What Is An Opportunity Zone In Real Estate

What is an opportunity zone in real estate? So I'm going to guide you through how to become a real estate millionaire. I became one in 1999. And I believe anyone that wants to be wealthy needs to start owning some real estate. And it's been an interesting ride in 2023, if you're watching the video at this point, and opportunity zones have been around for several years. So let's talk about what is an opportunity zone? Like by definition, what is it? How do you actually maximize the investment of putting money into an opportunity zone and the tax benefits? And number three, what are the misconceptions of opportunity zones and some really expensive mistakes that you get yourself into? So stay to the end of the video to make sure you hear those. So number one, I'm actually going to read some definitions so I get them actually accurate for you. Opportunity zones, they are designated areas in economically distressed communities where investments may be eligible for a preferential tax treatment. They are also created to spur economic development and job creation in a lot of communities. Now, these are all the intentions of the definition. I can tell you that investment and opportunity zones come from a formula from Qualified Opportunity Fund, which is a vehicle structured to invest in properties located in these zones. Now, most of you live in towns that have opportunity zones. So you've got to either look it up, continue to look online, do not click away yet, but look online. There are some people I know, some brokers in your area that specialize in opportunity zone investing. And there are people who pool opportunity zone investors to go buy larger projects together. There's a lot of syndications that have been doing that. So in a lot of cases it works. And I'm going to, again, at the end, tell you some massive mistakes that I've seen and witnessed firsthand. Expensive, expensive mistakes. So number two, what are the tax benefits and how do you maximize these benefits? So again, investors can defer the tax on any prior gains on the investment sold until December 31st of 2026. So we're coming in with about three years, whichever comes first. The investment is held more than five years. It's a 10% exclusion of the deferred gain. And if it's held for seven or more years, it increases to 15%. And investments in opportunity zones that are held for more than 10 years, the investor is eligible to increase its basis equal to the fair market value on the date of the investment sold. Now there are more advanced estate strategies and generational wealth strategies where you can actually defer for generations. So before I talk about the mistakes, I want you to subscribe to my channel, click the notification button, be here five days a week and go to my search bar. I have a lot of content in real estate because I'm a real estate millionaire and I help coach a lot of people in real estate and I own real estate companies from construction, distribution, you name it, we put our hands on it. So let us help you figure out what strategy number one, and then where do you want to begin? Some of you opportunity zones, it may be not where you want to begin. Let me tell you why. Let's talk about some mistakes. What isn't talked about or cleared and not just going to happen is your commissioner meetings in your counties. So you may buy opportunity zone land and then try to get it zoned. We have a project right now that we're working on trying to get some apartments actually cleared by the county. And it's been two years. So they don't like it. They don't like that we're going to build on an opportunity zone. So right now we're just holding some land in an opportunity zone and getting the county to actually agree on some of the projects. And we've brought them multiple projects and they just keep denying any movement or development in those areas. So just because you buy the land, you might get a great deal or the project. Can you actually, and is the county, the commissioner is going to agree on the development, the modifications, the rezoning, any of that. So be very careful and mindful because I am not only working with that myself, but I have clients that are stuck in opportunity zone projects and it is local jurisdictions who aren't allowing the project to continue. So then how do you sell it when you've been denied and it's pretty obvious to do that due diligence. So again, just like tax liens, you don't want to buy something you're going to get stuck with. There's a lot of pros and cons in a lot of these strategies. Too many people only pitch the pro. They never talk about the downside. The other thing to think about opportunity zones aren't just for real estate. It's actually for business. It's equipment. It's several other options. So just dig in, do a little due diligence, talk to our team. And if you decide you want to jump into it, we'd like to coach you on how to do it properly, successfully, and become a real estate millionaire. If I can do it, you can do it. I was a farm girl from Nebraska. I didn't grow up with any of this knowledge. So at any point, if you have any questions, go to askloral.com, A-S-K-L-O-R-A-L, ask questions, make a request. And I actually have an eight hour real estate program. So when you call into our office, actually, I'm going to give you a link. You have to go get it. It is phenomenal. So check out my real estate as leverage program. It's eight hours of me talking through strategies and how I became a millionaire. My clients rave about it. So go click on that link and go grab that. Any questions again, ask floral, and we will talk to you tomorrow.