Well-known funds may seem like the quickest option to invest in an Opportunity Zone investment without doing a lot of legwork, but looks can be deceiving. You need to dig deeper and ask the big questions before you put your money on the line.
For instance: Are they investing in projects because they’re in Opportunity Zones (OZ) or because they are good projects? Are they knowledgeable about development in that area? Are their projects all in one OZ?
What it really comes down to is finding an Opportunity Fund that has projects that stand on their own merits. If you would invest in the project without the benefits of it being in an OZ, then it may be worth exploring as an OZ project. The fact you could potentially receive tax benefits is a plus.
It’s important that the fund has clear investment objectives and goals and projects that will satisfy the requirements of the Opportunity Zones regulations. The fund should also be familiar with development in the community. It's a plus if all the projects are in one OZ, enabling the fund to create a network of projects that work in conjunction with one another to potentially make a larger positive impact to the area.
Urban Catalyst started our fund early ensuring first shot at well situated properties on the market that we wanted for our projects. With six properties already successfully purchased in downtown San Jose, our plan to stay local and ahead of the curve is in full swing. Utilizing a network of experienced professionals to navigate available properties and make strategic decisions that help us meet our fund’s investment objectives. To that end, we will soon be announcing a seventh property.
If you’re looking to invest in an OZ fund, just remember, the projects speak for themselves.
Want to learn more about investing in Silicon Valley Opportunity Zones? Contact Us today.