Real Estate Investing Questions & Answers

Gatsby Investment is a real estate investment platform that allows accredited investors to participate in professionally managed real estate projects. Rather than purchasing and managing properties directly, investors participate in individual real estate investments through Gatsby’s deal-by-deal investment opportunities.

Gatsby manages the entire lifecycle of each investment, including sourcing, development, financing, construction, leasing (if applicable), and sale. This allows investors to access institutional-quality real estate opportunities in a fully passive format.

Getting started is a simple step-by-step process:

Once your funds are received, your investment becomes active and Gatsby manages the project through completion.

The typical minimum investment is $25,000, although certain offerings may allow minimums as low as $10,000 depending on the project.

Gatsby Investment is currently open to accredited investors only.

To qualify, investors must:

Accredited investor status must be verified through Gatsby’s platform before participating in an investment opportunity.

No. Gatsby investments are currently limited to accredited investors only.

Meeting the minimum investment amount alone does not qualify an individual to invest. All investors must complete the accredited investor verification process before participating in any Gatsby investment opportunity.

Gatsby offers multiple ways to invest, allowing investors to choose the account structure that best fits their financial and tax planning goals.

Supported account types include:

Yes. Gatsby allows investors to participate through eligible self-directed retirement accounts, provided the account meets accredited investor requirements.

Supported retirement account structures may include:

Some retirement accounts require a third-party custodian in order to invest in alternative assets such as private real estate, while certain structures can be managed directly by the investor.

If needed, Gatsby can provide referrals to third-party custodians that support self-directed retirement account investing.

Learn more about the available investment structures here: Ways to Invest

Yes. International investors may be able to participate in Gatsby investments, although additional requirements apply. International investors must also meet the accredited investor requirements established by the U.S. Securities and Exchange Commission (SEC).

To invest, international investors must:

Please note that Gatsby currently accepts international investors through U.S.-based C-Corporations only. Other entity structures, such as LLCs, are not accepted for international investments.

While Gatsby does not directly set up these structures, we can help guide investors toward appropriate third-party service providers when needed.

Yes. Gatsby offers a referral program for clients and professionals who introduce qualified investors to the platform.

When a referred investor joins Gatsby and completes an investment, the referring party may receive compensation based on the investment amount.

Program details, eligibility requirements, and compensation structures may vary over time.

Learn more about the referral program here:

An accredited investor is an individual or entity that meets specific financial criteria established by the U.S. Securities and Exchange Commission (SEC).

For individuals, this generally means meeting at least one of the following qualifications:

Certain entities may also qualify as accredited investors depending on their structure, ownership, and assets.

These requirements are intended to help ensure that investors participating in private investment offerings have the financial sophistication and ability to evaluate and bear the associated risks.

Gatsby offers investments under SEC Rule 506(c), which requires all investors to be verified as accredited investors before investing.

The SEC created accredited investor rules to allow qualified investors access to certain private investment opportunities that are not available in public markets.

These rules are intended to help ensure that investors participating in private offerings have the financial experience and ability to understand the risks involved.

Gatsby provides free accredited investor verification through a secure third-party service called Verify Investor.

After creating your Gatsby account, you will be guided step-by-step through the verification process directly within the Gatsby platform.

Depending on your qualification method, you may be asked to provide documentation such as:

Entity and trust investors may be asked to provide additional documentation depending on the ownership structure and qualification method.

All information submitted through the verification process is handled confidentially through Verify Investor.

Accredited investor verifications are generally valid for 90 days under SEC guidelines.

If you place an investment with Gatsby within this timeframe, your accreditation will generally remain valid with Gatsby for future investments.

If your verification expires before you complete an investment, you will be asked to complete the verification process again when you are ready to invest.

Yes. Certain financial licenses and credentials may qualify you as an accredited investor, even if you do not meet the income or net worth requirements.

Qualifying licenses may include:

To verify accreditation through a qualifying license, investors are generally asked to provide their name as it appears on the license, their CRD number, and additional licensing information when applicable.

Please note that not all financial licenses automatically qualify for accredited investor status.

No. All investors who invest with Gatsby must complete accredited investor verification through Gatsby’s platform using our third-party verification provider, Verify Investor.

Because verification providers may use different standards and review processes, Gatsby requires all investors to complete a consistent verification process to help ensure compliance with SEC requirements.

Gatsby works with Verify Investor, a secure third-party accredited investor verification service used to help comply with SEC requirements.

Information submitted during the verification process is handled confidentially and reviewed securely through Verify Investor’s platform. Verification reviews are conducted by licensed attorneys.

Investors also have the ability to hide certain personally identifiable information on uploaded documents, helping provide an additional layer of privacy during the review process.

No. Gatsby covers the cost of the accredited investor verification process completed through our platform, so there is no cost to investors to apply.

