Real Estate Investing News and Advice!

Welcome to your source for real estate investing news, insights, and guidance.

As industry experts, we stay up-to-date with real estate market trends, and actively work to stay ahead of changing market conditions. We’re excited to share our research and analysis with you! With these market insights, and real estate investing tips, you’ll have a competitive advantage over other investors in your local market.

The topics we cover include real estate news, interesting market trends, buying and selling real estate, and managing rental properties. We also share company news from Gatsby Investment, so you’ll have the inside track as Gatsby continues to expand operations.

Want to learn even more? Click the links to view educational articles, press releases, and explainer videos.

LA Says Yes: Bringing Together the People Shaping the Future of Housing

Last week, Gatsby Investment had the privilege of hosting LA Says Yes at our Beverly Hills office, an evening dedicated to one of the most important conversations facing Los Angeles today: housing.

In partnership with YIMBY Action, we welcomed investors, developers, brokers, lenders, housing advocates, and real estate professionals for an evening of meaningful discussion, valuable networking, and new relationships. We were also honored to welcome New York Times bestselling author and Netflix host Ramit Sethi, whose perspective on opportunity, personal finance, and housing sparked an engaging conversation about the future of our city.

While the event was filled with great conversations, new connections, and an incredible atmosphere, its purpose went beyond simply bringing people together. It reflected something we strongly believe at Gatsby Investment. Real estate is about more than buying and developing properties. It is about helping shape stronger communities and creating opportunities for long-term growth.

As a real estate investment company, we believe it is important to stay engaged with the conversations that influence the communities where we invest. Housing policy, development, and responsible growth all play a role in the future of Los Angeles. Staying connected to these conversations helps us better understand the market, identify opportunities, and continue making informed decisions on behalf of our investors.

Events like LA Says Yes also strengthen relationships with many of the professionals who shape our industry, including developers, lenders, brokers, investors, and community leaders. Those relationships create opportunities to collaborate, exchange ideas, and stay connected to the people driving change throughout Los Angeles.

We are grateful to everyone who joined us, including our partners at YIMBY Action, our sponsors, our featured speakers, and every guest who helped make the evening such a success.

At Gatsby Investment, we remain committed to investing not only in real estate, but also in the relationships, partnerships, and conversations that help build a stronger future for Los Angeles.

We look forward to continuing the conversation and seeing you at our next event.

Lessons Learned from 10 Years in Real Estate Syndication

Founded in 2016, Gatsby Investment is coming up on our 10th anniversary! And, let me tell you, we have learned a lot over the last decade.

We thought this might be a good time to reflect on the lessons we’ve learned from 10 years in real estate syndication. And to share those lessons with our investors.

So here are three of the most valuable lessons learned from real estate syndication, including ways you can implement these lessons in your own real estate investing.

1. Leverage the Resources of More Experienced Investors

No one is born knowing how to invest in real estate. And no matter how much you learn, there’s always someone more experienced who can teach you more.

Dan didn’t launch Gatsby Investment alone. Even as a successful entrepreneur and developer, Dan sought out partnerships with people he could learn more from. Leveraging their experience, skills, knowledge, and connections allowed Dan and the whole company to grow faster and stronger while minimizing risk.

How You Can Leverage the Resources of Others Through Syndication

Syndication is built on leverage. When you invest in a syndicated real estate deal, you automatically get access to:

Your sponsor’s expertise. An established syndication sponsor has a team of professional real estate analysts who pre-vet each potential deal. By the time a deal is offered to investors, it’s undergone rigorous stress testing to make sure it’s a sound investment. For a behind-the-scenes look at this process, check out How Gatsby Selects Properties for Syndication.

Your sponsor’s network. Unless you already know an architect, designer, developer, contractor, electrician, plumber, HVAC specialist, roofer, and an entire team of builders (who all happen to be available for your project at the same time, you benefit immensely from your sponsor’s industry connections.
Your sponsor’s systems. An established sponsor has done dozens, or maybe even hundreds, of deals. They have a tried-and-true workflow, optimized for efficiency and return on investment.
Other investors’ capital. Since syndication pools funds from multiple investors, you get to buy into a high-value deal for a comparatively small investment amount. For example, with Gatsby, you can own part of a multi-million dollar property for as little as $25k.

2. Don’t Underestimate the Power of Balance

Most investors appreciate stability over volatility. Of course, some extremists don’t mind high-risk investments if there’s a chance of high returns. But if you’re looking to increase your net worth, you’re probably looking for a better balance.

At Gatsby, we’re always balancing things like:

Risk vs. reward

Speed vs. due diligence
Liquidity vs. long-term returns
Appreciation vs. cash-flow
Multi-family vs. single-family

This might sound like an obvious consideration, but with balance playing into literally every aspect of a deal, we’re making thousands of calculated trade-offs continually with the goal of maximizing return potential for our investors.

Ways You Can Implement Balance through Real Estate Syndication

Syndication, as an investment model, offers some built-in balance.

For example:

Ownership vs. responsibility. With syndication, you own an equity stake in the underlying real estate. But you don’t have to handle landlord tasks like leasing, rent collection, maintenance, or vacancies.

Diversification vs. overconcentration. Unlike with whole fund investing (like you find in other passive real estate investments like REITs), syndication allows you to hand-pick your properties from a selection of pre-vetted deals. And, instead of tying all capital to one property, you can spread your capital across multiple projects for greater diversification.
Portfolio growth vs. personal bandwidth. You can build a real estate portfolio with multiple properties without the stress and workload that often comes with scaling independently.

