Four Points Funding LLC

12/12/2023

The New York Post published a comprehensive guide to exploring the less beaten path across Colorado. We are thrilled that two of our properties, Camp Eddy and CampV, were highlighted as places to stay. Even for our fellow Coloradans, the write-up may give you some ideas for your next weekend road trip.

"Grand Junction, a town rich with scenery that rivals anywhere in the world, [has] a chic glamping style resort called Camp Eddy that makes a perfect basecamp."

"From Cortez, the obvious route back to Denver would cut through the mountains en route to touristy Telluride. Stay west instead, and head to Naturita’s CampV, a Burning Man-style collection of hip cabins and tiny homes under a night sky loaded with stars."

Shun Aspen, scorn Vail: Why a down-to-earth Colorado road trip is better than any Rocky Mountain high.

09/14/2023

We are excited to announce that Fund V is now 90% subscribed, investing in 119 units of housing in Idaho Springs. We are closing the fund September 29th.

This mining town has transformed in the last decade through a combination of job growth, recreation investment, and remote work. Idaho Springs has a bustling main street, some of the best biking, hiking, and rafting in the state, and is only 30 minutes away from world-class skiing and downtown Denver.

When we decided to buy the GoldDigger Field from the school district, there was risk involved in zoning and entitlements. The zoning and entitlement process took over two years. However, we brought the development into Fund V at cost with no additional fees for the work already complete. The development is called the Fieldhouse Apartments to pay tribute to the former football stadium.

We are excited to announce that Fund V is now 90% subscribed, investing in 119 units of housing in Idaho Springs.

08/31/2023

This article from the New York Times highlights the housing plight across Colorado. Demand for rentals is at record levels due to the increase in both home purchase prices and interest rates, as well as the desirability of the towns in which we live and invest.

The article highlights Idaho Springs, the location of our Fund V development, and Steamboat Springs, where the Four Points Funding office is located.

The outdoorsy lifestyle of Colorado mountain towns has become a magnet for the new remote-worker class, upending life for those already rooted there.

08/23/2023

The secret’s out about Grand Junction! This beautiful desert town is the only place in Colorado to make it on the New York Times’ top 2023 travel destinations.

We are thrilled to be involved in the Grand Junction community with our property, Camp Eddy, which was recently highlighted as one of the recommended places to stay when visiting Grand Junction. Take a peek at this article which highlights the top spots to eat, drink, stay, and adventure in Grand Junction!

Hidden gems of Colorado’s Western Slope include sandstone arches, James Beard-quality dining along with the mountain biking and vineyards it is famous for.

08/15/2023

The real estate market remains hot for sellers, however, there is generally a shortage of real estate for sellers to reinvest their assets. As a result, many of the recent investments into our OZ Funds have originated from exited or failed 1031s.

Last week, Novogradac published a timely article that outlines the process of converting a 1031 into an OZ investment:

“While there is no limit to how often a taxpayer can use a 1031 exchange, they may wish to exit the cycle of locating replacement properties. An investment into a QOF is a good way to achieve this outcome while still maintaining long-term upside. Let’s say that a taxpayer would like to sell a residential rental property for $1 million, which would generate a capital gain of $500,000. To use a 1031 exchange to defer all of the gain, the taxpayer would need to use the entire $1 million of sales proceeds to acquire a like-kind replacement property. However, if the same taxpayer uses an OZ investment, they will need to invest only the capital gains portion of $500,000 into a QOF to defer the gain. It is important to note that the OZ deferral is only temporary and the $500,000 of capital gain will become taxable Dec. 31, 2026. That said, using an OZ investment will free up the $500,000 of nongain sales proceeds for other use by the taxpayer.”

A question that qualified opportunity funds (QOFs) often hear from investors is, “I have capital gain deferred through an Internal Revenue Code Section 1031 exchange. How can I invest in your fund?”

