Latest firm to get in on the action
Manny Friedman’s EJF Capital is joining the ‘Opportunity Zones’ real estate frenzy… The $6.9 billion hedge fund is looking to raise $500 million for the strategy.
What it means: Opportunity zones are designed to encourage investments in low-income communities (8,700) throughout the U.S.
The play: The opportunity zone provision allows people to defer paying capital gains taxes until 2026 if they roll their investment gains into such funds. If they hold their new assets for at least a decade, investors will avoid paying taxes on any further appreciation.