3. Choose Resilient Markets Over Trendy Ones

Trendy markets have a tendency to boom and bust. Hot spots like Las Vegas, Phoenix, and Tampa have all seen property values skyrocket and crash.

But at Gatsby, we don’t want to rely on market growth as the sole driver of returns. We want to work in a market that provides impressive return potential even as conditions shift. That’s why we focus on Los Angeles, the best-kept secret in real estate investing.

Many investors avoid LA because of the high entry costs, lower cap rates, and longer permitting timelines. And this is great for us because it means less competition! Investors often overlook the chronic housing shortage that rewards developers, the changing zoning laws that create opportunities for small multi-family builds, and the long-term resilience of property values.

How You Can Invest in Resilient Markets through Real Estate Syndication

You can absolutely research markets you’re interested in to see if they might be a good long-term investment. But if you’re looking for a formula that’s already proven successful, join Gatsby in investing in LA through syndication!

Since we at Gatsby handle every aspect of the deal for you, you can access the LA market through us, even if:

You don’t live close enough to personally manage a property in LA

You don’t have the cash available to buy a property in LA on your own
You don’t have an insider’s understanding of individual neighborhoods and their micro-housing markets

Leverage the Expertise of the Experienced Team at Gatsby

You don’t have to learn lessons the hard way. Give yourself a head start by using lessons others have already learned.

Gatsby has continually improved our systems over our 10 years in real estate syndication, and we are proud of our track record. From 2016 through the end of 2025, we provided average annualized returns of 22.3%!

Want to learn more? Explore our real estate investment opportunities and leverage our expertise over the next 10 years and beyond!

Why Do Building Permits Take So Long?

According to recent data, it takes around 4-6 months on average to get a building permit for a single-family home in Los Angeles. And 6-12+ months for a commercial building permit (which includes multi-family residential properties of more than four units).

But why do building permits take so long? How does the process affect your real estate investments? And what can be done to move the process along?

Why Building Permits Take So Long?

Building permits generally take some time because:

Compliance is a matter of public safety. Permits exist to prevent unsafe construction. Reviewers in the permitting office are thorough and cautious to minimize liability.

The plans must meet zoning, land-use, and building codes. Before construction is even considered, the project has to comply with zoning laws (setbacks, height limits, lot coverage, parking requirements, and permitted use). Then the structural plans must meet building, fire, electrical, plumbing, and energy codes. All of this review work takes time.
Multiple departments are involved. Permits aren’t handled by a single reviewer. Specialists in planning, engineering, fire, environmental, and utilities may all need to sign off. In many cases, these approvals need to happen sequentially rather than simultaneously because one department's approval depends on another department having approved its components.
Environmental reviews. Projects may require stormwater plans, soil reports, floodplain analysis, or environmental impact checks. These may require additional agencies or outside consultants.
Backlogs and staffing limits. A permit office may have more applications than staff can process quickly. This is especially true during periods of heavy construction. In Los Angeles, for example, we’re seeing longer backlogs because property owners are starting to rebuild after the 2025 wildfires.
Incomplete, unclear, or problematic plans. If the reviewers don’t have enough information to sign off on the project (or find problems with your plans), they have to contact you for revisions. This can put your application on pause while you revise and resubmit the plans.

How Do Permitting Timelines Affect Your Real Estate Investments?

The permitting process can affect your real estate investments for better or worse.

Delays in permit approval could lead to:

Higher carrying costs. Delays mean more months paying interest, taxes, and insurance. This also means you need more cash to keep the deal alive.

Lower annual returns. The longer the timeline, the weaker your return on investment, even if profit stays the same.
Market risk increases. While waiting for the permits, you’re exposed to rate changes, price shifts, and demand swings.
Overly “safe” deal selection. Investors who are intimidated by the permitting process tend to favor simpler turn-key projects to avoid permit-related risk. This can create missed opportunities for more lucrative investments.

On the other hand, if you know how to navigate the permit process (or team up with real estate investment sponsors who have experience with the local permit office), you gain a competitive advantage over other investors.

How to Move Through the Permit Process as Quickly as Possible

You might not have complete control over the permit process, but there are things you can do to speed it along and reduce delay risks:

Provide complete, clear, and compliant plans. The less back-and-forth required, the better!
Choose projects with streamlined permitting. As an example, ADUs (accessory dwelling units) in Los Angeles can be permitted in around 8-16 weeks. You don’t have to limit yourself to only easily permitted projects, but making progress on a simpler deal like this while waiting for permits on a more sophisticated project may offer the right balance.
Use local architects, designers, and contractors. Every jurisdiction has different regulations, so it’s important to hire professionals who have experience in the area where the project is located.
Respond to any questions promptly, completely, and accurately. If a reviewer does need more information from you, responding quickly with everything they need allows them to get back to work on your file.
Outsource the construction phase to a local sponsor. You don’t have to be a real estate developer to earn the benefits of investing in opportunistic ground-up construction. You can join other investors in pre-vetted development deals or invest in built-for-you developments for sole ownership of the completed property. Either way, the sponsor handles the permitting, so you don’t have to.

Leverage Gatsby’s Decade of Experience with LA Permitting

Los Angeles has long been a best-kept secret in real estate investing. And Gatsby Investment has been helping investors access deals with high return potential in this high-value market for 10 years!

