Opportunity Zone investing commits your capital for a long time — ideally ten years or more — into an illiquid, often development-stage investment, so the quality of your due diligence matters enormously. The tax benefits are only valuable if the underlying investment performs, which means evaluating a Qualified Opportunity Fund (QOF) the way you would any serious private real-estate investment: scrutinizing the sponsor, the project and market, the OZ compliance, the fees and promote, and the exit strategy. A disciplined, checklist-driven process helps you separate sound funds from weak ones and avoid letting the tax incentive drive you into a poor investment. This guide is a practical due diligence checklist for evaluating an OZ fund, organized into five areas: vet the sponsor, analyze the project and market, confirm OZ compliance, review fees and promote, and assess the exit strategy. Use it as a framework for your own diligence and your conversations with the fund and your advisors. This is educational information, not investment advice — and OZ rules are time-sensitive and evolving, so verify the current rules with your tax advisor.
Vet the sponsor
Vetting the sponsor is the foundation of OZ due diligence, because the sponsor's ability to execute largely determines the investment's success — especially for development funds. Examine the sponsor's experience (years in the business, depth of the team), their track record (prior projects, realized returns, and how they navigated downturns), and their reputation (references, litigation history, and standing in the industry). A capable, experienced, reputable sponsor reduces execution and sponsor risk.
Dig into the specifics: Has the sponsor completed similar projects (same property type, similar scale, similar markets)? What were the outcomes — did they deliver on time and on budget, and did investors earn the projected returns? How are they capitalized and staffed to execute this project? Have they managed OZ funds specifically, with the compliance discipline the program requires? A sponsor with a proven, relevant track record and clean reputation is far preferable to an inexperienced or troubled one.
So vetting the sponsor — their experience, track record, and reputation — is the first and most important diligence step. Vet the sponsor — examining their experience (team depth, years), track record (prior projects, realized returns, performance through downturns), and reputation (references, litigation, standing), with particular attention to relevant, similar prior projects and OZ-specific experience — is the foundation of OZ due diligence, because the sponsor's execution drives the outcome. A proven sponsor reduces risk. Understanding sponsor diligence shows where to start. Vet the sponsor's experience, track record, and reputation first — their ability to execute (especially on development) largely determines the investment's success, so a proven, relevant, reputable sponsor is essential.
Analyze the project & market
Analyzing the project and market tests whether the underlying investment is sound on its own merits. For the project, examine the business plan (what's being built or improved, the budget, the timeline, the assumptions), the property type and strategy (ground-up development, renovation, or operating asset), and the financial projections (the underwriting, the return assumptions, and how realistic they are). A sound project has a credible plan, reasonable assumptions, and a margin for error.
For the market, examine the location fundamentals — the demand drivers (population and job growth, demographics), the supply picture (competing projects, absorption), and the broader economic trends in the area. An OZ designation alone doesn't make a location good; you want genuine demand and growth prospects independent of the tax incentive. Be wary of projects that rely on the OZ designation rather than real market strength. So scrutinize whether the project and its market would be attractive even without the tax benefits.
So analyzing the project and market — the business plan, the projections, and the location fundamentals — tests the investment's standalone merit. Analyze the project and market — examining the business plan, property type, and financial projections (are the assumptions realistic, is there margin for error?), and the location fundamentals (demand drivers, supply, economic trends) — to confirm the investment is sound on its own merits, not just because of the OZ designation. Real market strength matters. Understanding project/market diligence shows how to test the investment. Analyze the project (business plan, projections, realism) and the market (location fundamentals, demand, supply) to confirm the investment would be attractive on its merits — not just because of the OZ tax incentive.
An Opportunity Zone designation doesn't make a weak location good — the market has to have real demand and growth on its own, or the tax benefit is wrapped around a poor investment.
Confirm OZ compliance
Confirming OZ compliance ensures the fund actually qualifies for (and will maintain) the program's benefits — without compliance, the tax advantages can be lost. Key items to confirm include: the fund holds qualifying opportunity zone property (qualifying business property in a designated zone), it meets the substantial improvement requirement where applicable (for existing buildings, generally doubling the basis of improvements within the required period), and it satisfies the 90% asset test (a QOF must hold at least 90% of its assets in qualified OZ property, measured periodically).
