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Tenant In Common - Tenant In Common Investments
A Tenant In Common (TIC) investment represents co-ownership of real estate by two or more investors and is a form of holding title to real property. TICs permit small to mid-size investors the ability to own an undivided fractional interest in a large institutional quality property/properties. TIC investors are on the deed and considered a direct owner of the underlying real estate. TIC owner’s share “pro rata” in the income, tax benefits and appreciation of the property. Since the Internal Revenue Service issued guidance in 2002 (Rev. Proc. 2002-22), TICs have become the preferred investment vehicle for real property investors who wish to defer capital gains and depreciation recapture taxes via a 1031 exchange and own real property without the management headaches.
  Tenant In Common Investment Benefits

Defer 100% of capital gains tax and depreciation recapture tax

Relief from from day to day property management headaches

Upgrade to institutional quality real estate

Potentially increase current income & growth potential

Diversify real estate holdings geographically and by asset class

Identify quality replacement property solutions during the stringent
   45-day window

Financing in place to meet 1031 leverage requirements

Cash flow from properties may be partially sheltered by new
   deprecition schedule

Remove or minimize real estate holdings from taxable estate

Capital gains tax is forgiven or “stepped up” at the death of investor
      Risks:

As with any investment in real estate, there are risks associated with TIC ownership, including fluctuations in the real estate market that may impact the value of the property. The following risks may also be associated with investment: illiquidity, economic risks due to vacancy rates, default if unable to pay mortgage and possible loss of principal. TIC ownership requires unanimous approval to take major action, such as a re-finance or sale. Obtaining unanimity may be difficult when 10 or 20 investors are involved. It is not possible to address all relevant risk factors in this forum. Risk factors are outlined in the Private Placement Memorandum for each offering. Investors should thoroughly understand all risk factors and discuss them with their financial representative prior to investing in a 1031/TIC offering.

 
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Copyright 2006 1031alternatives.net. All rights reserved.
Securities offered through Pacific West Securities, Inc. Member FINRA/SIPC

This material is neither an offer to sell nor the solicitation to purchase any security. The information is for discussion and information purposes only. It is not intended to replace competent legal, tax or financial planning advice. The applicable tax codes apply to and relate to federal law only. Individual states may have their own additional tax codes. Please contact the appropriate tax and legal professional in your state. This information is provided from sources believed to be reliable but should be used in conjunction with professional advice that is consistent with your personal situation. Properties represented here are not current offerings and properties of this nature may not always be available for purchase.