Gatsby is an LA-based sponsor that specializes in real estate syndication projects. We find and analyze deals, secure permits, oversee construction, and manage lease-up and stabilization until the completed property is ready for resale. We’ve successfully acquired over 100 properties in the LA area and have worked extensively with the local permit office to secure permits quickly and efficiently.

Whether you’re looking to join in a syndicated real estate deal or outsource the construction of your home or investment property to the professionals through a built-for-you service, Gatsby Investment is here to help!

How the Proposed INVEST Act Could Expand Investment Opportunities

There’s a bill currently sitting in the Senate that could change the way Americans invest.

The House of Representatives has already reviewed and approved the Incentivizing New Ventures and Economic Strength Through Capital Formation Act of 2025 (INVEST Act), passing it along to the Senate on December 11, 2025, where it is still awaiting consideration (as of the date of this publication).

While this bill is not yet law, and it’s possible the Senate could reject it or make amendments before passing it, it’s worth exploring how this bill could affect you as an investor in the coming years.

What Is the Proposed INVEST Act?

The proposed INVEST Act is a bill designed to expand access to private investments, making it easier for small businesses to raise capital and giving investors more options.

It can be viewed as an extension of the groundwork laid by the JOBS Act of 2012, which paved the way for popular modern investment models like real estate crowdfunding.

What Would the INVEST Act Do?

The bill covers a lot of ground, but generally focuses on:

Making it easier for small businesses to raise money. By raising business crowdfunding thresholds and increasing venture capital limits, small businesses may have more options when seeking out investors.

Reducing regulatory friction for public companies. The number of public companies listed on US stock exchanges has plummeted by roughly 40% since the 1990s, so legislators would like to reduce the requirements for IPOs (initial public offerings), eliminate unnecessary paperwork, and shift to digital delivery of disclosures as the default.
Expanding investment offerings for 403(b) retirement plans. 403(b) plans, which serve employees of non-profits, schools, churches, and hospitals, have traditionally been limited to mutual funds and annuity investment options. The INVEST Act aims to expand offerings to be more in line with the offerings of the 401(k)s that serve employees of for-profit businesses.
Looking for ways to protect senior investors. In a bill largely focused on deregulation, Section 204 stresses the need to increase guardrails to prevent the exploitation of investors aged 65 and older. The bill requires the formation of an SEC task force dedicated to studying the ways senior investors may be taken advantage of and actively searching for solutions to minimize the financial damage to this potentially vulnerable group.
Broadening the definition of accredited investors. Since the SEC requires investors to be accredited to access certain investment types, changing the criteria to allow for more accredited investors could increase opportunities for both the investors and the projects they’re investing in.

Proposed Changes to the Accredited Investor Criteria Under the INVEST Act

Under current regulations, only investors who earn enough, are wealthy enough, or hold a professional license may invest in certain investments (including highly popular real estate syndication). To qualify today, you would need to meet one of these five requirements:

Earned $200,000 or more in gross income each year for the past two years (and expect to continue to do so).
Earn a combined $300,000 or more with your spouse, each year, for the past two years (and expect to continue to do so)
Maintain a net worth of $1 million or more (excluding the value of your primary residence).
Hold at least $5 million in assets as a business (or be a business entity in which all equity owners are accredited investors)
Holding General Securities Representative (Series 7), Private Securities Offerings Representative (Series 82), or Licensed Investment Adviser Representative (Series 65) registration in good standing.

The proposed INVEST Act would allow these figures to adjust for inflation, but it would also create a new path to becoming an accredited investor: passing a knowledge exam.

The idea is that you don’t have to hold a certain amount of income or wealth or be a licensed professional to know enough about investing to access more sophisticated investment models. By demonstrating your knowledge through an SEC-administered exam, you could qualify as an accredited investor if the INVEST Act passes the Senate in its current form.

Empowering Investors to Take Control of Their Financial Futures

At Gatsby Investment, we believe in balancing investor protections with investor empowerment. The more you know about investing, the better prepared you are to make good decisions and earn your financial freedom.

We freely share resources through our Educational Library and free investment videos. We also offer industry updates and behind-the-scenes looks at our investment strategies through the Gatsby Blog.

If you already qualify as an accredited investor, we warmly invite you to explore our real estate syndication investment opportunities. And if you don’t yet qualify, we encourage you to browse our resources, which can help you build your net worth and increase your knowledge.

Whether the INVEST Act passes in its current form, gets amended, or even gets rejected, Gatsby will continue to support and empower all investors through high-quality investment offerings and freely accessible financial information.

Why Buyers Choose Gatsby Multi-Family Properties

Real estate investors today are increasingly looking for properties that offer a combination of immediate income, long-term stability, and tax efficiency.

Gatsby Investment develops modern, income-producing multi-family properties designed to meet these objectives, particularly within the Los Angeles market.

This article explains what makes these properties attractive to buyers and why they continue to perform well.

Stabilized, Income-Producing Assets

One of the biggest challenges in acquiring rental property is uncertainty. Vacancy, leasing timelines, and tenant quality can all impact performance.

Gatsby properties are delivered fully leased and stabilized, meaning tenants are already in place at the time of purchase.

For buyers, this provides:

Immediate rental income
Proven occupancy and rent levels
A smoother transition into ownership
Reduced lease-up risk

Instead of acquiring a property that still needs to be filled, buyers step into an asset that is already performing.

New Construction with Lower Maintenance

Older apartment buildings often come with deferred maintenance, outdated systems, and ongoing capital expenditure requirements.

