BIGGEST RISK with Ashley Tison

Commercial Real Estate Pro Network

J Darrin Gross

I'd like to ask you, Ashley Tison, what is the BIGGEST RISK?

Ashley Tison

Well, in the context of what we do, the BIGGEST RISK is audit. Right? So inside of Opportunity Zones, right, that's the, that's the thing that would unwind your deal. So all of these plans that you've made, if you can't survive an audit, then you're going to do it all for naught. And so in stepping into that, there's a number of ways that you do you try to avoid the risk, you try to mitigate it. And then you know, ultimately, we're, we're actually and we need to talk with you about this, we're working on an insurance product or exactly that, that will cover audit, actually covering the price of the audit, and then that will ultimately cover any kind of indemnity for will have an indemnity threshold, but it will cover up to an amount that the IRS said that you were incorrect on. And, you know, the easiest way is, like I said before, is to just have a really solid and organized audit trail that reads like a book. And that is presented in a storybook format. And, you know, that's the best way to mitigate it. And then secondarily is to have good professionals who can assist you with processing the audit with the IRS. And then, you know, ideally, we're going to be able to put together this, you know, are trying to figure out an insurance product that will then insure it. So, great question. I love it. And I love the fact that you're posing that question to everybody, because everybody should be looking at that, as it relates to every element of their life, how can they mitigate risk? And how can they deal with it effectively. And that's both inside of opportunity zones that's within their taxes as a whole that's within their real estate deals. I would say even that it's within kind of life itself relative to family and business continuity, that they ought to have a plan in place in order to be able to address potential situations down the road where they may not have access to the infrastructure that's available today. And I think that that's awesome that you're encouraging your clients to think about that kind of stuff. That's what we do with Cinterion is we help people with kind of continuity plans.