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.

Should You Appeal Your 2025 California Property Tax Bill?

As a California-based real estate investment company, Gatsby Investment is proud to support CA property owners in creating sustainable housing market growth while protecting their bottom lines. One critical way to protect your financial investment in CA real estate is to avoid excessive property taxes.

With California’s property tax appeal season in full swing, today’s post is specifically to help our California property owners determine if they are being taxed fairly and take action if they’re being over-taxed.

What Is a Property Tax Appeal?

A property tax appeal is a formal protest of the county tax assessor’s estimate of your property’s value for tax purposes (called the assessed value). This value can be found on your Notice of Assessment or your tax bill. You can also look up the value online (in most counties) by visiting your county’s tax assessor’s website.

Your property taxes are heavily based on this assessed value. So, if you can convince the assessor to reduce the assessed value, you can lower your property taxes.

Prop 13 Appeals vs. Prop 8 Appeals

California offers two different types of property tax appeals:

Prop 13 Base Year Appeals
Prop 8 Decline in Value Appeals

Prop 13 appeals only apply to new “base year” values enrolled due to new construction or a change in ownership. If the county assessor enrolls an unfairly high value when processing a change in ownership or new construction, you can submit a Prop 13 base year appeal to correct the value. This appeal must be filed generally by September 15 or 60 days after receiving your assessment notice (whichever is later) in the year the new base value was established. A successful appeal permanently lowers the base year value. This is important because assessed value increases are limited to 2% per year from the base year value. So a base year reduction typically lowers property taxes for as long as you own the property.

Prop 8 allows for temporary reductions in assessed value when the market value of a property dips. CA property owners have an opportunity to submit Prop 8 appeals every year if the value of the property declines due to economic conditions or some other factor impacting the property’s value. For example, if your property was worth less than the assessed value as of January 1, 2025 (the lien date), you may have grounds for a Prop 8 appeal, which would lower your tax bill for 2025 only (the assessed value can be adjusted upward in future years, up to the Prop 13 capped amount, if the market rebounds).

Prop 8 appeals must be filed between July 2 and September 15 in the following counties: Alameda, Alpine, Inyo, Kings, Mono, Placer, San Francisco, San Luis Obispo, Santa Clara, Sierra, and Ventura. In all remaining CA counties, Prop 8 appeals must be filed between July 2 and November 30.

When Should You Appeal Your Property Taxes?

In general, you should appeal your property taxes whenever the assessed value is higher than the property’s fair market value (as of the lien date).

For example, if your assessed value as of January 1, 2025, is $900,000, but the property was worth only $800,000 at that time (based on an appraisal or comparative market analysis (CMA) showing sales of comparable properties around that time), you should probably appeal.

Questions to consider before appealing:

Did you own the property on the lien date? Generally, only the party that owned the property on the lien date is entitled to an appeal. If you purchased the property after the lien date, you should watch for the change of ownership notice and consider appealing the base year instead. If you sold the property before the lien date, you will not be responsible for those taxes anyway.

Is an appeal worth your time, effort, and expense? The process typically involves submitting an appeal application and presenting an appraisal or CMA (Comparative Market Analysis) to support your opinion of value. Some counties also charge an application fee (most often in the $30-$60 range).

Is it worth hiring a property tax consultant? Owners can often handle small residential buildings on their own, but if you own large apartment complexes or other commercial/industrial property, you may want to hire a professional. They typically work on contingency, charging somewhere between 30 and 50% of the tax savings.

How to Appeal Your Property Taxes

Here’s a simple three-step plan for appealing your property taxes if you believe the assessed value is too high:

File an appeal application. You can find the appeal application on your county assessment appeals board website (look for form BOE-305-AH). Some counties even offer online appeals. It is important that you pay your tax bill in full, on time, even if you have an appeal pending. Any overpayment can be refunded with interest after the case is decided.
Present your case to the county appraiser, hearing officer, or assessment appeals board. The exact procedures vary by county and property type, but you’ll typically get instructions for presenting your case within 3-6 months after filing your application. Some cases can be resolved via email/phone by providing an appraisal conducted around the time of the lien date. Others require you to present comparable properties to support the value and/or cap rate you believe is fair in front of the local assessment appeals board.
Track the results. If a reduction is granted, you’ll likely receive a tax refund for the overpayment plus interest. If a tax bill is pending payment, you may receive a corrected tax bill for the lower amount.

Should You Appeal Your 2025 California Property Tax Bill?

Appealing your California property taxes can be a smart financial move if your assessed value is higher than your property’s fair market value. Whether you’re filing a Prop 13 base year appeal to secure a permanent reduction or a Prop 8 decline-in-value appeal for temporary relief, the potential tax savings can be significant.

At Gatsby Investment, we believe informed property owners are empowered property owners. If you think your 2025 California property tax bill is too high, now is the time to review your assessment, understand your appeal options, and protect your investment from unnecessary costs.