Also confirm the fund avoids prohibited 'sin businesses' (certain excluded businesses like golf courses, country clubs, massage parlors, gambling facilities, and liquor stores, which don't qualify), and that it has a sound working-capital plan (the working-capital safe harbor lets a fund hold cash for a development plan if structured properly, with a written plan and schedule). These compliance elements are technical, so confirm the fund and its counsel have addressed them — a fund that mishandles compliance can jeopardize the benefits.
So confirming OZ compliance — qualifying property, substantial improvement, the 90% test, no sin businesses, and a working-capital plan — protects the tax benefits. Confirm OZ compliance — verifying the fund holds qualifying OZ property, meets the substantial-improvement requirement, satisfies the 90% asset test, avoids prohibited 'sin businesses,' and has a sound working-capital plan (the safe harbor) — to ensure the benefits are available and maintained. Compliance failures can cost the benefits. Understanding compliance diligence shows what to verify. Confirm the fund's OZ compliance — qualifying property, substantial improvement, the 90% test, no sin businesses, and a working-capital plan — since these technical requirements protect the tax benefits; verify the current rules with your tax advisor.
Because these compliance points are technical and the rules are evolving (and were changed by the 2025 OZ 2.0 legislation), have your CPA or attorney review the fund's compliance approach — this is educational, not tax advice, and the current rules should be verified.
Review fees & promote
Reviewing fees and the promote reveals how much of the investment's return goes to the sponsor versus you. Examine the fee structure — acquisition fees, asset-management fees, development fees, disposition fees, and any other charges — and understand how they're calculated and when they're paid. High or layered fees drag on your net return, so you want a reasonable, transparent fee structure aligned with the value the sponsor provides.
Pay particular attention to the promote (carried interest) — the share of profits the sponsor earns above a return threshold (the hurdle or preferred return). Understand the preferred return (the return investors receive before the sponsor shares in profits), the promote percentage, and any catch-up or waterfall tiers. A well-structured promote aligns the sponsor's incentives with yours (they earn more when you do well), while an aggressive promote or a low/no hurdle can shift too much upside to the sponsor. So evaluate whether the fees and promote are reasonable and aligned.
So reviewing fees and the promote — the fee structure and the carried-interest/waterfall terms — shows the cost and alignment of the investment. Review fees and promote — examining the fee structure (acquisition, management, development, disposition fees) and the promote/carried interest (the preferred return, promote percentage, and waterfall tiers) — reveals the cost to you and the sponsor's incentive alignment. Reasonable, transparent, aligned terms are preferable. Understanding fee/promote diligence shows how to assess cost and alignment. Review the fund's fees (acquisition, management, development, disposition) and promote (preferred return, carried interest, waterfall) to assess the cost to you and whether the sponsor's incentives are aligned with strong investor returns.
Assess exit strategy
Assessing the exit strategy clarifies how and when you'll get your capital back — critical for an illiquid, long-hold OZ investment. Because the tax-free exclusion requires a 10-year hold, the exit is typically structured around the 10-year mark, so examine the fund's planned exit: will it sell the assets, refinance to return capital, or offer another liquidity mechanism, and on what timeline? Understand whether the fund's structure and term align with the 10-year hold you need for the exclusion.
Consider the realism and flexibility of the exit plan: Does the sponsor have a credible path to sell or recapitalize the assets at the 10-year mark? What happens if market conditions are poor at that time — is there flexibility to extend or wait? Is there any interim liquidity (generally limited or none in OZ funds), and what are the consequences of an early exit (forfeiting the exclusion, a possible inclusion event)? A clear, realistic, 10-year-aligned exit plan is important; a vague or misaligned one is a red flag.
So assessing the exit strategy — the planned exit, its timeline, and its alignment with the 10-year hold — clarifies how you'll realize the investment. Assess the exit strategy — examining the planned exit (asset sale, refinance, or other mechanism), its timeline and alignment with the 10-year hold required for the exclusion, the realism and flexibility of the plan, and the (limited) interim liquidity and early-exit consequences — to clarify how and when you'll get your capital back. A clear, 10-year-aligned exit matters. Understanding exit diligence completes the checklist. Assess the exit strategy — the planned exit, its timeline, and its alignment with the 10-year hold — to clarify how and when you'll realize your capital; a clear, realistic, 10-year-aligned exit is essential for an illiquid OZ investment.
