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Looking For Management-Free Investment? A TIC 1031 Exchange Is What You Need

What is TIC or Tenancy-in-common? A TIC investment offers ownership in a real estate where two or more investors share an undivided, fractional interest in the asset. The shares of each investor in a TIC are not required to be equal, and ownership interests can also be inherited. Under a TIC arrangement, each co-owner receives a single deed at the time of closing for their undivided percentage of interest in the entire property. A TIC investor exercises the same rights and benefits as any sole owner of a property without the burden of managing the property. A TIC investment can either be privately arranged by investors or could be a syndicated TIC arrangement where a uniform set of rules apply to all investors. Most of the syndicated TICs are viewed as securities under federal security law. Why should I do a TIC 1031 Exchange? TIC investment is for investors who want to own institutional-grade investment properties that are managed by professionals, like office...

TIC 1031 Exchange - How to do it?

What is Tenants-in-Common? Tenant-in-Common (TIC) is a type of ownership in which investors receive undivided fractional interest in larger properties, similar to DSTs, but with fewer limitations attached to the property. Accredited investors who want potential appreciation through an add-on asset, not caring about current income and diversification, should invest in TIC properties. The minimum investment for TIC 1031 Exchange Properties starts as low as $1M. How Does It Work? Many real estate agencies structures and help investors do a 1031 exchange into TIC properties. These properties are viewed as top-ups that can either substantially enhance the condition of property following an acquisition, redevelop the asset, or work through renegotiating leases. No more than 35 investors are allowed in a TIC agreement. Generally, TIC properties differ from one another in terms of property type and investment strategy of the real estate agency handling the TIC. Benefits of Tenan...