What are you buying today?

[aws]

Their selling point includes fees that are 0.75% AUM/5% carried interest, where most OZ funds are 2/20 type fee structures. For the quality of the buildings/areas that mostly remains to be seen as to how they deploy the funds from the recent offerings. You can see what they have done so far on their website: https://belpointeoz.com/wp-content/uploads/2022/02/Belpointe-PREP-LLC-OZ-Asset-Deck-January-2022.pdf

 

I will note that the census tract designations for OZ funds are probably about as conflict of interest free as when the electoral maps are redrawn, meaning some tracts get the designation that probably don't need it at all. The most expensive area of my city, the downtown waterfront area, was designated an OZ. So there are definitely quality assets out there.

[Gregmal]

Appreciate the lead and input/head start on DD. Cheers

 

[Fundmanagerthrwawy]

Kelly Partners Groups.

[kab60]

Some FB. There are risks, but I think valuation takes care of a lot of those.

[hasilp89]

1 hour ago, aws said:

You actually get a tax writeoff dollar for dollar when you invest so long as you have capital gains to offset.

Is this legit? With private OZ deals the holding period is what lets you step up basis, defer and potentially eliminate cap gains. How long to you have to hold this for to get the 180 day look back benefit?

 

1 hour ago, aws said:

They have an ongoing offering where they will basically sell unlimited shares at $100 per share,

So they’re funding tax write off by raising money - what if there aren’t enough good opportunities - they give the money back or do crappy deals (both of which negate the initial tax benefit)
 

I wanna make easy money as much as the next guy but am skeptical on this. 

[Gregmal]

1 minute ago, hasilp89 said:

Is this legit? With private OZ deals the holding period is what lets you step up basis, defer and potentially eliminate cap gains. How long to you have to hold this for to get the 180 day look back benefit?

 

So they’re funding tax write off by raising money - what if there aren’t enough good opportunities - they give the money back or do crappy deals (both of which negate the initial tax benefit)
 

I wanna make easy money as much as the next guy but am skeptical on this. 

Yea thats what I need to get to the bottom of. I actually dig the locations for the most part. But its the hair that I want to make sure I feel like dealing with. Complexities with tax/ownership/incentives/etc are like the worst things in the world to deal with if you dont fully understand, at least IMO. When all those become a problem its probably easier top just day trade pump and dumps LOL. But again, I dont know how this all fits in here. Its a very interesting situation for sure. 

[aws]

Just now, hasilp89 said:

Is this legit? With private OZ deals the holding period is what lets you step up basis, defer and potentially eliminate cap gains. How long to you have to hold this for to get the 180 day look back benefit?

 

So they’re funding tax write off by raising money - what if there aren’t enough good opportunities - they give the money back or do crappy deals (both of which negate the initial tax benefit)
 

I wanna make easy money as much as the next guy but am skeptical on this. 

 

The purchase effectively rolls an old gain into the OZ investment, so it becomes tax deferred, much like contributing to a traditional IRA/401k. It's actually better than 1031 exchanges popular in real estate transactions, because here you only roll the gain over instead of needing to rollover the principal as well. There's no prescribed holding period to get that aspect of the tax benefit. As far as I know you could buy the stock, claim the deduction and sell the stock the next day. Once you sell you lose the deferral so it would be taxed in 2022 instead of 2021. Although of course if you were so blatant about that I'm sure you would lose the deduction if audited by the IRS.

 

There used to be additional benefits for 5 and 7 year holding periods, but those expired 12/31/21. Effectively there you got a discount on your deferred tax and paid only 85% or 90% of the original tax. But unless that gets extended retroactively you don't get that anymore. Instead when the deferral period ends you will pay the regular tax that you deferred when you bought it. I guess that's something I didn't previously make clear: the OZ investment is a deferral of your tax until 12/31/26, not a complete elimination of the tax. That would be way too good to be true.

 

So in summary:

 

Buy today, get a tax deduction

 

Sell anytime between tomorrow and 12/31/26 and you pay back the tax when you sell

 

If you still hold on 12/31/26 then the tax will be due on the original gain even if you still own the stock

 

If you hold until 2032 then all you gains since date of purchase, including tax writeoffs from depreciation pass-throughs, are tax free.

[fareastwarriors]

picked up some more AIV

[Red Lion]

More KKR and APO. 

Edited February 23, 2022 by RedLion

[DooDiligence]

More BBH & INTC for a long term hold.

[fareastwarriors]

Added to PCYO

[lnofeisone]

STNE, FB, SHOP, ATUS - half positions. 

[Ross812]

Added to FB premarket for 190.

[Gregmal]

Sold a few qqq puts and added to dis and joe at the open 

[boilermaker75]

Wrote some FB 187.5 strike, Feb 25 expiration puts.

[KJP]

Swedish Match

Hill International
Leatt Corp.

MacFarlane Group PLC

[aws]

I found another potentially interesting REIT I started a tracker position in until I have time to dig into it. Maybe some of the real estate experts would be interested. MDV originally issued shares through a crowdfunding platform and just recently did a tiny IPO, which was essentially a direct listing since they only floated 40k shares of about 7.5 million outstanding.

 

They reported their most recent NAV at a little over 27 and did the IPO at 25, but the shares went wild for a couple days and almost reached 100. I assume that was just because of the tiny IPO and day traders were just trading that small float back and forth until crowdfunders who transferred shares to the brokerages were finally able to sell. Now the price has been dropping by about 10% a day and hit 15 today.

 

The company pays a monthly dividend that amounts to 1.15 annualized, and announced a buyback of $20 million, which would be about 16% of the shares outstanding at the current price. Those numbers and a $27 NAV look enticing with the stock at 15, but the whole process seems a little fishy. I don't know how they can really operate economically at the scale they are at, and they are basically just returning crowdfunder's capital instead of rental income. But it could be interesting for a flip if it's just a supply and demand based drop. This is the first liquidity the shareholders may have had, and they are rushing for the exit and selling for half of NAV right before a big buyback starts.

[E. Nashton]

Bought some STOR and quickly traded PLTR this morning (in around $10 // out at $11). 

[Pelagic]

Added to BAC and FB.

[LC]

Threw some money into existing positions this morning, disney, atlas, davita, fairfax, citi. bought some joe also given the good results. sold puts on berkshire and dominos. also bought Sberbank around 2.6 as a joke.

[decko]

NFLX..

might buy FB soon

[Mephistopheles]

Lukoil and Gazprom, small positions. Cost of production (in rubles) is low and sales (in dollars) is high. With oil prices where they are, I can't imagine the world banning Russian oil. And with their economy collapsing, I also can't imagine Russia blocking exports, it would be suicide for them. Question is will the govt confiscate the dividends/earnings from non-Russian shareholders.

[DooDiligence]

more adsk. those bombed out buildings aren’t gonna just design themselves.

seriously though, switching costs.

[Viking]

Happy to add a big chunk of Fairfax at an average price of US$475. Also added to Western Forest Products at open. Too slow to pick up Atlas or other forestry stocks. 

[randomep]

ERUS !!