Defer Gain LLC's mission is to guide investor's capital gains into quality investments to maximize preferred returns and tax deferred appreciation.
Our Investment Strategy
Defer Gain's core investment strategy includes:
Identifying, evaluating, and acquiring real estate and/or businesses situated in one of the designated Qualified Opportunity Zones.
Managing risk for the investors through appropriate borrowing strategies for the acquisition and development of the properties.
Capitalizing on the team members experience, extensive relationships and their deal-sourcing capabilities; as well as being an early mover in a new tax benefit regime.
Leveraging the teams extensive experience in middle market commercial real estate debt and equity to identify and capture outsized risk-adjusted returns.
Our Team has over 100 years of experience in real estate development, renewable energy, and construction in complex environments over the course of numerous economic cycles. Our seasoned professionals are experienced owning, operating, and managing companies creating thousands of jobs in their respective markets.
In addition, we have collectively completed in excess of $300 million worth of real estate, real estate development, and renewable energy projects involving over 1,500 acres and 120 MW of photovoltaic projects. We have completed numerous real estate leases, acquisitions, and dispositions, and renewable energy power purchase agreements including negotiations with major utilities and government entities, both foreign and domestic.
Given our team's experience and the relationships it has produced (including top local and national long term brokerage relationships), we often recognize and cultivate investment opportunities earlier than others.
Defer Gain believes it has distinct advantages in sourcing attractive transactions, employing proprietary due diligence, and leveraging the broad market experience of its management. Our principals have a demonstrated track record, access to deal flow, and the ability to match sourced properties with targeted uses in Opportunity Zones.
About Opportunity Zones and Funds
An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation authority to the Internal Revenue Service. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017 and are designed to spur economic development by providing tax benefits to investors.
A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in an Opportunity Zone and that utilizes the investor’s gains from a prior investment for funding the Opportunity Fund.
How it Works
Investors can take advantage of three different tax incentives by reinvesting capital gains in an Opportunity Zone through a qualified Opportunity Fund:
Tax Deferral: Investors can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund
Step Up Basis: Depending on the amount of time the investment is held, the capital gains that were reinvested qualify for a Step Up basis between 10-15%
Zero % Tax on new Capital Gains: As long as the new investment is held for 10 years, no tax is owed on new gains accrued from the investment
Investments held 5 years: taxable amount of the capital gains reinvested is reduced by 10%
Investments held 7 years: taxable amount of the capital gains reinvested is reduced by 15%
Investments held 10 years: taxable amount of the capital gains reinvested is reduced by 15% and no tax is owed on new gains accrued from the investment
Risk Disclosure: Alternative investment products, including real estate investments, notes & debentures, hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. NO OFFER OR SOLICITATION: The contents of this website: (i) do not constitute an offer of securities or a solicitation of an offer to buy of securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by Defer Gain, LLC, or any affiliate, or partner thereof (“Defer Gain”). Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Defer Gain, or one of its partner/issuers. Defer Gain does not warrant the accuracy or completeness of the information contained herein. Securities Offered through Cabin Securities, Inc., Member FINRA & SIPC.