5 Benefits of Build-to-Rent Properties for Investors

Build-to-rent (BTR) properties are growing in popularity as a high-return-potential option for real estate investors. BTR projects are developed from the ground up with today’s renters’ needs and preferences at the center of each design decision, creating in-demand properties that command high rental rates.

Here are the top five benefits of build-to-rent properties for investors.

1. Greater Demand and Resident Retention

Renters love the modern layouts, energy-efficient systems, and updated amenities of new BTR developments. These ground-up builds are more likely to attract well-qualified tenants who intend to stay longer than the average renter.

This increased demand means fewer turns of each unit, which reduces vacancy losses, vacancy marketing expenses, and owner-absorbed turnover costs (like cleaning, carpet cleaning, and painting).

2. Potential for Higher Rental Rates and Returns

Residents are typically willing to pay more for BTRs than traditional apartment units. This is due to a number of factors, including the modern design, energy efficiency, and amenities that make the property so in-demand. Additionally, BTRs often offer prime locations, flexible leasing options, and professional property management that attracts renters with higher budgets.

At the same time, maintenance costs may be lower with new construction because you’re not dealing with aging systems and structures. Appliances and HVAC may even be under warranty for the first several years, helping the owner(s) avoid expensive repairs and replacements.

The combination of higher rental income and lower expenses can lead to greater profit margins and a better return on investment.

3. Fewer Limitations and More Options

Compared to purchasing a turnkey rental property, you have far more options and fewer restrictions with build-to-rent projects.

When you get in at the ground floor of a real estate development, you’re not limited by the existing property inventory. You can decide where and how to build, tailoring your property to meet the demands of today’s renters.

4. Value-Add Advantage

By building a property from the ground up, you are forcing appreciation by adding instant value to the property. When done correctly, the completed property will be worth substantially more than your cost for the lot, labor, and materials.

At this point, you could cash out, selling the newly constructed BTR for strong short-term gains. Assuming the property has been developed to match local renter preferences, it may be easy to find an investor-buyer willing to purchase the turnkey development at a premium. Or, you could carry your holding into the rental phase to take advantage of longer-term recurring passive income.

5. Additional Tax Benefits

Real estate investing offers many tax benefits, including depreciation, operating expense deductions, and lower capital gains rates on the sale (as opposed to earned income tax rates). But new developments may offer additional tax benefits depending on location and building strategies.

For example, new BTR construction may qualify for federal energy efficiency incentives, reducing tax liability while improving the property's long-term operating costs. There may also be state and local programs that offer tax incentives for green building practices.

Additionally, BTR investors can leverage accelerated depreciation via cost segregation. A cost segregation study breaks down the construction costs of a new BTR development into components with shorter depreciation schedules (5, 7, or 15 years) than the standard 27.5 years for residential real estate. This allows investors to front-load depreciation, creating large non-cash deductions that can offset taxable rental income and potentially shelter other active or passive income (depending on tax status).

How to Invest in BTR Properties

There are three primary ways to invest in build-to-rent projects:

Manage your own BTR. This option is best reserved for those with real estate development experience and a team of qualified architects, designers, and contractors behind them.
Partner with a BTR development sponsor. If you like the idea of maintaining sole ownership over the BTR, but you don’t have the experience or connections necessary to facilitate the build, consider partnering with a development sponsor. Gatsby Investment, for example, offers a built-for-you program in which you retain full ownership over the project while leveraging Gatsby’s knowledge, network, and systems to handle every detail of the development process for you. This is typically more cost-effective and far less stressful than attempting to develop a BTR on your own.
Invest in a BTR syndication project. Real estate syndication pools funds from multiple investors to finance a real estate project, such as a BTR development. By pooling funds, investment minimums are dramatically reduced. You could, for example, buy into a $3.2 million BTR development with as little as $25,000 with Gatsby’s multi-family BTR syndication offerings. Gatsby handles every detail on behalf of the investors and has a history of providing double-digit average annualized returns on this type of investment.

Whether you go it alone, partner with a sponsor, or invest through syndication, give your real estate investment portfolio all the benefits of a BTR property!

The Role of Real Estate Agents in Syndication Investing

Real estate agents play a critical role in the transfer of properties from sellers to buyers. And they are just as important in real estate syndication deals as they are in traditional owner-occupied transactions.

What Is Real Estate Syndication?

Real estate syndication is when multiple investors pool funds to finance a specific real estate project. The project could be nearly anything: flipping a distressed property, a long-term rental property, or even a new multi-family development. The project is professionally managed by a real estate sponsor, who handles every detail on behalf of the investors, including scouting potential deals, overseeing construction, and handling operations until the eventual resale.

Sponsors often specialize in one geographic market, completing dozens or even hundreds of deals over the years. For real estate agents, this represents a wealth of potential repeat business!

