Real Estate Investing Like A Billionaire In 2019

We are always looking for innovative real estate investment strategies. That’s why we’ve been covering Opportunity Zones and their potential to allow for serious investment. Earlier today we put up a post about how Philadelphia Opportunity Zones are already seeing investment.

If you are looking for more proof that Opportunity Zones offer the potential for tremendous investing success  Theodore Schleifer wrote a recent article in reCode which offers some insight into just how big Opportunity Zones could be, The new hotness for tech billionaires? Do-gooder investments they can write off on their taxes.

At private dinner parties and on the suddenly overflowing conference circuit, billionaires like Tom Steyer and the people who advise the rich are swapping notes, beating back viral rumors and trying to understand whether these tax write-offs are indeed too good to be true.

“It’s a lot of the high net worth individuals talking to each other,” said Bernier, who advises clients at Ernst and Young. “A lot of it comes from, ‘I heard this on the internet.’”

He then goes on the write…

The ability to defer paying capital gains tax through 2026 after selling your company, for instance? Appetizing.

The chance to not pay any capital gains tax on any money you make on top of that payday if it’s invested into an Opportunity Zone? The real cha-ching.

By spending the money in one of 8,700 Opportunity Zones — low-income census tracts ranging from nearby Oakland to the Aleutian Islands of Alaska and covering as much as 12 percent of the country — people can reap those extensive benefits thanks to the tax bill passed by Congress earlier this year.

As we see it, Opportunity Zones and the associated Opportunity Zone Funds are going to end up making significant investments in many of these areas. Outside of putting money in a fund, there are going to be numerous opportunities for the independent investor to find great investments.

For those looking at value-add multifamily, retail or office building investment strategies, finding off-market properties in Opportunity Zones may be the strategy to consider.