Retail investors can get a piece of ‘opportunity zone’ tax breaks

Anthony Scaramucci’s hedge fund SkyBridge Capital and its partner Westport Capital, for example, are looking to raise $3 billion to launch an opportunity zone real estate investment trust.

But SkyBridge only takes on accredited investors, individuals with a net worth of at least $1 million (not including your home) or those with an income of at least $300,000 in the past two years.

SkyBridge’s President Brett Messing told CNBC that the average investment in the trust is about half a million dollars.

Firms like Belpointe, on the other hand, are trying to open the market up so retail investors can get in on the action.

Belpointe launched a real estate investment trust called “The Opportunity Zone REIT,” the first to be registered with the Securities and Exchange Commission.

The Belpointe REIT is open to non-accredited and accredited investors with a minimum investment amount of $10,000, according to the company’s release.

“We’re trying to offer a product that allows all types of investors, retail and institutional, in the same way any pension fund or endowment would invest in real estate,” said Brandon Lacoff, CEO of Belpointe.

It also claims low-cost status with no upfront commissions, an annual management fee of 0.75 percent and a carried interest fee of 5 percent. Belpointe has about 20 opportunity zone properties in the pipeline.

Online real estate investment platform Fundrise has made two multi-asset opportunity zone investments with a third under contract. The minimum investment is $25,000 with management fees below 2 percent.

Co-founder and CEO Ben Miller said Fundrise has more than half a billion dollars in real estate across the country and uses its deal flow to find sound investments.

“Opportunity zones let you find something in the rough and polish it and have it grow into something,” said Miller.

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