Investment Approach and Projections

The net migration to Colorado is stunning, especially on the Western Slope where we place a majority of our investments. The State of Colorado forecasts the population in our target counties to grow by 25-39% through 2035. In addition to the increase in full-time residents, the increased demand in recreation and hospitality are huge demand drivers transforming the region.

Below are summaries for already active Fund II investments. Four Points Funding secured significant bridge capital before launching any of our funds to commit to and control high quality investments. As a result, investments into Fund II are immediately diversified across communities and asset classes, and investors have visibility into core investments prior to committing. To view much more detailed deal memos for each investment, as well as fund documentation, our pitch deck, and more, request access to our data room in any of our contact forms.

Connected

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

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Regional Expertise

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

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.

Fund II Portfolio

Grand Junction Multi-Family Housing

Deal Total: $21.6M
Total Equity Required: $7.5M

96 unit multi-family housing and 55 units of camping and glamping on a 12-acre site along the Colorado River in downtown Grand Junction. The site borders Las Colonias, a new $14M city riverfront development of parks, an amphitheater, offices and river access. Over the bridge adjacent to our site are trailheads to world-class mountain biking and hiking. The new parks will have beach volleyball and a lake for swimming and stand up paddle boarding. The City of Grand Junction is pro-growth, residential inventory is low, and the use of pre-fab construction lowers cost. This development will create workforce housing and expands access to outdoor recreation. The site is positioned for a potential Phase II of more residential units.

Glenwood Springs Mutli-Family Housing

Deal Total: $27.4M
Total Equity Required: $9.6M

100 unit multi-family housing that borders open space and is next to RFTA Park & Ride stop, which transports workers, skiers, and anyone else trying to get to and from the airport, Aspen, Carbondale and Snowmass. This development aims to address the serious rental unit shortfall in the City of Glenwood Springs and surrounding areas. Glenwood Springs, known for its world famous hot springs, has amazing access to year-round outdoor activities and a strong economy throughout the Roaring Fork Valley.

Naturita Boutique Camping

Deal Total: $2.97M
Total Equity Required: $2.26M

CampV is 120 acres of beautiful mountainous desert situated between Telluride and Moab. CampV will offer a nightly and short-term accommodation experience providing guests a unique product mix of Glamping options: refurnished historic cabins, vintage airstreams, boutique tents, as well as traditional RV parking and tent-style camping. CampV is surrounded by open space for mountain biking and ATV off-roading, and has a river running through the property for rafting and standup paddle boarding. CampV will provide guests with an interactive campus environment with art exhibits and sculptures, guided events, live music, and festivals. CampV intends on working with a mix of 3rd party vendors such as outdoor recreation guides and event organizers to provide an assortment of additional amenities.

Prerequisites to Invest

Investors must be accredited with a minimum of $100K 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, with the exception of gains realized through a partnership or S-corporation, which have a longer time horizon to invest.

Investment Strategy

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

To receive the major benefits and returns of Opportunity Zone investing, the investments must be held for a minimum of 10 years. The decade holding period does not begin until a fund closes. We close and launch a new fund roughly every 6 months to start investors holding periods as soon as possible. Due to this, select investments can span two funds. Each fund invests in a diversified portfolio of 5-10 Qualified Opportunity Zone investments.

We live and invest in the mountains and have for years. Four Points Funding has been focused on Opportunity Zones in Colorado since the legislation was announced and has unparalleled access to both impactful and high returning investments. These communities want to work with Four Points Funding because of our deep experience working and investing in the emerging areas of Colorado. 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.

Requesting Access to Fund Documents

Four Points prepares very detailed information regarding each of our investments, our underwriting process and who we are working with 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 via email.