3 Roles for Real Estate Agents in Syndication Investing

There are three primary roles for real estate professionals in syndication investing.

1. Helping Syndication Sponsors Find Suitable Properties

Experienced syndication companies are always looking for their next deal. So you can connect sponsors to properties that serve their niche. For example, Gatsby Investment is looking for lots for new multi-family development in Los Angeles, as well as existing multi-family buildings of six or fewer units in the area.

Real estate agents and brokers can submit properties for Gatsby’s consideration quickly and conveniently through our website.

2. Helping Investors Buy Completed Syndication Projects

When a syndication project is complete, the sponsor will list the property for sale. This presents an opportunity for you to help your investor clients purchase turnkey properties for long-term appreciation, passive income, and ongoing tax breaks.

You can explore Gatsby’s properties for sale to find deals for your investor clients and earn compensation as the buyer’s agent. Gatsby even lists pre-market opportunities on the properties-for-sale page, so you can provide added value to your clients by notifying them of future deals before their competition becomes aware of them!

3. Investing in Syndication Projects Yourself

As a real estate expert, you understand the benefits of real estate investing better than most. But you’re also a busy professional with other commitments who may not have the time or desire to be a landlord. Investing in a syndication project gives you access to the advantages of investing in property without the high cost or time requirements of traditional real estate investments. With low minimum investment amounts, you can even buy into multiple deals, creating an instantly diversified real estate portfolio.

Partner With Gatsby for Potential Sales Compensation, Investment Returns, or Both

Whether you’re looking to boost your real estate compensation, add real estate holdings to your investment portfolio, or both, Gatsby Investment warmly welcomes you to partner with us!

Learn more about Gatsby and our commitment to creating sustainable growth in the LA-area housing market. And explore our current real estate investment opportunities to find your next investment and/or future acquisitions for your investor-buyers.

Architects and Designers Needed to Rebuild LA

In the wake of 2025’s devastating wildfires, Gatsby Investment is looking to expand its development projects in an effort to help the community rebuild. As a local real estate investment company dedicated to easing LA’s long-standing housing crisis while maintaining historically high investor returns, Gatsby is looking to build more residences with a deep pool of talented architects and interior designers.

If you are an architect or designer, or you know someone who is, Gatsby warmly invites you to learn more about exclusive opportunities available now!

Why Top Architects and Designers in LA Partner with Gatsby

Teaming up with an experienced real estate company opens the door to unique opportunities and long-term professional growth. At Gatsby Investment, we support architects and interior designers by taking care of the business logistics so you can focus on your creative work.

Gatsby has been honored to work with top talent and continues to attract these professionals by providing benefits that are difficult to find elsewhere, such as:

A steady pipeline of projects. As our development portfolio continues to grow, you can enjoy a consistent flow of work without spending time and money finding new clients.

A credibility boost. Partnering with a well-established real estate investment company like Gatsby enhances your professional reputation and connects you with reliable, fully funded projects.

Project variety. From cost-conscious builds to upscale luxury residences, our projects give you the chance to express your creative potential across a broad range of styles and budgets. In addition to single-family built-for-you homes, Gatsby also builds multi-family developments from the ground up.

Collaboration. We value your input as an expert in the field. You’ll be involved throughout every phase of the project, from initial concept to final touches, working closely with our in-house team to bring each vision to life.

The growth of your portfolio. Expand your body of work with high-quality developments that highlight your creative range, technical skills, and design innovation.

What Gatsby Is Looking for in Architects and Designers

We are looking for skilled professionals, based in Los Angeles, who are detail-oriented and can show a portfolio of exceptionally designed spaces.

Gatsby is looking for architects who meet the following criteria:

Licensed with expertise in single-family and multi-family projects
Strong understanding of zoning laws and building codes in Southern California
Ability to balance creativity with practicality, ensuring designs align with project goals
Strong industry knowledge and understanding of real estate development
Proven ability to meet deadlines and work within various budgets
Excellent collaboration skills to work with homeowners, investors, contractors, and designers

We are looking for interior designers who meet the following criteria:

Creative and detail-oriented with a strong design portfolio
Ability to design both high-end and budget-friendly spaces
Knowledge of sourcing materials, finishes, and furnishings that align with project styles
Strong industry knowledge and understanding of buyer preferences in Southern California
Proven ability to meet deadlines and work within a budget
Excellent collaboration skills to work with architects, contractors, and homeowners to execute design plans seamlessly

How to Apply for Consideration

If you or someone you know meets our criteria, please reach out! Architects and designers can apply to partner with us via our convenient online portal:

Sign up with a free account on our platform to get started.
Answer a brief questionnaire to share details about your experience and qualifications.
Our team will conduct some basic due diligence once we receive your submission (including confirming licensing and reviewing past projects).
If your application meets our criteria, we will schedule a time for you to meet our team to discuss opportunities and explore possible collaborations.
If both parties agree to work together, you get to become part of our exclusive network, and we can begin to partner on new developments.

