Investment Approach and Projections

The net migration to Colorado is stunning, especially on the West Slope. The State of Colorado forecasts the population on the West Slope to grow 20% per decade between now and 2050. In addition to the increase in full-time residents, the increased demand in recreation, tourism and hospitality are also huge demand drivers transforming Colorado. Our mission is to build the path for investing at scale in Colorado's emerging communities.

By investing in Opportunity Zone funds, investors can both defer and reduce their tax liability on their existing capital gains, as well as completely eliminate future taxes on gains earned within the Opportunity Zone fund. To understand the full benefits and required timing of investing in an Opportunity Zone fund, please read our OZ 101.

Colorado

Four Points is poised to be the leading Opportunity Zone fund in our fast growing state with our geographical focus.

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Large Population Growth

Capital

Activating investments and investors supporting a strategy of additive investments with strong returns.

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Private Equity Real Estate

Connected

Four Points has unmatched community relationships and knowledge, ensuring the best diligence and investments.

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Deal Flow

Angel Investing

Four Points created and manages West Slope Angels.

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Deal Sourcing

OZ Fund

Four Points manages a nationally recognized Opportunity Zone Fund focused on Rural Colorado.

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How it works

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1. Realize and Invest Cap Gains

Investors have 180 days after realizing capital gains to invest it in an Opportunity Zone fund. Both the gain and the associated tax are invested in to the fund. Capital gains of any kind, including gains from stock or real estate, can be invested. Unlike 1031 exchanges, only gains are invested, allowing investors to extract their original basis. If the capital gain came from a partnership, the investor has until the end of the calendar year and 180 days into the following year to invest.

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2. Defer Taxes

By investing their capital gains, investors get to defer their capital gain taxes realized today until 2026. This enables the investment of taxes that would have otherwise been paid to the government.

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3. Reduce Taxes

If the capital gains are left in an Opportunity Zone fund for 5 years, a 10% step up in basis is applied (tooltip on step up in basis: a step-up in basis readjusts the value of an appreciated asset, providing a new cost-basis and lowering the tax liability), which equates to a 10% reduction in taxes. After the capital gains are invested for 7 years, an additional 5% step up is basis is applied, totalling in a 15% basis step up. With 2026 being the year tax is owed, 2019 is the last year to be invested for 7 years in an Opportunity Zone fund and receive a 15% basis step up. 2021 is the last year to receive a 10% basis step up.

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4. Eliminate Taxes

After 10 years of being invested, all appreciation made within the opportunity zone investment can be realized tax free. That’s 100% forgiveness of taxes for gains made in the OZ, resulting in a large boost (projected around 30%) to returns.

All Four Points funds have a 10 year hold requirement, which realizes all Opportunity Zone tax benefits.

Prerequisites to Invest

Investors must be accredited investors with a minimum of $100K of U.S. federal capital gains to invest. The OZ legislation enables investors to place pretax dollars in OZ funds. Capital gains must be invested within 180 days of realizing the gain or within 180 days of the fiscal year end if gains were realized in a multi-member partnership or S-Corp.

Where Four Points is Investing

Colorado's emerging communities are some of areas in the country forecasted to see the most growth over the course of the next decade. We define "emerging" and “rural” as everything outside of the Front Range. Areas such as Grand Junction, Durango, Avon, Estes Park, Buena Vista, and more. Currently undervalued assets, the need for more housing and infrastructure, and strong future demand drivers uniquely position rural Colorado for long-term OZ investing.

Rural communities want to work with Four Points because of our deep experience working and investing in rural Colorado. We have been investing in most of these communities for years and these communities are trying to attract more capital. Many communities have created a prospectus to stimulate thoughtful growth and we get to choose from projects that have community support. Choosing projects with strong community support results in better financial return, long-term impact, and reduces risk as communities can fast-track entitlements and approvals, provide tax abatements, and waive planning and tap fees.

Investment Strategy

Four Points is investing in diversified real estate backed assets in a specific geography. These assets include housing, commercial, hospitality, recreation, and industrial. All are cash-flowing and demonstrate strong long-term growth. Our targeted geographies can absorb investment, have strong net migration trends from people moving to Colorado, have undervalued assets that can service increased demand, and have access to growing outdoor recreation.

Four Points launches a new fund every 6 months to enable investor liquidity as soon as possible after the required decade hold period to achieve the tax benefits of Opportunity Zone investing. Each fund invests in 5-10 Qualified Opportunity Zone investments. Investors will generally be able to see specific projects before committing to the fund.

Four Points played a major role in creating OZs in Colorado and have unparalleled access to both impactful and high returning investments. We live in the mountains and have for years. We have the community knowledge and partnerships to deploy large amounts of capital aligned with community interests.

Requesting Access to Fund Documents

Four Points prepares very detailed information regarding each of our investments, our underwriting process, who we are working with, and more in a Dropbox showcase. This showcase includes deal memos, our pitch deck, our PPM, and more. To gain access to the showcase, please message us and state that you are an accredited investor. We can then invite you to view the showcase and you will receive an invitation via email.