- Open to Accredited Investors;
- Available for investment now through December 2022 (and possibly longer);
- Funds invested must be realized capital gains from prior investments or transactions (within the past 180 days);
- Taxes on invested original capital gains will be deferred until 2026 tax year;
- Tax deductions flow through to investors each year throughout the investment, and
- Opportunity Zone (OZ) investment gains are tax free once held for 10 years (on federal and most states).
JID Investments LLC (JIDI), in a joint partnership with a very experienced Columbus, Ohio Developer/Sponsor will initially invest in a residential apartment complex and single-family home in Columbus, Ohio. The property is expected to include 42 one/two-bedroom apartments and a single-family home located just a few blocks from the thriving Columbus downtown with easy access to restaurants, shopping, The Ohio State University, and major highways. The complete Summary of Investments is currently available and has been shared with JIDI Accredited Investors. The Private Placement Memorandum (PPM) package will be available for review on or about June 21st. This is JIDI’s second Qualified Opportunity Zone Fund.
JIDI anticipates future net rental profits to result in quarterly distributions as the property stabilizes as well as the potential of a refinance or recapitalization, which would provide the return of a portion of investor investment capital. This return of capital may be utilized to pay the deferred tax due on initial investment capital gains for investor’s 2026 tax return.
Investment Details:
Project Name: JIDI Opportunity Zone Fund LLC
Location (City/State): Columbus, OH (and additional TBD locations)
Project Type: Residential
JIDI Raise Amount: up to $10,000,000
Investment Unit Dollar Amount*: $5,000 (2,000 total units)*
Investment Commitment Date**: June 1, 2022, through December 31, 2022**
Date Investment Funds Due: Upon approval of Subscription Agreement and AI Verification
Length of Project/Investment: 10 years
JIDI Projected Investor Returns: 10 – 12% (includes an 8% preferred return) tax free***
JIDI Investor Equity Multiple: 2.0 – 2.2x****
* Commitments on a first come first served basis, until fully funded. Minimum investment is $20,000 (4 units).
** Or a later date as applicable.
*** Effective after-tax adjusted IRR will be as much as 4% greater. Be advised some states are non-conforming to the OZ program and require state (not federal) taxes to be paid on gains earned.
**** Equity multiple range based on various timelines, projected cashflow distributions and final profit results.
Additional benefits include:
- deferral of tax due through tax year 2026;
- reduction of overall taxes based on OZ tax-free benefit if held for at least 10 years, and
- taxpayers will receive depreciation deductions passed through in their annual k-1 statements resulting in tax savings on their personal returns. This depreciation does NOT need to be recaptured at time of assets sales.
JIDI is currently reviewing additional OZ investment opportunities that may be included in this fund at a later date. We will provide information on those as it becomes available. For more information, you can also visit the Opportunity Zone page on our website: www.jidinvestments.com/opportunityzone
For non-JIDI accredited investors who would like to participate, you can access our Accredited Investor Questionnaire (AIQ) here: (https://jidinvestments.com/services/investment-services/). The document can also be sent to you via DocuSign. Once completed and approved, JIDI will be happy to send you the Investment Summary and full project PPM package as well as all future offerings and communications. See more at www.jidinvestments.com.
We believe this investment will provide investors compelling tax-free returns over the project timeline. We welcome your questions and comments and look forward to speaking with you.