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.

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.

We look forward to serving you as we work toward boosting your retirement savings and helping you meet your retirement goals!

Please note: It is important to consult with your tax advisor and/or retirement account specialist before making any investment decisions.

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!

Why Zoning Matters While Rebuilding LA After the Fires

As Los Angeles begins the long process of rebuilding after the fires, we are presented with a unique opportunity to reevaluate our current zoning. Should we stick to our traditional single-family zoning (which currently covers around 72% of LA’s land area), or open more neighborhoods to multi-family development?

The multi-family development debate has been going on for decades. But with the devastating wildfires in January, we have an additional push for the expansion of multi-family zoning to help LA recover smarter, safer, and more equitably.

While many homeowners are understandably protective of their neighborhoods, re-zoning single-family neighborhoods to accommodate multi-family buildings doesn’t have to destroy neighborhood charm. In fact, allowing more housing types, such as duplexes, triplexes, small apartment buildings, and accessory dwelling units (ADUs), could be the key to rebuilding a stronger and more inclusive Los Angeles.

Here are three compelling reasons to incorporate low-profile multi-family development into traditionally single-family areas.

1. Promoting Sustainable Land Use

LA’s sprawl into high-risk wildfire zones has made the city more vulnerable. Rebuilding gives us a rare opportunity to reverse this trend by encouraging denser housing in already developed areas. Expanding zoning to allow more multi-family housing near transit lines, job centers, and existing infrastructure helps us grow inward instead of outward.

Not only does infill development limit residential building in the wildland-urban interface (WUI), where fire risk is highest, but it also reduces car dependence for a positive effect on the environment and health of our residents.

Smart density means making better use of the land we’ve already developed instead of continuing to pave over more land, creating communities that are more vulnerable to natural disasters. This is becoming more and more important as climate changes alter weather patterns and increase volatility.

2. Creating More Attainable Housing

Even before the fires, Southern California had been facing a decades-long housing shortage. Rebuilding exclusively with single-family homes would only reinforce the status quo: high prices, low availability, and deep inequities. By allowing multi-family development in more parts of the city, especially in single-family zones that have historically excluded marginalized residents, we can create more attainable housing, allowing more Angelinos to live in safe, desirable neighborhoods.

Creating financially attainable housing does not require building low-income apartment towers on every block. It simply requires legalizing modest, well-designed homes and small multi-family buildings that fit into existing communities.

3. Building a Resilient Future

Rebuilding after wildfires is just as much about preparing for what’s next as it is about replacing what was lost. Multi-family buildings can be designed with modern, fire-resistant materials and meet updated codes that improve overall safety and efficiency. Denser communities also support more resilient infrastructure. By limiting sprawl, we can provide better emergency services access and shared utilities, which are notoriously hard to deliver in far-flung, sparsely populated neighborhoods.

Rezoning to increase multi-family development can also improve economic resilience. Giving displaced families more housing choices helps stabilize communities and speeds up recovery.

Gatsby Supports Finding a Balanced Path Forward

The push for more multi-family zoning doesn’t have to erase the distinctive character of individual neighborhoods in LA. Many residential housing types can blend seamlessly into single-family neighborhoods while making room for more people.

Gatsby Investment is committed to supporting rebuilding efforts in LA, with an emphasis on sustainability and resilience, while providing strong returns for real estate investors.

In the wake of the fires, we launched built-for-you developments to help homeowners rebuild and investors create more housing units. We have also established an efficient system for adding housing inventory by converting neglected single-family homes and vacant lots into small, multi-family developments. These ground-up construction projects can typically be built in under two years, helping us bring units to the market quickly while expediting investor returns.

Learn more about Gatsby and explore our available investment opportunities today.

Multi-Family Development vs. Multi-Family Rentals

Which is the better investment in today’s market: multi-family development or multi-family rentals?

In reality, one isn’t clearly better than the other; they each have unique benefits. But those benefits can make one or the other a better fit for you.

Plus, there’s a secret third option most investors don’t talk about: Multi-Family Build to Rent.

So, in this post, we’re going to explain the differences in these multi-family investment strategies. We’ll also provide the pros and cons so you can determine which type best serves your goals.

What Is Multi-Family Development?

Multi-family development is constructing a new multi-family structure from the ground up, with the intention of selling the completed development as soon as possible.

The goal of this opportunistic investment is to get in and get out, collecting returns quickly so you can reinvest in a new project and compound your real estate earnings.

What Are Multi-Family Rentals?

Multi-family rentals are long-term holdings of multi-family buildings, where the focus is on passive cash flows generated from rental income.

With this model, investors typically purchase existing multi-family buildings (either turn-key properties that are ready to rent or neglected properties the investor can add value to before renting).