Gatsby developments are built from the ground up using modern materials and systems, which can help reduce early ownership costs.

Rather than including high-cost amenities that increase operating expenses, Gatsby focuses on practical features tenants consistently value:

Functional layouts
Private outdoor space
Parking
Modern appliances and finishes
Low-maintenance common areas

This approach helps create properties that are easier to operate while maintaining strong tenant appeal.

Designed for Real Rental Demand

In Los Angeles, many apartment buildings are built around smaller unit formats such as studios or one-bedroom units.

Gatsby developments take a different approach by focusing on larger, shared-living layouts that reflect how people actually live in high-cost housing markets.

Typical features include:

Three- to five-bedroom units
Private bedrooms with ensuite bathrooms
Spacious shared living areas
In-unit laundry
Modern finishes and high ceilings

These layouts appeal to a wide range of renters, including:

Young professionals
Roommate groups
Families
Budget-conscious renters

By aligning with real market demand, these properties tend to maintain strong occupancy and consistent rental performance.

The Advantage of Smaller Multi-Family Properties

Gatsby focuses on smaller multi-family buildings, typically 4 to 6 units.

This segment of the market offers several advantages:

More accessible purchase prices
Easier financing options
More manageable ownership
A broader pool of buyers at resale

Because these properties are within reach for a larger group of buyers, they often maintain strong demand and liquidity compared to larger apartment buildings.

Built in Los Angeles, Designed for Its Market

Los Angeles remains one of the most supply-constrained housing markets in the country.

Several long-term trends continue to support rental demand:

High cost of homeownership
Limited supply of new housing
Strong employment centers
Continued demand for modern living spaces

By focusing on well-located neighborhoods and renter-driven design, Gatsby developments are positioned to perform within this competitive market.

Tax Advantages

In addition to rental income, multi-family real estate can offer powerful tax advantages.

Strategies such as cost segregation may allow buyers to accelerate depreciation and offset a portion of their taxable income, improving overall investment efficiency.

Gatsby properties are particularly well suited for this because they are offered at more accessible price points, allowing individual buyers to benefit from tax strategies that are often associated with larger real estate investments.

For many buyers, these benefits can enhance cash flow and overall returns while owning an income-producing asset.

1031 Exchange Considerations

A 1031 exchange allows investors to defer capital gains taxes by reinvesting proceeds from the sale of one investment property into another.

Because Gatsby properties are:

Newly constructed
Fully leased
Easier to finance
In an accessible price range

They often serve as strong replacement properties for investors transitioning out of older or higher-maintenance assets into more stable, lower-maintenance, income-producing properties.

A Smarter Approach to Multi-Family Ownership

Buying a multi-family property is not just about acquiring real estate. It is about selecting an asset that performs consistently, operates efficiently, and aligns with long-term financial goals.

Gatsby properties are designed with these objectives in mind, combining:

Stabilized income
Modern construction
Strong rental demand
Strategic tax advantages

For buyers seeking a more predictable and streamlined ownership experience, these factors can make a meaningful difference.

Interested in Acquiring a Gatsby Property?

If you are interested in purchasing a completed Gatsby multi-family property or would like to explore upcoming opportunities, you can view available properties or connect with our team to learn more.

What I Learned About Real Estate Investing from Moving 16 Times in 20 Years

Yes, I’ve moved 16 times in 20 years. I’m married to a video game developer, and we have a history of moving every time he finishes a game so he can start a new project with a new studio.

We’ve bounced around Southern California, Arizona, the Midwest, and Europe, giving me a unique perspective on real estate investing. Plus, as a professional content writer in the personal finance space, I have a clear view of real estate’s role in a diversified portfolio.

After navigating so many moves as both a homeowner and investor, I’ve identified three key lessons that can help any investor make smarter real estate decisions (no matter where life takes you!)

1. You Can Invest without Owning Your Own Home

This may seem obvious, but I see so many investors avoiding real estate investments because they feel that owning a home is the entry point to this asset class.

But when you move frequently, renting often makes more sense than buying. You can rent your primary residence while investing in real estate (through rental property acquisitions or via the multiple ways to invest in real estate without buying property).

Real estate can even be used as a vehicle for renters to save enough for the down payment on their home. Through low-investment-minimum options like REITs (real estate investment trusts), you can start investing in real estate on any budget and use the magic of compounding to grow your funds far faster than you could save enough for a down payment.

Don’t let your renter status keep you from capitalizing on the housing market!

2. Direct Ownership May Be Overrated

I’ve owned multiple single-family rentals in Los Angeles and San Diego Counties. While we lived in the US, our strategy was to purchase a home as a primary residence, using favorable primary residence financing, live in the home as long as we could, then place it in service as a rental when we had to relocate for work (where we would repeat the process).

While this was a lucrative strategy, I didn’t love the hassle of being a landlord. With a background in luxury property management, I was able to manage the rental portfolio myself, screening tenants, handling renewals, and addressing maintenance requests, even while living a few hours away. But it did take more time and contractor connections than I expected.

Once we moved abroad, I chose to hire a local property manager who could serve the residents better than I could, given the distance and time difference. While this lightened the load, I am still responsible for many decisions, including approving tenants, lease renewal offerings, and maintenance contracts, based on my review of quotes collected by the property manager. Of course, as the owner, I am still financially responsible for all rental property expenses. I cover the mortgage, maintenance emergencies, and property management fees, even if the rent is late or the unit is vacant.

