#226: Barrett Linburg Founder of Savoy Equity Partners Real Estate Opportunity Zones 101

Barrett is a founding partner of Savoy Equity Partners and oversees the capitalization and structuring of the company’s investments along with deal sourcing. Born and raised in Dallas, he has spent 17 years in the real estate industry crossing multiple product types and service lines. Barrett started investing in real estate in 2012 and enjoys learning about esoteric strategies which can be implemented to create excellent risk-adjusted returns. He has owned over 1,000 units and specializes in transactions with complex structures such as historic tax credits, opportunity zones, low-income restrictions, as well as the deconversion of fractured condos.

On this episode, Barret and Chris deep dive into how opportunity zones work for LPs & GPs, the Tax implications of opportunity zones,  and chat about different types of opportunity zone structures. They also take a look inside a specific project they are working on in Dallas, TX, and much more!

Follow Chris on Twitter: https://www.Twitter.com/FortWorthChris
Follow Chris on LinkedIn: https://www.linkedin.com/in/chrispowersjr/
Learn more about Chris Powers & Fort Capital: https://www.FortCapitalLP.com
Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital/

Listen & Subscribe on Spotify: https://open.spotify.com/show/7oIeNSaSJ4zkTQOXiedyOr?si=dEM48cSPQ9OIQ1HiD8sjrg

Listen & Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-fort-with-chris-powers/id1410549811

0:11 - Barrett’s career in RE

9:30 - Barrett’s transition into buying deals

14:06 - The Lake Cliff Deal: How complex deals come together

25:32 - How to develop RE without having to be the developer

28:37 - Now that you own the land and partnered with a developer, what’s your role?

31:10 - What is an opportunity zone?

34:42 - What is an opportunity zone fund?

40:45 - How long do you have to invest a capital gain into an OZ fund and how long do you have until the capital in the fund needs to be deployed?

50:33 - Do you know if Governors will be able to legislate new OZ’s in the future?

54:24 - Is everything you’ve bought all listed under one entity?

55:30 - What do you have to do once you’ve acquired a vacant building to get the benefits of an OZ?

56:51 - What do you need to do to a piece of land to get the benefits of an OZ?

1:00:03 - What do you have to do once you’ve acquired a decreped building to get the benefits of an OZ?

1:03:10 - What can people do if they’ve already paid their tax and decide they’d rather start an OZ fund?

1:03:49 - What is the breakeven point from OZ Fund fees and paying the capital gains tax and investing elsewhere?

1:07:42 - How does a GP take advantage of OZ’s?

1:09:52 - The Disguised Sale Rule

1:10:42 - What’s driving the value for your Lake Cliff deal?

1:12:21 - Thoughts on the Dallas market