Pros and Cons of Multi-Family Development for Investors

The benefits of multi-family development include:

Shorter investment timeline. Projects are typically completed and sold within 18–24 months, allowing investors to cash out and reinvest in new deals more quickly.
Strong return potential. The construction phase creates significant value, paving the way for stronger annualized rates of return.
No long-term headaches. Once the property is sold, the buyer handles ongoing concerns like maintenance, resident retention, and rent collections.

Possible downsides of multi-family development include:

Potentially higher tax rates. To earn lower long-term capital gains tax rates, properties need to be held in service as a rental for at least 12 months. Selling upon completion of the build means profits are taxed as short-term capital gains, which are typically taxed at the same rates as earned income (higher than long-term capital gains).
Time-sensitive sale. The goal is to sell quickly. This may create a challenge if the property is completed when the market is slow and finding a buyer is difficult.
No ongoing cash flow. Investors don’t hold the property long enough to benefit from recurring rent payments.

Pros and Cons of Multi-Family Rentals for Investors

The benefits of multi-family rentals include:

Tax breaks. Long-term rental investors may qualify for tax benefits like property depreciation and operating expense deductions, which reduce their tax liability. Plus, if the property is held in service as a rental for more than 12 months, the profits from the eventual sale will be taxed at lower long-term capital gains tax rates.
Ongoing rental income. Once the units are occupied, rental income starts flowing. However, mortgage payments, maintenance, and other ownership-related expenses will substantially cut into this income stream.
More selling flexibility. Since the property generates income, there’s less urgency to sell and more time to find the right buyer.

Possible downsides of multi-family rentals include:

Slower value growth. Equity builds gradually through market appreciation and debt paydown rather than the fast forced appreciation of new construction. However, you can speed up equity building by adding value through renovations.
Your investment funds are typically tied up long-term. It could be many years before you can cash out your initial investment to invest it in a new deal.
Ongoing maintenance and management. Older buildings may require more upkeep, and managing multiple units can be a difficult, time-consuming job.

The Best of Both Worlds: Multi-Family Build-to-Rent

With Gatsby Investment’s innovative Multi-Family Build-to-Rent (BTR) model, you can build value like a developer and hold for long-term gains like a rental investor. Without any prior experience or time commitment!

Here’s how Gatsby’s Multi-Family BTR works:

We construct a new building from the ground up. Just like our traditional developments, we force appreciation to create fast equity for investors.
We hold the property as a rental for at least 12 months. This allows the profits from the eventual sale to qualify for favorable long-term capital gains tax rates.
We manage the operations while sharing the rental income. You don’t have to worry about finding renters, collecting rent, or addressing maintenance requests. Our team does it all for you while still giving you your share of the rental income.
We have flexibility in selling the property. Since the property generates income, we don’t have to sell. If market conditions happen to be slow, we can wait until there are more buyers willing to pay higher prices.
We sell the property and disburse profits to investors. When the time is right, we sell the property and give you your share of the profits (which, again, are taxed at lower capital gains rates).

This hybrid multi-family BTR model is perfect for investors who:

Want to maximize gains through development,
Prefer lower taxes through long-term capital gains,
Don’t necessarily need monthly cash flow to live on but want strong after-tax returns, and
Appreciate a strategic exit rather than a rushed one.

Does this sound like the right fit for you?

Learn more about Gatsby’s Multi-Family Build-to-Rent investment opportunities and choose your next real estate investment today!

Why Does Gatsby Only Focus on the Los Angeles Market?

We often have investors asking us about branching out into other markets. Can Gatsby expand into Las Vegas, so I can invest there? Will Gatsby go bi-coastal and start buying property in New York? Is Gatsby getting into the vacation rental market in Florida?

While we won’t rule anything out, the fact is that Gatsby is deeply ingrained in the Los Angeles residential market. And at this time, we don’t have specific plans for expanding beyond LA. There are a million smaller reasons why the City of Angeles is our focus, but today, we want to share the BIG REASONS.

Here are the top three reasons why Gatsby only focuses on the Los Angeles market.

Los Angeles Housing is Consistently In-Demand

Do you remember the overblown “California Exodus” of the COVID era (the “event” hyped as Californians leaving the state in droves, while we actually lost fewer than 1%, most of which we’ve already regained)? Well, that didn’t really apply in Los Angeles. Even as headlines claimed thousands of households were leaving the city for more affordable rural communities, LA remained in high demand. LA lost less than .1% (yes, point one), which was immediately recovered within a year. And now, population projections are trending straight up.

Between the weather, job opportunities, beaches, recreation, community, diversity, history, and beauty of the city, this is where people want to live. As long as we can provide more housing (which of course, Gatsby is working on!), people will continue moving to LA.

