What is an Opportunity Zone?
Opportunity Zones were created to boost economic activity-specific areas identified across the USA. Currently, there are over 8,700 US Census Tracts designated as Opportunity Zones. Approximately 19% are in already gentrifying areas, according to Brookings Institute.
Opportunity zones are now prime for investment opportunities. The objective is to benefit investors and communities alike.
Opportunity Funds were added to the Tax reform bill as a new way to incentivize investment in specific communities. Investors can participate in Opportunity Zone Funds, were at least 90% of the funds holdings are inside qualified Opportunity Zones.
Investors can defer federal taxes on recent capital gains through Opportunity Zone-related investments until Dec 31, 2026! Including a 15% payment reduction - investors may pay as little as zero taxes on profits from an Opportunity Fund if that investment is held for 10 years.
Why Opportunity Zones are profitable investments?
Investors can receive a special tax benefit by rolling their gains into an Opportunity Fund avoiding capital gains taxes that are triggered by selling an asset such as stocks or bonds, real estate, or interest in a partnership.
Three primary reasons to roll your capital gains into an Opportunity Fund are:
DEFER THE TAX PAYMENT
of your capital gains until
Dec 31, 2026
REDUCE THE TAX
You owe by up to 15% after 7 years
PAY ZERO TAX
On gains earned from an Opportunity Fund
How Big Is The Opportunity?
8700
Total # of
Opportunity Zones
11
% of US Population
12%
of US Tracts in List
Our Unique, Data-Driven Approach To Identifying Attractive Markets
Our data-driven approach to market selection is paramount to reduce risk and increase the rewards of Opportunity Zone investing. With over 8,700 census tracts designated as Qualified Opportunity Zones we have determined the best ways to identify the most attractive Opportunity Zones to build investments around.
Not all opportunity zones are created equal.
Esteem AI Insights has the unique ability to determine which Opportunity Zones are best suited for investing. We are focused on investing in high-quality real estate in major US cities with long-term growth potential. We plan to take on massive value-add properties and new developments in Opportunity Zones to maximize cash flow and returns.
THE PROBLEM
OUR SOLUTION
HOW WE DID IT
The quality of an investment opportunity when it comes to Opportunity Zones varies greatly based on factors like income, population, or jobs to support new construction projects.
Not all opportunity zones are created equal, nor will they all be profitable investments. Investors are only focused on tax benefits, not on project and area quality, and that is a big challenge.
Esteem AI specializes in the use of demographics and real estate data analytics to find and acquire high-quality investments for our investors.
Through extensive analysis and experience, we find the diamonds in the rough. We welcome you to join us in future Opportunity Zone investment opportunities.
We start local and aim to help areas of the country that we live in and that are near the places we call home.
Careful attention to detail paired with due diligence and hard work ensure we select the right markets, neighborhoods, and potential developer partners before we move forward.
We source those rare OZ projects that present true opportunities while minimizing the potential hazards of investing in underperforming areas.
Opportunity Zones are economically distressed communities, defined by individual census tract, nominated by America’s governors, and certified by the U.S. Secretary of the Treasury via his delegation of that authority to the Internal Revenue Service. Under certain conditions, new investments in Opportunity Zones may be eligible for preferential tax treatment. There are 8,764 Opportunity Zones in the United States, many of which have experienced a lack of investment for decades. The Opportunity Zones initiative is not a top-down government program from Washington but an incentive to spur private and public investment in America’s underserved communities. (from https://opportunityzones.hud.gov/)