John Mangham - Opportunity Zones and investing in the future

06/15/19 • 39 min

The Perfect Property Podcast: An Atlanta Real Estate Guide

Summary:
In this episode of The Perfect Property, Juli talks with CPA John Mangham. John, known as “The 1031 Guy,” has been in real estate in Atlanta since the mid-80s. He is a fulltime real estate broker and knows all about the topic of this episode: opportunity zones.

Juli and John talk about what opportunity zones are and what a great investment they can be! John explains where the idea of opportunity zones came from and how these investments can benefit homeowners and investors. He also covers 1031 exchanges, explaining what they are in layman’s terms and how they relate to opportunity zones. You’ll also hear John and Juli discuss Atlanta’s market when it comes to opportunity zones.

What You’ll Learn:

· What is an opportunity zone? (0:31)

· Stock and bonds versus opportunity zones (1:20)

· Who created the idea of opportunity zones? (2:55)

· The opportunity zones around Atlanta (3:50)

· How to find opportunity zones (4:27)

· What is the benefit for homeowners and investors? (5:37)

· Are opportunity zones good for the average house-flipper? (10:17)

· How have opportunity zones been defined? (11:04)

· What happened in southwest Atlanta during the downturn? (13:44)

· Opportunity zones are long-term (20:55)

· What is a 1031 exchange? (22:31)

· Are people using crowdfunding for opportunity zones? (30:25)

· Looking at the opportunity zone maps (32:40)

· Who is the perfect candidate to buy in the opportunity zone? (33:34)

Key Points:

“The opportunity zones allow investment coming from non-real estate arenas.”

“There’s never really been an opportunity, so to speak, to transfer money out of the stock market arena into the world of real estate until now. And the incentives that have been put in place for people to transfer their profits from stock market gains is this OZ (opportunity zone) fund opportunity.”

“The idea is we’re transferring money out of a stock market deal or a stock market sale where there’s profit and those capital gains can be put in opportunity zones.”

“It’s a benefit to investors; it’s a benefit to the risk-takers who choose to invest their money in these blighted or non-performing areas.”

“The benefit to homeowners will not be a direct tax benefit, but rather the benefit that happens if they live in an opportunity zone is that that zone is going to get an injection of capital.”

“30310 became recognized nationally as the second-hardest hit zip code in the country.”

“It has drawn people who have typically been investors in equity and bonds (stock market investors), it has drawn them to start looking at real estate.”

“Making an improvement to what you buy is part of the regulation.”

Links:

Juli’s Email: [email protected]

Juli’s Phone Number: 404-668-8975 (call or text)

The Perfect Property Website. www.theperfectproperty.com

Opportunity Zones www.arcgis.com

John’s Email: [email protected]

Epicity Real Estate Services: www.epicity.com

https://linktr.ee/julistgeorge

What You’ll Learn:

· What is an opportunity zone? (0:31)

· Stock and bonds versus opportunity zones (1:20)

· Who created the idea of opportunity zones? (2:55)

· The opportunity zones around Atlanta (3:50)

· How to find opportunity zones (4:27)

· What is the benefit for homeowners and investors? (5:37)

· Are opportunity zones good for the average house-flipper? (10:17)

· How have opportunity zones been defined? (11:04)

· What happened in southwest Atlanta during the downturn? (13:44)

· Opportunity zones are long-term (20:55)

· What is a 1031 exchange? (22:31)

· Are people using crowdfunding for opportunity zones? (30:25)

· Looking at the opportunity zone maps (32:40)

· Who is the perfect candidate to buy in the opportunity zone? (33:34)

Key Points:

“The opportunity zones allow investment coming from non-real estate arenas.”

“The idea is we’re transferring money out of a stock market deal or a stock market sale where there’s profit and those capital gains can be put in opportunity zones.”

“It’s a benefit to investors; it’s a benefit to the risk-takers who choose to invest their money in these blighted or non-performing areas.”

“The benefit to homeowners will not be a direct tax benefit, but rather the benefit that happens if they live in an opportunity zone is that that zone is going to get an injection of capital.”

“30310 became recognized nationally as the second-hardest hit zip code in the country.”

“It has drawn people who have typically been investors in equity and bonds (stock market investors), it has drawn them to start looking at real estate.”

“Making an improvement to what you buy is part of the regulation.”

Links:

Juli’s Email: [email protected]

Juli’s Phone Number: 404-668-8975 (call or text)

The Perfect Property Website. www.theperfectproperty.com

Opportunity Zones www.arcgis.com

John’s Email: [email protected]

Epicity Real Estate Services: www.epicity.com

https://linktr.ee/julistgeorge

Previous Episode

JR Prince - Prospect Home Inspector's own Top Atlanta Home Inspector

Summary:

JR Prince is the guest on this episode of The Perfect Property. JR is a home inspector with Prospect Inspections and has inspected thousands and thousands of homes in the past eight years. He is a certified home inspector and knows what to look for when it comes to home safety! In this episode, he shares his expertise as well as a few of his own home inspection stories.

