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A wall of that height will usually require a building permit and depending on local ordinances, material used and site conditions may require an engineer's stamped design. You mention a gully along your property line--is this actually a drainage swale that moves water across or away from your property and toward a storm drain? You have to be careful not to negatively impact the flow of water on your neighbors' land. As in, you can't increase the amount of water runoff that they experience.
You haven't mentioned what sort of retaining wall that you are interested in building and that will impact the difficulty. Also, how long will the wall be? Getting multiple truckloads of soil to the rear of your property could be easy or impossible depending your site conditions. Getting it properly compacted and graded takes some expertise. Installing drainage behind the wall and stabilization systems such as geogrid takes considerable knowledge. Don't have any idea of your skills, but this isn't a Sunday project.
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