By Beth Mattson-Teig | National Real Estate Investor
Dozens of Opportunity Zone funds are racing to capture a wave of private equity dollars seeking value-add investments that come with the added perk of a hefty break on capital gains taxes. The frenzy is creating a bit of a Wild West mentality that has some raising concerns about the potential dark side to Opportunity Zones.
Many view the new Opportunity Zone program created by the 2017 Tax Cuts & Jobs Act as having the potential to be the most significant federal community development initiative in U.S. history, with billions—perhaps trillions—of dollars in private equity targeting investment opportunities in low-income communities around the country. Yet there are still numerous questions, concerns and potential pitfalls that could rewrite that history.