If you love being a hands-on property owner, direct ownership may be a good fit for you. The rest of us should explore other options.

3. Real Estate Syndication Offers More Benefits with Fewer Risks

I first became acquainted with real estate syndication through my work as a finance writer. And I fell instantly in love.

Syndication pools funds from multiple investors to finance a specific real estate project (a rental, a new development, or anything in between). The project is entirely professionally managed, so investors don’t have to invest any time or energy in supervising the property. You don’t even have to go out and source properties yourself; the sponsor presents you with pre-vetted deals. So you just choose which project(s) you want to invest in, wire the funds, and track the progress of your investment online!

Here’s why syndication is so brilliant:

Multiple investors mean lower investment minimums. You can buy into a multi-million dollar deal for as little as $25K.

Professional management means purely passive returns. Your syndication sponsor handles every detail, so you don’t have to spend any of your time on the project. This also means you can invest from out of state or even from abroad (so you’re not limited by your local market conditions).
You get access to next-level deals. For example, I would never have the time or skill to manage a multi-family ground-up development on my own. But with syndication, I can invest in this type of project without any experience. And without shouldering the cost alone.
You still own equity. You become a limited partner in the company that owns the property, so you hold a legit ownership claim to the equity.
There are no ongoing expenses for investors. Once you place your investment, the sponsor becomes financially responsible for ongoing property expenses. It’s their job to allocate rental income to cover vacancy losses, maintenance, and emergencies.
Sponsors have the experience, systems, and connections to maximize return potential while minimizing risk. You get to leverage your sponsor’s resources for better outcomes.

So, what’s the downside?

The main downside of syndication is that you have to be an accredited investor to access it, so those who don’t meet the SEC’s income or net worth requirements don’t qualify. There are a few other potential cons of syndication to consider, such as the lack of direct control over the property and the exit strategy limitations (you typically have to commit funds for the duration of the project, which could be 12-60+ months, depending on the project type).

Why Gatsby is My Go-To Syndication Platform

As a finance writer, I’ve done deep dives on multiple syndication platforms. And there’s only one I choose to work with: Gatsby Investment.

Here’s why I personally choose Gatsby:

History of impressive returns. Over the last decade, Gatsby has provided average annualized returns of 22.3% to investors. They also have a 100% profitable track record.

The strong LA-focused niche. Gatsby specializes in developing small multi-family structures in Los Angeles. The ongoing LA housing market shortage means there is consistent local demand for this property type. And with zoning law changes, there is more opportunity for multi-family development.
The people behind the business. Syndication requires that you trust the people managing your investment projects. Dan Gatsby and his team continuously advocate for their investors, their builders, and the LA community. And Gatsby invests alongside investors, aligning incentives to maximize returns for everyone.

Whether you’re a digital nomad who’s always on the move, a working parent who doesn’t have time to manage a rental portfolio, or a retiree who simply doesn’t want to shoulder the expense of direct ownership, real estate syndication with Gatsby Investment may be the right fit for you. I highly encourage you to explore syndicated investment opportunitiestoday!

Introduction to Multi-Family Build-Rent-Sell for Investors

Many real estate investors inadvertently limit themselves, focusing on traditional investment types like single-family home rentals and flips. But these classic investment models can leave you open to local market downturns, vacancy risk, and limited potential. That’s why experienced investors start looking for assets that combine growth, income, and operational efficiency in a single play.

Multi-family build-rent-sell captures the upside of ground-up development before transitioning into a stabilized, income-producing asset designed specifically for long-term rental demand.

Instead of buying aging inventory and renovating it, you can create a purpose-built rental property optimized for modern tenants, lower maintenance, and stronger unit economics from day one.

Here’s what you need to know about multi-family build-rent-sell.

What is Multi-Family Build-Rent-Sell?

Multi-family build-rent-sell (also known as build-to-rent or B2R) is a property with more than one dwelling unit, built specifically to be held as a long-term rental.

Multi-family BRS can include new construction duplexes, triplexes, four-plexes, or apartment buildings with 5+ units.

Build-Rent-Sell vs. Build-To-Sell

Unlike BRS properties, BTS buildings are constructed with the intention of selling upon completion. In that case, the developer looks for a single buyer (often an institutional buyer, but it can be a partnership or individual as well) to take ownership of the newly constructed project.

Compared to BTS, BRS offers a few advantages. Namely, BRSs get to take advantage of both the forced appreciation of the construction phase and the cash flow and appreciation of the holding phase. BTR also offers additional tax advantages through the lower long-term capital gains rates on the proceeds from the sale (when the property is held in service as a rental for at least one year before the property is sold).

BTS properties, on the other hand, allow investors to get in and out of a deal more quickly, avoiding ongoing property management responsibilities and freeing up capital for the next project. Having said that, capital can be released from a BRS under certain conditions. For example, you might perform a cash-out refinance after lease-up to pull your initial investment capital out of the deal without selling.

Multi-Family vs. Single-Family

Compared to single-family, multi-family tends to cash flow better as there are more units to bring in rental income. Multi-family is also more cost-effective because you can have multiple units sharing one lot (as well as sharing walls and roofing in many cases), which reduces the cost per unit. And it’s a more efficient way to scale your portfolio since you can construct multiple units at once.

However, single-family BRS has an advantage in affordability and manageability. It typically takes less capital to construct a single-family home compared to a multi-family home, and managing one unit is naturally simpler than managing multiples.

