Deal-by-Deal Information
Build your custom real estate portfolio by selecting the specific project(s) you want to invest in
- Choose the property or properties you want to invest in.
- You’ll get an equity ownership stake in the deal(s).
- Project types include renovation, development, and rental projects.
- Short and long-term options available.
Investing in Deal-by-Deal Projects
Real estate investing has long been recognized as a powerful wealth-building strategy. Within this dynamic market, deal-by-deal investing has emerged as a popular and flexible approach. Deal-by-deal investing allows investors to hand-select the property or properties they wish to invest in. This is very different from fund investing, in which investors’ capital is placed in a portfolio of projects.
The deal-by-deal investment strategy gives you more control over your real estate portfolio. You get to choose the projects that align with your specific goals, risk tolerance, and investment preferences.
This approach also allows you to diversify your real estate holdings across different types of properties, locations, timeframes, and investment strategies. And, unlike fund investing in which the asset mix is chosen for you, you get to tailor your portfolio to serve your investment goals.
Whether you are a seasoned investor or someone considering investing in real estate syndication for the first time, Gatsby’s deal-by-deal opportunities offer pre-vetted properties, a passive investment approach, and a strategic plan for building wealth through real estate.
The Benefits of Investing in Deal-By-Deal
What is the Difference Between Deal-by-Deal Investing and Fund Investing?
Deal-by-deal investing allows you to choose the specific project(s) you wish to invest in. The key benefit of deal-by-deal investing is that you have more control over your portfolio.
With fund investing, you invest in a portfolio containing multiple properties. The key benefit of fund investing is the automatic diversification that comes from spreading returns and risks across the entire fund portfolio.
How Deal-By-Deal Investing Works With Gatsby
The process of deal-by-deal investing begins long before you place your investment, as Gatsby completes several steps behind the scenes before deals are made available to investors.
Gatsby begins the process by scouting potential deals to identify the investment opportunities with the greatest return potential. Once our analysts find a suitable property, our team completes due diligence to make sure this is likely to be a solid investment. The due diligence process includes checking property title, reviewing zoning codes to make sure we can build according to plan, comparing sales comps and rental comps, and completing a market analysis to confirm that the area is in high demand due to factors like good schools, job opportunities, and amenities. We also explore different strategies (such as shared-living, TIC, condo, and affordable housing) to maximize return potential.
Once we finally find a property that meets our strict criteria, we create an ownership LLC and get the property under contract. This is when we present the deal to investors. Investors can review all details of the investment, use the ROI calculator to view target share and estimated returns, and place their investments directly via the platform. When you place your investment, you become a member of the ownership LLC. This gives you an ownership stake in the deal, along with the other investors.
For deal-by-deal projects, investors have an equity position in the deal. Instead of serving as the lender, you own a share of the property.
Gatsby handles each step of the process from start to finish. We manage the deal through its various phases, including architectural design, city permitting, construction, ongoing property management (for rental projects), and finally, through the sale of the property and distribution of proceeds to the investors.
Project Types
Gatsby has a wide range of investment project types, with a strong focus on value-add and opportunistic deals.
Our project types include:
- Single-family house flips
- Single-family developments
- Multi-family value-add
- Multi-family developments
- Built-to-rent properties
Gatsby always analyzes current market conditions and buyer/renter demand to determine which property types to pursue at any given time. You can view all investments to see which project types are currently available.
Risk Management
Gatsby’s professional team of experts creates a sound business plan and strategy for each property before offering the opportunity to investors. We are highly selective with our deals and conduct a thorough due diligence process to assess and mitigate any risks associated with the chosen property. Before we purchase any property, we complete property inspections, financial analysis, and an assessment of market conditions.
Gatsby’s compensation is largely based on investment performance. This means the investment must do well for Gatsby to earn a share of the profits. Additionally, Gatsby’s founder confidentially invests alongside the investors, under the same terms as the other investors. Throughout the history of Gatsby Investment, Gatsby has never failed to return a profit to investors on a completed project. We have a 100% success rate of profitability.
Capital Contributions
Gatsby’s projects are offered on a first-come, first-served basis. The investment opportunity will be listed on the investment page, specifying the terms and objectives. Investors can read through the investment details and commit a certain amount of capital to the investment. Once you have placed the investment, you will have five business days to transfer the investment capital to activate your investment.
Prorated Structure
Each investment is prorated based on the time you join the investment. The “prorated” timeframe simply refers to the amount of time that you are an active investor in a project. Your return on investment will be based on the timing of your investment in the property. If, for example, we offer an investment with an 18-month timeframe, and you enter the investment four weeks in, your profits would be calculated based on the 17 months that you were an active investor in the project.
Reporting
Throughout the investment period, Gatsby provides regular project updates directly via the investor dashboard. You can view the progress bar, monthly status updates, and construction photos. This transparency helps investors stay informed about the project's progression.
Returns/Distributions
Investors will have access to an estimated ROI and annualized return upon placing an investment. Gatsby cannot guarantee profits, but the estimation will help you get an understanding of what to expect, as well as compare different investment opportunities to see what best fits your investment goals.
The timing of your distributions will depend on the investment type. Rental projects offer quarterly disbursements from rental income, and then distribution profits from property value increase upon the sale of the property. Renovation and new build projects do not offer any cash flow during the project since it doesn’t have any income during the construction phase. Instead, investors will receive their distributions in a lump sum in the end once the property has sold.
When a property has sold, Gatsby’s accounting team finalizes the calculations and sends distributions to investors within 30 business days via wire transfer.
How to Place an Investment
Placing a deal-by-deal investment is easy with Gatsby! You can view available investments through our online platform, and then choose which project(s) you want to invest in and how much you wish to invest.
The website will guide you step-by-step to finalize your investment request. Once your investment has been placed, you will be given the wire transfer and ACH instructions so you can send in your funds. To secure your place in the investment, you will need to send the funds within five business days of placing your investment.
Then you can watch the progress of your project(s) through the online dashboard!