|
TIC Basics: Tenant-in-Common (TIC) is a form of holding title to real property. It allows the owner/owners to own an undivided fractional interest in the entire property. In addition, it has become the preferred investment vehicle for real property investors who wish to defer capital gains via a 1031 exchange and own real property without the management headaches. A popular choice among real estate investors seeking replacement property for their IRC Section 1031 tax deferred exchange is Tenant-in-Common Ownership (TIC), also known as fractional ownership. Under this co-ownership structure, you will own an undivided fractional interest in an entire property and share in your portion of the net income, tax shelters, and growth. Further, you will receive a separate deed and title insurance for your percentage interest in the property and have the same rights as a single owner. Because TIC opportunities are often "packaged" with management and financing in place, TIC investments may offer efficiencies in the identification, acquisition, financing, closing, and operating stages of real estate ownership. Furthermore, fractional ownership provides you with the ability to diversify your 1031 Exchange into more than one property and to participate in potentially larger, institutional quality properties. Tenant-In-Common properties are typically institutional-grade properties, such as office buildings, shopping centers, apartment communities, warehouse/distribution, or industrial property costing anywhere from $5 million to $100+ million. Properties are available on a nationwide basis. Thus, small investors in one area of the country may participate in large industrial, commercial, and residential property investments all around the country with professional management. TIC investments provide simplicity by eliminating active property management headaches. Individuals who are tired of the day-to-day burdens of being a landlord or who own land and would like an income producing property will appreciate the following benefits of a TIC investment:
e-mail: TIC@MY1031SOLVED.com Securities
offered through Welton Street Investments LLC, member NASD/SIPC, 4600 s.
Syracuse Street, Suite 530, Denver, CO 80237, 888.569.1031. This is
neither an offer to sell nor a solicitation of an offer to buy a security.
Such an offer may only be made by means of a private placement memorandum.
As with any real estate investment, there are various risks including, but not
limited to: loss of principal, variations in occupancy which may negatively
impact cash flow, limited liquidity, and limits on management control of the property. Steve
Krutzfeldt, David M. Miller, and Russell Pederson are Registered Representatives of
|