No. Completing the accredited investor verification process does not obligate you to invest with Gatsby.

Please note that accreditation verifications are generally valid for 90 days. If you do not complete an investment within that timeframe, your verification may expire and you may need to complete the process again before investing in the future.

Because Gatsby covers the cost of each verification application, all re-applications are subject to approval.

If your accreditation verification expires before you complete an investment, you will need to complete a new verification application before investing.

To re-apply, log in to your Gatsby dashboard, navigate to the Account section, select Accredited Application, and click the Re-apply button.

Gatsby will review the re-application request, and if approved, you will receive an email notification with instructions to complete the accreditation process again through the Gatsby platform and Verify Investor.

Gatsby Investment was founded in 2016.

Gatsby Investment was founded by Dan Gatsby, who serves as the company’s CEO.

With more than 30 years of experience in software development and entrepreneurship, Dan founded Gatsby with the goal of making private real estate investing more accessible, transparent, and easier for individual investors to participate in.

Since the company’s founding in 2016, Gatsby has successfully completed all realized investment projects to date without investors losing their initial invested capital.

However, past performance does not guarantee future results, and all investments involve risk.

Gatsby Investment focuses primarily on small- to medium-sized residential real estate projects in the Los Angeles market.

Core project types include:

Project structures may vary depending on market conditions, financing environments, and overall investment opportunities.

Gatsby’s investment strategy focuses on creating value through development, repositioning, and operational execution.

Rather than relying solely on market appreciation, we focus on opportunities where value can be increased through improved design, development efficiency, zoning utilization, and strong market positioning.

Key elements of our strategy include:

By creating value directly through execution and development, we aim to generate returns that are less dependent on broader market conditions alone.

Gatsby operates as a vertically integrated real estate platform, managing the full investment lifecycle in-house, including sourcing, development, financing, leasing, property management, and the eventual sale of each property.

By maintaining direct involvement across each stage of the process, we are able to maintain greater control over execution, timelines, costs, and overall project quality.

This integrated approach also helps improve operational efficiency, leasing performance, tenant selection, and overall project coordination throughout the lifecycle of an investment.

Gatsby’s end-to-end platform is supported by proprietary systems that provide investors with transparency and visibility throughout the investment process.

Gatsby places a strong emphasis on transparency, alignment, and disciplined execution.

Before investing, investors have access to detailed information about each opportunity, including financial projections, timelines, assumptions, and supporting materials. This allows every investment to be evaluated individually. Gatsby does not offer blind pool investments.

Gatsby also provides visibility into completed projects and historical performance, allowing investors to review past timelines, returns, and project outcomes.

In addition, Gatsby invests its own capital into projects and co-signs on construction financing, creating direct alignment with investors.

Each investment is held within a dedicated property-level LLC, and all offering documents, legal agreements, and disclosures are provided before investing.

Gatsby Investment offerings are structured under SEC Rule 506(c), which allows private investment opportunities to be offered exclusively to accredited investors.

Under this framework, all investors must complete accredited investor verification before participating in Gatsby investments.

Yes. Many Gatsby investors choose to participate in multiple projects over time, and a significant portion of investors return for additional investments after completing their first deal.

A large percentage of new investors also come through referrals from existing Gatsby investors, reflecting long-term relationships and confidence in the platform.

Yes. Prospective investors are encouraged to review publicly available feedback and investor experiences through Gatsby’s:

To protect investor privacy and confidentiality, Gatsby does not provide direct personal references outside of publicly shared reviews and testimonials.

Gatsby earns compensation for sourcing, developing, managing, and successfully executing each investment project.

Depending on the structure of the investment, Gatsby may earn development fees, rental fees during rental holding periods, and a share of project profits upon completion.

All fees and compensation structures are disclosed within each investment offering and may vary by project.

Because Gatsby’s compensation is tied to the performance and successful execution of each project, there is strong alignment between Gatsby and its investors.

Gatsby provides investors with access to its historical project performance, including completed projects, timelines, and realized returns.

You can explore Gatsby’s full track record and completed project history here:

Gatsby’s public track record page displays completed projects using final actual results.

For investors who participated in a project, the platform also provides visibility into the original projected financials alongside the final realized performance once the project is completed. This allows investors to compare projected expectations with actual outcomes throughout the lifecycle of the investment.

All Gatsby projects are currently located within Los Angeles County, California.

Gatsby Investment is headquartered in Beverly Hills, California, where we oversee our real estate investment and development operations throughout Los Angeles County.

For contact information and office details, visit our Contact Us page.

Yes. Gatsby is primarily an online investment platform, allowing investors to invest and track their portfolios remotely through the investor dashboard.

Our Investor Relations team is also available for phone calls and Zoom meetings.

