Tenant-in-Common Investemnts

Diversifying your real estate portfolio is the key to sound investing. A great avenue to accomplish this is the Tenant-in-Common (TIC) market. TICs have a co-ownership structure where you own an undivided fractional interest in an entire property and share in the net income, tax shelters, and appreciation. With low minimum equity requirements, as low as $100,000, you can invest in multiple institutional grade properties with professional management, virtually eliminating the burdens of property management. In addition, it provides you with the choice of different locations, various property types, tenants, industries, etc.

TICs are also considered “like kind” property for §1031 tax deferred exchanges. Doing a §1031 exchange allows you to defer the capital gains tax on the sale of an investment property. Also, since TIC opportunities are often presented with management and financing in place, they offer greater ease in the identification, acquisition, financing and closing compared to other real estate transactions.

Some advantages to investing in TICs are as follows:

Higher quality properties than you could afford on your own
Pre-arranged, non-recourse financing
No day-to-day management responsibilities
Cash flow paid monthly
Greater portfolio and risk management

Ability to take advantage of the §1031 tax deferred exchange again in the future.