This is an Open Investment and is ready to accept investor funding today.

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 property 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. Therefore, Gatsby focuses on developments of this size. This also helps us shorten timeframes and limit risk.

This is 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.

The current property is a distressed single-family home. The house was purchased for the property lot and location and has the right zoning code to build a multi-family property on this land. The current structure will be torn down to make space for the new multi-family development.

The property is centrally located in the heart of Los Angeles, with easy access to everything LA has to offer: high-end restaurants, nightlife, entertainment, shopping, great schools, and unlimited employment opportunities.

The property belongs to the City of Boyle Heights. Located only 5 minutes from Downtown LA in a growing neighborhood, east of the LA river.

This is the last city close to DTLA that is not as developed. By targeting undeveloped “pockets” in up-and-coming neighborhoods, we can get a hold of a good deal on the purchase, while still being successful in the sale of the completed development.

Living in Boyle Heights offers residents an urban suburban feel, and most residents rent their homes.

– Rent 73%
– Own 27%

– Large families
– Students and young business professionals sharing the living space with multiple roommates (co-living concept)There is a new bridge from Boyle Heights to DTLA. The famous 6th Street Bridge was recently replaced. This new bridge is now connecting Boyle Heights to the east, with Downtown L.A.’s well known Art District to the west. The USC medical center is also located in Boyle Heights.

The new SEARS building is a major new development that will further put the City of Boyle Heights on the map.

The SEARS Building and the New Mail District is Featuring 7 buildings on 25 acres. Phase One of the Mail Order District will feature 1,030 live-work lofts, 200K+ SF of creative office, 30+ vendor food hall, 200K SF department store, 3 acres of rooftop amenities and event space, specialty dining, 6 railcar retail spaces, rail platform with kiosks, recreational lawn, gathering plaza, paseo walkways and 1500+ parking. Phase Two of the development includes an additional 1,100 lofts, a 120-key hotel, 100K+ SF of retail and 2000+ parking.

The demand for Los Angeles real estate remains high year after year. With the largest manufacturing base in the country, a fast-growing tech industry, and an increasing number of venture capital startups, Los Angeles offers an exceptionally dynamic economy. Add the attraction of the entertainment industry, the appeal of year-round sunshine, and the desire to live in one of the most exciting cities in the world, and it’s easy to see why LA has a proven record of consistent demand.

Limited supply is another key factor in the value of the Southern California real estate market. Housing in LA is sprawling and limited by geographic boundaries including the ocean to the west and the mountains to the north and east. The high demand and low supply have driven LA to become a market leader in both rent growth and property appreciation.

Gatsby follows market trends closely, and we have taken the current housing market and interest rates into consideration when calculating the return for this property. Additionally, our projections of both sales price and timeline are conservative, as our goal is to outperform our estimations.

Despite cooling market conditions, Gatsby’s track record continues to be impeccable. All of our completed properties from the past year have sold over asking price, with many selling in under 30 days.

Our success in the multi-family market is based on the following four factors:

The shortage of housing in Los Angeles has created impressive opportunities for real estate investors, particularly through recent zoning law changes.

In an effort to increase housing, California now allows property owners to convert specific single-family lots into multi-family developments of 4-10 units. This means developers can build more units in less space, which creates more housing in central areas, where it is needed most.

Through our industry connections, we are able to purchase affordable single-family lots below market rate. Then, we build a multi-family structure on the lot, effectively turning a single-family home into a valuable multi-family development that can create multiple streams of income.

This process also dramatically reduces the time spent locating suitable properties and getting permits approved, which allows us to bring these in-demand units to market sooner.

Unlike single-family homes, for which sales prices are primarily based on the sales prices of recent sales of similar properties, sales prices for multi-family developments are based on potential rental income. This means that multi-family listings are not as reliant on market conditions and market rates. Even if single-family home values are dropping, rental prices generally remain steady (or may even increase), which causes the sales price of multi-family properties to increase.

Because our target buyers are property investors, they are aware of the connection between rental income and purchase price, so they are willing to pay accordingly.

By building new developments that perfectly align with growing demand trends, we are able to generate strong returns, even in a stagnating market.

Currently, around 65% of LA residents are renting rather than owning. And, in today’s market, people are looking for an affordable living option, so many renters are taking on multiple roommates to split the rent between more people and lower the cost of housing.

Around 75% of the apartment inventory in LA has two bedrooms or fewer, and even splitting the rent in two isn’t typically enough to make a unit affordable. Today’s renters are looking for four-bedroom units that allow them to split the rent between four roommates.

To serve this group, we build four-bedroom apartments, with all four rooms being around the same size and each room coming with its own en-suite bath. This layout comfortably accommodates four roommates at a rate they can afford.

This is what makes our properties so desirable for investors; they know these buildings will be in high demand by renters. This is exactly the type of multi-family development that strategic investors will be funding in California over the next few years.

Gatsby has been in the industry for many years and has strong relationships with all the right people.

Through our connections with local real estate brokers, for example, we’re able to get access to off-market deals. Through our banking relationships, we are in a position to negotiate the best possible rates. And with the volume of properties we handle, we can also negotiate deals with the best builders and designers in the area.

Getting good deals at each step of the process means higher profitability potential for our investors!

Through the combination of these four factors, Gatsby is able to consistently outperform the market.

The development starts by preparing the lot for the new multi-family structure. We will tear down the existing property and grate the lot for the new build.Our architects will create a modern multi-family structure, tailored to the specific lot and designed to appeal to today’s renters.