For investors who would like to meet in person, appointments can be scheduled at Gatsby’s Beverly Hills headquarters. Please note that Gatsby does not accept walk-in appointments.

Gatsby’s focus on Los Angeles is intentional and central to our investment strategy.

We specialize in smaller residential development projects designed to meet strong local housing demand, including larger multi-bedroom layouts that align with shared living and rental trends throughout the market.

By concentrating within a single geographic market, we are able to leverage deep local expertise, maintain close oversight of projects, and build long-standing relationships with contractors, lenders, brokers, and city departments.

Los Angeles also offers strong long-term fundamentals, including a significant housing shortage, high rental demand, and limited availability of new housing inventory.

Gatsby uses a deal-by-deal investment model to provide investors with greater control, transparency, and flexibility.

Rather than investing into a blind pool fund, investors can review each project individually, including the property details, investment strategy, financial projections, and projected timelines before deciding whether to invest.

This structure allows investors to build a portfolio based on their own investment preferences and risk tolerance by selecting the specific projects they want to participate in.

In addition, Gatsby investors hold equity ownership in the underlying real estate through the project’s LLC structure.

Gatsby’s investment strategy focuses on creating value through development, operational execution, and market specialization rather than relying solely on long-term market appreciation.

We target underutilized properties where value can be increased through development, improved design, zoning utilization, and efficient project execution. Our projects are specifically designed to align with strong housing demand in Los Angeles, including larger multi-bedroom layouts that support shared living and rental affordability.

Several factors contribute to Gatsby’s approach:

By combining market knowledge, operational control, and disciplined execution, Gatsby aims to improve efficiency, manage risk, and maximize long-term value creation for investors.

Gatsby focuses on a more hands-on, transparent, and deal-specific approach to real estate investing.

Key differentiators include:

Rather than acting solely as a marketplace, Gatsby actively manages the full lifecycle of each investment project, including sourcing, development, construction oversight, leasing, and sale.

This hands-on approach allows Gatsby to maintain greater control over execution, timelines, costs, and overall project quality while providing investors with transparency and deal-by-deal flexibility.

Yes. Gatsby invests its own capital into each project alongside investors and also co-signs on construction financing with personal guarantees.

This creates direct alignment between Gatsby and its investors, as Gatsby participates in the same projects and shares in the financial outcomes alongside investors.

Gatsby’s involvement reflects a long-term commitment to the successful execution and performance of each investment opportunity.

No. Investors participate in individual real estate projects rather than investing directly into the Gatsby corporate entity.

Gatsby operates on a deal-by-deal investment model, allowing investors to evaluate and choose specific investment opportunities individually.

No. Gatsby Investment is a privately held company and is not publicly traded.

At this time, Gatsby remains focused on its deal-by-deal investment model and does not currently offer blind pool fund structures.

This approach allows investors to evaluate and choose individual projects based on their own investment preferences and objectives.

Gatsby is currently focused on the Los Angeles market and surrounding areas within Southern California.

Our strategy is built around deep local expertise, operational experience, and long-standing relationships within this market. At this time, we remain focused on opportunities within the region while continuing to evaluate future opportunities strategically.

Investors can browse available opportunities through the Gatsby platform and choose which individual real estate projects they want to participate in.

Each investment is offered on a deal-by-deal basis, allowing investors to review the project details, projected returns, timelines, and investment strategy before deciding whether to invest.

Every project is structured as a separate property-level LLC that owns the underlying real estate. Investors purchase equity interests in that LLC and participate in the profits generated by the project.

Gatsby serves as the managing member and oversees the full lifecycle of each investment, including acquisition, development, construction, leasing (if applicable), and sale.

Investors can track their investments through the Gatsby dashboard, which provides visibility into project updates, performance, documents, distributions, and overall investment activity throughout the lifecycle of the project.
 
Returns may be generated through property appreciation, development value creation, and rental income depending on the structure of the investment.

Investments generally remain open until they are fully funded, so there is typically no fixed closing date.

Projects may already be progressing through stages such as planning, permitting, or construction while capital is still being raised.

Because investors may enter a project at different times, returns are prorated based on when capital is invested. This means projected returns are adjusted to reflect the actual amount of time your investment participates in the project.

Updated prorated return estimates are automatically reflected within the ROI calculator inside each investment offering.

Investment timelines vary depending on the project type, development scope, permitting process, market conditions, financing environment, and exit strategy.

Some projects are designed for shorter-term execution, while others may involve longer development, rental stabilization, or holding periods.

Estimated timelines for each investment are disclosed directly within the individual offering materials and investor dashboard.

Yes. Gatsby outlines the fee structure for each investment opportunity within the Deal Level Financials section of the offering.

