A Blog About Tax Savings for Building Owners

Tag: Multi-Family

Unlocking Tax-Deferred Wealth: How to Leverage Stock Gains into Dallas Opportunity Zone Real Estate

I follow Barrett Lindberg on LinkedIn and he is the founder of Savoy Equity Partners which invests in Opportunity Zones (OZ) properties in Dallas, TX. If you are sitting on capital gains and would like to try to figure out a way how to defer them, you may want to look at investing in Opportunity Zones. There are plenty of details you need to pay attention to and you should consult your own tax advisor. Also, I cannot personally vouch for Barrett as I don’t know him and have not invested with him. Do you own due diligence on his investments and management. He does seem to be a straight shooter when it comes to talking real estate investment and Opportunity Zones specifically. It looks like they have a long track record of multi-family investing. He seems to have a great grasp on Dallas and Opportunity Zone investments.

I am copying a post Barrett Lindberg published today on LinkedIn about deferring capital gains by investing in Opportunity Zone property in Dallas, TX. I thought it was particularly insightful on the topic.


Barrett Lindberg, Founder Savoy Equity Partners – Opportunity Zones

The stock market is up 23% over the past year and 100% since March 2020.

For many investors, this creates a challenging dilemma: you’re sitting on significant gains but hesitant to sell because of tax implications. This paralysis is costing you opportunities in other markets.

What if you could deploy those gains into real estate while legally deferring your taxes?

Let me share how we’re using Opportunity Zones in Dallas to help investors solve this problem.

Here’s our strategy:

𝟭. 𝗟𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗦𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻
We target prime Opportunity Zone locations in Dallas’s highest-growth corridors. These federally designated areas offer unprecedented tax advantages while positioning investors in the path of progress.

𝟮. 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻
We’re building boutique multifamily communities that:

▪ Generate steady cash flow
▪ Meet critical housing needs
▪ Target the “missing middle” of the rental market
▪ Create long-term appreciation potential

𝟯. 𝗧𝗮𝘅-𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝗱 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲
The Opportunity Zone program offers three key benefits:

▪ Tax deferral on invested capital gains until 2027
▪ Significant depreciation benefits during the hold period
▪ Zero capital gains tax on appreciation after 10+ years

𝟰. 𝗠𝗮𝗿𝗸𝗲𝘁 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀
Why Dallas? The metrics tell the story:

▪ Leading the nation in population growth
▪ Top 5 in job creation
▪ Major corporate relocation destination
▪ No state income tax

Our track record speaks for itself: Since 2011, we’ve developed and sold nearly 2,000 units in the Dallas market. We understand this market and how to execute successfully within it.

𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗧𝗶𝗺𝗲𝗹𝗶𝗻𝗲:
While the Opportunity Zone program runs through 2047, the window to invest capital gains closes at the end of 2026. This program has become the most successful economic development initiative in U.S. history.

This strategy works for:
✓ Stock market gains
✓ Cryptocurrency profits
✓ Business sale proceeds
✓ Any capital gains

Are you looking to diversify your portfolio while minimizing tax impact? Let’s connect. I’m happy to share more details about our approach and current opportunities.

#RealEstateInvesting #OpportunityZones

$30 Million Multi Family Ground Up Construction – Defer an Additional $1 Million in Income Taxes by Using Green Zip Tape

Here’s an example of how a developer who is building a $30,000,000 multi-family property can defer $1,000,000 in income taxes over the first 5 years by utilizing Green Zip Tape rather than standard sheetrock tape. The video below is 3 minutes long. Green Zip Tape works on projects $10 million or more.

Green Zip Tape leverages financial incentives to build sustainably and drive positive environmental change and will revolutionize the way you manage your real estate construction portfolio.

  • Tax Savings: 5-10% of your construction costs move from 27.5 or 39 year class life to 5 year class life allowing for faster depreciation
  • Environmental Impact: Eligible for up to 25 LEED Credits (17 direct, 8 indirect)
  • IRS-Approved Asset Reclassification: The only tape approved by the IRS to convert interior non-load bearing walls into 5-year depreciable assets. Allows for potential wall relocation and drywall reuse.
  • Improved Remodeling Process: Enables quieter, quicker, and cleaner demolition, remodels, repairs, and retrofits
Explaining Green Zip Tape and how it can help building owners and developers defer more taxes

Let’s connect on LinkedIn or follow me on Twitter and Instagram @costsegbuilding.

Multi-family Acquisitions Model and Tools

Looking for models to help you make decisions on your multi-family investments? Be sure to check out Spencer Vickers on LinkedIn. He publishes a lot of tremendous content around real estate investment and particularly in the area of multi-family investing. He is working on a number of things and I believe will have some big announcements soon about a business or service he may be offering to the public.

Rising Property Taxes Pose Challenges for Texas Multifamily Owners: Seeking Solutions for Fair and Equitable Taxation

There has been lots of discussion and articles written about the rising costs that are starting to hammer commercial property owners but particularly multi-family owners in parts of the country. Rising operating expenses and slower rent growth are squeezing the returns many of these investors and operators had been accustomed to over the past few years. Huge jumps in insurance costs particularly in Florida, Texas and along the East Coast have investors crying for help. In Texas, they have an additional problem with sky high property taxes.

Everyone always thinks Texas is a low tax or no tax state but that’s for personal state income tax. There isn’t any. But the government has to operate somehow and a big part of their funding comes from property taxes. Residential taxes are high as well as commercial and multi-family. Here’s a helpful article on commercial property taxes in Texas.

Owners are trying to squeeze what they can out of these properties. If they have not done cost segregation yet, that might be something that they should at least evaluate. There may be some significant tax savings sitting there for them that could help them with their cash flow or just help build up their rainy day fund. We typically see that owners will save between $30,000 – $70,000 per $1 million in building cost or basis. So if they have a $10 million multi-family building, that tax savings might be $300,000 – $700,000 +/-. The cost of the study is but a small fraction of that. If you’d like to know more, don’t hesitate to reach out. We offer a no cost, no obligation quote to see how cost segregation might help you as a building owner.

John Murphy Cost Segregation Services, Inc. "Unlocking enefits: Why Property and Casualty Insurance Agents Should Offer Cost Segregation to Clients"

Top Multi-Family Developers in the U.S. in 2022

Photo: Greystar | 85 Boston St., Everett, MA | Boston Real Estate Times

Mulit-Housing News is out with their annual list of the top development firms building multi-family housing across the U.S. in 2022. There were some massive numbers put up by the top firms in 2022.

Top 10 firms are:

  • Greystar
  • The Related Cos.
  • Trammell Crow Co. / High Street Residential
  • LMC, a Lennar Co.
  • The NRP Group
  • Mill Creek Residential
  • Crescent Communities
  • The Bainbridge Cos.
  • ZOM Living
  • JPI

Despite the constant state of negative business news in general, multi-family continues to plough ahead with consistent development. From Mulit-Housing News, “Despite rising construction costs in recent years, multifamily development has maintained a strong pace. A recent supply update from Yardi Matrix predicts deliveries will exceed 420,000 units by the end of the year and expects multifamily completions to hit north of 430,000 in 2023 and more than 450,000 in 2024.”

There has been lots of doom and gloom about real estate ever since the Fed started to raise interest rates. And it may well be warranted. I suspect these deep pocked firms will be just fine and will weather whatever choppy market we face in the coming year or two.

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