Opportunity zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

Opportunity Funds are new private sector investment vehicles that invest at least 90 percent of their capital in qualifying assets in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains  in stocks and mutual funds alone— a significant untapped resource for economic development. Funds will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.

Opportunity Zones offer investors the following incentives for putting their capital to work in low-income communities:

• A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.


• A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.


• A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).

Rule 501 of Regulation D of the Securities Act of 1933 (Reg. D) provides the definition for an accredited investor. Simply put, the SEC defines an accredited investor through the confines of income and net worth two ways:

A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year OR

A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.

If you satisfy one of these requirements, you are an Accredited Investor.

When you create an account you’ll need to self-certify that you’re an accredited investor and will need to tell us how you qualify. We’ll ask you to re-confirm this each time you invest but otherwise we typically don’t require any documentary evidence of your financial status. Your personal financial information will be kept private in accordance with our privacy policy.

Any person or entity with a U.S. tax identification number (social security number or Employer Identification Number), and who meets the SEC’s definition of “accredited investor” is eligible to participate in American Group's investments. While most of our investors are U.S. citizens, some are legal residents of the United States or foreign nationals who own or partially own an investing entity incorporated in the United States.

The minimum will start as low as $50,000 but will vary from offering to offering. The investment minimum is most commonly $100,000.

Once you determine you are investing in a particular offering you will be guided through a secure online process to complete your investment. Funding can be completed entirely online via secure ACH by linking to an existing bank account. If you prefer to fund offline, you can transfer funds by check or wire.

Generally, you will receive a K-1 for your equity investments and either a 1099 or K-1 for your debt or preferred equity investments. We work with lenders to deliver your tax documents as soon as possible to help ensure timely filing.

Returns will be distributed according to the unique schedule of each particular offering. For cash-flowing investments, distributions will typically occur on a quarterly or yearly basis. For investors who funded online via secure ACH, payments will be direct-deposited into the payment account. Investors who paid offline will have the option of linking an account to receive direct deposits. Alternatively, investors can opt to receive checks quarterly subject to certain minimum dollar thresholds.

American Group will control the investment vehicle through which investors commit funds. Investors will have limited voting rights with respect to the American Group investment vehicle, but no voting rights in the property management company.

Investors purchase restricted securities, which are highly illiquid due to the current lack of secondary market. You should expect to hold the securities you purchase until they mature or there is a liquidation event.

However, you may resell your securities in private transactions subject to certain restrictions specific to each offering and under the Securities Act of 1933. We may be able to arrange the sale of a position between two of our investors, however, this would entail both parties agreeing to transfer of ownership in the amount of the original investment, and should not be counted on as an available source of liquidity.

In the event that a transfer is needed for estate planning purposes we will work with you to see if such transfer is possible.