Gatsby is excited to meet more of the exceptional professionals who are designing the future of LA! We look forward to working with you to rebuild Los Angeles, making it a more physically and economically resilient city for future Angelinos.

Supporting the Community While Maintaining Strong Investor Returns After the LA Fires

In the wake of the devastating wildfires that swept through parts of Los Angeles in January 2025, the city faces a long-term rebuilding effort as well as a renewed urgency to address the area’s ongoing housing shortage.

Here at Gatsby Investment, our mission has always been to deliver value-driven real estate solutions that benefit both the communities we serve and the investors who trust us to provide strong returns. Over the last few months, we have taken time to reflect on how we can contribute meaningfully to the recovery process and ease the housing shortage while simultaneously protecting our investors.

Here are some of our key insights, showing why Los Angeles is both in need of assistance and a solid place to invest in real estate…and explaining smart strategies for helping the community while maintaining investor returns.

Increased Need for Housing in Los Angeles

Before the fires, Los Angeles was already one of the most supply-constrained housing markets in the country due to under-construction, geographic limitations, and zoning codes that favor single-family residences over more practical multi-family structures. The fires then destroyed another 11,100 residential units, adding to the supply shortage.

While some investors have become hesitant to invest in Los Angeles due to the wildfire risk, it’s important to consider broader market forces that present opportunities for innovation. Disasters like this, while tragic, often accelerate policy changes and community priorities, especially around new construction and smarter urban development. As the city rebuilds, we’re seeing increased openness to new housing solutions.

Rebuilding with Intention

Gatsby is responding to the ongoing housing shortage, exacerbated by the 2025 fires, in a few key ways:

1. Multi-family developments that create attainable housing options.

Over the last several years, Gatsby has carved out a unique niche, building 4-10-unit multi-family developments on small lots, with long-term livability in mind. Our designs use space efficiently, provide modern amenities, and offer price points that work for a wider range of Angelenos. These projects not only help meet demand but also serve the evolving needs of families, renters, and first-time buyers.

2. Built-for-You homes to help families set (or keep) roots in LA.

Our Single-Family Built-for-You program offers a pathway to personalized, turn-key homeownership, ideal for families rebuilding after the fires or those looking to build their dream homes. We manage the entire development process, from lot acquisition (if needed) to architectural planning and construction, making new home construction accessible and efficient.

3. Supporting legislative changes to gentle-density zoning changes.

Gatsby believes in protecting the character of our varied neighborhoods while also allowing for more multi-family developments to accommodate more people within the existing infrastructure of the city, rather than continually expanding into more fire-prone regions. Working with the Los Angeles Builders Association (LABA), Gatsby is advocating for zoning changes that will allow for more housing units in desirable areas with strong infrastructure.

Strong Returns Earned by Providing Valuable Housing Solutions

Gatsby is committed to the Los Angeles market. LA remains one of the strongest long-term real estate markets in the country. We’re a city of international importance with limited land, high demand, and decades of proven resilience. By addressing urgent housing needs in a smart, scalable way, our developments are well-positioned for appreciation and cash flow, providing strong return potential for our investors.

We’ve seen growing interest in our current projects because they speak directly to a gap in the market: thoughtfully designed homes that balance affordability, quality, and demand.

Looking Ahead

We believe that rebuilding after the fires is about more than replacing what was lost. It’s about creating a more inclusive, resilient Los Angeles. Whether you're an investor looking for innovative opportunities or a family searching for a path back home, Gatsby wants to be your trusted partner in your real estate journey.

Why Investing in Real Estate Syndication with Gatsby is a Powerful Retirement Strategy

Over the last several decades, retirement investing has gotten more complicated and less certain. With fewer than 20%of Americans on pension plans and Social Security funds drying up, more workers are taking greater control over their retirement savings by opening self-directed accounts.

Self-directed retirement accounts give account holders access to a wider range of investment vehicles, some of which can provide stronger returns than the stocks, bonds, and funds available in a standard retirement account.

For example, accredited investors can use a self-directed retirement account to invest in high-return-potential real estate syndication projects with Gatsby Investment. This gives you all the benefits of syndication investing, plus added tax benefits from the retirement account structure.

Let’s look at the top three reasons why investing in real estate syndication with Gatsby is such a powerful retirement strategy for today’s investors.

Reason #1. Return Potential, Boosted by Added Tax Breaks

Gatsby’s real estate syndication projects have produced average annualized returns of 22.32% since 2017. These high returns are the result of strategically selected properties, streamlined systems, and industry connections that reduce our expenses and increase our margins.

Because our investors hold an equity stake in the underlying real estate, they benefit from the inherent tax benefits of real estate ownership, including operating cost deductions, depreciation, and lower capital gains tax rates.

