So you have capital gains tax exposure and you want to take advantage of the Opportunity Zones marketplace. Do you have to do it alone? Of course not. Many are creating Joint Ventures with real estate developers and others to reap the full tax benefits the program offers. In this podcast, Gerry Reihsen, the CEO of the Coasis Coalition, explains how it’s all done and everything you need to watch out for. By listening to this podcast, you’ll understand why joint venturing is such an important strategy option for all involved in a OZ Fund transaction, as well as all the ways to configure and structure your fund for maximum profitability and compliance.
Listen to “Joint Ventures in Opportunity Zones Investing” on Spreaker.
As Mr. Reihsen mentions on the podcast, there are really two types of developers that QOZ investors should be aware of, and it’s crucial to understand the difference between the two. (That’s why you have to listen). Some developers like to get paid their 4% fee (generally) and then get out of the picture. Others may want to have some stake in the project’s success.
It’s all about “stabilization” and “crystallization”. These are concepts you really need to understand before moving forward with a potential joint venture situation because it involves valuation, upside, techniques, and opportunities that’ll pass you by unless you know for sure what all your options are from the start!
And remember: mostly everyone involved with OZ Funds are thinking long-term investing (10 years +), but it’s all worth it when you exit from your deal tax-free! Listen as Gerry provides some examples on how some are using that long term value concept in the real world today (think build to rent) and also talks about the mindset change that is growing in the industry. In fact, just wait until OZ funds can invest in other OZ funds: when that happens, you’ll see even more creativity!
But until then, you’d be wise to contact Gerry with any questions you have about joint venturing on an Opportunity Zones project (or projects). He can be reached by phone at 214-908-2009, by email here, or visit his websites at CoasisCoalition.com and Swordshieldlaw.com.
ABOUT OUR GUEST: Gerry Reihsen
Gerry Reihsen’s career as a global entrepreneur and corporate/securities attorney spans four decades. Mr. Reihsen leads teams of highly skilled professionals serving every vector of the Opportunity Zone ecosystem. At Coasis Coalition, an advisory and consulting firm focused on the Opportunity Zone space, clients are assisted through the process of business and strategic efforts toward establishing Opportunity Zone enterprises of all types, including investment funds and investment fund platforms, and operating businesses spanning tech to professional services to traditional manufacturing, as opportunity zone businesses that can attract uniquely incented qualified opportunity zone capital and achieve tax-free exits.
As an attorney and the founder of Reihsen & Associates and Of Counsel to Ferguson Braswell Fraser Kubasta PC, his team assists clients in all the legal aspects of any and all businesses and transactions with a focus on the Opportunity Zone space. These legal services further extend to patent and other intellectual property services, restructuring/insolvency/bankruptcy and disputes and litigation. His team assists Opportunity Zone clients in placing qualified capital gains, in establishing captive Opportunity Zone investment vehicles, real estate development and other Opportunity Zone joint ventures and formation and operation of Opportunity Zone investment funds.
Mr. Reihsen can be reached at (214) 908-2009 or at any of gerry@coasiscoalition.com, greihsen@swordshieldlaw.com or greihsen@fbfk.law.
IMPORTANT!
All information provided is for informational purposes only. Mapable USA is not a registered broker-dealer, funding portal, or investment advisor. This information presented on this website/podcast is not intended as legal or investment advice for anyone to make an investment in any particular company and is not intended for any companies to rely on this information to form an opinion to go public or not to go public or to do any type of offering of securities. Any information presented is not an offer or solicitation to purchase or sell any securities or financial products. None of the information on the Mapable USA podcast or website takes into account any individual person’s personal objectives, financial situation, needs, or particular circumstances. You must check with a securities attorney to find out if an offering is for you, or if you are going to be in the business of selling any type of securities, you need to make sure you are following your state and federal legislative law so you do not get into any troubles. Do not use the opinions as stated on this show as any way to form an opinion as what is wrong or right or what could be done for your business or as an investor. Mapable, LLC recommends you obtain your own financial, legal, and taxation advice before making any financial investment decision.
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