What are Opportunity Zones?
OZs were created to boost economic activity in selected census tracts across the country. According to Brookings Institute there are 8700+ US Census Tracts designated as Opportunity Zones, out of which 19% are in already gentrifying areas.
What is an Opportunity Fund?
The Tax reform bill added Opportunity Funds as a new way to incentivize investment in specific communities called Opportunity Zones (OZs). An OZ Fund is an investment vehicle that invests at least 90% of its holdings in real estate within a Qualified OZ.
Why Invest in Opportunity Funds?
Opportunity Funds enable investors to defer federal taxes on recent capital gains until Dec 31, 2026, have that payment reduced by up to 15%, and pay as little as zero taxes on profits from an Opportunity Fund if that investment is held for 10 years.
How Investors Benefit
After selling an asset such as stocks or bonds, real estate, or interest in a partnership, an investor usually triggers a capital gain. These investors can receive special tax benefits by rolling their gain into an Opportunity Fund. The three primary reasons to roll your capital gain into an Opportunity Fund are:
Defer The Tax Payment
of your capital gains until Dec 31, 2026
Reduce The Tax
you owe by up to 15% after 7 years
Pay ZERO Tax
on gains earned from an Opportunity Fund
Opportunity Zone Benefits Over Time
Held for 5 years – 90% of original capital gain invested is subject to tax
Held for 7 years – 85% of original gain is taxed
Held for 10 years – The OZ investment step-up in basis to market upon disposition, resulting in no taxable gain
“$6.1 trillion is the total estimated unrealized capital gains that both American households ($3.8 trillion) and American corporations ($2.3 trillion) hold. Out of which, most experts believe OZ Funds will redirect as much as $100 Billion dollars into these regions.”
Simply fill out the form below and we’ll have one of our friendly team members contact you with Opportunity Zones information.
How Big Is The Opportunity?
Total # of Opp Zones
% of US Population
% of US Tracts in List
Our Unique Data Driven Approach To Identifying Attractive Markets
With over 8,700 census tracts designated as Qualified Opportunity Zones, a data-driven approach to market selection is paramount to reduce risk and increase the rewards of Opportunity Zone investing. We use our proprietary market selection formula for identifying the most attractive markets.
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This investment is Opportunity Zone qualified. If you are facing capital gains of any kind (stocks, business sale, real estate, …) this new tax law may help you defer, and in some cases completely erase, federal taxes.*
*You do not need to invest capital gains to qualify for this investment opportunity.
Learn More About Opportunity Zones
Opportunity? YES! But There Are Some Pitfalls As Well...
Lately, I’ve been researching issues which could spell trouble for Opportunity Zone Funds, and their investors, unless they become more pro-active and savvy in the way they design and manage such funds. Here are just a few of the dangers of Opportunity Zones I discovered.
Beware Of Garbage Opportunity Zone Projects
Of all the risks associated with Opportunity Zone investing, perhaps the most pernicious is the influx of what I call “garbage projects” into the marketplace. Discover how to spot garbage projects and the 5 key areas I evaluate for all of my own projects….
OpportunityZones vs 1031 Exchanges, What You Need To Know
As Opportunity Zones have come increasingly into the spotlight, it appears they may actually have several advantages that make them preferable to one of the most popular capital gains tax reduction vehicles – 1031 Exchanges. Discover the pros and cons…