Depending on the project structure, fees may include development fees, service or profit participation fees, and rental fees during rental holding periods.

Projected investor returns shown within the ROI calculator are net of Gatsby’s disclosed fees and compensation structure.

Investors are encouraged to review the financial breakdown of each investment opportunity for full details regarding applicable fees and projected distributions.

Gatsby prioritizes transparency and ongoing communication with investors throughout the lifecycle of each project.

Through the Gatsby dashboard under the “My Investments” section, investors can track project progress in real time, including construction updates, progress photos, milestone tracking, financial information, documents, and important project activity.

The platform includes a detailed project status tracker that shows the current phase of the project, specific work currently in progress, completed milestones, and estimated timelines.

Investors also receive email notifications as projects move through major stages and milestones.

Investors can follow project progress in real time through the Gatsby dashboard, including status tracking, construction progress photos, milestone updates, estimated timelines, and overall project activity.

As projects move through major phases or when important developments occur, such as timeline adjustments, permitting updates, leasing activity, or strategic changes, additional updates and communications may also be provided through the platform and by email.

Gatsby’s Investor Relations team is also available to assist investors with questions or additional information throughout the investment lifecycle.

Once you place an investment, you will immediately receive funding instructions to complete your transfer via wire or ACH.

If you need to access the instructions again later, they are available through the Gatsby platform under “My Account” and “My Wire Instructions.”

Investors generally have 5 business days to complete the transfer in order to activate the investment.

If your bank has daily transfer limits, you may complete the funding through multiple transfers over separate days.

Please note that Gatsby does not accept paper checks for investments.

After placing an investment, you will receive funding instructions to complete your transfer via wire or ACH.

Investors generally have 5 business days to submit funds in order to activate the investment. Once funds are received and processed, you will receive confirmation that your investment is active.

After activation, you can track your investment through the Gatsby dashboard under the “My Investments” section. There, investors can monitor project progress, milestone updates, construction photos, documents, distributions, and overall investment activity throughout the lifecycle of the project.

The Gatsby Investor Relations team is also available to assist investors throughout the investment process.

After your investment becomes active, you may be asked to complete your investor profile with:

This information helps facilitate tax reporting, distributions, and account administration.

The number of investors varies by project, but Gatsby typically limits individual investments to approximately 90 investors per offering.

Yes. With Gatsby, you can manage multiple investment accounts under a single user profile, including individual, joint, entity, trust, and retirement accounts.

This allows you to organize and track different investments in one place without needing multiple logins.

Additional accounts can be added directly through the “My Profile” section within your Gatsby dashboard.

“Coming Soon” investments are projects that are expected to become available for investment in the near future.

Investors can review preliminary project details before the investment officially opens. Investors with a Gatsby account are automatically notified when new investment opportunities become available.

“Open Investment” means the project is actively accepting investor capital.

Investors can review the full offering details and participate in the investment while funding remains available. Investments are offered on a first-come, first-served basis and generally remain open until they are fully subscribed.

Your investment start date is recorded when you place the investment through the platform.

However, the investment status will not change to “Active” until your funds have been received and successfully processed via wire transfer or ACH.

Once the investment becomes active, you will receive a confirmation email and can begin tracking the project through your investor dashboard.

Gatsby investments generally remain open until they are fully subscribed, while the project itself may already be progressing through stages such as escrow, permitting, planning, or construction.
 
Because investors may enter a project at different times throughout the investment lifecycle, returns are prorated based on when capital is invested. This helps ensure that each investor’s return reflects the actual amount of time their capital is deployed in the project.
 
This structure allows Gatsby to continue actively executing projects while capital continues to be raised throughout the offering period.

No. Gatsby investments are generally illiquid, and there is currently no secondary market for investment interests.

Investor capital typically remains committed until the property is sold or otherwise fully exited by the investment entity.

Properties are generally sold through the open market in order to maximize the sale price and act in the best interest of all investors participating in the project.

Investors in the deal do not receive special purchase rights or discounted pricing to buy out the remaining investors in the property.

However, if an investor is interested in purchasing the property, they are welcome to participate through the normal public sale process once the property is listed for sale.

Gatsby serves as the developer, sponsor, and managing member in every investment project.

As a vertically integrated real estate platform, Gatsby manages the full lifecycle of each investment from acquisition through exit. This includes:

Gatsby also manages the investor side of each project, including:

By managing development, operations, and investor administration in-house, Gatsby maintains greater control over execution, timelines, communication, and overall project oversight while providing investors with a fully passive investment experience.

Gatsby sources investment opportunities through a combination of long-standing broker relationships, direct outreach, off-market opportunities, auctions, probate opportunities, and active market research.

Because of Gatsby’s experience and network within the Los Angeles market, many opportunities are identified through relationships and sourcing channels that may not be widely available on the open market.