Because OZ funds are illiquid and designed for the long hold, the exit is where the investment is ultimately made or lost — so this final checklist item deserves careful attention before you commit.
- Vet the sponsor: experience, track record, and reputation — their execution (especially on development) drives the outcome; favor proven, relevant, reputable sponsors.
- Analyze the project and market: a credible business plan and realistic projections, plus real location fundamentals (demand, supply, growth) — the investment must be sound on its own merits, not just because of the OZ designation.
- Confirm OZ compliance: qualifying property, substantial improvement, the 90% asset test, no prohibited 'sin businesses,' and a sound working-capital plan — verify the current rules with your CPA.
- Review fees and promote, and assess the exit: reasonable, transparent, aligned fee and carried-interest terms, and a clear exit plan aligned with the 10-year hold for the tax-free exclusion.
Putting the checklist to work
Putting the checklist to work means applying all five areas — sponsor, project and market, compliance, fees and promote, and exit — together, since a fund must hold up across the board, not just on one dimension. A great sponsor with a poor market, or a sound project with abusive fees, or a compliant fund with no realistic exit, each falls short. So weigh the areas collectively to form an overall judgment about the fund.
Use the checklist to structure your questions to the fund and sponsor, to organize the documents you review (the PPM, financials, projections, and compliance materials), and to coordinate with your advisors — your CPA on the tax/compliance points, your attorney on the legal terms, and your financial advisor on suitability and fit. A disciplined, documented process helps you make an informed decision and avoid being swayed by the tax incentive alone.
So putting the checklist to work — applying all five areas together and coordinating with your advisors — turns diligence into an informed decision. Putting the checklist to work — applying all five areas (sponsor, project/market, compliance, fees/promote, exit) collectively, using the checklist to structure your questions and document review, and coordinating with your CPA, attorney, and advisor — turns OZ due diligence into an informed decision. A fund must hold up across the board. Understanding how to apply the checklist completes the process. Apply all five diligence areas together and coordinate with your advisors to form an overall judgment — a sound OZ fund must hold up across sponsor, project, compliance, fees, and exit, not just one dimension.
How Baker 1031 helps with due diligence
Baker 1031 Investments helps investors conduct disciplined Opportunity Zone due diligence — vetting the sponsor, analyzing the project and market, confirming OZ compliance, reviewing fees and promote, and assessing the exit strategy — so you can evaluate a QOF with clear eyes and invest only in funds that hold up across all five areas.
QOF interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review (OZ investments are typically suitable for accredited investors). We bring sponsor-agnostic diligence to OZ funds — scrutinizing the sponsor, project, compliance, fees, and exit — and help you ask the right questions and review the right materials. Baker 1031 does not provide tax or legal advice — the OZ compliance points (qualifying property, substantial improvement, the 90% test, sin businesses, working capital) are technical and evolving, so your CPA and attorney review the tax and legal terms, and you should verify the current rules. Our role is to help you apply a rigorous due diligence process and access well-vetted funds suitable for you, coordinating with your advisors. Strong diligence is the best protection against letting the tax incentive drive a poor investment, and we help you do it thoroughly. This is educational information only, not investment advice.
Frequently Asked Questions
What should an Opportunity Zone due diligence checklist cover?
A thorough OZ due diligence checklist covers five areas: (1) vet the sponsor (experience, track record, reputation), (2) analyze the project and market (business plan, projections, and location fundamentals), (3) confirm OZ compliance (qualifying property, substantial improvement, the 90% asset test, no prohibited 'sin businesses,' and a working-capital plan), (4) review fees and promote (the fee structure and the carried-interest/waterfall terms), and (5) assess the exit strategy (the planned exit and its alignment with the 10-year hold). A fund should hold up across all five — a weakness in any one (a poor market, abusive fees, no realistic exit, compliance gaps, or a weak sponsor) undermines the investment. So use the checklist to evaluate the fund collectively and to structure your questions and document review, coordinating with your CPA, attorney, and advisor. This is educational — verify the current OZ rules with your tax advisor, as they're technical and evolving.
How do I vet an OZ fund sponsor?
