How to Invest in Opportunity Zones

If you prefer video here you go!

Introduction

Welcome to Part 2 in the series. If you missed Opportunity Zones 101 feel free to check it out here.

Opportunity Zones Part 1

There are several ways you can invest or take advantage of the benefits of Opportunity Zones. To be clear in order to receive the tax benefits of Opportunity Zones you must invest your capital gains which can be money made from real estate sales, stocks, Art Sales, selling your business, etc. If you do not have capital gains to invest you can still invest in these zones without the tax benefit.

Buy Property in an Opportunity Zone 

Whether you are buying a property to be your primary residence, buying property to produce rental income, or buying commercial property to lease all could be beneficial in the long run. With the tax benefits of Opportunity Zones there already are Billions of dollars being invested into these areas. This means property value should be expected to increase in these areas. If property value increases then the rent you can charge should also increase or the equity in your primary residence. This is not a guarantee in all Opportunity Zones but it is the aim and should be the general trend.

Buy Land In an Opportunity Zone 

Buying some land in an Opportunity Zone could be another strategic way to invest for the long term. In urban areas this may be difficult but in more rural areas outside of major cities, there could be some opportunities. You can buy and hold, use the land to harness solar or wind, use the land for agriculture, or even develop the land with your own vision. Maybe someone reading this blog will buy land and develop the next Black Wall Street!

Start a Business 

We love entrepreneurship! Of course we had to include starting you own business as an option. Opportunity Zones provide some benefits to businesses and investors. Regardless of Opportunity Zones, starting your own business is a great way to produce wealth for you and your family. Define a talent, skill, or tangible product you can market and get out there!

Invest in An Opportunity Fund 

The last most passive way of investing in an Opportunity Zone is by investing in a Qualified Opportunity Fund. These funds are self designated and must meet certain requirements but they are essentially funds that invest in Opportunity Zones. You can invest to own an equity stake in the Fund and receive dividends if the fund is profitable.

Part 2 Conclusion

There are so many ways for you to take advantage of the influx of investment funds that will be pouring into these areas. If you have an significant amount of capital gains you will stand to profit the most. But even if you do not have significant capital gains there are strategic things you can do to profit long term. As always be sure to consult you tax or financial professional before making investment decisions.

We Will Rebuild.