The new build will include two separate three-story structures with on-site parking for the residents. Each unit will define upscale urban living with high-quality appliances, stunning color combinations, and open floor plans. Each bedroom retreat will have its own private ensuite bathroom and a spacious closet. Balconies and terraces will provide outdoor living spaces to enjoy the Southern California weather.

To make sure the building is in high demand with buyers, we choose amenities strategically. We avoid high-cost, high-maintenance amenities like pools, fitness centers, and elevators, but include low-maintenance amenities that offer a competitive advantage, like extra parking, in-unit laundry, and rooftop decks.

Once the permits are approved to build, our construction team get to work building the multi-family property. With the skilled professionals and workers and the efficient systems we have in place, Gatsby can complete high-quality builds in comparatively short timeframes, leading to less uncertainty, lower risk, and faster payouts for investors.

Every step of the construction process is managed by Gatsby. We keep investors up to date through the user-friendly online dashboard where we display the project’s progress bar and upload progress photos of the construction of the property. We also send email updates when the project moves from one status to another.

The initial timeline of this project starts the day we open escrow for the purchase. Then we follow the process of closing on the home, demolishing, and building. When the construction is complete, we take final property photos, list the property on the market for sale, and advertise it to qualified buyers. The timeline ends the day we close escrow on the sale of the property.

When the development has sold and escrow closed, our accounting team will calculate the financials and send the investor distributions within 10 business days.

NOTE: Investors receive their disbursement after the property has sold. There are no disbursements or dividends throughout the investment period for new development projects.

Investors can enter the opportunity at any time while it is listed as an “Open Investment.”Gatsby often purchases the property with our own capital, then replaces our original funds with investors’ funds as they are received. Your return on investment will be prorated based on the day you join the investment. The “ROI Calculator” feature on the top of the page automatically calculates the estimated ROI based on the time that is left of the deal.

The “prorated” timeframe simply refers to the amount of time that you are an active investor in a project. Your return on investment will be based on the timing of your investment in the property. If, for example, we offer an investment with an 18-month timeframe, and you enter the investment in month two, your profits would be calculated based on the 16 months that you were an active investor in the project.

The opportunity will be open until it has been fully funded by the investors, or until Gatsby decides to close the investment by keeping its own capital and stake in the deal.

This property is partly financed with a construction loan. Gatsby Investment cosign for the loan. For more information on the loan fees and interest rates, please view the “Deal Level Financials” breakdown above.

Gatsby Investment is the syndicator in each deal, which means that we manage every project from start to finish. We carefully analyze potential deals, complete due-diligence work of likely deals, and choose only the deals with the greatest potential for our investors. We then create the LLC in which the property will be held, put down the deposit to open escrow, handle all title and escrow documents, work with the lender to get the best interest rates, secure the loan, oversee the construction, and make sure the project is staying on track with time and budget.

We also handle everything on the investor side. We prepare the investment offering info for investors, keep investors updated throughout the project, provide customer service support, and take property photos (before, during, and after construction). We also handle all accounting services including investor distributions, 1065 tax filings, and Schedule K-1s.

Furthermore, Gatsby funds any capital needed to close each deal to make sure an investment never stand still awaiting funding. This means that Gatsby is also an investor in each deal, investing right alongside you!

Gatsby Investment partners with an experienced operator/developer for each project to maximize returns for investors.

The operator/developer is in charge of the building and construction side of the project. Once the property is purchased, the operator/developer works with the architect to complete the building plans, submit the plans to the city for permit approval, supervise the construction team, manage the development, handle property inspections, and sign off on the completed construction project.

Keeping the developer in the deal increases efficiency in terms of both time and cost. The developer is motivated to save money on material and labor costs and to finish the project quickly with the best possible quality build. Gatsby pays all the bills directly to each vendor. The operator/developer does not mark up any expenses on labor, material, or services. Everything is done at cost.

Gatsby only works with well-established operators/developers, with a minimum of 10+ years in the business and with a successful track record of profitable returns. They need to consistently complete high-quality builds and be specialized in the Los Angeles market. Furthermore, they are required to have knowledge of Gatsby’s market niche, and to understand specific local zoning codes and rules and regulations, so that they can expedite city permits.

In exchange for all the services provided, Gatsby (as the syndicator) and the operator/developer earn a service fee, which is split between the two parties. The service fee and the split can vary for each project, depending on how much work is required.

The total service fee and the split for each project are specified in the “Deal Level Financials” breakdown above.

Gatsby is unique in that we don’t charge an upfront fee on the purchase or sale of the property. The service fee is only taken out of the profit. That means that the project must make a profit for Gatsby and the operator/developer to earn their fee.

Since Gatsby was founded in 2016, there has never been a project that failed to make a profit, and we are proud to say that we have a 100% profitable track record!

This investment is held in a stable LLC ownership structure.

The LLC will offer Class A Units to prospective investors in accordance with a Subscription Agreement. 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 investing in the LLC.

Gatsby Investment acts as the Managing Member and owner of Class B Units in the LLC (and has all voting rights). 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 real property asset held by the LLC. 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.

The LLC will issue a Schedule K-1 to each investor at the end of each fiscal year, which can be used by the investor when preparing annual tax returns.

You will be guided step-by-step to finalize your investment request. When your investment has been placed, you will be given the wire transfer and ACH instructions. You will then have five business days to send the funds and secure your place in the investment.

You will receive an email confirmation when we have received your wire transfer/ACH and your investment is active. At that point you can access the legal certificate that confirms your status as a member of the LLC that owns the property by going to the “Account” tab, then clicking “My Investments.” This certificate will also confirm the number of shares you own. On that same page, you can also access the investment contracts, which can be viewed and downloaded at any time, as well as the property title document.