In a TIC - 1031 Exchange investment

multiple owners come together to purchase a large, institutional-grade property - not as limited partners, but as individual owners.

Each TIC co-owner receives an individual deed at closing for his or her own undivided fractional interest.

Each 1031 TIC property owner has all of the same rights as a single owner and shares the proportionate share of risk, as well as net income or losses, tax benefits, and growth or loss of market value with other 1031 TIC investors.

Co-ownership is the fastest growing option for 1031 exchange investors seeking suitable replacement property.

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An investment in a TIC property allows a real estate investor to defer capital gains taxes in accordance with 1031 property exchange requirements.

The idea behind the growing 1031 Tenant In Common (TIC) industry is simple

With a minimum investment, the average person can have a part ownership in an institutional-type property. The required investment amount will vary depending on the property. Typically, most TICs minimum investments are around $250,000, a few niche Sponsors cater to investors with as little as $50,000 while some cater to investors with as much as $500,000 or greater. Home Furnishing Tips

In addition, the TIC investment holding period can vary from three to five years to upwards of twenty years for the dissolution of the interest and sale of the property. Each TIC investor will commonly receive a check monthly with cash flows ranging from 5% to 10% in the initial year, not including appreciation. Stop Foreclosure Facts | Business Directories

Tenant In Common (TIC) benefits

• Achieve higher net cash flow with less liability (non-recourse debt)

• Creates access to a larger pool of higher-quality, institutional-grade investment properties

• Allows investors with limited funds to enjoy geographic diversification as well as property variety

• Enables investors to trade time and labor intensive properties for more passive forms of real estate ownership

• Triple-net lease structure provides stable returns

• Interest can be transferred the same as sole ownership property

• Eliminate management obligations

• Generate renewed tax deductions that permit greater tax savings

• Create the diversification typically achieved through REITs & mutual funds

• Benefit from the extensive due diligence performed

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