Get an MAI-certified appraisal. Assessment values are generally not very good for federal income tax purposes.
Ask A Question
When budgeting the substantial improvement cost, what kind of valuation model can we use to measure the land value in an Opportunity Zone?
When evaluating the land value, we can use market value, appraised value or assessed value. If assessed value must be used, the value can be very different from the actual market value due to the length of ownership of the original owner. Therefore, when budgeting substantial improvement cost, with significantly lower assessed value of land, you will need to spend a lot more money on the improvement. (This is the case for rehab, not the development project) Is this why most sponsors go with the build out route rather than the rehab project?
Answers
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.