Grocapitus Opportunity ZONES

 

Dramatically Reduce Your Capital Gains Taxes By Investing in Opportunity Zones (Pay as Little as $0)

Simply fill out the form below and we’ll have one of our friendly team members contact you with Opportunity Zones information.

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

R

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.

Introducing Grocapitus Opportunity Zones

Grocapitus Opportunity Zones are focused on investing in high-quality real estate in major US cities with long-term growth potential. We plan to take on massive value-add properties and new developments in Opportunity Zones to maximize cash flow and returns.

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The Problem

Through data science, we have learned that OZ projects vary a great deal in quality, because most OZs simply do not have the income, population or jobs to support new construction projects.

It is our core belief that a majority of OZ projects will not have positive outcomes for investors. Investors are only focused on tax benefits, not on project and area quality, and that is a big challenge.

Our Solution

GrOZ Opportunity Zone fund is the only true solution to this challenge. Grocapitus specializes in the use of demographics and real estate data analytics to find & acquire high quality investments for our investors.

Our current portfolio of $150 million in assets benefits greatly from our knowledge of Real Estate analytics. We bring that extensive knowledge and demographics secret sauce to Opportunity Zones.

How We Do It

We start with demographics and carefully target a fraction of nationwide zones. Then our team engages in a unique zone-by-zone outreach campaign , seeking out exceptional OZ projects.

Applying unique filters to markets, neighborhoods and potential developer partners, we source those rare OZ projects that present true opportunity, while minimizing the potential hazards of investing in underperforming areas.

Simply fill out the form below and we’ll have one of our friendly team members contact you with Opportunity Zones information.

Calculate Your After-Tax Returns

Assumptions: 12% annual rate of return; 10-year hold

Traditional Portfolio
$143,492
Grocapitus Opportunity Zones
$195,662

Calculations above are based on the highest federal gains rates of 20% and 37%, with a 3.8% net investment income tax that applies to certain circumstances, for long-term capital gains tax of 23.8% and short-term capital gains tax of 40.8%. Any profits on the sale of an asset held for 1 year or less is considered a short-term capital gain and is taxed at ordinary income rates. Assumes no state income tax.

In June 2020, the IRS provided updated guidance for qualified opportunity funds and investors impacted by COVID-19:
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Taxpayers have until December 31, 2020, to make an investment in a Qualified Opportunity Fund if their 180-day deadline to do so ended on or after April 1, 2020, and before December 31, 2020
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If a Qualified Opportunity Fund has a deadline to meet the 90 percent investment asset test that is between April 1, 2020, and before December 31, 2020, failure to comply is deemed to be due to reasonable cause
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The 30-month substantial improvement period for property held by Qualified Opportunity Funds or qualified opportunity zone businesses is tolled for the period beginning on April 1, 2020, and ending on December 31, 2020
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The working capital safe harbor is extended by 24 months for working capital assets held by qualified opportunity zone businesses before December 31, 2020 (so long as other working capital safe harbor requirements are met)
}
The 12-month deadline for Qualified Opportunity Funds to reinvest capital is extended by 12 months so long as the original reinvestment period included January 20, 2020

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.

read more

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….

read more

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…

read more

An Exciting New Tax-Advantaged Investment

If you are going to realize a large capital gain in the near future, or are interested in collecting a portion of an existing unrealized capital gain, Opportunity Funds are one of the most exciting investment developments in recent history.

Grocapitus has identified several Opportunity Zone deals for investors who would like to take advantage of this monumental investment vehicle.

 

Simply fill out the form below and we’ll have one of our friendly team members contact you with Opportunity Zones information.

INVESTOR REVIEWS

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Farzana P.

I have several investments with Neal Bawa through Grocapitus. I trust that his underwriting is conservative and accurate. He is very knowledgeable about market conditions and is happy to share his research. During the course of the investments Neal and Anna are both very responsive and prompt in answering questions.