Pros and Cons of Multi-Family BRS for Real Estate Investors

While all real estate investments offer certain benefits to investors, multi-family BRS is especially advantageous in these key areas:

Predictable, diversified income. With multiple units, you don’t have to rely on a single tenant for 100% of your rental income. Vacancy losses from one unit can be offset by the other occupied units.

Strong demand. With housing becoming less affordable, there is a greater demand for high-quality rentals.
Economies of scale. Operating costs per unit are typically lower for multi-family BRS compared to scattered single-family homes. Maintenance, management, insurance, and other services can be centralized.
New-build efficiency and lower maintenance. Because BRS properties are newly constructed, they often require less maintenance than older buildings, improving net operating income.
Rent growth potential. Rental increases are often an expected part of the renewal process, which means rental income often increases year by year. More units give you more opportunities for increases.
Additional Tax advantages. Depreciation, cost segregation, and expense deductions can substantially reduce taxable income. And, by holding the property in service as a rental for at least a year, proceeds on the sale are taxed at favorable capital gains rates.

However, there are possible drawbacks to consider as well, such as:

Higher capital requirements. Funding the land acquisition and construction presents a large barrier to entry for most investors. However, this can be overcome through certain investment models, as we’ll see shortly.

More complex management. Carrying a property from development into lease-up and stabilization requires operational experience and skill.
Longer timelines. Multi-family BRS requires a longer commitment than BTS projects.
Regulatory exposure. Multi-family housing may be subject to more regulatory scrutiny. Zoning and permitting may be more complex than with single-family.

5 Different Ways to Invest in Multi-Family Build-to-Rent

There are multiple methods of investing in multi-family BTR, making this sophisticated strategy available to investors of all experience levels and budgets.

1. REITs

REITs (real estate investment trusts) are companies that own income-generating real estate. Investing in a publicly traded REIT is just like buying stock in a publicly traded company. You purchase shares, which entitle you to a percentage of the company’s profits, paid out as dividends.

REITs often specialize in specific property types and/or geographic regions. While there are no REITs claiming to hold only multi-family BTR, multi-family BTR is a part of many residential REITs. So purchasing shares in a large residential REIT offers likely exposure to the multi-family BTR market.

When you invest in a REIT, you invest in the company, not necessarily the underlying real estate. You don’t have any control over which properties are held by the REIT or how they are managed.

2. Do It Yourself

If you’re looking for full control, and you have the experience, skill, availability, capital, and connections, you can develop your own multi-family BTR.

As the sole owner, you would be responsible for sourcing the land, obtaining permits, overseeing architecture and design, supervising construction, leasing up the completed units, and managing the stabilized property.

While the upside is enormous for the right investor, very few investors are qualified to manage such a project alone.

3. Partner with a BTR Development Sponsor

If you have the capital, but not the experience, network, time, skill, or desire to personally manage the development, you can partner with a BTR sponsor, essentially outsourcing the development phase to professionals.

Take Gatsby Investment’s Built-for-You program, for example. With this model, you finance the development, giving you sole ownership of the completed project. But instead of sourcing land deals, chasing permits, and managing architects, designers, and construction crews yourself, you outsource this phase to the expert developers at Gatsby.

This dramatically reduces the risk profile of the investment, as you get to leverage the resources of a team that has completed over 100 development projects to date. Our systems and networks have been designed to save time and money while maximizing your ROI potential.

4. Private Equity

Private equity is the traditional method of pooling funds from multiple investors to finance a specific real estate project. Each investor chips in to purchase the land, fund the construction, and earn a share in the rental income and proceeds from the eventual sale.

The project is typically managed by a professional sponsor, with the level of investor involvement varying by deal.

One difficult aspect of private equity is access. By definition, these deals are not made available to the public. You need to be well-connected with other investors and real estate developers to find private equity opportunities. Another difficult aspect for many investors is the capital requirements. You may need $50,000 to $100,000 (or more) to buy into a private equity deal.

5. Real Estate Syndication

Real estate syndication is the more modern iteration of private equity. Like private equity, you have multiple investors pooling funds. However, unlike private equity, these deals can be marketed to the public. Not only does this make opportunities more accessible, but by allowing for more investors, syndication reduces the investment minimums. You may be able to buy into a multi-million dollar multi-family BTR for as little as $25,000.

Syndication is often compared to crowdfunding (and rightly so, as the models are extremely similar). However, syndication offers a more stable ownership structure, with all investors named as limited partners in the property’s ownership entity.

The professional sponsor is built into the deal, so investors don’t have to haggle over design or management decisions. Everything from land acquisition through stabilization is professionally handled for you.

Invest in Multi-Family Built-Rent-Sell with Gatsby Today!

Are you considering investing in multi-family BTR through a partnership with a BTR sponsor or via syndication? Gatsby Investment would be proud to support you in your investment journey!

Gatsby specializes in multi-family build-rent-sell in the high-demand Los Angeles rental market. You can leverage our carefully crafted systems, curated professional network, and decades of local real estate experience to boost your portfolio.

Those who have invested with us have earned average annualized returns of 22.3% since 2017! And with our 100% profitable track record, you can invest with confidence.

Learn more about investing with Gatsby and explore our syndicated multi-family build-to-rent investment opportunitiestoday.

Gatsby Investment Hosts Real Estate Industry Event to Strengthen Deal Flow and Property Sales

At Gatsby Investment, our focus has always been on creating strong real estate investment opportunities for our investors. One of the ways we continue to do that is by building and maintaining strong relationships across the real estate industry.