But investing through your self-directed retirement account means you also get to defer your taxes or withdraw your gains tax-free in retirement:

When you contribute to a traditional-style self-directed retirement account (like a self-directed IRA or 401(k)), your contributions are tax-deductible in the year of contribution, essentially allowing you to use “pre-tax” dollars to fund your account. Since these contributions are not taxed, you may be able to invest more, allowing your capital to grow faster. Gains held in the account grow tax-deferred until you start withdrawing from the account in retirement (at which time they are taxed as income).

When you contribute to a Roth-style self-directed retirement account (like a self-directed Roth IRA), you contribute “after-tax” dollars, meaning that you have already paid income taxes on those amounts. Those funds are then not taxed when you withdraw them from the account in retirement.

And, you can reinvest your proceeds into future projects, allowing you to compound your returns for faster growth.

Reason #2. Passive Investing with Expert Management

Whether you’re investing in Gatsby’s projects through a retirement account or as an individual, you’re investment is completely passive; we take care of every detail for you. This removes the hassle and headaches of being a landlordwhile easing the financial burden and time investment typically required in direct property ownership.

For those who invest through a retirement account, this perk is especially crucial because self-directed retirement account holders are prohibited from direct involvement in their investments. For example, if you were to purchase a rental property through your self-directed retirement account, you would be prohibited from using the property yourself (or having any disqualified person like a spouse, child, parent, or fiduciary use the property), making repairs to the property yourself, or even maintaining the lawn yourself. But when you purchase a syndicated rental property, you already have the team in place to manage this for you, allowing you to automatically retain your distance.

Reason #3. Access to High-Quality Real Estate Deals with Lower Minimum Investment Amounts

Through syndication, you can own a share in $1 million+ properties that would be difficult for an individual investor to attain. For example, Gatsby has established a niche strategy of developing multi-family properties with 4-10 units and either selling upon stabilization or renting for passive income. Very few investors have the resources and connections in place to develop a multi-family building. But with Gatsby, you can tap into the strong return potential on this type of project without any prior experience or investing any of your time in the deal.

Gatsby’s low investment minimums (as low as $25,000) allow you to quickly and easily diversify your retirement portfolio by spreading your capital across multiple projects.

How to Invest in Syndication Through Your Retirement Account with Gatsby

Gatsby accepts the following retirement account types as a way to invest in syndication through your retirement account:

Self-Directed Traditional IRAs
Self-Directed Roth IRAs
Self-Directed SEP IRAs
Self-Directed SIMPLE IRAs
Self-Directed Traditional 401(k)s
Checkbook IRA LLCs
Checkbook IRA Trusts
Checkbook Solo 401(k)s

Simply sign up for a free account with Gatsby, and enter "Retirement Account" when asked how you’d like to invest. You’ll then have a chance to provide your income and asset information to confirm your status as an accredited investor through Verify Investor, as required by the Securities and Exchange Commission (SEC). Once verified, you can choose from our available real estate syndication offerings, and we can work with your account custodian on the remaining documentation and transfer of funds to activate your investment.

Leverage Gatsby’s experience, skills, knowledge, systems, and network to boost your retirement savings and enjoy the retirement of your dreams!

Gatsby Is Looking to Buy Lots for Development

Gatsby Investment is looking to expand our project offerings by acquiring more lots in Los Angeles!

Our investors have been thrilled with the results of our 4-6-unit multi-family developments because they provide strong returns while helping to ease the housing shortage in LA. Plus, these smaller projects can be completed more quickly than larger apartment buildings, providing faster returns for investors, and they are less intrusive, allowing traditionally single-family neighborhoods to retain their character and charm.

With the consistent demand for these valuable projects, we’re always looking for new lots that are suitable for this type of development.

Whether you’re a real estate broker or agent with your finger on the pulse, an investor with a lead on a property, or a property owner with a lot to sell, we’d love to work with you!

Here’s what we’re looking for and information on how you can submit a lot for our consideration.

Criteria for Gatsby Lots

To suit our multi-family new construction projects, we’re looking for lots zoned to accommodate a 4-6-unit multi-family development in high-demand rental areas. The lots can be vacant or contain distressed single-family homes ready to be demolished.

Specifically, each of the lots we consider must meet the following 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)
Must comply with SB8 regulations (owner occupied in the last 5 years)
Flat land only (no hillside properties)

How to Submit a Lot for Consideration

If you have a lot that meets our criteria, let us know! You can submit a property in five easy steps via our online portal:

Sign up for a free account with Gatsby.
Verify your email address and log in to your new account.
Complete the registration process.
Enter the property details in the portal and click “submit.”
Give the Gatsby team just two days to review and respond to your submission.

We look forward to working with you to bring more housing to Los Angeles and strong return potential to investors over the coming years!

Using Your Retirement Account to Invest in Real Estate with Gatsby

Are you ready to diversify your retirement portfolio with high-return-potential real estate projects?