Their reporting is consistent, timely, and provides an honest portrayal of how the property is doing. The returns I have received on my investments have been very close to proforma projections, even in these very difficult pandemic times. I would definitely invest with Grocapitus again in the future.

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Sarah l.

Neal and his team are awesome! I’ve invested in 4 projects with him and after 2 years we’ve already sold one. He’s outperformed other syndicates that I’ve invested with for much longer. I love getting his monthly updates. It’s rare to have a syndicator update us so regularly.

Grocapitus is a breath of fresh air. They do things differently and way better than their competitors. Thank you Neal for being an amazing leader to your team! I couldn’t be happier with the results so far. Looking forward to investing more in the future.

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vengal d.

I had met Neal at a real estate investor meetup a few years back. Neal was very positive about investing in multifamily. He does a lot of research using data analytics on markets, identifying growth areas, finding good neighborhoods and shares the data and his findings with interested people and clients. His presentations are filled with a lot of info about the market, the property, the financials the expected returns, and his team patiently answers questions.

One of our investments with Neal had an exit with better than projected returns (during uncertain times with the pandemic)!!

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katrina j.

As an investor in Park Canyon I am so impressed with the management team. One of the things that I really like are the quarterly updates of the project. They keep you informed of what is going on with the project and point out both the good and the bad. You are never kept in the dark about your investment. This is a fantastic project and I am so happy that I am an investor!

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lisa h.

Thank you for a thorough and newsy update. I am still in awe of your work efforts and completions in such a short timeframe. And in these hot, hot, hot summer months no less. The report is very detailed and it makes me feel like I am there to look at it all. Thank you for your dedication to excellence and for all your conscientious efforts. It is much appreciated.

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rob d.

Challenging times take a dedicated group to plan and execute to meet investment objectives. The site and asset management teams at Grocapitus have worked hard to maintain occupancy, keep tenants safe, and delinquency low. Collectively, they have effectively managed expenses and incrementally increased rents to exceed NOI budget expectations.

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ivan z.

I’ve invested in 6 of Neal’s projects. As I write this, we just had the first successful exit: the Windward Forest Multifamily project, where we earned >20% IRR.

Neal is extremely agile. Until COVID hit us, his projects were mostly multifamily deals (each with some value-add strategy that should increase the NOI). Since then, he realized that there may be higher risk in such deals due to tenants’ unemployment, inability to pay rent, and eviction restrictions. 

Still, I am very impressed by the multifamily projects performance: the occupancy levels have not gone down, and rent collection is very high, given the circumstances. I personally like the multifamily projects more, as they offer dividends from the rent income, and it’s easier to predict their performance. Anyways, I trust Neal’s numbers, so I have invested in his recent construction projects, too. Keep them coming, Neal!

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anshu s.

I invested in Grocapitus’ project because I liked their data driven approach to analysis and conservative underwriting. So far results have been delightful as the project has outperformed the projections and continues to perform well even during the coronavirus crisis. I also appreciate the fact that Grocapitus is easily available and they make it a point to communicate personally to address any questions I might have.

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avinash p.

I have invested in a couple of opportunities with Grocapitus. One of them is a multifamily property, which has been performing superbly, and way better than the initial predictions. The second one is a new construction project, which is on-time, even during the COVID-19 pandemic. And the marketing material that the team has put together to lease these new units is top-notch. Awesome job by Neal and his team in managing the properties and consistent communication with their investors.

 

As a Limited Partner to invest in a syndication, for me, trust is a big factor. With Neal’s vast experience in multifamily construction, data-driven approach, and creative ways in solving problems as well as straightforwardness helped in creating the trust.

This material does not constitute an offer or a solicitation to purchase securities. An offer can only be made by the Private Placement Memorandum (PPM).The PPM and its exhibits contain complete information about the Property and the investment opportunity. The information contained herein is not a substitute for an investor’s complete review of all of the information attached to the PPM as part of their own due diligence regarding this investment opportunity and its suitability for their investment portfolio.

Our Team

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