Chicago Musictown Opportunity Zone

10 Replies

Curious if anyone has heard of, or has any reviews about the Chicago Musictown Opportunity Zone investment that I keep getting emails about? Is it legit or not? Hard to find much information on it other than maybe one or two webinar videos. Their website doesn’t even work.

After contacting them I feel I’m getting a high pressure, act now kind of treatment that isn’t sitting well with my gut. Just want to be careful. Thank you!

@Sean C. - To be honest I have never heard of the Chicago Musictown Opportunity Zone - Where exactly is it and what is it supposed to be about?

If there is no website and you can find any information it sounds like a scam.  

RUN lol. Out of state investors in D class areas is a disaster waiting to happen. The returns will not end up how they look on paper or anywhere near it and if it's a syndication you might see a total loss of capital. Just do google maps of the area and see all the failed apartment buildings now sitting vacant that ended in total loss. 

Chicago has lots of great areas that offer a mix of cashflow + appreciation but they are typically the B or better areas. Some areas to look at... Albany Park, Irving Park, West Logan Square, Hermosa, Mckinley Park, Brighton Park, Bronzeville. If you want to do syndications and are accredited there are some good developers working in these areas on the various platforms, I always recomend just buying a 4 unit yourself though.

Agreed w/@Henry Lazerow

General thoughts - 10yr hold can be a lifetime so it better be with an operator familiar with the area that knows what they're doing and has proven long-term results in that same geographical area/demographic. 

There are plenty of proven operators and more attractive QoF locations. I can't find the screenshot, but at the last in-person Midwest Networking Summit, Neal Bawa had a poster of all the qualified opportunity zones in Chicago with data ranking them compared to national opportunity zones. There were some decent performers, but many were below the national average (based on median income, crime, migration....etc). 

Also, without knowing these guys, my 2cents is that in today's environment successful operators usually hit their raise immediately with a waiting list to boot. If they're hounding you for funds, that's a serious lack of demand. 

Originally posted by @Sean C. :

Curious if anyone has heard of, or has any reviews about the Chicago Musictown Opportunity Zone investment that I keep getting emails about? Is it legit or not? Hard to find much information on it other than maybe one or two webinar videos. Their website doesn’t even work.

After contacting them I feel I’m getting a high pressure, act now kind of treatment that isn’t sitting well with my gut. Just want to be careful. Thank you!

As part of your due diligence see if you can get a meeting with Alderman Michael Scott Jr. All of this would be happening in his Ward and nothing big gets done in Chicago w/o the Alderman being involved. If he doesn't know about it then it's a pipe dream.

If you are looking to invest in Chicago, I wouldn't overlook the suburbs either. Places like Berwyn and Oak Park can offer great returns for 2-4 units. 

@Sean C.   if you know the address, you can enter it on this website https://www.novoco.com/resourc...   to see if the site is located in an OZ.  Second you can do a search on the Secretary of State for Illinois to determine if that company exists.  Two strategies to use for this or any investment to determine if the project is a real project.  From there, I would continue to do the balance of the due diligence.  

For instance, we were presented an OZ deal, and ran the address - it was in a zone.  Then we looked at the site, and they were proposing a 20 story building.  A small issue was all the surrounding buildings were 2 to 3 story.  No way a 20 story building was going to be zoned there.