All Forum Posts by: Matthew Ryan

@Andrew Faukner- Great idea. Only issue I see with this is the cost of development and land acquisition for these smaller lots, in OZ's. Plus whatever the local jurisdictions cost for utilties, public benefits, permits, etc. We just pulled permits for a non-conforming studio in Sacramento and paid almost $20k in permit fees. It's 1300sqft. Not including architectural and engineering. The land would have to be a sweetheart deal, IMO and you'd have to know that the pain, time and energy you're going to expend would be relatively equal to co-investing in a larger play or bringing together other investors to do a larger value-add or development. 

I think crowdstreet may have one as well as fundrise. But haven't validated that. Due to the complexity of OZ's, I doubt many will be offering them up to non-accredited investors. Any legal professional I spoke to advised against it. 

@Ian Holtson - First and foremost, go Hoosiers! With regard to Opportunity Zones, we're in the process of putting together a single asset as well as a multi-asset Opportunity Fund. While we've yet to make any investments yet, we do have one project under contract with one other hopefully entering contract this week. The deals are no different though brokers are catching on and trying to price as such. Most owners don't know they're in an Opportunity zone so if you're brokering deals direct, better to hammer now and not wait. It caters to heavy value add or development since there is a "substantial improvement" clause in order to qualify. Investors, while interested, are leery of the LT nature of the hold especially those who are familiar with value add product where the holding timeframe may be 3-5 years. Anything above and beyond that, I'm happy to do a call or you can DM me specific questions. Hope this helps. 

@Brandon Moore - The best cities are the ones that fit your strategy. Looking for the "best city" is a catch 22 because to be brutally honest, the professionals are already there before you get there. Depending on your experience, they'll also have a leg-up on you from an experience, reputation AND capital stand point. Don't forget about the time it takes to build a reputable team; especially for value add. I would encourage you to turn it around and say "I've developed this strategy based on this information and these are the markets I want to do it in". THEN sit back, crack a beer (or whatever you're preferred drink of choice) and watch the responses roll in. That's going to get you the most value. Not looking for the next best "city".  Just my two cents. I wish you the best of luck whatever you decide. 

I'd be open to this. Keep me in the loop. I also have a property close to 90% occupied that I'd consider flipping to any Bay Area investor looking for a small MF deal (11 units with fully permitted quadraplex development)

@Sunil Kapoor - We just launched our OZ fund and we've tracked the legislation for over two years. Happy to provide the skinny if you DM. Currently at a conference with two other OZ Funds launching so happy to fill you in on what others are doing in the space as well.

@Alex K. - it's a deep rabbit hole. We've just launched our fund and I can provide guidance no matter your scenario. I've also co-presented with Neal Bawa on the subject. DM and I'm happy to help. 

@Matthew Irish-Jones - This will be a well-debated topic in the weeks/months to come I'm sure. Given the looser timeframes, I would agree. But if you consider the area restrictions and the needed sophistication of the investor it may be considered less ideal for some. I've already seen a host of people on here saying "I've got a deal in an OZ how do I qualify!?!" For passive investors, OZ's will be great IMO. Active, smaller investors it presents a lot of challenges and I believe few will do well (or experience a lot of pain getting there). 

@Roberto Moita - I'll second @Dave Foster and @Matthew Irish-Jones - 1031 or Opportunity Zones are the way to go for that type of gain. Yes California is expensive there are alternatives to being an active investor; you could invest with fellow syndicators who may be specializing in an asset class that has the return profile you're seeking and a solid track record of doing so. That all depends on whether you're looking to invest actively or passively. 

@Kirby Davis - I'll second @Frank Wong 's question in asking how passive you may want to be in your next investment coupled with what your current income is outside of the investment + what income goals do you have for the next investment? All personal questions so no need to spread them here but ones to consider. Also, Opportunity Zones are a great tax deferral which can help protect your gain which while large, could be hurt substantially by a tax event while greatly reducing your potential cash flow.