Opportunity Zone Investing In Mobile Home Park & Light Industrial Business Parks Developments in Texas
The Palace Way Fund invests in income producing new real estate development projects in Texas. The Fund specializes in Mobile Home Parks located in high growth metropolitan areas. These are land lease communities built for rental income and appreciation in value. Additionally, the fund invests in the development of light industrial Warehouse Business Parks and some Multi Family projects. We prefer real estate development projects because it allows us to choose locations where the rental income and capital appreciation are expected to improve while mitigating risk.
Investing in real estate has always been a most effective method to achieve financial independence. That is because real estate offers incredible returns and even more astonishing tax breaks
The fund has 2-Entitled projects ready for investment:
2-projects with all entitlements approved, they are investor ready. Invest Today!
The fund is a unique investment opportunity because we are one of the few funds that invest in the development of new mobile home parks and small business warehouse parks. These 2-income producing real estate investment categories have a higher rate of return compared to other rental income producing properties. Our investment strategy is to invest in high growth areas in Texas where we can maximize income, achieve long term capital appreciation, and reduce risk.
Typically, investors have 180 days to reinvest capital gains in an opportunity zone fund and take advantage of the tax benefit. At the start of the pandemic, the deadline was delayed, but now it has been extended further. “Previously in Notice 2020-23, the IRS had extended the 180-day period for taxpayers whose 180-day investment period fell after April 1, 2020 until July 15, 2020,” “Notice 2020-39 now extends that date until December 31, 2020.
For example, if you sold your stock or asset on December 1, 2019 for a gain of $2 million, then you would normally have until May 28, 2020 to invest in a QOF. Now you have until December 31, 2020 to invest your capital gain in a QOF.
Check with your CPA about state income taxes.”
The Tax Cuts and Jobs Act of 2017 (TCJA) has provided additional tax benefits from investing in “Qualified Opportunity Funds.” These funds create a new tax incentive program designed to promote new investment capital into certain low-income and distressed communities throughout the country. They are referred to as Qualified Opportunity Zones. The program enables investors with unrealized capital gains to receive significant tax incentives for investing in these funds.
A Qualified Opportunity Fund is a privately managed investment vehicle, generally formed as a partnership, LLC or a corporation, whose sole purpose of formation is to invest at least 90% of its assets directly invested into a qualified Opportunity Zone property.
Qualified Opportunity Zones are designated census tracts or neighborhoods. For a census tract to be treated as a Qualified Opportunity Zone, the governor of the respective state must identify such communities in writing to the U.S. Treasury Department. The Treasury Department must then certify each designated area as a Qualified Opportunity Zone. Each zone will maintain its designation for 10 years.
Under the TCJA there are three specific tax incentives possible for investing in a Qualified Opportunity Zone fund:
If an investor has a short or long-term gain from the sale or exchange of property, and the capital gain is reinvested in a Qualified Opportunity Fund within 180 days of the sale of that property or stocks, the realized gain may be able to be deferred until the earlier of the date of the investment in the Qualified Opportunity Fund is disposed of and or December 31, 2026.
10% of the gain on investments in Qualified Opportunity Funds may be excluded if the taxpayer holds the interest in the Qualified Opportunity Fund for at least five years.
Permanent Exclusion on Taxable Gain: When the investment in the Qualified Opportunity Fund is held for 10 years, the taxpayer will not recognize taxable gain on the appreciation in value of the investment in the Qualified Opportunity Fund.
Check with your CPA: Check with your CPA to find out how investing in these Qualified Opportunity Funds will impact your investments.
Land Lease Mobile Home Parks (MHP): The investment will be in projects that own the land / infrastructure and rent lot spaces to tenants who own the homes. This land lease structure provides better returns because:
Visit our other company web site for more information about all of our real estate investment projects
Warehouse business parks: This type of rental business park is designed for small businesses needing 4,000 to 10,000 square foot warehouse type buildings on 1/2-acre fenced lots.
The project’s buildings will be leased for rental income and held for long term appreciation.
Visit our other company web site for more information about all of our real estate investment projects.
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