Examine the sponsor's experience (years in the business, team depth), track record (prior projects, realized returns, and how they performed through downturns), and reputation (references, litigation history, industry standing). Dig into specifics: Has the sponsor completed similar projects (same property type, scale, and markets), and what were the outcomes — on time, on budget, and did investors earn the projected returns? How are they capitalized and staffed to execute this project? Do they have OZ-specific experience and the compliance discipline the program requires? A capable, experienced, reputable sponsor with a relevant, proven track record reduces execution and sponsor risk, while an inexperienced or troubled sponsor increases it. So vetting the sponsor is the foundation of OZ diligence, because the sponsor's ability to execute (especially on development) largely determines the outcome. Favor proven, relevant, reputable sponsors. This is educational information, not a recommendation about any specific sponsor.
Why does the market matter if it's already an Opportunity Zone?
Because an OZ designation alone doesn't make a location a good investment — you want genuine demand and growth prospects independent of the tax incentive. Examine the location fundamentals: the demand drivers (population and job growth, demographics), the supply picture (competing projects, absorption), and the broader economic trends in the area. A project in a designated zone with weak fundamentals is still a weak investment, just with a tax wrapper. Be wary of projects that rely on the OZ designation rather than real market strength. So scrutinize whether the project and its market would be attractive even without the tax benefits — if the answer is no, the tax incentive is wrapped around a poor investment. So the market matters greatly: the OZ designation is a tax feature, not a guarantee of location quality. Confirm real demand and growth, not just the zone status, when evaluating an OZ fund's market.
What OZ compliance items should I confirm?
Confirm that the fund holds qualifying opportunity zone property (qualifying business property in a designated zone), meets the substantial improvement requirement where applicable (for existing buildings, generally doubling the basis of improvements within the required period), and satisfies the 90% asset test (a QOF must hold at least 90% of its assets in qualified OZ property, measured periodically). Also confirm the fund avoids prohibited 'sin businesses' (excluded businesses like golf courses, country clubs, massage parlors, gambling facilities, and liquor stores) and has a sound working-capital plan (the working-capital safe harbor, with a written plan and schedule). These compliance elements are technical, so confirm the fund and its counsel have addressed them — a fund that mishandles compliance can jeopardize the benefits. Have your CPA or attorney review the fund's compliance approach, and verify the current rules, as they're technical and were changed by the 2025 OZ 2.0 legislation. This is educational, not tax advice.
What is the 90% asset test?
The 90% asset test is a core QOF compliance requirement: a Qualified Opportunity Fund must hold at least 90% of its assets in qualified opportunity zone property, measured at testing dates (generally semi-annually and at year-end). The test ensures the fund actually deploys its capital into qualifying OZ investments rather than holding it outside the program. A fund that fails the 90% test can face penalties, so funds manage their holdings (often using the working-capital safe harbor for development cash) to satisfy it. When evaluating a fund, confirm it has a plan and track record for meeting the 90% test, since a compliance failure can affect the benefits. So the 90% test is a key compliance item to verify — the fund must hold at least 90% of its assets in qualified OZ property at the testing dates. This is technical, so have your CPA review the fund's compliance approach and verify the current rules, which are evolving.
What are 'sin businesses' that don't qualify for OZ benefits?
Certain businesses are specifically excluded from OZ benefits — commonly called 'sin businesses.' These generally include golf courses, country clubs, massage parlors, hot tub facilities, suntan facilities, gambling/racetrack facilities, and stores whose principal business is selling alcoholic beverages for off-premises consumption (liquor stores). A QOF's qualified opportunity zone business generally cannot be one of these excluded businesses. So when vetting a fund, confirm its underlying businesses or properties aren't in an excluded category, since that would disqualify them from the OZ benefits. This is usually straightforward for typical real-estate development funds (apartments, commercial, mixed-use), but it's worth confirming. So 'sin businesses' are the statutorily excluded categories that don't qualify for OZ treatment — verify the fund avoids them. This is educational information; the precise list and rules are technical, so confirm with your CPA or attorney and verify the current rules, which can be refined over time.
How do I evaluate an OZ fund's fees and promote?
Examine the fee structure — acquisition fees, asset-management fees, development fees, disposition fees, and any other charges — and understand how they're calculated and when they're paid; high or layered fees drag on your net return, so you want reasonable, transparent fees aligned with the value the sponsor provides. Pay particular attention to the promote (carried interest) — the share of profits the sponsor earns above a return threshold. Understand the preferred return (the return investors receive before the sponsor shares in profits), the promote percentage, and any catch-up or waterfall tiers. A well-structured promote aligns the sponsor's incentives with yours (they earn more when you do well), while an aggressive promote or a low/no hurdle shifts too much upside to the sponsor. So evaluate whether the fees and promote are reasonable, transparent, and aligned — they reveal the cost to you and the sponsor's incentive alignment. Review these terms carefully in the PPM with your advisors.