Recently, Gatsby hosted a real estate networking event in Los Angeles that brought together more than 150 local agents, brokers, and industry professionals to learn more about our development model, our investment platform, and the ways we collaborate with professionals across the city.

While the evening was a great opportunity to connect with industry professionals, it also plays an important role in strengthening the network of professionals that supports Gatsby’s investment platform.

Expanding Our Network to Source More Opportunities

A key part of Gatsby’s strategy is sourcing development opportunities before they reach the open market. By building strong relationships with agents and brokers across Los Angeles, we position Gatsby as a first call when they come across off-market deals or attractive development opportunities.

During the event, we shared with agents exactly what types of properties we are actively looking to acquire this year and our current deal criteria.

For agents and brokers interested in collaborating with us, we have a page outlining how Gatsby works with industry partners and the opportunities available for real estate brokers and agents.

Creating More Exposure for Gatsby Properties

Another important goal of the event was to introduce agents to the new construction multi-family properties we develop.

When Gatsby completes a project and brings it to market, local agents play a key role in connecting those properties with qualified buyers. By educating brokers about our inventory and investment product, we increase the visibility of these properties across the market and ensure that Gatsby’s completed developments are marketed effectively and sold efficiently.

Sharing Strategic Insights with the Real Estate Community

The evening also included a discussion about current market conditions, tax strategies such as cost segregation and bonus depreciation, and why small multi-family properties, like ours, can be an attractive investment vehicle for business owners and professionals.

These conversations help position Gatsby not just as a developer, but as a strategic partner within the real estate investment industry.

Building Long-Term Partnerships

Events like this are part of Gatsby Investment’s broader effort to build strong, long-term relationships with the professionals who help make our projects possible. This includes agents, brokers, lenders, and other industry partners.

The stronger our network becomes, the stronger our pipeline of opportunities and the more effectively we can bring our completed developments to market.

We look forward to continuing to grow these relationships and creating more opportunities in the years ahead.

The State of Los Angeles Housing One Year After the Fires

It’s been over a year now since the Palisades and Eaton fires ravaged Los Angeles, claiming 31 lives directly, destroying around 13,000 residences (with some estimates as high as 16,000), and decimating community neighborhoods.

As Los Angeles had already been in a decades-long housing shortage, the loss of so many dwellings was an especially difficult blow to absorb.

Our early estimates projected a timeline of 15+ years for a full physical and economic recovery. So how are we doing one year into the process? Are we recovering as we should be? And what else can we do?

A Status Update on Rebuilding Los Angeles

Here is the status of the recovery efforts as of January 2026, according to data collected by the Associated Press:

Fewer than a dozen homes have been rebuilt.

Around 900 homes in the affected areas are under construction and on pace to be completed in 2026.
Over 80% of “total loss” insurance claims are still unresolved, meaning funds have not been released to homeowners to begin the rebuilding process.
More than 600 single-family lots in the affected areas have been sold, indicating that many owners do not intend to return to their communities.

How Expectations Compare to Reality

While the numbers may seem low, they’re actually in line with expectations.

Based on the situation immediately following the fires, we estimated that it could take a year or two simply to remove debris and conduct the environmental testing needed to ensure safe builds in the burn areas.

The fact that nearly 1,000 buildings are fully permitted and under construction is encouraging. It’s impressive that construction has already been completed on multiple homes!

We’re also encouraged by the streamlined permitting process in place, which is helping the permit office process applications roughly three times faster than the average time in the five years before the fires.

At this stage, the biggest concern in the bottleneck in the insurance claims processing. LA County is currently investigating State Farm Insurance, the largest private homeowners insurance provider in the area, due to complaints of claims being delayed, underpaid, and even denied.

There is also some concern about the availability of labor and materials once claims are settled and more widespread building is ready to begin. Despite the years that have passed since the COVID era, lead times for certain materials are still substantially longer than they were pre-pandemic. Furthermore, the shortage of skilled laborers and construction workers has been exacerbated by limited wage growth and changes to immigration policy.

How to Move Forward for a Stronger LA

Around 70% of the fire victims are still displaced. The goal is to create local housing quickly for all of those who want to return.

Firstly, resolving outstanding insurance claims will give homeowners access to the funds needed to rebuild. Without that financial foundation, even the best rebuilding policies will struggle.

Another practical step is to increase zoning flexibility. By allowing duplexes, triplexes, or small multi-family buildings on large lots that were previously limited to single-family homes, we can create more housing units more efficiently. This type of gentle density leaves the community character intact while providing faster access to local dwellings. Gatsby Investment specializes in this type of development, which helps to ease the heightened housing crisis while simultaneously providing strong returns for investors.

Of course, we also need to build more housing overall. That includes encouraging new residential construction, supporting infill development, and streamlining the development process. Gatsby’s Built-for-You program, for example, allows homeowners and investors to outsource the design and construction of new homes to the experienced developers at Gatsby. Expanding the workforce through training programs, apprenticeship pipelines, and balanced immigration policy can also help make sure that qualified labor is available once funding and permits are in place.

Nothing can fully replace the homes, neighborhoods, and lives lost in the Palisades and Eaton fires. But with thoughtful policy changes, coordinated rebuilding efforts, and a commitment to increasing housing supply, we can build a more resilient LA.

