
- Proof that each equity owner is an accredited investor. Each owner needs to show proof of income for the past 2 years, individually or combined with your spouse, with a W-2, Schedule K-1, or 1099
- A verification letter, signed by a CPA or licensed attorney within the last 90 days
- Proof of assets exceeding $5,000,000 (like a formal valuation from a valuation professional or accountant)
SEC regulations require that investors be accredited to invest in certain investment types, including Gatsby’s real estate syndication investment opportunities.
The SEC oversees most financial securities traded among members of the general public. This is generally a good thing because it provides a layer of protection for investors lacking experience or knowledge. But sophisticated investors want access to investment opportunities that the SEC doesn’t directly regulate. So the SEC created this accredited investor status to allow members of the general public to access innovative investment types. Being verified as an accredited investor means you’re deemed financially savvy enough to make sound decisions with your investment capital.
An accredited investor verification is valid for up to 90 days. You must make your first investment and complete the wire transfer within this time frame to avoid having to apply again. Once you have made your first investment, your verification remains valid with Gatsby Investment permanently.
Unfortunately not. In order to invest any amount in any Gatsby project, you need to be verified as an accredited investor.
Yes, you can invest through certain retirement account types, including traditional IRAs, IRA LLCs, self-directed IRAs, Solo 401(k)s, and individual 401(k)s. Each investment property can accept up to 25% of the total raised amount from retirement accounts.
You can invest as an individual, as a company, as an international investor, and through a retirement account. Learn more about investor options.
Once you place your investment(s), you will be provided with instructions to complete an online wire transfer. You will have 5 business days to complete the wire to activate your investment. Each investment has a unique reference code, marked in red. Make sure you include this code when wiring the money.
Please note that if you have a daily wire transfer limit, you can do multiple wires on separate days until you reach your total investment amount. In this case, make sure you include the same reference code in all your wires.
NOTE: We cannot accept ACH, credit cards, personal checks, or any other form of payment besides wire transfer.
Yes. Once you have wired your investment funds and your investment becomes active, you can view and download a property certificate. This certificate includes your full name, property address, investment amount, and target share in the property. It also confirms your ownership stake in the underlying real estate owned by the LLC.
The certificate can be found under “My Investment” in the “Account” tab. Simply click on the investment for which you wish to view the property certificate.
The LLC will offer Class A Units to prospective investors in accordance with a Subscription Agreement. The economics and management of the LLC will be governed by an Amended and Restated Operating Agreement, to which each investor will agree to be bound when investing in the LLC.
Gatsby Investment acts as the managing member and owner of Class B Units in the LLC (and has all voting rights), and the investors are the members and owners of Class A Units in the LLC. As a holder of Class A Units, you have an indirect economic interest in the single real property asset held by the LLC. The number of Class A Units issued to you is based on the amount you invest and the value of the equity in the underlying property at the time of investment.
Yes. For rental properties, 100% of the property’s depreciation expense will pass through to investors based on their respective ownership percentages.
Yes. For rental properties, investors will benefit from the increase in value of the property over time.
Each investor must complete an IRS Form W-9 upon making their first investment. At the end of each applicable tax year, investors will be issued a Schedule K-1 reflecting their share of the taxable income, or loss, from each completed property. Investors will be responsible for including such income, or loss, on their tax returns.
Ordinary income / Short-term capital gains:
In general, profits from the sale of a property (or Class A Units) held for less than 12 months will be taxed as short-term capital gains. Any rental income the property generates will be taxed as ordinary income.
Long-term capital gains:
In general, profits from the sale of a property (or Class A Units) held for more than 12 months will be taxed as long-term capital gains.
NOTE: Prospective investors should consult their own tax advisors for further information about the federal, state, local foreign and other tax consequences of purchasing and holding Class A Units.
For a more detailed tax discussion, please see the section entitled “Certain U.S. Federal Income Tax Considerations” located in the Summary of Terms.
The LLC will issue a Schedule K-1 to each investor at the end of each fiscal year, which can be used by the investor for tax return preparation.
Your Schedule K-1 form can be downloaded directly from your Gatsby account. Simply sign in to your account, go to the “Account” tab and click on “My Profile.” Scroll down to the Schedule K-1 field where you can click “Download.”
For renovations and developments that are sold upon completion, you will receive the distributions 10 days after the close of escrow.
For renovation and development projects that come with the option to either exit upon stabilization or continue to the rental phase:
- Exiting upon stabilization means you will receive your disbursements 30 days after the property has been stabilized, the loan is secured or refinanced, and your shares have been sold.
- Continuing means you will receive quarterly disbursements of any rental income.
All distributions will be wired to the bank account you have on file with Gatsby Investment.
As with any investment we cannot, and do not, guarantee a profit. You can, however, view the returns from our track record to see our consistently profitable results.
NOTE: Past performance does not assure future results.
To calculate your ROI (Return on Investment), divide your net profit by the total investment amount for a property. Multiply the result by 100 to see your ROI expressed as a percentage.
If you enter an investment in the renovation or development stage, you will have the option to exit by selling your shares once the construction is complete, the property is stabilized, and we have secured the loan or refinanced the property. However, if you choose to enter a five-year rental investment, you will not have the option to exit until the five-year period is over.
Yes, Gatsby Investment is registered with the SEC (Securities and Exchange Commission) and files reports regularly. Our registration number is CIK #0001833897.
Gatsby Investment invests alongside the investors in every property. An investment starts with Gatsby opening an LLC, putting down the deposit for the property, and getting it under contract. We then open the investment to investors via our online platform and keep it open for up to 60 days to give investors the opportunity to join the project. If the full amount is not raised within this timeframe, Gatsby will invest the balance into the property so we can proceed with the investment. At this point, the project moves from “Open Investment” to “Investment In-Progress.”
Based on the historical data of all completed investments from the time Gatsby Investment opened until the end of 2020, the annualized net return was 9.87%.
The average annualized net return for the year 2021 was 26.5%.
NOTE: Past performance does not assure future results.
Go to the tab “Info” and click on “Track record.” When you are there simply click on any of the properties to view the property address, before and after photos, and a summary of the financials and timeframe of each project.
At the end of each fiscal year, we hire a third-party accounting firm to perform an “Agreed upon procedure report” for every property completed within the year. In this report, the reviewer confirms the purchase date, purchase price, property address, escrow statements, costs and expenses, sales date, sales price, and return on investment.
Gatsby will continue to have these reports done regularly. They are made available to all verified accredited investors per request.
In most cases, we use the bank’s appraisal to determine the property value. In cases where the bank is not the appraiser, we use appraisers who are certified members of the Appraisers Association of America (AAA). AAA-certified members have at least 10 years of experience as licensed real estate appraisers. They have more experience, education, and expertise than other real estate appraisers, making them uniquely qualified to properly value our developments, renovations, and rental properties.
Gatsby Investment collects a fee for managing all stages of the real estate process. The percentage of the fees can vary for each property type and LLC. The services include location scouting, opening and managing the LLC, buying and selling the property, securing the loan, handling escrow, applying for permits, managing the construction team, interior and architectural design, stabilizing the property, overseeing the management company for rental properties, accounting services, investor distributions, etc.
All of Gatsby’s properties are located in Los Angeles County, California.
Gatsby’s corporate office is located at 9454 Wilshire Blvd., Suite 902 in Beverly Hills, California. We are always happy to meet with investors. To schedule a meeting, please email firstname.lastname@example.org.