Announcement

Collapse
No announcement yet.

Qualified Opportunity Zone (QOZ) fund with origin

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Qualified Opportunity Zone (QOZ) fund with origin

    Hello,
    Does anyone have experience with QOZ fund with Origin investment?
    I have some short term capital gains which I am planning to defer through this fund. This will give me 10% reduction in taxes after 5 years. But the real benefit I am looking at is no capital gain taxes at all if I hold this fund for 10 years.
    Is this a good deal or am I missing something?
    Can someone share their experience of investing in these funds?
    Thanks.

    ​​​​​​

  • #2
    I provide these sorts of investments all the time. Here are a couple things to look out for:
    - These assets are typically not in great areas, and attract challenging tenants
    - These are typically going to either be new constructions OR heavy value add - so make sure the sponsor has experience with that

    I always tell investors - make sure that this is a good investment that happens to be in an OZ rather than investing only for the OZ status.

    It's definitely a good deal if you're seeing some short and long term capital gains.

    Happy to answer questions for you!

    Ryan Beatty
    Real estate investor
    Real Estate Investment Advisor
    FixedIncomeMd.com

    Comment


    • #3
      Originally posted by aks45 View Post
      Hello,
      Does anyone have experience with QOZ fund with Origin investment?
      I have some short term capital gains which I am planning to defer through this fund. This will give me 10% reduction in taxes after 5 years. But the real benefit I am looking at is no capital gain taxes at all if I hold this fund for 10 years.
      Is this a good deal or am I missing something?
      Can someone share their experience of investing in these funds?
      Thanks.

      ​​​​​​
      You pay no capital gains on the QOZ fund investment when held the 10 years, but you will eventually owe capital gains taxes on the large portion of deferred capital gains from the recent sale of assets. There is some risk that capital gains rates go up in the interim, especially for high earners.

      Comment


      • #4
        Thanks a lot for your help.

        Comment


        • #5
          FWIW, I have invested in Origin's IncomePlus Fund and have been happy thus far, although it's early.

          I believe Jim Dahle (aka The White Coat Investor ) is invested in Origin Fund III or one of the earlier funds.

          Comment


          • #6
            Originally posted by PhysicianOnFIRE View Post
            FWIW, I have invested in Origin's IncomePlus Fund and have been happy thus far, although it's early.

            I believe Jim Dahle (aka The White Coat Investor ) is invested in Origin Fund III or one of the earlier funds.
            If you don’t mind too much, I would like to know what it takes to make you “happy thus far” at this admittedly early point - it would help readers to clarify if your “happiness meter” meets their expectations or not. And perhaps educate them on what they should look for and expect.

            And what will it take to make you happy over the life of this investment? Not trying to be a [email protected], but would appreciate more specificity. Otherwise, your “happiness” and the fact that you “believe” the owner of this site is also an investor is little more than a semi-endorsement of the product simply by association (which makes me uncomfortable, not that it matters).
            Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

            Comment


            • #7
              Originally posted by jfoxcpacfp View Post

              If you don’t mind too much, I would like to know what it takes to make you “happy thus far” at this admittedly early point - it would help readers to clarify if your “happiness meter” meets their expectations or not. And perhaps educate them on what they should look for and expect.

              And what will it take to make you happy over the life of this investment? Not trying to be a [email protected], but would appreciate more specificity. Otherwise, your “happiness” and the fact that you “believe” the owner of this site is also an investor is little more than a semi-endorsement of the product simply by association (which makes me uncomfortable, not that it matters).
              I've been happy with the way they've managed the fund through the pandemic. Happy with the transparency and education provided by Origin's partners -- they do monthly webinars with updates on the fund and a Q&A. Happy with the returns. Happy with the investment fees which are transparent and seem to be on the low end for a RE fund (and lower than the fees on their previous funds).

              I know Jim has invested with them; I'm just not sure in which fund it was.

              Comment


              • #8
                Originally posted by PhysicianOnFIRE View Post

                I've been happy with the way they've managed the fund through the pandemic. Happy with the transparency and education provided by Origin's partners -- they do monthly webinars with updates on the fund and a Q&A. Happy with the returns. Happy with the investment fees which are transparent and seem to be on the low end for a RE fund (and lower than the fees on their previous funds).

                I know Jim has invested with them; I'm just not sure in which fund it was.
                TU, that is valuable info for those who may be considering. What kind of returns and investment fees make you happy?
                Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                Comment


                • #9
                  what are the mechanics of sheltering the cap gains? IOW is there just an IRS form that says you invested $X of which $Y were cap gains put into an OZ investment? and then just send origin a personal check?

                  Comment


                  • #10
                    Thanks all for your help.


                    @G Do not know all the details as I have not gone through it yet.
                    Should not be too bad. There is whole page on the IRS website
                    https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

                    Specifics about form 8949

                    https://www.irs.gov/forms-pubs/about-form-8949



                    Comment

                    Working...
                    X