Erik Hayden Writes About How OZ Funds Provide Solutions for Failed 1031 Exchanges for National Real Estate Investor Magazine
Erik’s timely article for National Real Estate Investor – “1031 Exchanges Are Challenging in a Pandemic. Opportunity Zone Funds Can Offer a Solution” – provides cautionary tales for 1031 exchange investors and explores why OZ Funds are an excellent alternative investment with similar tax benefits and a lot less stress.
“In this uncertain market, I’m talking to tons of investors who are struggling to find 1031 exchanges before the impending July 15th IRS deadline,” Erik writes.
Here are some of the highlights from the article:
1031 exchange pitfalls during a pandemic:
- Finances might fall through at the last minute – Lenders have been nervous, slow, or resistant to approving the loans buyers need to close escrow.
- Buying blind – Shelter-in-place guidelines have made it difficult to tour and inspect properties, putting investors behind in their 1031 timeline.
- Replacement property is hard to find – Inventory is low, even lower than it was pre-pandemic. And, believe it or not, property prices in certain areas are rising.
How OZ Funds are a great alternative to failed 1031 exchanges:
- OZ Funds are an easier-to-understand, easier-to-execute real estate reinvestment strategy.
- OZ Funds offer tax benefits similar to 1031 exchanges. OZ investors get to defer, reduce, and even eliminate their federal capital gains tax burden.
- OZ Funds are uniquely positioned to ride out a recession because they have a long investment horizon.
“OZ Funds provide a once-in-a-lifetime answer to 1031 exchange woes while fulfilling a larger purpose. It doesn’t get better than that.” - Erik Hayden -
Read his full article here.