Why is the exit strategy so important for an OZ fund?
Because OZ investments are illiquid and designed for a long hold — the tax-free exclusion requires a 10-year hold — so how and when you get your capital back is critical. The exit is typically structured around the 10-year mark, so examine the fund's planned exit: will it sell the assets, refinance to return capital, or offer another mechanism, and on what timeline? Confirm the fund's structure and term align with the 10-year hold you need for the exclusion. Consider the plan's realism and flexibility: does the sponsor have a credible path to sell or recapitalize at the 10-year mark, and what happens if market conditions are poor then? Interim liquidity is generally limited or none, and an early exit can forfeit the exclusion and trigger an inclusion event. So a clear, realistic, 10-year-aligned exit plan is essential; a vague or misaligned one is a red flag. The exit is where an illiquid OZ investment is ultimately made or lost.
Can I rely on the OZ designation as a sign of a good investment?
No — the OZ designation is a tax feature, not a measure of investment quality. Many designated zones have genuine demand and growth, but others may have weaker fundamentals, and the designation itself doesn't guarantee a sound investment. So you must evaluate the project and market on their own merits — the demand drivers, supply, economic trends, and the credibility of the business plan and projections — independent of the tax incentive. Be especially wary of funds or projects that lean on the OZ designation as the main selling point rather than demonstrating real market strength and a sound plan. So don't rely on the designation alone; the tax benefits are only valuable if the underlying investment performs, which requires genuine quality. Use the full due diligence checklist to assess the investment's merits, treating the OZ designation as a tax overlay on (hopefully) a sound investment — not as a substitute for one. This is educational, not investment advice.
Who should help me with OZ due diligence?
A team of advisors. Your CPA or tax advisor reviews the OZ compliance points (qualifying property, substantial improvement, the 90% test, sin businesses, working capital) and the tax implications, which are technical and evolving. Your attorney reviews the legal terms (the PPM, the fund's structure, the fees and promote, and the legal protections). Your financial advisor (like Baker 1031, working through the broker-dealer Aurora Securities) helps assess suitability, the sponsor, the project, and the overall fit with your plan, and can bring sponsor-agnostic diligence to the fund. Coordinating across these advisors gives you a thorough, multi-disciplinary evaluation. So don't go it alone — OZ due diligence spans tax, legal, and investment dimensions, and the right team helps you cover all of them. So engage your CPA, attorney, and financial advisor to apply the full checklist and make an informed decision. This is educational information; the suitability and tax determinations rest with your advisors.
What documents should I review in OZ due diligence?
Key documents include the private placement memorandum (PPM), which describes the fund's strategy, terms, fees, risks, and structure; the financial projections and underwriting (the return assumptions and how realistic they are); the sponsor's track record materials (prior projects and results); the operating/partnership agreement (the legal terms, including the fees and promote/waterfall); and any compliance materials (how the fund addresses qualifying property, substantial improvement, the 90% test, and the working-capital plan). Review these with your advisors — your attorney on the legal terms, your CPA on the tax/compliance points, and your financial advisor on suitability and the investment merits. So gather and scrutinize the PPM, projections, track record, legal agreements, and compliance materials as part of a disciplined diligence process. So a documented review of these materials, coordinated with your advisors, supports an informed decision. This is educational information, not investment advice — the specific documents and their review should be handled with qualified professionals.
What are red flags in an OZ fund?
Common red flags include: a sponsor with little relevant experience, a thin or troubled track record, or litigation concerns; a project in a weak market that leans on the OZ designation rather than real demand; unrealistic or aggressive financial projections; high, layered, or opaque fees and an aggressive promote with little or no preferred return; compliance gaps or a vague approach to the qualifying-property, substantial-improvement, 90%-test, or working-capital requirements; and a vague, unrealistic, or misaligned exit strategy that doesn't fit the 10-year hold. Pressure to invest quickly, a lack of transparency, or an over-emphasis on the tax benefits (rather than the investment merits) are also warning signs. So watch for weakness in any of the five diligence areas, plus general red flags like opacity and pressure. So a careful checklist-driven review helps surface these red flags before you commit. This is educational information — discuss any concerns with your advisors, who can help you evaluate the specific fund.