Before acquiring a property, Gatsby conducts extensive due diligence to evaluate the project’s feasibility, projected profitability, execution risk, and market demand.

The due diligence process may include:

Only projects that meet Gatsby’s internal acquisition criteria are ultimately pursued.

“Build-by-Right” refers to a development project that complies with existing zoning and planning regulations without requiring major zoning changes or discretionary approvals from the city.

Because the project already fits within the current zoning code, this can help reduce entitlement risk and streamline the development process.

Gatsby primarily focuses on Build-by-Right projects to help reduce entitlement risk and improve project predictability.

However, permitting revisions, delays, or additional city requirements can still occur during the development process.

To help mitigate these risks, Gatsby performs detailed zoning, feasibility, and permitting reviews as part of its due diligence process before acquiring a property.

Gatsby serves as the developer and maintains direct oversight of each project but does not operate a large in-house construction crew.

Instead, Gatsby works with experienced general contractors, subcontractors, architects, engineers, and consultants, many of whom the company has partnered with repeatedly over multiple projects.

This approach allows Gatsby to scale efficiently across multiple developments while maintaining flexibility and avoiding the overhead of a large full-time construction staff between projects.
 
Gatsby remains actively involved throughout the construction process, including budgeting, scheduling, inspections, material and finish selections, construction draws, and overall project oversight from start to finish.

Gatsby oversees all stages of the construction and development process, including planning, architectural design, permitting, contractor coordination, budgeting, scheduling, inspections, material and finish selections, and overall quality control.

Projects are managed through structured milestone tracking, ongoing budget oversight, contractor management, and regular site evaluations throughout the development lifecycle.

Gatsby also has internal project managers who regularly visit and oversee projects on-site throughout construction to help monitor progress, quality, budgeting, and scheduling.

Yes. Gatsby maintains insurance coverage on its projects throughout development and operational phases.

Depending on the project, coverage may include builder’s risk insurance, general liability insurance, property insurance, and other policies intended to help protect against major property-related risks and losses.

In the event of significant property damage, applicable insurance coverage is intended to help cover repair or replacement costs, subject to policy terms and coverage limits.

Once a project is completed, the property is listed for sale on the open market.

Gatsby works through both its in-house brokerage team and an extensive network of local real estate brokers to actively market properties to potential buyers, including individual purchasers, investors, and institutional groups.

Throughout the sales process, Gatsby evaluates market conditions, buyer demand, pricing strategy, and offer quality in an effort to achieve the strongest possible sale outcome for investors.

Buyers may include:

Demand is often supported by the location, layout, and rental characteristics of the properties Gatsby develops.

When financing is involved, lenders typically require an independent third-party appraisal to help determine the property’s value.

These appraisals are performed by licensed appraisers and are used as part of the lender’s underwriting and financing process.

Gatsby may also review additional market data, comparable sales, rental analysis, and other valuation metrics as part of its internal project evaluation process.

Returns are generated through a combination of value creation and market execution.

For most projects, Gatsby increases the value of a property through development, design, and positioning. This added value is typically realized when the property is sold. In some cases, projects may also include a rental phase where income is generated before the final sale.

As an investor, your return is based on your ownership percentage in the project. Once the investment is complete, investors receive their share of the profits after project costs and fees have been accounted for.

ROI (Return on Investment) represents the total return generated over the full life of an investment. It does not account for the amount of time the investment was held.

Annualized return adjusts the return to reflect a yearly rate of return, making it easier to compare investments with different timelines.

For example, a project generating a 20% ROI over 24 months would have a lower annualized return than a project generating the same 20% ROI over 12 months.

Returns are calculated based on the net profits generated by the project, the investor’s proportional ownership percentage in the investment entity, and the amount of time the investor’s capital is invested in the project.

Projected returns displayed on the platform are estimates based on underwriting assumptions, projected timelines, market conditions, and estimated project performance.

Because investments remain open while projects continue progressing, investors may enter a project at different times.

As a result, projected ROI is prorated based on how long your capital is invested in the project. Investors who enter later in the project lifecycle participate for a shorter period of time.

For example, if a project has a projected 20-month timeline and you invest after the first month, your projected ROI would be based on the remaining 19 months.

Gatsby’s ROI calculator automatically updates projected returns based on the date you are viewing the investment and the estimated remaining timeline.

While total ROI may vary depending on entry timing, the projected annualized return remains generally consistent across investors in the same project.

It depends on the type of project you invest in.

For projects that include a rental phase, investors may receive quarterly income distributions once the property is leased and generating positive cash flow.

For projects that are built and sold immediately, such as flips or build-to-sell developments, there is typically no income during the project. In those cases, returns are generally realized when the property is sold.

