What do you guys think of Opportunity Zones?
[{"id": "eq4rswn", "text": "They\u2019re good..?", "replies": [], "depth": 1}, {"id": "eq4svin", "text": "Great question. Would like to hear some good answers.", "replies": [], "depth": 1}, {"id": "eq4u3r7", "text": "Been reading up about them a lot recently. Honestly really amazing if you know how to use the capital correctly.\n\nWe are looking at an acquisition/redevelopment in an opportunity zone right now:", "replies": [{"id": "eq51tpe", "text": "What would you recommend for reading material?", "replies": [{"id": "eq5325q", "text": "I have a ton of different PDF\u2019s saved on my computer saved from different sources. Can send you some when I get back into work on Friday(our for company event tomorrow). Anything specific you are curious about?", "replies": [{"id": "eq5j2os", "text": "Would be interested in this material as well. Thanks.", "replies": [], "depth": 4}, {"id": "eq68uwh", "text": "Would love to see them I am currently a student studying CRE", "replies": [{"id": "eqoaqrq", "text": "Where am I able to upload PDFs for viewing / download? Sorry for delayed response", "replies": [], "depth": 5}], "depth": 4}, {"id": "eq6umid", "text": "Would like this too!", "replies": [], "depth": 4}, {"id": "eq7b4rx", "text": "Add me to the list, thanks!", "replies": [], "depth": 4}, {"id": "i72s6ww", "text": "Any chance I could see those pdfs!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eq4vbr4", "text": "This is only my view but I subscribe to the idea that taxes are a good thing because it means you made money. My point being, look for good deals first and if one presents itself in one of these zones then it could put it over another deal outside of one.", "replies": [{"id": "eq8pw9i", "text": "I would echo this completely.  Strategies and smart plays are great but the fundamental underwriting of good real estate should be paramount.  If it doesn't work pre-tax then you are trying to be too \"smart\".    And if you are that smart...then kudos to you, you have a niche specialization and/or the business infrastructure to invest in that realm.  Which some people/companies do.  No sarcasm intended.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eq4vfop", "text": "We\u2019re diving in..cautiously", "replies": [], "depth": 1}, {"id": "eq4z3wu", "text": "I have a listing in an opportunity zone. It\u2019s 5 office buildings and a piece of adjacent land. I love the idea of the opportunity zones but in my opinion there are very few buyers that can make it work because of all of the specific requirements. For example, for my listing the buyer must:\n1. Have a gain that they are ready to spend\n2. Identify my 5 office buildings as an asset they want to own\n3. Be willing to buy them and then spend the purchase price again developing the piece of vacant land. (This is to satisfy the capital expenditure requirements)\n4. Be willing to act very quickly. If you want to max out all of the OZ benefits you have to act soon because the qualification window is closing quickly. \nI think my listing will sell but not to an OZ fund. Finding a buyer that meets all of that criteria is nearly impossible.", "replies": [{"id": "eq6kf9x", "text": "Agreed. Its interesting legislation but it will only work for a few individuals and a few deals. The amount of money being raised around this concept right now and the amount of energy the investor community is focusing on it is unwarranted and will likely result in a lot of capital sitting around that may never get deployed, or even worse, it will get deployed sloppily and no one will make any money.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eq543bj", "text": "Something that I haven't really understood is how the OZ works in regards to both the real estate, and the business occupying.\n\nCan a single property or business be used for investing in both the real estate AND the business?\n\nI know there are some conditions about qualifying the property, as well as for the business. But can these be separated, combined, or what?", "replies": [{"id": "eq5e6ue", "text": "Keep in mind the property needs to be acquired after the OZ was implemented. You won\u2019t have any OZ tax benefits if you own the building already in an OZ.\n\nOne of the requirements for OZ tax benefits is that one needs to double the value improvement (not land value, just improvement). Tax experts are still trying to interpret this... but, hypothetically if you buy an industrial building in the OZ (let\u2019s say land is $25/sf and improvement is $75/sf) and you install a super expensive high end gold plated CNC machine that is worth $75/sf of the building, then yes you technically check that box.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eq58quv", "text": "I've been looking at these too. I am most interested in not paying captial gains on the returns of the investment of I hold the property for 10 years. No 1031 exchange necessary, I can do whatever I want with the untaxed returns.", "replies": [], "depth": 1}, {"id": "eq5dc1b", "text": "Tricky subject. Concept of it is fantastic. It\u2019s tax shelter similar to a 1031 exchange, but you defer any type of capital gains (sale of business, stocks, etc.) not just a real estate sale. However there are some pretty intense requirements with the property you purchase to be eligible for the full tax benefits. Really only makes sense for a ground up development... \n\nHere\u2019s a link to a comment I left on another thread a while back breaking down the requirements in [OZ](https://www.reddit.com/r/CommercialRealEstate/comments/ao4kd2/can_you_move_1031_exchange_into_an_opportunity/egd5gx3/?utm_source=share&amp;utm_medium=ios_app) .", "replies": [], "depth": 1}, {"id": "eq6dzo5", "text": "I wish I had the money to invest in them.\n:(", "replies": [], "depth": 1}, {"id": "eq6ixy3", "text": "I started a small fund to develop a retail center in an opportunity zone.  Fortunately, the time just worked for me.  I had just sold out of a startup and happen to have this project that qualifies.  We have really had to jump through some hoops but ultimately it will be a good deal.  It's complex to hit all of the requirements but can be a useful tool.  The main thing to remember, like someone else said, is you the deal should work on its own.  It should be a deal you would do without the tax advantage or you will likely lose more than you save.", "replies": [], "depth": 1}, {"id": "eq74864", "text": "Anything I can do with houses I purchased in opportunity zones long before they were designated?", "replies": [], "depth": 1}, {"id": "eqtpwd9", "text": "Will Opportunity zones help make the entire area more marketable though?  When attracting buyers for properties that are around these zones, doesn't it show these buyers that the future of this area looks promising?", "replies": [], "depth": 1}]