Raise funds to invest in Opportunity Zones

Raise funds to invest in Opportunity Zones

Rental Property Investor · Member since 2020 · 24 posts · 13 votes

Hello, I recently was listening to BP podcast about OZ, and decided to research a building my daughter has a lease option for. I just found out doing research that it’s in a OZ.   The lease/option is up soon and we are going to try to get the seller to seller finance, but have not started the conversations yet.

My idea was to build 2 lofts on top of the retail space to make into short term rentals because our city is getting a Hard Rock Casino and her shop is on the main drag between the historic downtown and where the casino is being built.   We already cleared it through the city and are working on getting a structural engineer out to see if we can build on top of the existing building or have to demolish and start new.  Then get a architect to make plans.

Reluctantly I  am planning to sell a couple multi family that I’ve been complaining about for years because it’s too far away and I want to invest in the area I live.  
i would like to split that money into lots of different little projects and not use it all on this commercial rehab.   


Has anyone raised funds for opportunity zone investments?  I’m guesstimating my project will be less than $500,000 to fund.  
How would I start the process on trying to get funding for this project?  What’s in it for an investor?  I called a hard money lender and they do not do rehab construction on commercial.  
Any info is greatly appreciated!

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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    Hey @Tammi Bieniek 2 things...1) I have not managed to listen to that episode yet, but I heard it was fantastic, and 2) the fact that you have such good insights on the location and the future of the area means its going to be a great investment in my book.

    As far as raising funds for opportunity zones specifically, I don't know that there would be any specific communication towards potential investors other than if there are specific tax advantages they will get by being in the deal.  Otherwise I'd say the investors care about what they always care about, returns, risk, and track record, which it seems like you have a fantastic handle on.   

  • Specialist · Virginia Beach · Member since 2018 · 42 posts · 9 votes
    4y

    OZToolkit.com is a great resource on Opportunity Zones and raising funds. Also check out Eazy Do It Opportunity Zone Funds. They can help as well. 

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