Distributions are generally sent via wire transfer or ACH to the bank account connected to your Gatsby profile.

Investors are responsible for maintaining accurate banking information within their account.

Once a property is sold and escrow has closed, Gatsby’s financial team finalizes the project financials and calculates the final investor distributions based on each investor’s pro rata ownership share in the project.

For projects with a rental phase, investors may have already received periodic income distributions prior to the final sale. The final distribution typically includes the remaining return of invested capital and profits from the project.

After all distributions have been completed, the investment is considered closed.

The timing of returns depends on the project structure, construction timeline, rental stabilization period, and eventual sale of the property.

For projects with a rental phase, investors may receive periodic income distributions during the investment once the property is generating positive cash flow.

Final distributions are generally sent within approximately 30 days after the sale of a property has closed and project financials have been finalized.

Yes, but reinvestment is not automatic and funds cannot be rolled directly from one project into another.

At the end of a project, all proceeds are distributed back to investors. Investors can then independently choose whether to participate in a new investment opportunity available on the platform.

Because Gatsby operates on a deal-by-deal structure, each investment is separate and held within its own individual LLC. Gatsby does not offer automatic rollovers or internal 1031 exchanges between projects.

Gatsby takes a disciplined approach to risk management across all phases of a project, including acquisition, development, financing, rental operations, and eventual sale.

Risk mitigation measures may include:

Since the company’s founding in 2016, Gatsby has successfully completed all realized investment projects to date without investors losing their initial invested capital. However, all investments involve risk, and returns can never be guaranteed.

Additional risks and disclosures are outlined in the offering documents and investment agreements provided to investors.

All real estate investments involve risk, and while Gatsby takes a disciplined approach to risk management, investment outcomes can vary and returns cannot be guaranteed.

The primary risks generally fall into a few categories:

As an investor, you own equity in the underlying project, meaning your returns are directly tied to the performance of the property and the investment entity.

Additional risks and disclosures are outlined in the offering documents and investment agreements provided to investors.

Yes. All real estate investments involve risk, and losses are possible.

Although Gatsby has maintained a strong historical track record, past performance does not guarantee future results.

Investor returns are directly tied to the performance of the underlying property investment and market conditions.

Development projects may experience delays due to permitting, inspections, construction scheduling, material availability, weather conditions, or market conditions.

While Gatsby focuses on project types and markets where the company has significant experience, unexpected delays can still occur during the development process.

If a project timeline changes, Gatsby provides updated information through the investor dashboard, including revised project status and estimated timelines. Investors may also receive email notifications regarding major project updates or material developments.

Construction budgets are carefully planned, but costs can fluctuate and unexpected expenses can occur during the development process.

Gatsby does not issue capital calls to investors. If additional funds are needed for a project, Gatsby may provide additional internal funding to the project entity or work with the project lender to secure additional financing.

Investors are not required to contribute additional capital beyond their original investment commitment.

Gatsby carefully evaluates market conditions when estimating projected sale timelines and pricing. However, real estate market conditions can change, and properties may sometimes take longer to sell than originally projected.

If a property does not sell immediately, Gatsby continues actively marketing the asset while evaluating pricing strategy, buyer demand, and overall market conditions. Investors are kept informed through ongoing project updates and dashboard communications.

In some cases, if market conditions are unfavorable for an immediate sale, Gatsby may choose to continue operating the property as a rental until market conditions improve and a sale becomes more favorable.

Because Gatsby also manages rental projects through our in-house property management team, we are structured to support rental hold strategies when appropriate. Investors would continue to have visibility into property performance through the platform, including rental operations, distributions, financial reporting, and ongoing project updates.

Projected sale prices and returns are based on market conditions and underwriting assumptions at the time a project is evaluated. However, real estate markets can change, and properties may ultimately sell for more or less than originally projected.

If a property sells for less than expected, investor returns would generally be reduced accordingly.

Real estate markets can experience periods of reduced buyer demand, lower pricing, higher interest rates, or slower transaction activity.

In weaker market conditions, Gatsby may adjust its strategy depending on the project type and overall market environment. Rather than selling into unfavorable conditions, Gatsby may evaluate alternative approaches intended to help protect investor value, including extending the marketing period or continuing rental operations until market conditions improve.

Because Gatsby also operates rental projects and manages properties in-house, the company is structured to support rental operations when appropriate.

In the unlikely event that a property acquisition does not close, investors would generally be given the option to transfer their investment into another available opportunity or receive a return of their funds.

Each investment is structured through a dedicated single-asset LLC created specifically for that property.

Investors participate in the LLC as Class A members, contributing capital in exchange for a proportional economic ownership interest and share of the project’s profits.

Gatsby serves as the Class B managing member of the LLC and is responsible for overseeing all aspects of the investment, including acquisition, financing, development, operations, and eventual sale of the property.