Gatsby’s Real Estate Investment Strategy for 2026

At Gatsby Investment, we have established a profitable niche in multi-family development in Los Angeles. However, we continuously adjust our real estate investment strategy to take advantage of changing market conditions, zoning laws, and building regulations.

We find areas of opportunity even when interest rates are 6%+, property values are high, and buyer demand is weak.

Want to know what we’re doing to maximize return potential this year? Here’s a behind-the-scenes look at Gatsby’s Real Estate Investment Strategy for 2026!

A Snapshot of the Local Housing Market

To understand our strategy, you need to know what the LA housing market generally looks like today.

According to our LA Real Estate Outlook:

Buyers hold the negotiation leverage. Homes are sitting on the market longer, we’re seeing more price drops, and the sale-to-list price ratio is down. At this stage of the real estate cycle, buyers are in a better position than sellers to negotiate terms. This makes it easier for us to acquire new properties with favorable prices and terms.

Rental demand is up, driving long-term appreciation. With 63% of Angelinos renting their homes, LA’s rental units are always in demand. But with major events coming up (like the FIFA World Cup in 2026, the Super Bowl in 2027, and the Olympic Games in 2028), we’re expecting to attract more transplants to our city. This means strong return potential for long-term rental holdings, in terms of both cash flow and long-term appreciation (not to mention tax benefits!).
LA is still experiencing a housing shortage. The perpetual housing shortage was made worse due to the devastating 2025 wildfires that destroyed over 11,000 residential units. Developing new units is critical for the recovery and long-term sustainability of our local communities.

Gatsby’s Real Estate Investment Strategy for 2026

Here’s Gatsby’s plan to maximize return for investors while building a stronger LA in 2026.

1. Use the Buyer’s Market for Favorable Acquisitions

While property values have been incredibly resilient since the COVID-era gains, the lower buyer competition gives us the leverage to negotiate lower prices on lots suitable for development. We’re actively seeking lots that meet our strict criteria:

Lot Size: Minimum of 6,000 square feet

Location: Must be within the LA Department of Building and Safety (LADBS) jurisdiction (properties that appear on the ZIMAS database)
Purchase Price: Below $1,500,000 per lot
Zoning: RD1.5, RD2, RD3, R2 and R3
No historic preservation restrictions
We do not purchase Ready-to-Issue (RTI) properties
Property must be delivered vacant
Must include a front driveway (no shared driveways)
Comply with SB8 regulations (owner-occupied in the last 5 years) preferred
Flat land only (no hillside properties)

We regularly partner with real estate agents and brokers to source deals, but everyone is welcome to submit a lot for our consideration.

2. Develop Small Multi-Family Structures for Today’s Renters

Rather than building large, obstructive apartment complexes that take years to permit, let alone build, Gatsby is focused on small 4-6 unit buildings that are easier to permit and faster to build.

This small multi-family development strategy also lets us take advantage of zoning changes that allow small multi-family construction on certain lots that formerly allowed only single-family homes. And we can build to the needs of modern renters, including accommodating growing families and shared living situations with multiple roommates.

These buildings add much-needed housing without overwhelming neighborhoods with an unmanageable influx of residents or unsightly large complexes. The goal is gentle density: creating more housing to sustain local communities without costing them their identity.

3. Carry Those Developments into Long-Term Rentals

Rather than fighting current market conditions by trying to sell immediately upon completion of construction, Gatsby is stabilizing our newly built multi-family properties. This means we lease up the building with qualified renters and collect rental income for at least one year before selling under more favorable conditions.

This build-rent-sell (BRS) model lets us collect recurring rental income for investors during the hold period and command a higher sales price for the cash-flow-positive property once more buyers enter the market. Plus, by holding the property in service as a rental for at least one year, our investors benefit from lower capital gains rates, which let you keep more of your returns!

4. Help Homeowners Rebuild

It’s been a year since the 2025 fires, but after a lengthy debris removal and environmental testing process, rebuilding is only just beginning in many of the affected areas.

To aid in the rebuilding process, Gatsby launched Single-Family Built-for-You Developments. This program allows homeowners to outsource the development of their new home to Gatsby. We have the systems, suppliers, lenders, and contractors in place to streamline design and construction to ease the recovery.

If you, or someone you know, is looking to rebuild, we warmly invite you to explore the benefits of building with Gatsby.

5. Use Our Systems to Support a Wide Range of Investors

We understand how complex and expensive development can be in Los Angeles. But through our real estate syndication projects, any accredited investor can get in on the action with as little as $25,000.

Real estate syndication pools funds from multiple investors to finance a specific real estate project (like our multi-family BTRs). Gatsby handles every detail of the project, from analyzing deals and acquiring properties to overseeing construction and handling property management. All you have to do is choose the project(s) you want to invest in, place your investment, and watch your project progress via the online dashboard.

Don’t want to share equity? No problem! Our new Multi-Family Built-for-You Program empowers individual investors to outsource the development of their new multi-family asset to Gatsby. We handle the development for you and turn over a fully leased-up, income-generating asset to you in just 18-24 months!

Put Gatsby’s 2026 Investment Strategy to Work for You!

Don’t be sidelined by the current housing market. Leverage Gatsby’s strategy, systems, and resources to build your real estate portfolio under any market conditions!

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A History of Strong Returns

Since our founding in 2016, Gatsby Investment has successfully acquired over 100 properties with a 100% profitable track record. View completed deals

500+

Active investors on the platform

22%

Average annualized net return to investors from 2016–2025

100

Successfully acquired deals