The FORT Podcast: Barrett Linburg – Founder of Savoy Equity Partners – Real Estate Opportunity Zones 101

Barrett is a founding partner of Savoy Equity Partners and oversees the capitalization and structuring of the company’s investments along with deal sourcing. Born and raised in Dallas, he has spent 17 years in the real estate industry crossing multiple product types and service lines. Barrett started investing in real estate in 2012 and enjoys learning about esoteric strategies which can be implemented to create excellent risk-adjusted returns. He has owned over 1,000 units and specializes in transactions with complex structures such as historic tax credits, opportunity zones, low-income restrictions, as well as the deconversion of fractured condos.

On this episode, Barret and Chris deep dive into how opportunity zones work for LPs & GPs, the Tax implications of opportunity zones, and chat about different types of opportunity zone structures. They also take a look inside a specific project they are working on in Dallas, TX, and much more!

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(01:52) – Barrett’s Career in RE

(07:02) – What was the world like in ’09-’10 when we were just getting back on track?

(09:55) – Who were the folks who were still able to borrow during the ’08 crisis?

(11:10) – Barrett’s Transition into Buying Deals

(15:49) – The Lake Cliff Deal: How Complex Deals Come Together

(24:57) – What headaches were you able to avoid with Dallas’ Master Overlay Zoning?

(27:14) – How to Develop RE Without Having to be the Developer

(30:10) – Now that you own the land and partnered with a developer, what’s your role?

(34:08) – What is an opportunity zone?

(37:36) – What’s an Opportunity Zone Fund?

(43:35) – How long do you have to invest a capital gain into an OZ fund and how long do you have until the capital in the fund needs to be deployed?

(50:40) – New Proposed OZ Legislation

(53:00) – Do you know if Governors will be able to legislate new OZs in the future?

(56:47) – Is everything you’ve bought all listed under one entity?

(57:55) – What do you have to do once you’ve acquired a vacant building to get the benefits of an OZ?

(1:00:07) – What do you need to do to a piece of land to get the benefits of an OZ?

(1:02:19) – What do you have to do once you’ve acquired a decrepit building to get the benefits of an OZ?

(1:03:56) – What if you already owned property in an OZ before getting a CO, do you qualify?

(1:05:25) – What can people do if they’ve already paid their tax and decide they’d rather start an OZ fund? 

(1:06:08) – What is the breakeven point from OZ Fund fees and paying the capital gains tax and investing elsewhere?

(1:09:52) – How does a GP take advantage of OZ’s?

(1:12:02) – The Disguised Sale Rule

(1:12:51) – What’s driving the value for your Lake Cliff deal?

(1:14:30) – Thoughts on the Dallas Market


Episode Summary

Barrett Linburg, esteemed for his profound knowledge in real estate, shared a panoramic view of the sector in a compelling episode with Chris Powers. Linburg’s insights, underpinned by years of hands-on experience and strategic thinking, provided listeners with an unparalleled exploration into the real estate landscape.

At the outset, the discourse underscored the essence of expertise in real estate, business, and entrepreneurship. Linburg’s journey, rich with experiences from early property acquisitions to managing intricate development projects, elucidated the paramount importance of proper management and strategic partnerships. Seth Bame, the visionary behind Indio Property Management, was spotlighted, testifying to the significance of collaborations in Linburg’s illustrious career.

The conversation meticulously dissected the complexities of opportunity zones, a cornerstone of the real estate sector. Linburg delved into the intricacies of historic tax credits, fractured condo deconversion, and the mechanics of opportunity zone funds. By shedding light on these topics, he emphasized the judicious deployment of resources for optimal results. Notably, the CPA and attorney, recognized as early adopters of opportunity zone structures, played pivotal roles in navigating these waters.

Further, Linburg highlighted the strategic approach towards neighborhood development, spotlighting the identification and potential amalgamation of development sites. This dexterity in seizing lucrative opportunities stands as a testament to his forward-thinking strategy in real estate.

As the dialogue progressed, Linburg and Powers touched upon the actionable steps post property acquisition in opportunity zones. Linburg’s insights served as a reminder of the intricate balance between acquisition and actionable development. The nuances of handling multiple parcels within these zones were explored, emphasizing the significance of strategic planning and execution.

One of the podcast’s most insightful segments revolved around the formalities of opportunity zone investments. Linburg detailed the process of declaring OZ investments to the government, stressing the importance of due diligence and informed decision-making. His personal experiences with property ownership within these zones further illuminated the discussion, providing a comprehensive view of the challenges and opportunities inherent in the sector.

In wrapping up the discourse, the episode delved into the depth of value addition in real estate. Distinctly, Linburg underscored the difference between superficial and profound value additions, emphasizing the industry’s resilience and forward-thinking mindset.

In conclusion, this enlightening episode with Barrett Linburg provided listeners with a treasure trove of industry insights. From the intricacies of opportunity zones to the dynamics of neighborhood development, the discussion was a masterclass in real estate strategy and execution. For anyone keen on understanding the nuances of the sector, Linburg’s expert reflections serve as an indispensable guide. Drawing from his vast reservoir of knowledge, listeners are equipped with the tools to navigate the complex waters of the contemporary real estate world.


The Fort is produced by Johnny Podcasts

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