As part of our investment offerings, Dumaine Investments provides guidance in investing in alternative investments such as private placements in real estate, primarily via 1031 Exchanges. These investments, typically conducted through Delaware Statutory Trusts (DSTs), are trusts created under Delaware law that are a means of passively investing in real estate for accredited investors.
Additionally, Dumaine Investments also provides assistance to those investors looking to shelter capital gains through investments in Opportunity Zone Funds (OZFs). Opportunity Zone Funds (OZFs) invest in lower-income areas with special tax advantages established by the Tax Cuts and Jobs Act of 2017. The purpose of this program is to put capital to work that would otherwise be locked up due to the asset holder’s unwillingness to trigger a capital gains. With an OZF, capital gains may be deferred for 5 years at which stage 90% of the original capital gains tax must be paid. After 10 years, if the property is sold at a profit, ALL potential federal capital gains taxes are waived.
Dumaine’s founder, Clifford F. Favrot, has 19+ years of experience running both the asset and property management for multi-family apartment communities. In his role as the Managing Partner of Chateaux Dijon Apartments, he oversaw all aspects of daily activities as well as the financial and strategic operations for a 330+ unit residential apartment community. During his time with the apartment complex, he oversaw a $25+MM property reconstruction following Hurricane Katrina which resulted in a substantial increase in rental revenues. In the summer of 2019, and after selling the property for a premium to recent comparable sales, he re-invested the sales proceeds into a highly diversified portfolio of DSTs and OZFs which have yielded an appreciable increase in risk-adjusted cash flows.
Please give us a call if you would like to discuss these real estate investment opportunities further at (504) 521-7350.