It’s A Great Time To Be A Landlord In Hot Job Markets

From my perspective and that of the executive team that oversees Belpointe PREP (NYSE American: OZ), leasing multi-family residential properties in strong job markets where annual inflation is running above 7% and rents are tied to CPI or other inflation benchmarks is just about as flat out bullish as you can get if you’re the landlord.

At Belpointe PREP, our focus is on identifying, acquiring, developing or redeveloping and managing commercial real estate located within qualified opportunity zones as well as, acquiring and building out new multi-family projects to meet the demand from what we believe is a tight supply of availability.

I’ve spent a lot of time in writings to date this year talking about headwinds facing the stock market, and my concerns have been more than realized. Based on my current views, capital flows are indeed seeking more reliable risk/reward ratios against a landscape where stock multiples are contracting. The S&P currently still trades at a big premium to its 10-year average.

As much as the Fed will try to talk it down, inflation is a triple-headed beast, and in my view, once it gets going, it’s like trying to put toothpaste back in the tube. It feeds on itself and has multiple tentacles. Government policies regarding domestic, foreign and fiscal/monetary matters are all being called into question as the markets reflect this rising level of pessimism.

What I believe is working is the world outside of government intervention, where money goes where it is best served. In this case, I believe that there are few asset classes that are as attractive as brick-and-mortar income-producing multi-family residential real estate. Inflation is a formidable headwind for the stock market, but a strong tailwind for Class-A rental properties.

And what about taxes on 2021 & 2022 short-and-long term capital gains? They will still need to be paid. Possibly further reducing your investment portfolio.

The first filing date for personal taxes is April 18, just a month away, with the market in flux and the cost of everything in the form of goods and services rapidly increasing.

You are probably dealing with anxiety and confusion concerning inflation, big market fluctuations, supply shortages, and global uncertainty.

Many of you might be asking what it all means for the future of your investments. And of course, what options you may now have? One compelling option is to consider channeling 2021 capital gains into a Qualified Opportunity Zone Fund (QOF) where there are tax benefits and the potential for inflation-friendly income and growth exist.

Cody H. Laidlaw
Editor-in-Chief
Belpointe OZ
255 Glenville Road
Greenwich, CT 06831
T: (203) 883-1944
E: IR@belpointeoz.com

Disclosure: Cody H. Laidlaw is the Chief Investor Relations Officer. Cody is also an investment advisor representative with Seaside Advisory Services, Inc. (d/b/a Seaside Financial & Insurance Services), a SEC registered investment adviser offering advisory accounts and services, and holds a long position in Belpointe PREP, LLC’s Class A units.

Important Information and Qualifications

Belpointe PREP, LLC (“Belpointe PREP”) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offer and sale of up to $750,000,000 of Class A units representing limited liability interests in Belpointe PREP. You should read Belpointe PREP’s most recent prospectus and the other documents that it has filed with the SEC for more complete information about Belpointe PREP and the offering

Investing in Belpointe PREP’s Class A units involves a high degree of risk, including a complete loss of investment. Prior to making an investment decision, you should carefully consider Belpointe PREP’s investment objectives and strategy, risk factors, fees and expenses and any tax consequences that may results from an investment in Belpointe PREP’s Class A units. To view Belpointe PREP’s most recent prospectus containing this and other important information visit sec.gov or belpointeoz.com. Alternatively, you may request Belpointe PREP send you the prospectus by calling (203) 883-1944 or emailing claidlaw@belpointe.com. Read the prospectus in its entirety before making an investment decision.

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