Opportunity zones investment

4 Replies

Hey guys, if you have invested in opportunity zones then I’d like to learn from you. Recently I looked at that strategy  (seems promising) but looks like according to the map most are in not so good neighborhoods. Any advice would be appreciated. 

Following this thread. @Toby Khan I have been researching this a bit myself. There is a great podcast called Opportunity Zones Podcast I have found helpful. The nature of OZs is to be in neighborhoods that could benefit from increased investment. This has been an evolving space as the SEC and Congress have clarified how it will work over the last few years. There are a number of different funds available to invest in, of varying trustworthiness. But I agree with you the strategy is promising, especially with a 10yr hold period to take advantage of the reduced capital gain tax.

@Toby Khan , as you noted Opportunity Zones, generally are in rough areas.  Because of this, I have not explored them too far, because the benefits for me, personally are not larger enough to outweigh the risks.   Now, there are the random diamonds you can find.  Most opportunity zones are designated either by zip code or formal neighborhood district boarders.  There are times you can find the "corner" of that zip code or neighborhood that is actually a great pocket, and the general public thinks of that area as part of the adjacent better area. But this is the rare exception, and not the rule.

Additionally, there are fairly long hold periods required with opportunity zone investments, thereby basically negating flipping in those neighborhoods.  Since you are posting in the flipping forum, I assume you are a flipper or exploring options for flips. 

The areas that were selected by the state governments for Qualified Opportunity Zone(QOF) status were selected over 10 years ago.
Most of the areas selected were 'rough areas'. With that said, 10 years have passed and some QOZ areas are actually 'trendy' places now.