06/22/2023

5280 Magazine highlighted both CampV and Camp Eddy in their recent edition of Western Glamping Destinations.

CampV (campv.com) was praised for its on property mountain biking and hiking, stargazing, and nearly a dozen art installations. Camp Eddy (eddygj.com) was highlighted for its chic tiny homes and Airstreams that line the banks of the Colorado River.

https://www.5280.com/western-glamping-destinations/

Experience camping's more luxurious cousin by staying in safari-style tents, tipis, vintage trailers, and Jupes.

06/14/2023

It's an exciting time for Grand Junction and we are proud to say, our investments (number and $$) in this market represent the largest amount of capital we have deployed across all of our funds. Recently, Grand Junction community leaders released a short film that highlights the opportunity and growth within the area.

The film includes a segment that features two of our properties, The Eddy Apartments and Camp Eddy, which were supported by the city in their early stages to revitalize the riverfront and unlock the potential of Las Colonias Park.

The Grand Junction area is home to seven federally designated opportunity Zones, including the Riverfront at Las Colonias Park.The Riverfront at Las Colonias...

06/08/2023

Real estate sellers who would typically execute a 1031 exchange are currently facing limited options due to high interest rates and a scarcity of available inventory.

The transition from a 1031 exchange to an Opportunity Zone (OZ) investment is remarkably straightforward and offers significant tax advantages. Instead of reinvesting the entire proceeds from the sale of an investment property, investors have the option to invest any portion of their capital gains into an OZ Fund.

Unlike the strict 45-day deadline for completing a 1031 exchange, investors have a more generous timeframe of 180 days to invest in an OZ Fund. By doing so, they can defer taxes on invested gains until 2026 and eliminate taxes on any appreciation earned on their OZ investment when held for a decade.

Read more about weighing two powerful tax incentives:

1031 investors, especially with failed 1031 exchange deal, are seeking Opportunity Zone Funds as an alternative to gain liquidity and extend investment choice window

05/31/2023

"The rent is too damn high!" was cemented into our vernacular by Jimmy McMillan during his New York gubernatorial debate in 2010. Well, rent is much higher now, especially here in Colorado. This week, a couple in Aspen who are both doctors, cannot find housing after their rent doubled to $25,000 a month.
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This amount is an outlier, but it is a real example of how rent prices in areas like Aspen, Crested Butte, Steamboat Springs, and Summit County are motivating people to live in the next town down the road instead. To combat the lack of affordability, Colorado state legislators are trying to pass a slew of housing related bills, some with unintended consequences.

Continue reading this article we recently authored about the supply and demand imbalance here in Colorado:

Even with new Colorado legislation in the works to help buyers and renters, demand continues to outpace supply.

05/24/2023

The Colorado Sun reports how successful the Opportunity Zone program has been across our state, ranked second nationally in program success.

“To date, Four Points has raised over $90 million, which, when paired with debt, will result in well over a quarter billion dollars being injected into the communities in which the firm has invested.”

Read more here:
https://coloradosun.com/2023/04/25/5-years-in-opportunity-zone-investments-are-yielding-important-dividends-for-communities-where-the-money-was-spent/

05/17/2023

Desert Reef Hot Spring, our most recent hospitality investment to complete redevelopment, has been highlighted in 5280 Magazine.

“The just-completed renovation refurbished the existing 36-by-50-foot pool, added four new pools to the main area, and created five smaller ones, which can be privately rented. Visitors can now sleep on-site in one of five vintage Airstream campers or five tiny homes, the latter of which are outfitted with private pools.”

Everything old is new again at Colorado’s hot springs, where recent expansions and upgrades have created fresh ways of savoring the Earth’s oldest bathtubs.

05/03/2023

As the K-1 season begins, investors are beginning to understand their capital gains from 2022. Did you know:

• Gains realized on a K-1 anytime in 2022 qualify for investment in an Opportunity Zone (OZ) Fund until September of this year
• 1231 gains can be invested in an OZ Fund before they are netted with any 1231 losses
• Unrecaptured depreciation can be invested in an OZ Fund
• OZ Funds cannot invest in other OZ Funds, however, we accept co-investment from other OZ Funds into many of our projects

Click the link below to learn more!

Certain capital gains dating back to January 1, 2022 still qualify for investment