There are many risk factors to consider with Opportunity Zones:
- An Opportunity Zone Fund is speculative, illiquid, and involves a high degree of risk, including the loss of the entire investment.
- Investors need to consider real-estate and tax-related risks associated with an investment in an Opportunity Zone, including:
- Conditions affecting real estate in specific markets,
- Changes in interest rates,
- Availability of financing options,
- Changes in real estate taxes.
- The Opportunity Zone program is recently created under the Tax Cuts and Jobs Act of 2017,
- Investors need to consider the risk that final IRS and Treasury Department regulations have yet to be issued:
- Once issued, these regulations may impact investments in an Opportunity Zone Fund in unanticipated ways.