We Study Billionaires - The Investor’s Podcast Network TIP239: Commercial Real Estate Investing w/ Ian Formigle
Apr 21, 2019
Ian Formigle, Vice President of Investments at CrowdStreet, shares his extensive knowledge from overseeing over $10 billion in real estate deals. He dives into the concept of opportunity zones, revealing the tax incentives that make them attractive. He also discusses the significance of interest rates in shaping investment decisions, stressing the need for a solid understanding of cap rates. Listeners learn strategies for diversifying their portfolios and transitioning to passive commercial real estate investments, making this a must-listen for aspiring investors.
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Opportunity Zones Overview
- Opportunity Zones (OZs) are economically distressed communities designated for preferential tax treatment.
- They aim to spur economic development and job creation in underserved areas by incentivizing investors.
Investing in Opportunity Zones
- Invest in OZ properties via a Qualified Opportunity Fund (QOF) holding 90% of assets in OZ property.
- Invest with realized gains within 180 days, as only the gain, not the principal, is eligible for tax benefits.
Eligible Gains for QOFs
- Any realized gain, not just stock market gains, can be used for QOF investment.
- Original investment principal is not eligible for QOF benefits, only the deferred gain.
