A “catalyst” enables change at a faster rate, without the catalyst being changed by the consequences.

Is completing your goal valued above the potential side effects of success?

I prefer to invest in real estate with fungible tenants (so losing one does not crush my repositioning plan). I want a short hold (get in, get it done, get on to the next investment). And having invested over $2 billion in real estate, the best returns were where the owner was in a challenged position (so that a quick and certain close had a value greater than a higher price).

Office has been proven to have great potential to be a very lucrative investment. Investors new to the asset need adjust their approach to due diligence. What you see and perceive may not be the driving factors in making a good investment decision. Bring in experienced qualified support early in the process to avoid wasting time chasing an opportunity which just does not fit your investment profile.

You need to listen to different voices to figure out whether your targeted investment succeeds no matter the national trends. Run quickly in another direction if your numbers only work with an interest only loan for the life of the investment and some miracle event must occur to drive further down the likely capitalization rate on your ultimate sale. Properties, like people, tend not to get stronger as they age!

The world is becoming 24/7/365, and everybody seems to know everything about anything instantly (even if sometimes incredibility inaccurate). Owners of investment real estate need become light on their feet and anticipate how they can profit from the “next new thing”.

Development has become the rage in light of unprecedented tax benefits (e.g. from investing capital gains into qualified opportunity zone funds). If the development / repositioning does not make clear sense WITHOUT the tax benefits, look for another opportunity. Put the project to the test before writing that check!

QOZFs are a powerful tool to attract capital gains proceeds to fund SOME of the equity requirements for rational development proposals focused on attractive, already gentrified neighborhoods. Will some equity find its way to urban and rural poor areas? Maybe, but so far, that is not where sponsors are locating their proposed transactions.

The potential for QOZF is huge, but only a few of the 300+ firms announcing funds will succeed in attracting sufficient equity capital to accomplish their goals. There are over a million parcels of land in the 8700 qualified opportunity zones. Only those local governments prepared to compete with additional incentives will overcome the investor/developer bias to locate where other successful businesses/real estate are already thriving.

History is no guaranty of the future. Good properties can be overcome with spill over neighborhood crime. Great sponsors can become addicted to money, power, prestige, alcohol, drugs, young women and gambling.

We all are touching the same real estate elephant at distinctly different points of the body. We all have a blindfold on (or at least blinders to the position of all others).

Recognize this one reality, and you will eliminate at least half of your frustration with the multiple levels of government you will need to complete your goal.