Ways to Invest with Gatsby
Gatsby offers multiple ways to invest in our unique real estate investment opportunities. Whether you choose to invest as an individual, through an entity, a trust, a fund, or a retirement account, Gatsby supports a range of options to suit your needs.
Explore the sections below to learn more about each method and determine which one is right for you.
1. Investing as an Individual
Any individual who meets the accredited investor requirements can invest with Gatsby. When you invest as an individual, the investment is held personally in your name. This is the most common way to invest with Gatsby.
Use your full legal name when creating your account with Gatsby Investment and when completing the accredited investor verification through Verify Investor.
At the end of each tax year in which income is generated, you will receive a Schedule K-1 tax form issued in your legal name for use when filing your income tax return.
2. Investing as an Entity
You can invest through an entity as long as you meet the accredited investor requirements. In this case, the entity, rather than you personally, will be the investor. This approach can offer an additional layer of legal and financial protection.
An entity can be an LLC, S corporation, or C corporation.
If you are the sole owner of the entity, you will be verified as an accredited investor under the individual criteria. If there are multiple equity owners, each owner must show that they, either individually or jointly with their spouse, meet the accredited investor requirements.
Only one shareholder can invest per Gatsby account. However, additional shareholders may also invest through the same entity by creating a separate Gatsby account and completing the accredited investor verification process individually.
At the end of each tax year in which income is generated, a Schedule K-1 tax form will be issued in the entity’s name for use when filing tax returns.
3. Investing through a Trust
You can invest through a trust as long as you meet the accredited investor requirements. In this case, the trust, not you personally, will be the investor.
Gatsby accepts both living revocable trusts and irrevocable trusts.
One of the main advantages of holding property in a trust is that it avoids the probate process when transferring assets to beneficiaries. In some cases, trusts may also offer additional tax benefits.
If you are the settlor of the trust, you must be verified as an accredited investor under the individual requirements. If there are multiple settlors, each settlor must show that they, either individually or jointly with their spouse, meet the accredited investor qualifications.
At the end of each tax year in which income is generated, a Schedule K-1 tax form will be issued in the trust’s name for use when filing tax returns.
4. Investing as a Fund
Gatsby Investment welcomes fund companies to invest alongside other investors in our deal-by-deal projects. When investing as a fund, the fund entity itself holds the ownership stake in the property. A fund could be a pooled investment vehicle such as a real estate fund, private equity fund, venture capital fund, or a syndicate structured through an LLC or limited partnership.
You must use the fund name when creating the account with Gatsby. All investors within the fund must meet the accredited investor requirements for the fund to participate in our syndication deals.
Once an investment is made, Gatsby distributes proceeds to the fund account holder. The fund is then responsible for handling distributions to its own investors.
At the end of any tax year in which income is generated, a Schedule K-1 tax form will be issued in the fund’s name for use when filing the income tax return.
5. Investing through a Retirement Account
You can invest in real estate through a retirement account as long as you meet the accredited investor requirements. One of the key benefits of using a retirement account is the potential for tax advantages that support long-term growth.
At Gatsby, we accept the following types of retirement accounts:
These account types typically involve a third-party custodian:
- Self-Directed Traditional IRAs
- Self-Directed Roth IRAs
- Self-Directed SEP IRAs
- Self-Directed SIMPLE IRAs
- Self-Directed Traditional 401(k)s
These account types are typically managed directly by you, without a third-party custodian:
- Checkbook IRA LLCs
- Checkbook IRA Trusts
- Checkbook Solo 401(k)s
To get started, create an account with Gatsby using your full legal name. When asked “How would you like to invest?”, select "Retirement Account" and specify the type of account you have, then provide the necessary information. Then, complete the accredited investor verification process through our platform using Verify Investor, based on your individual qualifications (income or net worth).
Once verified, you can browse our investment opportunities, select the project(s) you'd like to invest in, and place your investment directly online.
- If you are investing with a Self-Directed IRA, Gatsby will work directly with your custodian to provide the required documents, such as the subscription agreement and investment details. Once your custodian has reviewed the documents and approved the investment, they will send the funds to Gatsby to activate your investment.
- If you’re using a Checkbook IRA LLC, Checkbook IRA Trust, or Solo 401(k), you will wire or ACH funds directly to Gatsby to activate your investment.
After funds are received, you'll receive confirmation that your investment is active. You can then monitor your project’s progress in real time via your Gatsby dashboard.
At the end of any tax year in which income is generated, a Schedule K-1 tax form will be issued in your retirement account’s name for use when filing your taxes.
Gatsby generally accepts retirement funds from most IRA companies. However, we recommend confirming with your provider whether you can invest directly with Gatsby or if additional steps are required, such as using a third-party company.
If you don’t currently have a retirement account and would like to set one up, here are some companies our investors have successfully worked with in the past:
- The Entrust Group (https://www.theentrustgroup.com)
- Equity Trust (https://www.trustetc.com)
- Rocket Dollar (https://www.rocketdollar.com)
- Sense Financial (https://www.sensefinancial.com/gatsby/)
Important Info Before Getting Started
When you create an account with Gatsby, you will be asked to provide some basic information. Once your account is set up, you will have full access to the information available on our website. However, in order to invest, you must first be verified as an accredited investor.
During the accreditation process, you will be asked to select how you plan to invest with Gatsby. You may invest as an individual, an entity, a trust, a fund, or through a retirement account. It is important to select your investment method before beginning the accreditation process, as your verification will apply specifically to that selection.
For example, if you are verified as an individual but later decide to invest through an entity, you will need to complete the application again and go through the verification process for the entity.