Sponsored Content - Do you need to do some spring cleaning in your investment portfolio or have existing real estate securities that are not performing the way you want, asks Chris Loeffler, CEO and co-founder, Caliber.
It might be the perfect time to dust off those old operating partnership units—non-traded REIT securities—or REIT shares and invest in a more diversified vehicle. If you own any of these securities, Caliber may have a solution for you.
Diversification is the key to smart investing, and with the current market volatility, real estate can be a good diversifier in a managed portfolio—when the stock market takes a downward turn, directly owned real estate does not necessarily drop with it, thanks to its low correlation with stock and bond markets. Perhaps your concentration in one name or asset class is putting you in a precarious position and not effectively insulating your investments from economic fluctuations.
Perhaps Caliber’s Opportunity Zone Fund can be the solution you are looking for. The objective is to provide investors with diversified exposure to real estate and the potential for significant tax benefits through the opportunity zone program. Caliber has a documented history of investing in mixed, discretionary private real estate funds, and is recognized as a thought leader and market leader in opportunity zone investments as an early entrant in the space in 2018.
How It Works:
DELAY: Defer capital gains where proceeds are timely invested in an opportunity zone fund until the date on which the investment is sold, or Dec. 21, 2026—whichever is sooner.
DECREASE: Reduce gains taxes up to 10% if held for at least seven years.
ELIMINATE: Reduce all (or a portion) of the taxable gain if held for at least 10 years in a Qualified Opportunity Zone investment.
IMPACT: Funds support the building and revitalization of underserved communities throughout the country, thanks to the Tax Cuts and Jobs Act of 2017.
You can transfer these securities, not cash, as an investment in a Qualified Opportunity Fund. However, a transfer of non-cash property may result in only part of the investment being eligible for Opportunity Zone tax benefits (that is, a qualifying investment). Specifically, the amount of gain you defer is limited to the basis of the contributed property, even if you transfer property with a greater value.
Caliber – The Wealth Development Company, is a trade name used to refer to a group of affiliated entities directly or indirectly controlled by CaliberCos, Inc., a Delaware corporation. Caliber provides high-net-worth individuals and the investment advisers who serve them access to sophisticated, private real estate investments that have been traditionally reserved for institutions. It is Caliber’s mission to build wealth for and with our clients while transforming the assets and communities we touch. Caliber achieves this mission by providing well-structured residential, commercial, and hospitality real estate investments, utilizing, to the extent beneficial to the investment project as a whole, a vertically integrated business model that includes acquisitions, development, construction, asset management and disposition.