Gatsby Investment offers multiple ways to invest in professionally managed real estate projects, including through the use of popular retirement account types like Self-Directed IRAs, Solo 401(k)s, Checkbook accounts, and more. Using your retirement account to invest in passive real estate opportunities adds additional tax benefits and diversification without cumbersome direct property ownership.

Here’s a quick look at:

The benefits of investing in real estate through your retirement account,
Why investors repeatedly choose Gatsby for their real estate investments,
Which types of retirement accounts can invest with Gatsby, and
How to use your retirement account to invest in real estate with Gatsby.

3 Key Benefits of Investing in Real Estate Through Your Retirement Account

Here are three of the most compelling reasons to invest in real estate through your retirement account.

Benefit #1: Compounding Returns from Development Projects

With new development investments, you get strong return potential in comparatively short time frames. With efficient Gatsby developments taking only 2-3 years to build and exit, you can quickly reinvest your gains from one project into another. The compounding returns help retirement investors maximize gains in less time, which is ideal for those looking to retire soon or even retire early!

Benefit #2. Resilient Diversification

Real estate has a long history of solid performance as a low-risk asset class. Typically less volatile than the stock market, real estate holdings can add stability to your retirement portfolio while still offering substantial opportunities for growth. Gatsby maximizes the low-risk, high-reward potential by specializing in residential properties in the Los Angeles area, where a decades-long housing shortage has created exceedingly high demand.

Benefit #3. Unique Access to 100% Passive Development Deals

Using your retirement account to invest in passive real estate development deals means outsourcing your investment to experienced real estate sponsors who can access deals that are often unavailable to individual investors.

For example, Gatsby specializes in 4–6-unit, multi-family value-add and ground-up construction projects in the high-value Los Angeles area. These projects require high capital outlays, in-depth local market knowledge, an extensive network of industry contacts, and experience that can only be earned through years of day-to-day immersion. Most investors simply don’t have the time, money, skill, experience, or contacts to manage such a project. But when you invest with Gatsby, you get to leverage our resources to raise property value quickly, reduce risk, and shorten timelines. You don’t have to invest any time or energy in the project once your investment is placed.

Why Investors Choose Gatsby for Their Retirement Strategy

Gatsby Investment is a top choice for investing in real estate through retirement accounts. Here’s why.

Tax-advantaged growth. Investing in real estate through your retirement account allows your capital to grow tax-deferred or tax-free (depending on which type of account you invest with).
Fully passive investments. Gatsby manages the entire process from acquisition and permitting to construction and resale, making it a fully passive investment experience.
Equity ownership. When you invest with Gatsby, you hold an ownership stake in the deal. This entitles you to a share of any rental income, profits on the resale of the property, and tax advantages reserved for property owners.
Deal-by-deal control. Gatsby’s deal-by-deal approach allows you to build a custom portfolio of hand-selected properties. Choose individual projects based on your unique goals, timeline, and strategy.
Easy-to-use online platform. Browse opportunities, place investments, and track your projects in real time from one user-friendly dashboard.
Flexible investment minimums. Start investing in real estate with as little as $25,000.
Historically strong returns. From 2016 through 2024, Gatsby delivered an average annualized return of 22% for investors.
Transparency. You can view Gatsby’s full historical performance, including detailed financials for every completed project and projected financials for upcoming and in-progress deals. To date, 100% of investor projects have been profitable.
Secure legal structure. Each property is owned by a dedicated LLC, in which all investors are members. This proves that you own a stake in the project and limits your liability to your investment amount.
Expert management team. Gatsby’s experienced team handles everything from acquisition to design, construction, and sale. Our local market knowledge and efficient systems reduce investor risk while optimizing returns at every step.

8 Types of Retirement Accounts that Can Invest with Gatsby

Gatsby is currently able to accept investments from eight types of retirement accounts:

Self-Directed Traditional IRAs
Self-Directed Roth IRAs
Self-Directed SEP IRAs
Self-Directed SIMPLE IRAs
Self-Directed Traditional 401(k)s
Checkbook IRA LLCs
Checkbook IRA Trusts
Checkbook Solo 401(k)s

Self-directed accounts typically involve a third-party custodian, also called an Alternative Asset IRA Custodian, while individual investors can personally manage checkbook accounts without third-party involvement.

How to Invest with Your Retirement Account on Gatsby Investment’s Platform

To invest in real estate with your retirement account, simply:

Sign up for an account at GatsbyInvestment.com.
When prompted, choose “Retirement Account” as your investment method.
Enter the retirement account and custodian information.
Get verified as an accredited investor.
Browse available investment opportunities and select the project(s) you’d like to invest in.
If you are investing with a Self-Directed account, Gatsby will work directly with your custodian to provide the required documents and issue the transfer. If you’re using a Checkbook IRA LLC, Checkbook IRA Trust, or Solo 401(k), you can wire or ACH funds directly to Gatsby to activate your investment.
Track progress in real time through your online dashboard.