JR and Juli chat about the importance of getting a home inspection — both financially and for your safety! JR also talks about the most common code violations, what you need to know about radon testing, and what you should look for when choosing a home inspector. He covers more practical information like the average cost of a home inspection and what you as a buyer can expect to receive at the end of a home inspection.

What You’ll Learn:

· Why is it important to get a home inspection? (0:28)

· What problems does JR see most often on home inspections? (1:54)

· What about mold? (3:42)

· JR’s home inspection horror stories (4:47)

· Common code violations (7:43)

· Qualifications to look for when searching for a home inspector (10:19)

· What you need to know about radon and safety (12:16)

· Home inspections, wildlife, and rodents (16:01)

· Gutters and how water should be properly diverted (20:09)

· What’s important for home buyers to know (22:20)

· What if something is found during a home inspection? (23:18)

· What can buyers expect at the end of a home inspection? (24:22)

· What sort of home inspection report does JR provide to clients? (25:01)

· The average cost of a home inspection (27:11)

Key Points:
“It’s important for the buyer to have a home inspection completed so that way they get a better understanding of the overall condition of the property.”

“The average home inspection takes about three hours to complete.”

“What some people would think is a quirk or characteristic of an older home may be signs of a more significant problem that would need further investigation.”

“First and foremost, you want to ask if they’re a certified home inspector.”

“One of the things that we always counsel our home buyers on is radon. Radon is a natural gas but it’s also a dangerous gas to have in your house at certain levels.”

“Radon is the second-leading cause of lung cancer in the United States.”

“If you haven’t had a radon test, you can go ahead and schedule one at any time.”

“If you haven’t had one previously done, they recommend every two years to have your home tested [for radon].”

“Rats are a major issue. I haven’t seen a home yet that is rodent-proof, especially being inside the perimeter.”

“Your gutters should terminate at least six feet away from the home and be directed away.”

“It’s very important to do the proper maintenance on your home. It can save you thousands in costly repairs down the road.”

“You’ll save thousands in potential damages or potential litigations just based on the fact that you got your home inspected prior to purchasing it.”

Links:

Juli’s Email: [email protected]

Juli’s Phone Number: 404-668-8975 (call or text)

The Perfect Property Website. www.theperfectproperty.com

https://linktr.ee/julistgeorge

Next Episode

The Top Ten Awesome Reasons Why to Buy Now - With Rick Hale

Summary: In this episode of The Perfect Property, our host Juli chats with Rick Hale, the operating partner for Juli’s office. Rick owns multiple Keller Williams market centers and has had thousands and thousands of real estate closings over the decades he's been in the business. He’s been selling in Atlanta since 1996, works with a team of nine active agents and staff, and is the operating partner for six real estate offices.

Rick walks us through ten reasons to buy a house now! Those reasons include tax deductions, pride in home ownership, forced savings, and bank credibility. At the end, he and Juli discuss Atlanta’s growth and Rick gives his perspective on whether or not a shift is coming in the Atlanta market.

What You’ll Learn:

· The excitement of buyers buying first-time homes (1:25)

· Reason #1: Leverage (3:54)

· Reason #2: Mortgage interest is tax-deductible (5:31)

· Reason #3: Appreciation potential (6:51)

· Reason #4: Pride in home ownership (9:20)

· Reason #5: No tax on capital gains (10:20)

· Reason #6: 1031 exchanges (11:25)

· Reason #7: Forced savings (12:00)

· Reason #8: Bank credibility (15:11)

· Reason #9: Expanding retirement through rental options (16:28)

· Reason #10: Social credibility (18:35)

· Advice for Atlanta’s growth (20:45)

· Are we heading into a shift in Atlanta? (22:50)

Key Points:
“It’s very uncommon for people to regret making a real estate purchase.”

“All of the interest paid along the way is deductible.”

“Just saving money isn’t really leveraging your money like you can with a real estate purchase.”

“The only people that I’ve found that lose money in real estate are people that have to sell at the wrong time. If you have the capacity to carry that property through the downturns, inevitably the trend line that’s well over 100 years old always favors ownership, and you’ll always create a win over time.”

“Even then if you don’t live in it, there’s still capacity with investment properties, commercial properties, and real estate where you don’t live in, you can upgrade and move into other properties and as long as you transfer that in a 1031, legal way, you can push all your gains into another property and basically defer the taxes again.”

“The ability to go to my bank and borrow money is contingent on two things: one is assets and the other is how many liabilities I have. And my credibility is directly correlated to my ability to borrow money and pay it back effectively.”

“My advice is: start to build credibility through asset acquisition and repayment.”

“If you bought ten rental properties and you held onto them for twenty years and accelerated your payment schedule and paid them all off, the likelihood of you having a multimillion-dollar asset in your pocket is extreme.”

“Real estate doesn’t suffer the same volatility that stocks do.”

Links:

Juli’s Email: [email protected]

Juli’s Phone Number: 404-668-8975 (call or text)

The Perfect Property Website. www.theperfectproperty.com

https://linktr.ee/julistgeorge