All Forum Posts by: Nashid Ali

@Joe Caiola I don't want to burst your bubble and sorry if I'm missing a detail or two; that said, if you didn't use capital gains to purchase the property through a qualified OZ fund, which I doubt is the case since you've been there for 3 years and the law is only about a year old - you wouldn't be eligible for the tax free capital gains after 10 years. 

@Gaurav Mehta great question and I agree with pretty much everything @Melody E Bergloff wisely offered. 

https://www.novoco.com/resource-centers/opportunity-zone-resource-center/guidance/state-tax-code-conformity-personal-income

I will add this resource, grain of salt as it is a website. It may help you to specifically look at the state for your circumstance and know whether it is in conformity. hope this helps and feel free to reply with a follow up question if necessary. best of luck 

@Kam Mill sorry if answered, have you addressed closing costs?

@Alejandro Hinostroza sorry yes, I know of two deals like this in the Pittsburgh area, both brokered by CBRE with City owned vacant commercial land in OZs . are you looking for an intro, have questions about the specific deals?

Lot of good and poorly explained information in an emerging space. Just want to offer a central location for an informative Opportunity Zones discussion. Please ask whatever you like, I'm confident myself and other BP users can find the answers.

For fidelity's sake, if you are replying to a question, please reference the law, the guidelines, or article so users can fact check and hopefully stay away from potential misinformation.

@Shawn G. date, time?

@Alejandro Hinostroza @Scott McIntosh is right. Sorry there seems to be some incorrect info elsewhere in this thread so listen to Scott. The substantially improve clause applies to the cost/assessed value of the building not the land. So if you pay $100k for an OZ prop, $60k for the building, $40k for the land, you have to invest an additional $60k within 30 months to develop the property. There's some wiggle room to decrease these $60k, however I suggest staying in this threshold and within the spirit of the law.

If there is no building the sunstantial improvement clause does not apply, however the substantintially ALL clause requiring 90% of the fund's assets to be allocated to an OZ prop/business still applies. So in the above scenario, you pay $40k total just for land and your yotal fund aize is $100k, you still need to invest $50k for a total of $90k deployed to develop the OZ property within compliance.

These are some of the tricky nuances, however don't let it dissuade you. Here in Pittsburgh, CBRE is doing both land and development deals in OZs so they are definitely commercially viable.

both @Natalie Kolodij and @Michael Wagner are correct. I have seen qualified OZ funds provide collateral for SBA/private loans (just as cash). 

So @Daniel Lioz if you're budgeting a project within an OZ, maybe consider how to use OZ funds to access different capital structures.

I would also add that there is a difference between an OZ prop and OZ business. Depending on how you structure the investment, there's room for loans, leases, tax credits, etc. If you want to add more about your strategy, what you're thinking specifically, maybe after reviewing Michael's site (which is really good), it could help drill down on specifics for your circumstances. 

@Brendan Phelan will there be video or webinar? you should record this if you can

@Bradford Behrins. with the right formation structure (OZ Fund LLC to OZ Project LLC), you have 24 additional months to deploy capital. This is in addition to the 6 months investors have from incurring the capital gain. So 31 months total.

Yes, we have a great beta called Gainvest to streamline the OZ investment process. gainvest.co

Quick. Easy. No minimums. No fees.

Bc of the timing deadlines, we wanted to make a product that could facilitate these investments quickly and easily. Feel free to check it out, browse through some of the projects we have now. I'm working on the coding right now to add features some investors have been asking about.

Here to help.