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Why is LA Still in a Housing Shortage?

Like the rest of Southern California, Los Angeles has been struggling with a housing shortage for decades. Despite government intervention and a pandemic-era “exodus,” LA still can’t seem to create enough housing for its residents, especially when it comes to affordable housing.

The shortage is leading to rising rental rates, increasing home prices, and growing homelessness. It’s also forcing some Angelinos out and preventing would-be transplants from joining us.

So what’s going on? Why can’t we seem to fix this major problem? Why is the shortage actually getting worse? And what can we do to turn things around?

What Caused the LA Housing Shortage?

The LA housing shortage comes down to supply and demand. But there are complex forces on each side exacerbating the problem.

On the supply side, we have:

Limited land to build on. Much of the undeveloped land in LA remains so because the terrain isn’t suitable for development.
Under-construction. After the housing market collapse of 2008, home builders were understandably hesitant to resume construction during the long, slow recovery.
Low population density. 72% of LA is zoned for single-family use. This means we can fit fewer homes into the available land area.
Government regulations and policies. Red tape, including lengthy permitting processes and understaffed departments of building inspectors, prevents builders from adding new units as quickly as we need them.

On the demand side, we have:

Employment opportunities. With thriving tech, healthcare, manufacturing, and entertainment industries, many people come to LA for work.
Dream chasing. How many people have moved to LA to make their dreams come true?
Local amenities. There’s always something to do here.
Sunny weather. Lots of people are drawn to the sunshine (263 days per year on average)!

Why is LA’s Housing Shortage Getting Worse?

The housing shortage is getting worse, particularly as evidenced by the increase in the unsheltered homeless population in LA.

In 2016, local voters approved a $1.2 billion ballot measure (Prop HHH) to build 10,000 new apartments to help end homelessness in LA. At the time, LA had around 21,000 residents living on the street. By 2024, that figure was up to around 29,000.

Why?

The most obvious culprit is the COVID pandemic, which crippled the economy, closed businesses, cost people jobs, and forced people from their homes.

The workforce and supply chain disruptions from COVID seriously hindered progress on Prop HHH. By March 2024, only 3,357 of the 10,000 units were complete.

Even as we recovered from COVID, lingering supply chain issues and skyrocketing inflation slowed new construction. Residential building permits dropped by 23% in 2024, largely due to these issues.

On top of all of this, the devastating wildfires destroyed at least 11,100 residential units in January, displacing many more Angelinos and tightening the housing market squeeze further.

Can We Turn LA’s Housing Shortage Around?

While we can reduce LA’s housing shortage, it’s going to take a lot of work. We have a lot going for us, but we also have some major hurdles to overcome.

On the positive side, Prop HHH is back on track, with 10,519 total units planned for completion by 2026! And California Senate Bills 684 and 1123 have been implemented to streamline the approval process for multi-family development, which will help make it easier to build more units in less space.

And the hurdles? First, the LA City Council has voted to keep multi-family structures mostly out of single-family neighborhoods, severely limiting opportunities for efficiently adding units to the housing inventory across most of the city and forcing more multi-family development into already-dense areas. Then, there are the current administration’s tariff and immigration policies. Higher tariffs increase the cost of equipment and materials for building, while the immigrant hostility severely limits LA’s construction workforce.

How Do We Overcome the Hurdles to Address LA’s Housing Shortage?

So, what can we do to better manage the long-standing housing shortage going forward?

Here are actionable ways to help overcome LA’s housing crisis:

Continue restructuring zoning laws to allow more multi-family housing in single-family neighborhoods, with a focus on “gentle density” to allow more units without changing the character of traditionally single-family neighborhoods.
Continue streamlining permitting to speed up construction approvals.
Grow the construction workforce by supporting immigration and trade programs.
Prioritize affordable housing over luxury developments.
Expand public-private partnerships to build affordable housing faster.
Strengthen disaster recovery to quickly rebuild homes after wildfires.
Lower construction costs through exemptions and modular building methods.
Focus on infill development, building on empty lots and underused spaces within the city rather than expanding further outward.
Remove or reform the mansion tax to avoid discouraging development and sales that could help fund broader housing efforts.

Gatsby Investment is committed to adding housing units to the LA area while earning strong returns for real estate investors.

We specialize in converting neglected single-family homes and vacant lots into small, gentle-density multi-family developments. Our development projects are specifically designed to be completed quickly (typically in less than two years), helping us bring more units to the market while expediting investor returns.

At the same time, we have launched built-for-you developments to serve as a full-service development program for homeowners looking to rebuild after the wildfires and investors looking to complete their own residential new construction projects.

Whether you’re looking to support the LA community through additional housing development, invest in a real estate opportunity with strong return potential, or both, Gatsby is here to serve you!

