What does Gatsby Investment do for investors?

Our team is made of specialized experts who handle every detail of your real estate investment, including:

Gatsby takes care of the real estate investment process from start to finish, allowing you to maximize your return on investment from the comfort of your home.

  • Market research
  • Location scouting
  • Analyze potential deals
  • Opening and managing LLCs
  • Buying the property
  • Handling escrow
  • Securing the loan and refinancing
  • Planning the architectural design
  • Obtaining the appropriate city permits to build
  • Identifying building materials
  • Managing the construction team
  • Renovating/building the structure
  • Stabilize the property
  • Handling the ongoing property management for rental properties
  • Project status updates to investors
  • Marketing and selling properties
  • Handling all financials, accounting, and Schedule K-1 filing
  • Making prompt proceed payments to investors

Gatsby invests alongside you!

Each investment starts with Gatsby creating an LLC to buy the property, putting down the required deposit, and getting the property under contract.

In some cases, when we need to close a deal quickly, Gatsby purchases the property upfront before opening the investment to investors via the website. Then, as investment funds are received, we replace Gatsby’s original funds with the investor’s funds.

In other cases, Gatsby puts down the deposit only, then keeps the investment open on the website and raises the funds from the investors directly. If any amount is not raised within a certain time frame, Gatsby will then invest the remaining balance to fully fund the investment. All investments are prorated based on the time you invest in the deal.

Gatsby Investment is backed up by over $100M in private capital. Gatsby has a stake in each deal!

Why Real Estate?

Diversifying your portfolio with real estate investments is the best way to balance risk and reward.

Real estate historically generates higher than average returns, and since it’s backed by a physical asset, it’s less likely to be affected by market uncertainties that cause stock prices to fluctuate. Unlike other asset classes, real estate can also help you hedge against inflation.

Asset Class
Stocks

Commercial

Bonds

Gold

CDs
High Cash Yield
Low Volatility
Equity Build Up
Leverage
Hard Asset
Inflation Hedge
Tax Advantage
Average Annual Return*  26.5%
2021
12.0% 8.0% 6.4% 6.5% 2.6%

*Data according to NCREIF, Bloomberg, Bankrate, NYU Stern School of Business, Federal Reserve Bank of St. Louis, and Gatsby Investment calculations. All calculations assume reinvestment of dividends.

Traditional Portfolio

9.8% average annual returns
 60% Stocks
 40% Bonds

Adding Only Real Estate

16.7% average annual returns
 40% Stocks
 20% Bonds
 40% Real Estate

Legal structure

The LLC will offer Class A Units to prospective investors in accordance with a Subscription Agreement and 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 he/she/it invests 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, and 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.

Tax benefits: Depreciation – 100% of the property’s depreciation expense will pass through to the investors based on their respective ownership percentages.

Economic benefits: Appreciation – Investors will benefit from the increase in value of the property over time.

Tax reporting: Schedule K-1 – The LLC will issue to each investor a Schedule K-1 at the end of each fiscal year, which can be used by the investor to prepare his/her/its tax returns.

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