FUNDAMENTALS
RE-INVESTING
PROPERTY MANAGERS AND INVESTORS CAN PROMOTE GROWTH WITHIN THEIR COMMUNITIES Invest for Cause and Community
by Jeremy Kloter
engineers, general contractors, plumbers, roofers, electricians, handymen and more. There has been no shortage of work for these trades with many of them expe- riencing record-setting months. Most of the local business owners we interact with are in dire need of workers in all types of fields. I see it on social media at least once a week where someone is trying to fill a position. As property managers we are constantly scouting for new vendors to help with the various projects we come across. As new mixed development and commer- cial properties are remodeled or built, businesses move in creating more demand for small businesses to employ a wide variety of people. OPPORTUNITY ZONES As of late, opportunity zones have been attractive for those looking to place capital in areas with significant upside in lagging markets through tax incentives and distressed prop- erties. Opportunity Zones are aimed at encouraging long-term private investments in distressed communi-
common theme we see with- in the investment communi-
A
ty is generally around investment opportunities, funding and creating returns that support a certain life- style for everyone involved. One area that doesn’t get discussed as much but is a very important topic is the impact investors have through the implementation of their strategies. Whether someone is buying homes and renovating them or is a landlord growing a portfolio, each has some- thing in common. SUPPORTING THEWORKFORCE Over the last 18 months we’ve all experienced significant chang - es in our lives. One thing that has remained a constant in our mar- ket has been the activity for the construction and design industry. With the supply of new construc- tion homes struggling to keep up with demand, it has pushed even more people looking for remodeled homes and rental units. Investors support all types of trades and professions such as architects,
ties by utilizing a federal tax program with incentives to do so. Opportunity Funds can be used on commercial and industrial real estate, housing, infrastructure, and existing or start-up businesses. For real estate projects to qualify for Opportunity Fund financing, the investment must result in the prop- erty being “substantially improved.” In most markets these invest- ments are eligible to obtain: • A temporary tax deferral for capital gains invested in an Opportunity Fund. • A step-up in basis for capital gains reinvested in an Opportunity Fund.
28 | think realty magazine :: november 2021
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