The Multi-Family Development Debate in Los Angeles

Los Angeles has faced housing challenges for nearly five decades now. At its core, LA’s ongoing housing crisis is a supply and demand problem. There aren’t enough residential units to accommodate the millions of households who want to live in LA.

The lack of housing inventory forces households to spend a high percentage of their income on ever-rising housing costs. It also pushes some Angelinos out, causing families to relocate to less expensive areas. And it continues to contribute to the increasing homelessness crisis in our city.

The solution is obvious: Build more units! But this quickly begs the question: Where?

Most of LA (around 72% of the land area) is zoned for single-family homes rather than multi-family structures. But single-family homes take up more space, are most costly to build, and take longer to construct. Multi-family housing is objectively more efficient and more affordable. But with only 28% of the city open to multi-family development, can we ever create enough new housing to meet the demand?

Therein lies the Great Multi-Family Development Debate in Los Angeles. Should we continue to limit multi-family development to areas like Downtown LA and Koreatown, which are already densely populated? Or should we change zoning laws to expand multi-family development in traditionally single-family neighborhoods?

The Case for Preserving Single-Family Neighborhoods

Those who feel we should keep multi-family out of single-family neighborhoods focus largely on preserving the character of these neighborhoods.

Despite their central locations, neighborhoods like Hancock Park, Silver Lake, and West Adams have distinctive charm with tree-lined streets, single-family homes with yards, and less traffic than the main corridors. Some argue that upzoning to include multi-family could change the aesthetic and vibes in these unique areas.

Many homeowners in these single-family areas are also hesitant to accept multi-family buildings due to possible property value declines. After all, adding more units could devalue the existing inventory. This is partly the point: we need housing to become more attainable in LA. However, many homeowners aren’t willing to accept lower property values in exchange for making housing more affordable, even if they agree with affordable housing in the abstract.

Finally, there’s the legal and political complexity of altering zoning. Changing zoning laws requires navigating public hearings, opposing political agendas, and potential lawsuits.

The Case for Adding Multi-Family Housing to Single-Family Neighborhoods

Those in favor of allowing multi-family developments into single-family neighborhoods largely focus on creating affordable, equitable, and inclusive housing strategies.

Proponents point out that the gap between supply and demand cannot be closed by building only in already-dense neighborhoods like Downtown and Koreatown. There simply isn’t enough land or infrastructure to accommodate the volume of new homes required.

Furthermore, many analysts have noted that concentrating all new development in a few neighborhoods exacerbates inequality. It pushes lower-income residents into overburdened communities while wealthier, single-family enclaves remain untouched. Distributing multi-family housing more evenly across the city ensures that all neighborhoods share in solving our community’s housing crisis.

Finally, there’s the increased sustainability created when density increases. Higher-density multi-family housing makes walking, cycling, and public transportation more viable, reducing car dependence, which lowers greenhouse gas emissions. At a time when sprawling single-family zoning has pushed residential development into wildfire-prone and car-reliant areas, incorporating multi-family housing into existing single-family neighborhoods could prevent additional sprawl.

Where Do We Stand Today?

California state law requires cities to create a plan for addressing housing needs every eight years. Los Angeles' 2021-2029 plan set a goal of creating 456,643 new housing units during this period, with approximately 40% designated as affordable for low-income households. As of December 2024 (a third of the way into the cycle), the city had completed only about 15% of the required units, indicating a significant shortfall in meeting its housing targets.

California Senate Bills 684 and 1123 (SB 684 and SB 1123) have been implemented to streamline the city approval process for multi-family development, including allowing for multi-family buildings of up to 10 units on qualified single-family lots. But the LA City Council has voted to keep multi-family structures mostly out of single-family neighborhoods.

Where Do We Go from Here?

There are compromises to be had. Rather than looking at this issue as either keeping communities segregated by property type or allowing large apartment complexes to take over quiet single-family streets, we can focus on “gentle density.”

Gentle density involves developing small multi-family buildings in traditionally single-family areas. Buildings with 2-10 units spread across different communities could dramatically alleviate the housing crisis without overwhelming or dramatically changing the character of any single neighborhood.

This is what Gatsby has been doing since 2016. Working within the current legal and regulatory framework, Gatsby has added hundreds of housing units to LA’s residential inventory without altering neighborhood characteristics.

We look for neglected single-family homes and vacant single-family lots that can be converted into small, unobtrusive multi-family developments. These projects can typically be completed in under two years, providing potentially high returns to our investors comparatively quickly while supporting the local housing community.

Learn more about Gatsby’s multi-family developments and get involved today!

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Gatsby Investment’s Track Record

Since our founding in 2016, Gatsby Investment has successfully acquired over 100 properties as of today. We proudly maintain a 100% profitable track record, with no losses on any deal to date. View completed deals

500+

Active investors on the platform

22%

Average annualized net return to investors from 2016–2024

100

Successfully acquired deals