Opportunity Zones: What Are the Best Practices?
Investors want to leverage the opportunity zone incentives and find communities where they need to do so successfully. This is where economic activity is generated and where the opportunities to build wealth are needed. When it comes to these zones, what are the best practices?
Project and Investor Pipelines
Investors must choose the right local project for the capital they wish to invest if the opportunity zone is to be successful. The zone serves as a tool for attracting investors to the different opportunities present in the region.
A successful opportunity zone requires a database that catalogs and tracks the project pipeline. It provides information about current opportunities and future ones that men and women can invest in.
These projects range from real estate development to expansion projects. The database becomes of great help when someone is searching for an opportunity zone investing near me. This is only one example of how the pipelines become of benefit in the zones.
Zone Marketing Strategies
Every community opportunity zone needs a marketing strategy that draws attention. This strategy should compel investors to choose this community over the many others with available projects. With the right plan in place, a community finds they can draw more attention and interest.
Create a prospectus for potential investors. The Opportunity Zone Investment Prospectus Guide serves as a good starting point for this project, and many communities benefit from reviewing prospectus documents created by communities that have had great success with their opportunity zones. Establish a landing page or website to highlight the different opportunity zones within a community as well. Investors appreciate having this information in one location, as it saves them time.
Turn to influential stakeholders in the community to share information about the opportunity zones. This remains one of the most successful ways to leverage the opportunity zone incentive. The stakeholders may conduct education and outreach sessions to share information about the projects and draw people in.
A community working group becomes of great help in the process. The stakeholders come together to ensure they are in alignment when it comes to the opportunity zone strategy. They determine what types of investments are needed, what assets the community has, and what projects would most benefit the community, among other things.
The community likewise needs to find ways to facilitate connections between projects and investors. For example, the city of Baltimore created an opportunity zone coordinator position. Alabama, on the other hand, created an opportunity zone portal. This portal brings together communities, institutional supporters, investors, and opportunities in the area.
Several organizations have created resources for communities to use with regard to their opportunity zones. The Council of Development Finance Agencies, for example, created the CDFA Opportunity Zones Report State of the States which many communities find to be of great help.
Other communities look to the recommendations for opportunity zones compiled by PolicyLink. Every community needs to gather resources to help them make the most of the opportunities, as each completed project strengthens the community while bringing people together.
Communities need to make use of best practices when it comes to opportunity zones in their region. These zones appear in economically distressed communities that need help. Investors often shy away from the opportunities because they fear a hefty tax burden. Investing in one of these zones eliminates that concern. However, communities must find ways to attract investors and the above tips become of great help in achieving that goal. Implement them today for great results.