Our Expertise and Network are LA-Based

Too many syndication companies expand into unknown markets, risking their investor’s profits on their learning curve. Gatsby has no intention of doing that.

We have spent decades learning the nuances of the Los Angeles housing market. Our local knowledge of demographics, building requirements, and market trends allows us to get ahead of market shifts and meet changing demand.

We’ve also spent many years developing meaningful connections with industry insiders who reduce our costs and increase our investor’s returns. From the real estate agents who help us find off-market deals to the mortgage lenders who provide favorable financing to the contractors who give us bulk rate pricing, every partner in our intricate system plays a role in serving our investors.

Before we could expand into another market, we would need to spend years learning the ins and outs of that market and establishing mutually beneficial relationships with local companies.

LA Offers Ample Growth Opportunities

Finally, Gatsby is focused on LA because the ever-evolving market continues to provide unique opportunities for growth.

When Gatsby started, home flips were big business. We could buy neglected houses at a low cost, rehab them, and resell them for substantial profits. As the need for accessory dwelling units (ADUs) increased, we added ADU builds to our flips for increased returns. But then, with rising home prices, lack of inventory, changing zoning laws, and greater demand for multi-family, we shifted to focus on multi-family developments to maintain the high rates of return our investors have come to expect.

This dynamic market is always changing, and since we know how to shift with those changes, we will never run out of opportunities here!

Gatsby is at Home in LA

We’re proud to be part of the fabric of Los Angeles and aim to improve our local community while providing strong returns for investors. In addition to adding housing inventory through new development, Gatsby recently launched built-for-you development programs to help local homeowners rebuild after losing their homes in the devastating wildfires. And our founder and CEO, Dan Gatsby, founded the Los Angeles Builder’s Association in 2024 to promote sustainable building practices in LA and foster industry collaboration.

As far as we’re concerned, Los Angeles is the greatest city in the world, and there’s nowhere we’d rather be!

Are We in a Buyer’s Market or Seller’s Market Right Now?

The real estate market is constantly shifting between a buyer’s market and a seller’s market, influenced by factors such as housing supply, interest rates, and economic conditions.

These shifts are a natural part of the real estate cycle, a recurring pattern of expansion, peak, contraction, and recovery that affects investor opportunities. Understanding current market conditions and knowing where we are in the real estate cycle is crucial for making informed decisions, whether you’re purchasing a home, selling a property, or investing in real estate.

Right now, buyers and sellers alike are asking: Are we in a buyer’s market or a seller’s market?

Here’s a quick and concise look at the characteristics of buyer’s markets vs. seller’s markets, and how we know which market conditions are dominating the US now.

What is a Buyer’s Market?

A buyer’s market occurs when there are more homes for sale than there are buyers. You’ll typically see:

More homes available for sale
Lower home prices
Homes taking longer to sell

This economic climate gives buyers an advantage in negotiations. In this type of market, sellers may need to lower prices, offer incentives, or be more flexible with terms to attract buyers.

What is a Seller’s Market?

A seller’s market occurs when there are more buyers than available homes. You’ll typically see:

Fewer homes available for sale
Rising home prices
Quicker sales

This gives sellers the upper hand in negotiations. In this type of market, buyers may face bidding wars or need to make competitive offers to secure a property.

Are We in a Buyer’s Market or Seller’s Market Right Now?

As of 2024 year-end, the US as a whole is still in a seller’s market, as evidenced by the following:

We currently have three months of housing supply, meaning it would take only three months to sell the entire inventory. For reference, a balanced market holds at least five months of supply.
The median sales price is up 6.1% year-over-year.

However, we’re seeing signs of the market balancing:

Homes listed for sale have increased by 12.2% year-over-year.
Home prices are not rising as steeply.
Homes are starting to take longer to sell.

However, real estate is a local industry, so market conditions can vary from one neighborhood to the next.

Why It’s Important to Invest Regardless of Buyer’s Market vs. Seller’s Market

Real estate investors need to remember that there are deals to be found under any market conditions.

A buyer's market is a great time to expand your real estate portfolio by using lower buyer competition to control negotiations and buy properties at a discount.

A seller’s market is a good time to develop new units to meet the increasing buyer demand.

Plus, when you have local networks of industry insiders and efficient workflow systems in place, you can reduce costs while increasing return potential whether you’re in a buyer’s market or seller’s market. That’s why it’s always the right time to invest in real estate with Gatsby Investment!

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Gatsby Investment’s Track Record

Since our founding in 2016, Gatsby Investment has successfully acquired over 85 properties as of today. We proudly maintain a 100% profitable track record, with no losses on any deal to date. View completed deals

19k+

Registered members on the platform

22%

Average annualized net return to investors from 2016–2024

Successfully acquired deals