All Forum Posts by: Tim H.

@Brandon Carlson the city proposed a new land development code (LDC) about 9 months ago. It was challenged by some community groups who were able to put it on ice thanks to a very strange decision by a judge here in Texas. The city is challenging that ruling. The new LDC would automatically up-zone a huge number of tracts in the city and change the designations of developable land along a series of arteries to mixed use. Unless you understand the new code incredibly well and its impact on submarkets, you shouldn't be making any moves on land in Austin right now. The situation is too liquid to justify the risk. 

FollowUpBoss and/or DealMachine

@Travis Gregory The highest and best use for a property doesn’t necessarily mean it’s the right strategy for a Realtor or investor. For example: I’m looking at investment opportunities right now in opportunity zones because I’m trying to deploy capital from selling an asset in order to avoid capital gains tax. So I’m a realtor that is looking at deals that for anyone else would be terrible. I want new construction and I’ll overpay for land because the tax incentives are so good.

Also some realtors take listings knowing that they may not sell for the marketing value of the listing in terms of street and online signage.

There are often underlying reasons why a realtor might prefer to list and sell a property than to buy it themselves.

Hi Tamara - did you ever put together some resources on this topic? I'm looking to start an OZ Fund. I think I can raise about $500K to start investing in early 2021. But I could use some direction on structure and legals. 

How did you find out about the syndicate? It sounds like these guys might be selling an unlicensed security. Did you have a previous relationship with them? If not, having the paperwork completely buttoned up in advance is absolutely essential. 

Hi Laurie, if you're only looking at those particular areas, that could be the reason you're not seeing appreciation in your numbers. For new construction, you want to try and get cheaper infill deals where you can build homes that are unique and have a smaller footprint (less yard space, no pools etc). Tenants for the places it sounds like you want to build are going to be less numerous as well. Try running your same numbers in 78741, 78744 and 78721.

Pay off the car. Debt has an emotional as well as an economic cost. 

If you check the rate of increase, you'll see that Austin grew faster between 2010 and 2019 than any city in the country outside Henderson, Nevada. https://en.wikipedia.org/wiki/...

I've been looking for a way to deploy some capital gains from a cryptocurrency project called HEX. It occurred to me that a lot of the early investors in the project will probably be looking for ways to defer and eliminate their capital gains taxes as well. So I'm in the process of launching an series of three Opportunity Zone Funds (QOF) to invest in some of the neighborhoods around Austin's Southeast.

Some questions:

• Has anyone invested in a QOF before?
  
• What convinced you it was the correct investment for you?
• Were you guaranteed any returns from the fund?
• Did the fund charge you a management fee?
• How long did you / have you stayed invested in the fund?

I've started working on the fund's website and blog content. But would love to hear from some QOF investors regarding their experiences.