Take 5 The Next Next: Opportunity Zones With Sam Harris TRT 6:39 Transcribed Sam Harris Directly addresses camera: You may be hearing a lot about Opportunity Zones, also known as QOZs. And you probably also assume that Opportunity Zones is for commercial real estate professionals. And that you need to be well-informed about Opportunity Zones. That's simply not true. I'm Sam Harris, broker, Opportunity Zone and fund advisor with Samjen Residential and Commercial Realty in Tampa. Let's take five minutes to understand Opportunity Zones and how they can impact your business AND help your customers. Opportunity Zones were created as part of the Tax Cuts and Jobs Act of 2017. The plan enables investors with private capital to invest in low income communities and rural areas, to help redevelop these communities and, in the process, receive a tax advantage. Because of the tax benefits, more private capital is reaching Main Street, just as venture capital made its way to Wall Street, and these investments are jolting new life into communities that were once overlooked by most investors and developers. Also, the legislation is fostering businesses, economic growth, jobs, and an influx of new residents to these areas. There are 8,764 Opportunity Zones throughout the U.S., there are Opportunity Zones in every county and state, with 462 of them in Florida. Look around the state, and you will see projects under development everywhere, especially in Tampa, as it was recently recognized as one of the top cities for Opportunity Zone development. Some of the most notable Opportunity Zone projects in Florida is the UnionWest at Creative Village in Orlando, a huge complex being developed by the University of Central Florida. It includes a 15-story mixed-use building with 644 student housing beds, 100,000 square feet of academic space, 11,000 square feet of ground-level retail space and a 600-space parking garage. So, I know you're asking, “where are the opportunities for residential real estate agents?” Opportunity Zones offer affordable inventory in revitalized areas that are once again desirable. In Opportunity Zones, there is a mix of price ranges within the same area. You can work with customers with multiple income-levels and those who may not meet specific guidelines for financing. Many buyers may not understand the incentives involved in either becoming a new homeowner or moving their business to the area. Plus, as homeowners in Opportunity Zones choose to sell, we may see a price appreciation of 15 to 20 percent. This gives sellers in these areas more opportunity to invest in a new home. Opportunity Zones are an emerging niche. Here are ways you can learn more about them and decide if they're the right specialty for you: No. 1: Build a relationship with the Community Redevelopment Agency in your area. This is vital, because it will give you insight into what new developments are in the planning phase. No. 2: Attend community meetings so you can network with those that have properties for sale or may be looking to develop. And, local city government and municipalities can partner with real estate professionals to find developers or clients who want to buy or develop that property. No, 3: Relocate your real estate office to an Opportunity Zone. This would allow you to reduce your taxes and provide additional tax breaks as an entrepreneur. No, 4: Invest in Opportunity Zone communities. You will get a 15 percent reduction if you keep your money in the Opportunity Fund for seven years. Keep it in the fund for an additional three years (for a total of 10 years), and the capital gains you earn from your initial investment will be 100% tax-free. You can either continue to keep it in the fund until 2046, cash out or invest their capital gain into other property investments. So, it's similar to a 1031 exchange, except you don't have to transfer your profits into another property. No. 5: Check out the interactive Opportunity map on Realtors Property Resource, or RPR. This tool will allow you to identify the Opportunity Zones in your area. Check with your local association about webinars or courses that are offered in your area or visit our website to request information about our training series called the Business and Industry of Qualified Opportunity Zones. And No. 6: Get to know the specialized attorneys and CPAs in your area. You want to work with an attorney and CPA who understand Opportunity Zones and the laws associated with them. Also, go to your local city website and search for "Opportunity Zones" to find the entire prospectus on your area's Opportunity Zones, projects that the city would like to see developed, and how you can engage in your community to help move the plans and conversation forward. Qualified Opportunity Zones are a boon to the economy, local development, and real estate industry. As a residential real estate practitioner, you'll quickly notice that homes in Qualified Opportunity Zones gain a marketability boost because of increased attention. * If you're a commercial Realtor, you'll likely see properties once overlooked that are now excellent investment properties. These properties can bring new life, taxpayers, and residents to communities with the hope of growing businesses, creating jobs, raising a family, and investing in disadvantaged communities.