Real estate developers have traditionally had to raise capital and manage investors on their own. This old way of working forced developers to rely on offline funding sources, including friends and family, to finance projects. It also forced developers to take time away from the project to provide updates to their investors, answer all their questions, manage the operation, and handle all financials.
Gatsby Investment offers a new way for developers and general contractors to partner up on real estate deals, raise funds, and manage projects!
By teaming up with Gatsby Investment, you get to leverage our resources, proprietary investment platform, and investor base of high-net-worth individuals and fund companies. This allows you to focus on the development side of the project and leave the rest to us!
About Gatsby
Gatsby Investment is a real estate syndication company that allows accredited investors to invest in our deals. Our online platform was built to streamline and modernize the real estate investment process. We use advanced tech systems to create a more efficient experience on both the development side and the investor side.
Since the start of the company in 2016, we have built a successful track record of completed deals in Los Angeles and we have partnered with some of the most skilled developers and GCs in the industry. As our platforms keep growing, we are now looking to expand our network in Southern California as well as into different markets across the US.
We are excited to build relationships and partner with well-established developers and general contractors who have a track record of profitable deals in high-value markets.
Is Your Deal Right for Gatsby Investment?
Gatsby is highly selective when it comes to choosing the right developers and general contractors to team up with.
We have a swift yet detailed review process in which we confirm that you meet the criteria.
Developer and General Contractor Criteria
We are looking for high-performance developers and general contractors with an established history of completing profitable deals.
In Southern California, we are looking to team up with General Contractors who can develop the property, ensure the quality of the build, and manage sub-contractors.
In areas outside of Southern California, we are looking to partner with Developers who can scout new real estate projects, build on raw land, and supervise the entire development from start to finish.
Each professional is subject to the same review process and should typically demonstrate the following:
- At least 10 years of experience in the real estate industry
- At least 5 years of experience in the specific project type
- A successful track record of profitable deals
- Strong knowledge of your local market
Project Criteria
Gatsby has carved out a strong niche in small to medium-sized real estate projects with shorter hold periods. To best serve our investors, we require that submitted projects fall within our niche.
The key project types we focus on are:
- Single-family house flips. We look for homes with exceptional value-add and transformation potential, as well as the possibility to build a brand new ADU. These deals should be completed and sold in less than 12 months.
- Single-family development. We look for empty lots or lots with existing structures that can be torn down in high-demand markets. We will build a brand-new single-family home from the ground up. These projects should typically range from 18-24 months.
- New multi-family developments. We look to develop ground-up structures that are built-to-sell. We typically target projects in the small to medium-size range that can be completed in less than two years.
- Multi-family value adds. For these projects, we look for existing multi-family properties with value-add potential and room for rental increases. The intention is to renovate the property, and then hold it as a rental for 3 to 5 years before selling.
- Other projects. If you are an experienced developer and have any project that doesn’t fit these exact criteria, but that you believe would be a good fit for Gatsby, you are welcome to submit the project for our consideration.
Who Can Partner with Gatsby?
If you are interested in partnering on a real estate deal with Gatsby, we invite you to sign up and submit your profile and potential project for our consideration. This invitation applies to all real estate professionals, including:
- Real estate developers
- General contractors
- Property owner/operators
- Property management companies
- Short-term rental companies
Reasons to partner with Gatsby Investment
Gatsby has raised over $65 million and completed 39 projects across multiple property types. All deals completed prior to 2023 were located in Southern California, but we are now looking to grow our network of real estate professionals to expand our house-flipping model, single-family development, multi-family developments, and multi-family value-adds across different markets around the country.
This gives developers, general contractors, and operators a unique chance to join a real estate investment group that can make it easier to raise money for real estate projects and manage deals.
With our combined knowledge and resources, we can generate greater returns and complete real estate developments quicker, while also providing an impressive investor experience!
Key benefits of partnering with Gatsby
- We take care of the fundraising for the project.
- We provide a stable legal structure on both the investor and the developer side.
- You get to use our proprietary software to track the status and performance of the project.
- Our software digitizes fundraising, tax documentation, and proceed disbursements.
- Gatsby secures the construction and mortgage loan.
- You get to leverage our marketing to complete more deals.
- Gatsby handles all investor relations. We provide investors with project updates, process their required tax forms, and distribute their proceeds.
What makes Gatsby different from other real estate syndicates?
- Gatsby has a 100% success rate of profitable deals.
- We can accept smaller deals than most syndication firms.
- We partner with you to provide a seamless investor/developer experience (as opposed to simply providing a platform for raising funds).
What you can expect during the investment process
Legal documentation
Once your deal is approved, Gatsby creates the LLC in which the property will be held. We pay the earnest money deposit and open escrow on the acquisition. Our experienced team takes care of all escrow documents, handles all legal contracts, and secures the property on behalf of the ownership LLC.
Securing the loan
Gatsby uses our lender connections to secure the best possible financing. Gatsby co-signs for the loan and will handle loan draws throughout the life of the project. In addition to loan draws, Gatsby completes all payments for construction, vendors, mortgage, insurance, and property taxes. We also issue the 1099 forms.
Publishing the investment project online
Gatsby builds all the elements needed to launch the deal online. We combine the information collected through the project review process with our own due diligence to create an offering detail page, which tells the story of the project to the investors. Then we open the investment on the website to let our pool of investors join the deal.
Raising money for real estate deals
We create an email blast for our list of about 10,000 investors and promote the open investment on all our social media channels to reach new investors across the US. Our investment specialists answer inquiries and take appointments to discuss project details with interested investors. We assist investors as needed in completing their investments through our platform.
During construction
Gatsby keeps investors updated via the progress bar feature of our platform. We send email updates when the project moves from one status to another. And we upload the before and after photos, as well as progress photos during construction so that investors can see the progress. Gatsby takes care of all the investor communication so you can focus on the construction.
For rental holdings
For properties that are being held as long-term rentals, Gatsby handles all investor communications, including periodic updates via the platform, as well as accounting and quarterly investor disbursements from any rental income. We also handle the mortgage payment and oversee the property management company.
Property sale and distribution
When it’s time to sell a property, Gatsby handles the marketing and sale from start to finish. We market the property online to reach a wide range of potential buyers, and we personally contact our network of qualified buyers to generate immediate interest in the listing. We also handle the escrow process. When the sale is finalized, our accounting team will calculate the financials and process the investor and developer distributions. At the end of each fiscal year, we file the investor IRS 1065 forms and Schedule K-1s.
