Does anyone have experience with Gatsby Investments?

Member since 2023 · 2 posts · 0 votes

I have come across Gatsby Investments in searching real estate investments. The ROI they list is impressive, but since this is a real estate syndication company I wonder if the information they are providing on their ROI is true. If it is, this seems to be a passive way to invest in real estate. Has anyone invested with them?

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Taylor L.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
2y
Check out @Brian Burke's book The Hands Off Investor. You'll learn a LOT about this type of investing and how to evaluate sponsors/deals. It'll be well worth your time.
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Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
2y
Quote from @Debbie Brooks:

I have come across Gatsby Investments in searching real estate investments. The ROI they list is impressive, but since this is a real estate syndication company I wonder if the information they are providing on their ROI is true. If it is, this seems to be a passive way to invest in real estate. Has anyone invested with them?
Every investor has a different risk tolerance, financial situation and different financial goals. So a deal that looks great to one will look terrible to another and vice versa.

As a conservative investor, I want to see my sponsors have at least a full real estate cycle experience with little to no money lost. And that's because I don't want them learning expensive lessons with my money. Gatby has has only been operating since 2017. So for me they are an easy "no". Another investor will feel differently.

Having said that, they are quoting an annualized return of 2017 - 2023 of 23% ( so not during the great recession). And in general, a minimally competent sponsor should be able to produce a good return during good times And they also said they focus on real estate deals with shorter time frames. These which generally requires flipping and are high risk...but in good times (and with execution) should result in higher returns. So in theory it's at least plausible. That doesn't mean it's accurate nor is it necessarily reasonable to expect that going forward. And as part of standard due diligence, an investor would normally dig into their track record to find out of they feel it's believable or not (and also come up with their own thesis on what to expect from the asset class going forward).
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