Virtua Opportunity Fund

This webinar provides information on Virtua’s latest offering, the Virtua Opportunity Zone Fund I, (“The Fund”). The Fund is designed to capture all of the Opportunity Zone tax benefits available to investors. It is structured to provide additional tax benefits that were created in the Tax Cuts and Jobs Act.

Here are some highlights featured in the webinar:

  • The Tax Cuts and Jobs Act of 2017 (“The Act”) provides for the creation of “Opportunity Zones” (“OZ”) — which are specially created geographic districts that allow investors to receive substantial tax breaks for investment capital
  • Investors must invest through newly created “Opportunity Funds” that purchase and improve real estate or businesses
  • Investors may reinvest capital gains from any existing investments into an Opportunity Fund and defer/reduce those capital gains taxes
  • After the investment is held for 5 years, the tax basis in the original investment is increased by 10%, and after 7 years, the tax basis is increased by 15%
  • After 10 years, investors permanently avoid any capital gains tax on the post-acquisition gains
  • These tax benefits include increased expensing and depreciation
  • The Fund will comply with the “Substantially Improved” requirement by investing in rental housing (apartments and single-family rentals), hospitality, office/industrial and preferred equity opportunities
  • Minimum $50,000 Investment

Summary of the Risks of the Offering

  • Investors in the Virtua Opportunity Fund I, LLC (The “Fund”) risk losing all capital invested therein and/or may not generate the returns at the levels the Company expects
  • Members may not withdraw or transfer their membership interests without Consent of the Company Manager or in contravention of SEC Rule 144

Opportunity Zone Risks

  • The Opportunity Zone Program is newly created, and final regulations have yet to be issued, which, when issued, may impact the Fund in unanticipated ways
  • To take advantage of certain tax benefits, regarding the exclusion of future gains, investors must hold their investments in the Fund and the Fund must maintain its status as Qualified Opportunity Fund, for 10 years
  • The Fund’s Manager intends to comply with the requirements of Section 1400Z of the Code which may adversely affect the timing or structure of exit from investments or the success of those investments.

Real Estate Risks

  • The Fund’s business is subject to all the risks associated with the real estate industry
  • Investments in real estate are speculative in nature
  • Many of the risks are not within the Fund’s control and could adversely impact the value of the Fund’s investments. These risks include, but are not limited to:
    • downturns in worldwide, national, regional and local economic conditions;
    • conditions affecting real estate in specific markets in which the Fund may invest, such as oversupply or reduction in demand for real estate;
    • changes in interest rates and availability of attractive financing;
    • changes in real estate and zoning laws;
    • environmental and/or engineering issues unforeseen in due-diligence, and changes in environmental legislation and related costs of compliance;
    • condemnation and other taking of property by the government;
    • changes in real estate taxes and any other operating expenses;
    • the potential for uninsured or underinsured property losses.

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