The benefits of Completed Deals
Multi-family home developments are opportunistic real estate investments. For these projects, we build brand-new multi-family apartment buildings from the ground up.
Gatsby sources funds from multiple investors, which allows you to own a piece of a multi-family property without the financial burden of funding the development on your own.
Multi-family apartment buildings are in high demand in the Los Angeles market. Buildings with fewer units are in greater demand than larger apartment communities, so Gatsby focuses on developments of this size. This also helps us to shorten timeframes, which limits risk. These projects range from 18-24 months, which makes this the perfect opportunity for investors looking to grow their money without tying it up long-term.
Because of the substantial value added by building from the ground up, Gatsby’s multi-family developments historically have some of our highest yield returns.
Choosing the right lot
High demand.
Our multi-family floorplans are in exceptionally high demand, making it easy to find a qualified buyer for a quick sale once the development is complete.
Potential for above-average yields.
New development projects have the highest return potential due to the value we add by building from the ground up.
Investment portfolio diversification.
Our multi-family developments have a medium-term timeframe. This helps diversify any traditional short-term or long-term investment portfolios.
Deal-by-deal control.
Our projects are offered on a deal-by-deal basis, which means that you choose exactly which property (or properties) you want to invest in.
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This investment starts by finding the right lot to build on. In some cases, we find suitable vacant lots, and in other cases, we purchase a lot with a distressed single-family structure that can be demolished to make way for the multi-family.
Our real estate experts analyze hundreds of properties before choosing one with the best potential. We start by finding strong neighborhoods, through a careful evaluation of local market values, rental pricing, and occupancy rates. Then we analyze specific properties, considering location, zoning code, lot size, and buildable square footage. We use our industry connections from years in the business to find the lots with the greatest potential and negotiate the best purchase terms. Our deals can come from our relationships with hundreds of local brokers, or from nontraditional sources, including off-market properties, foreclosures, probate courts, and auctions.
Every property goes through an extensive due diligence process before purchase. Our experts estimate the building costs in comparison to the after-construction value to ensure a profitable result.
To maximize returns and mitigate risk, we focus on developing small apartment buildings. Not only are smaller projects faster to build, but it’s also easier to get the required building permits. The shortened development timelines allow us to more accurately project returns. And smaller buildings are in higher demand because they appeal to a wide range of buyers. This means we can sell the building and distribute proceeds to investors faster.