Opportunity Zones
Are any cre brokers in here getting involved with the new opportunity zone program being implemented?

If so, how are you getting involved? Will you just try to connect funds with investments, or are your brokerages starting their own funds, etc?

&amp;#x200B;

Just curious how some brokers are planning to capitalize on this.
[{"id": "e8381nv", "text": "Not a broker but I\u2019m curious what kind of premium a property owner would get for selling properties in an OZ. ", "replies": [{"id": "e83lypo", "text": "I\u2019m not sure you\u2019ll get much of one. Considering you have to put 100% in improvements to qualify, the more the property goes for the more they have to spend. \n\nWe had a meeting last week about opportunity zoning and we\u2019re still figuring it all out. ", "replies": [{"id": "e83m95b", "text": "I agree. The fact that value needs to increase 100% in preexisting buildings pretty much eliminates any chances for a premium. This program is increasing investments within areas that wouldn\u2019t see any before. ", "replies": [], "depth": 3}], "depth": 2}, {"id": "e83n6cw", "text": "It certainly does increase transaction volume in previously less desirable markets, but there is no premium for the seller. The Treasury created a rule that defined how much improvement must be made to a building before it can qualify as a new investment. A Buyer has to add double the value so it'll cost considerable funds to make it work.", "replies": [], "depth": 2}], "depth": 1}, {"id": "e83ki99", "text": "Not sure if you're the same guy but here's 2 good threads about them\n\nhttps://www.wallstreetoasis.com/forums/opportunity-zones \n\nhttps://www.wallstreetoasis.com/forums/opportunity-zone-rules-released ", "replies": [], "depth": 1}, {"id": "e83mbkg", "text": "I am a net lease broker who is listing and has sold a handful of properties in opportunity zones. Buyers are drawn to opportunity zones because they allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on potential profits from an Opportunity Fund if the investment is held for 10 years. \n\nThese opportunity zones serve as an added benefit to accelerate tax-advantaged investment in low-income areas. Opportunity zones have been attracting intense attention from real-estate developers and fund managers who have been soliciting wealthy investors holding unrealized capital gains. It will free up a lot of capital that\u2019s been waiting. And it provides sufficient clarity and certainty for many more investments to go forward.", "replies": [{"id": "e8bjyb3", "text": "what are your clients doing for the substantial improvement criteria on a net lease?  Or are you talking redeveloping into stnl?", "replies": [], "depth": 2}], "depth": 1}, {"id": "e84mzi5", "text": "I bought a 6 unit in an opportunity zone. The area is much worse on paper than it is in reality. Its also on the border of the zone that touches a median income zone that is double the property my block is on.  There are safe deals to be purchased in these zones.", "replies": [{"id": "e84qyfh", "text": "I\u2019ve noticed, in my area at least, a lot of these \u201clow-income zones\u201d actually aren\u2019t as bad as they\u2019re made out to be. So I agree that there are a lot of deals with a ton of potential. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "eg67nwq", "text": "I've been reseraching this a bit, so far, this is the most comprehensive resource I've found - [https://www.arixacapital.com/opportunity-zone-investing-frequently-asked-questions](https://www.arixacapital.com/opportunity-zone-investing-frequently-asked-questions)", "replies": [], "depth": 1}, {"id": "eh3qyc7", "text": "I have capital gains from last year that I am going to put in an opportunity zone fund in March of this year. Haven't done 2018 taxes yet. What form do I properly account for this on my 2018 taxes so those capital gains aren't taxed?", "replies": [], "depth": 1}]