Does OZ compliance affect my tax benefits?
Yes — OZ compliance is what makes (and keeps) the tax benefits available. The benefits depend on the fund qualifying as a QOF (self-certifying on Form 8996), holding qualifying opportunity zone property, meeting the substantial-improvement requirement where applicable, satisfying the 90% asset test, avoiding prohibited businesses, and properly using the working-capital safe harbor. If a fund mishandles these requirements, the tax benefits can be reduced or lost, and there can be penalties. So confirming the fund's compliance approach is an important part of due diligence — a fund that doesn't manage compliance well puts your benefits at risk. This is why having your CPA or attorney review the fund's compliance is prudent. So yes, compliance directly affects your benefits, which is why it's a core checklist area. These rules are technical and evolving (and were changed by the 2025 OZ 2.0 legislation), so verify the current rules with your tax advisor. This is educational information, not tax advice.
How long does OZ due diligence take?
It varies, but you should allow enough time to do it properly — rushing diligence on a decade-long, illiquid commitment is a mistake. Reviewing the sponsor, project and market, OZ compliance, fees and promote, and exit strategy, and coordinating with your CPA, attorney, and financial advisor, typically takes at least several weeks, depending on the fund's complexity and how responsive the sponsor is with documents. The 180-day window to invest your gain provides a deadline, but you should still build in time for thorough review rather than committing under time pressure near the deadline — which is why planning your QOF investment in advance (identifying candidate funds early) is valuable. So don't compress diligence into the last few days before your deadline; start early so you can evaluate the fund carefully across all five areas and consult your advisors. A disciplined, unhurried process leads to a better-informed decision. So allow ample time for OZ due diligence, and plan ahead so the 180-day clock doesn't force a rushed commitment. This is educational information, not investment advice.
How does Baker 1031 help with due diligence?
We help investors conduct disciplined Opportunity Zone due diligence — vetting the sponsor, analyzing the project and market, confirming OZ compliance, reviewing fees and promote, and assessing the exit strategy — so you can evaluate a QOF with clear eyes and invest only in funds that hold up across all five areas. QOF interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), after a suitability review (typically for accredited investors). We bring sponsor-agnostic diligence to OZ funds and help you ask the right questions and review the right materials. Baker 1031 does not provide tax or legal advice — the OZ compliance points are technical and evolving, so your CPA and attorney review the tax and legal terms, and you should verify the current rules. We help you apply a rigorous process and access well-vetted funds suitable for you, coordinating with your advisors. Strong diligence is the best protection against letting the tax incentive drive a poor investment. This is educational information only.
Glossary
- Due Diligence
- The disciplined evaluation of a fund before investing.
- Sponsor
- The firm sourcing, developing, and managing the OZ fund.
- Track Record
- The sponsor's history of prior projects and realized returns.
- Location Fundamentals
- The market's demand, supply, and economic trends.
- Business Plan
- The fund's plan for the project and its assumptions.
- Qualifying OZ Property
- Qualified property in a designated zone that the fund must hold.
- Substantial Improvement
- Generally doubling an existing building's improvement basis.
- 90% Asset Test
- A QOF must hold 90%+ of assets in qualified OZ property.
- Sin Businesses
- Excluded businesses (golf, gambling, liquor stores, etc.).
- Working-Capital Safe Harbor
- Rules letting a fund hold cash for a development plan.
- Fees
- Acquisition, management, development, and disposition charges.
- Promote / Carried Interest
- The sponsor's profit share above a return threshold.
- Preferred Return
- The return investors receive before the sponsor's promote.
- Waterfall
- The tiered structure for distributing profits.
- Exit Strategy
- How and when the fund returns capital (sale or refinance).
- PPM
- Private placement memorandum describing the offering.
Sources & References
- IRS. Opportunity Zones Frequently Asked Questions
- FINRA. Real Estate Investments (Investor Information)
- U.S. Securities and Exchange Commission. Investor.gov — Opportunity Zones
- Cornell Legal Information Institute. 26 U.S. Code § 1400Z-2 — Special rules for capital gains invested in opportunity zones
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