The LLC itself holds title to the real estate asset, while investors own equity interests in the LLC rather than holding title directly to the property.

Investors are passive, non-managing members of the LLC, meaning Gatsby is responsible for the day-to-day management and execution of the project.

This structure is designed to separate the assets and liabilities of each investment project while clearly defining ownership and management responsibilities.

No. The LLC structure is designed to limit investor liability to the amount invested in the project.

Investors are generally not personally responsible for debts, obligations, or liabilities beyond their investment in the LLC.

When placing an investment, investors review and electronically sign the following deal-specific investment documents:

These documents outline the structure of the investment, ownership terms, investor rights, risks, and other important legal disclosures associated with the offering.
 
 Separately, all users of the Gatsby platform also agree to the platform Terms & Conditions and Privacy Policy.

Gatsby Investment works with Manatt, Phelps & Phillips LLP as outside legal counsel. Manatt is a nationally recognized law firm with experience in real estate, securities, and tax law.

The firm assisted in developing Gatsby’s legal structure and drafting the company’s investment agreements, offering documents, and LLC structures, while also helping support compliance with applicable regulations and securities laws.

Yes. Gatsby structures its offerings in accordance with applicable securities laws and regulations, including Rule 506(c) under Regulation D of the Securities Act.

Under this structure, investments are offered exclusively to accredited investors, and each investment offering is filed with the SEC as required under applicable exemptions.

Additional regulatory filings and offering disclosures are provided as part of each investment offering.

If a property-level LLC were to become insolvent or be dissolved, its assets would be liquidated and used to satisfy the LLC’s outstanding obligations and debts.

Any remaining proceeds would then be distributed to the members of the LLC in accordance with the terms of the operating agreement and each member’s ownership interest.

Each investment is held in a separate property-level LLC that owns the underlying real estate asset.

If Gatsby were no longer able to continue operating as managing member, the operating agreement for the property-level LLC provides mechanisms for appointing a successor managing member. Investors would continue to hold their ownership interests in the property-level LLC, subject to the terms of the operating agreement and applicable law.

Investor funds are handled through a structured process designed to ensure proper allocation, tracking, and transparency.

Each investment is tied to a specific property-level LLC, and investor funds are directed to accounts associated with that investment entity. Transfers are tracked using unique reference details to ensure funds are properly applied to each investor’s account and investment position.

All investments are governed by formal legal agreements, and Gatsby maintains oversight of fund flow and project expenditures throughout the lifecycle of the investment. The LLC structure is also designed to separate the assets and liabilities of each individual project.

No. As with any investment, profits and returns cannot be guaranteed.

While Gatsby has maintained a strong historical track record, past performance does not guarantee future results. Investor returns are dependent on the performance of the underlying property investment and market conditions.

Yes. Once your investment becomes active, you can access and download your fully executed investment agreements through the “My Investments” section of your dashboard. These agreements serve as the primary legal documents reflecting your ownership interest in the investment LLC.

Investors can also download a property certificate summarizing the investment details, including the property, investment amount, and ownership interest associated with the investment.

In addition, investors can view the property title documentation showing the property-level LLC that holds title to the real estate asset, of which investors are members through their ownership interests in the LLC.

For legal purposes, Gatsby does not currently offer beneficiary designations directly through the platform.

If anything were to happen to an investor, ownership interests in the investment LLC would generally pass according to the investor’s will, trust, estate plan, or other applicable legal arrangements.

Investors can, however, add an emergency contact to their account profile after placing an investment. This contact information may be used by Gatsby for account-related communication if necessary.

For each property investment, investors generally receive a Schedule K-1 once there is reportable tax activity for the investment entity.

The K-1 reports the investor’s share of the LLC’s financial activity for the year, which may include income, expenses, depreciation, and gains or losses. Investors use this form when preparing their personal tax returns.

Non-California residents investing in California properties may also receive Form 592-B reflecting applicable California state tax withholding.

Gatsby aims to provide Schedule K-1s in advance of the April 15 tax filing deadline.

Draft versions are typically made available toward the end of February, with final versions generally issued in early March. Investors are notified once forms are available and can download them directly through the account dashboard.

K-1s are issued only if there is reportable tax activity for the investment during the tax year.

If there is reportable tax activity for the investment during the year, the LLC may still be required to issue a Schedule K-1 even if no cash distributions were made to investors.

This is because partnerships report overall financial activity to the IRS, including items such as expenses, depreciation, gains, losses, or other tax-related activity that may affect an investor’s tax position.

Yes. If Gatsby issues a Schedule K-1, the IRS generally requires investors to include the K-1 information in their tax filings regardless of whether cash distributions were received.

