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Opportunity Zone Program

The Opportunity Zone Program can provide a big financial gain for investors through generous capital gains tax incentives. Since the Opportunity Zone program is so new (late 2017), relatively few investors are familiar with it.

The tax overhaul bill that was passed in late 2017 contained the Investing in Opportunity Act, which established the Opportunity Zone program consisting of Opportunity Zones and Funds. The program was created to revitalize economically distressed communities using private investments rather than taxpayer dollars. In exchange for investing in communities within Qualified Opportunity Zones, investors can access capital gains tax incentives both immediately and over the long term.

As an example, if you sell a piece of property and use the entire proceeds to invest in an Opportunity Zone Fund or a qualified Opportunity Zone Business, and you hold that investment for 10 years, 100% of your capital gains tax liability goes away.

Of course, you do need to use due diligence. Don’t make real estate investments based primarily on tax incentives or as tax avoidance strategy. The real estate investment needs to make sense, and any tax incentives should just be the icing on the cake.

The post Ep. 173 Steven Rinaldi: Opportunity Zone Program and its Capital Gains Tax Incentives appeared first on Real Estate Investing in Florida.

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If you’ve got a real estate investment that’s managed through a third-party property management company, did you know it’s considered a security? When your investment is classified as a security, there’s different rules to how it is managed.

Our guest this week, Steven Rinaldi, is a real estate attorney based out of Bethesda Maryland. He is a leading figure in real estate and security law, having previously served as general counsel for the American Association of Bankers. He specializes in venture capital, private placement, angel investment and crowdfunding. He’s drafted memoranda for real estate investor with deal-types including private loans for rehabbers and loans for apartment investors.

This episode, he’ll be sharing what you need to know about real estate securities and the rules for managing properties as securities.

Find out what you need to know about real estate securities!

•  Federal looks at 4 factors of an investment to determine it as a security:
  • Investment of money
  • Common enterprise
  • Expectation of profit
  • Element of control
• Your expectation of a profit is based on the work of someone else
• Your real estate investment is a security if you do not have control over day-to-day operations of it
• Different sets of laws apply to real estate securities

Investor resources

Want to find out more about what it means to invest in real estate securities or curious about real estate syndication? You can contact Steven Rinaldi through email at stevendrinaldi@msn.com or by phone at (204) 481-2706. You can also check out what kind of syndication deals he’s been involved in! Click here to view.

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The post Ep. 132 Steven Rinaldi: What You Need to Know About Investing in Real Estate Securities appeared first on Real Estate Investing in Florida.