Every Real Estate Professional Should Consider Teaming Up with a Reputable TIC Broker

1031 Alternatives Group has developed an exclusive program allowing real estate professionals to participate in all the benefits of our 1031/TIC investment program with the aid of our qualified team of professionals. Working with a reputable Tenant-In-Common (TIC) broker allows real estate professionals to acquire new listings and generate more commissions.

Deferring taxes encourages clients to sell their properties and build wealth by reinvesting the undiminished gains. With the help of a TIC broker, agents are able to show clients an inventory of institutional grade properties around the country with competitive cash-on-cash returns. Clients may diversify their real estate portfolio geographically and by asset class while avoiding the management headaches, high property taxes, and skyrocketing insurance costs associated with property ownership. TIC investments are a creative way for real estate professionals to motivate would-be-sellers and get them off the side-lines.

Example #1:

Our firm recently worked with a real estate broker who was assisting a client that had a desire to sell his property he owned for 20 years but never did so because he did not know where to reinvest his proceeds sensibly. After reviewing the client’s situation and evaluating his goals, we developed a TIC strategy that benefited all parties. Through our real estate sponsor firms, we were able to defer the client’s substantial capital gains and depreciation recapture tax liability through a 1031 Exchange, increase the clients current income, provide him with more tax-sheltered income via a new depreciation basis, and spread his risk into 6 different properties around the country (i.e. office building, retail, multi-family, assisted living, hotel, and marina). As the result of our TIC investment strategy, the real estate broker obtained an $8 million listing he otherwise would not have received.

Example #2:

Another real estate professional chose to be compensated on both sides of the transaction. Being that TICs qualify as real estate but are primarily sold as securities, the only way to legally be compensated on the 1031 replacement transaction is to obtain a Series 22 license. 1031 Alternatives Group sponsored this real estate professional and assisted him in obtaining a Series 22 securities license. Upon receipt of the license, he was able to list and sell a $2 million property as usual and allowed our firm to handle the A to Z on the 1031 TIC replacement side and received compensation from both sides of the transaction.

These are just two examples of how employing the TIC strategy is a great way to add value for a client, secure a long-term relationship, and resolve matters that benefits all parties.