Opportunity Zone - Structuring Deal

[Max Ropshaw]

Hello, looking for advice on how others would structure a deal in an opportunity zone.

I met with a high net worth private investor who worked in finance and is close to retirement, so is interested in diversifying his investments. We use the same CPA and the CPA advised him it would be beneficial to look into opportunity zones so provided an introduction for us.

The investor is willing to put a few hundred grand into a house but doesn’t want to deal with it at all. I am trying to come up with a way to structure the deal that would benefit both him (as the investor) and myself (will renovate and manage the rental).

My initial thought is to structure it to make interest only payments to him, then after 10 years pay back his investment amount. I’m thinking that will be my starting point, then negotiate up to pay the investor a portion of the appreciated amount on the property after the 10 years.

Just curious on other peoples thoughts for this? or how have you structured deals in opportunity zones? Also I am not sure on the legal side of things. Would we both sign the deed/title or would it have to be in his name to get the opportunity zone tax benefits for his capital gains.