Opportunity Zone investing uses a federal tax incentive, created to direct investment into designated economically distressed areas, by reinvesting capital gains into qualified projects within those zones.
Log in to followReading a single-asset offering in a designated tract. Sponsor's model holds for eleven years and exits at a 5.75% cap. The two arms length trades I can find in that tract cleared…
Bought a brick fourplex in a designated tract in March. Purchase was 265k. My accountant allocated 78k to land and 187k to the building, which means the improvement number I have…
I've got 3.2 acres on the edge of a small town, bought in 2019 for $61k, no debt on it. The tract it sits in was designated as an opportunity zone back in 2018 and as far as I can…
Renovation is my side of the business, so the tax structure part of this is where I get lost. What I read somewhere was that in an opportunity zone you have to spend more than you…
28 unit new build in a designated tract, opened partly leased in early 2024. I quoted the management contract off the operator's pro forma, which had stabilization at month six, 1…
The option got signed Tuesday and it has two purchase prices in it, which is the part I'm still slightly amazed the seller went for. Setup. I sold my share of a small service busi…
Not a deal, so tell me if this doesn't count. I finished the piece of work I'd been putting off for a year, which was building an actual list instead of reacting to whatever a bro…
Ground up, 41 units, designated tract, funded through a single asset qualified opportunity fund with four investors including me. We used the working capital safe harbor because t…
Something in the new law is bothering me as I read about how funds are being put together. The deferral piece for investments after 2026 is a rolling five year window. The elimina…
Someone asked me at a meetup whether they should learn the opportunity zone rules first or go look at buildings first, and I gave a bad answer, so I'm putting it here. The case fo…
The elimination of tax on appreciation for holds of at least ten years is the reason most people are in these deals at all, and now that the program is permanent the ten year wind…
Small win, real numbers. Corner building in a designated tract, retail down, two apartments up, vacant three years. Paid 148k. Allocation put 39k to land and 109k to the building,…
Here's the argument I got into with a guy who's been doing this longer than me, and I've been chewing on it for a week. His position: the tax treatment is part of the return. If y…
I have a gain recognized in March and a 180 day window that lands me squarely in the interim everybody keeps complaining about. Two ways to play it and I genuinely cannot decide w…
Deal in progress and I want to understand the failure modes before I commit the gain. Numbers: purchase $1.2m, allocation looks like $340k land and $860k improvements, so my subst…
A developer I've worked with wants a bid on a 6,000 square foot two story commercial building he's converting to apartments, and he's told me the improvement spend has to clear a…
I've been modeling a $400k gain going into a single-asset fund. The building I keep coming back to is a 1960s two-story retail block, asking $520k, and about $300k of that looks l…
Sold a 12-unit in June. Gain after depreciation recapture is about $486k, and my 180 day window closes in early December. So whatever I do, I do it inside a currently designated t…
Sold a block of stock in 2022, rolled 240k into an operator's project inside a designated tract, ground up 34 units over retail in a mid size southern market. I do a lot of due di…
Been looking at a 1970s duplex, $198k asking, both sides rented at $875, taxes $2,400, insurance quoted at $1,900. Roof is maybe six years old. It sits inside a designated opportu…