The capital account on your K-1 reflects a tax-basis accounting value associated with your ownership interest in the investment LLC. It does not necessarily represent the current market value of the property or your investment.

The capital account may increase or decrease over time based on items such as contributions, distributions, profits, losses, and non-cash deductions like depreciation.

Because depreciation can reduce the capital account without reducing the actual property value, a lower capital account balance does not necessarily indicate that the investment itself has declined in value or performance.

Most investors are generally considered passive investors for tax purposes.

As a result, losses reported on a Schedule K-1 are typically classified as passive losses. In general, passive losses cannot offset active income such as W-2 wages, but they may carry forward and potentially be used to offset future passive income or gains, including upon the sale of the investment.

Tax treatment can vary based on an investor’s individual circumstances, so investors should consult their own tax advisors regarding the treatment of passive losses.

Yes. For projects with rental operations, depreciation may be passed through to investors based on their ownership percentage.

Depreciation can reduce taxable income even when the investment is generating positive cash flow.

Tax treatment can vary based on each investor’s individual circumstances, and investors should consult their own tax advisors regarding the tax implications of investing.

The tax treatment of investment income depends on the type of income generated and how long the property is held.

Rental income is generally taxed as ordinary income.

In general, profits from the sale of a property or LLC interest held in service as a rental for more than one year may qualify for long-term capital gains treatment. Properties sold sooner may result in short-term capital gains or ordinary income tax treatment.

Tax treatment can vary depending on the investor’s individual circumstances and the structure and timing of the investment. Investors should consult their own tax advisors regarding the federal, state, local, and other tax consequences of investing.

In general, yes. Income generated from California real estate investments is typically considered California-sourced income.

As a result, investors who live outside California but invest in California properties will generally need to file a California state tax return reporting the income shown on their Schedule K-1.

Investors should consult their own tax advisors regarding their specific filing obligations and tax situation.

California may require partnerships and LLCs to withhold state taxes on certain income distributions made to non-California residents.

In general, withholding applies only to profit distributions and not to the return of an investor’s original capital contribution. Applicable withholding amounts are reported to investors on Form 592-B and may be applied toward the investor’s California tax liability when filing a California tax return.

Because withholding requirements and tax treatment can vary based on an investor’s individual circumstances, investors should consult their own tax advisors regarding California filing and withholding obligations.

In general, California does not require state tax withholding on qualifying retirement accounts held by non-California residents.

Tax rules can vary depending on the account structure and investor circumstances, so investors should consult their own tax advisors regarding their specific situation.

No. Gatsby investments generally do not qualify for 1031 exchange treatment due to the way the investments are legally structured.

Under IRS rules, a 1031 exchange generally requires direct ownership of qualifying real estate. Gatsby investments are structured through property-level LLCs, where investors own membership interests in the LLC rather than holding direct title to the underlying property.

Because LLC and partnership interests generally do not qualify as like-kind real property under IRS 1031 exchange rules, Gatsby investments are typically not eligible for 1031 exchange treatment.

Gatsby investments are structured as LLCs, so investors are technically members of the LLC rather than general partners (GPs) or limited partners (LPs).

For tax reporting purposes, passive Class A investors are generally treated similarly to limited partners or passive LLC members on the Schedule K-1, while Gatsby, as the managing member, is treated as the LLC member-manager.

In simple terms, Gatsby investors are passive investors in the LLC, while Gatsby manages the day-to-day operations and execution of the investment.

Gatsby’s Investor Relations team is available to assist investors with questions related to investments, accounts, documentation, and platform support.

Investors can contact Gatsby by email, phone, or by scheduling a call or Zoom meeting through the Contact Us page.

You can reset your password directly from the login screen by selecting the “Reset Password” option and following the instructions provided.
 
 If you continue experiencing login issues, please contact Gatsby support for assistance.

Investors can update their address directly through the “My Profile” section of the dashboard.

Because address information is also tied to tax reporting records, investors should also update the IRS Form W-9 on file through the W-9 section within “My Profile.” Changes can be submitted digitally through the platform, and investors will receive a confirmation once the update has been reviewed and processed by the Gatsby team.

To update your bank account information, please contact support@gatsbyinvestment.com. 
 
The request must be sent from the email address associated with your Gatsby profile. Please include your Gatsby Investor ID number in the request. Gatsby’s team will then assist you with securely updating your banking information.

After placing an investment, wiring and ACH instructions are provided at the time the investment is placed.

Investors can also access their instructions through the Gatsby dashboard under “Account” and “Wiring Instructions.”

After placing an investment, investors can add or update an emergency contact through the “My Profile” section of the dashboard.

Investors can schedule a call or Zoom meeting through the Contact Us page by selecting an available date and time. A member of the Investor Relations team will be available to assist during the meeting.