The TIC 1031 Opportunity: Why use a tenant in common (TIC) 1031 exchange and how would it benefit me?

Tenant-in-Common Ownership, also known as TIC ownership, is rapidly becoming the most popular choice among real estate exchangers seeking ideal replacement properties. While it is often difficult to locate a property that has the right purchase price, debt ratio and closing schedule within the 45-day time limit, TIC properties are flexible enough to meet almost any 1031 exchanger’s needs.

TIC is an alternative to sole ownership of real estate. It is an investment in a single large commercial property by multiple owners, not as limited partners or as an entity, but as individual owners. Each owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. A TIC Replacement Property enables the average investor to participate in an echelon of real estate previously reserved for large institutional investors.

TIC Replacement Properties are chosen because they provide credit-worthy tenants, secure monthly income, stability and growth potential. Investing in a TIC Replacement Property provides passive long-term income, eliminates active property management and alleviates the burden of being a landlord.

Summarized:

Defer capital gains and recapture tax, continue to depreciate new TIC property and shelter income Completely eliminate management responsibilities Direct ownership high grade institutional/commercial properties Diversify across different types of properties in diverse geographical regions Predictable monthly income (what is your current cap. rate?) Property value appreciation potential (increase profit- hedge against inflation) Take advantage of the intense research and expertise of large national real estate firms