TIC’s are absolutely compatible with 1031/1033
exchange requirements. By using the tenants in common format (TIC) – an individual investor can have a part ownership in an institutional-type property. As an alternative to sole ownership of real estate, a 1031 buyer can invest in a large commercial property along with other unrelated investors, not as limited partners, but as individual owners. Each co-owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. Each co-owner has the same rights a single owner would enjoy.
If you need help finding these types of properties, let me know. Good Luck!!!
Charlie Tango is right about doing yor due diligence. As with all investments, some of these are good deals and some are bad. I have seen a lot of these that are sub-par with little time left on the leases, or an anchor tenant that is not up to standard. Do your homework!
I do work for a TIC sponsor and actually agree there should be careful due diligence on each offering. The due diligence should not only go to the asset but to the sponsor as well.
Every investor has different risk/return requirements - Some sponosrs do only NNN while others are about equity preservation - I believe TICs are a viable and strong alternative. I would underscore due diligence as I would any real estate investment.
I am interested as well. I heard it is the latest thing.
Anybody?
TIC’s are absolutely compatible with 1031/1033
exchange requirements. By using the tenants in common format (TIC) – an individual investor can have a part ownership in an institutional-type property. As an alternative to sole ownership of real estate, a 1031 buyer can invest in a large commercial property along with other unrelated investors, not as limited partners, but as individual owners. Each co-owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. Each co-owner has the same rights a single owner would enjoy.
If you need help finding these types of properties, let me know. Good Luck!!!
Charlie Tango is right about doing yor due diligence. As with all investments, some of these are good deals and some are bad. I have seen a lot of these that are sub-par with little time left on the leases, or an anchor tenant that is not up to standard. Do your homework!
I do work for a TIC sponsor and actually agree there should be careful due diligence on each offering. The due diligence should not only go to the asset but to the sponsor as well.
Every investor has different risk/return requirements - Some sponosrs do only NNN while others are about equity preservation - I believe TICs are a viable and strong alternative. I would underscore due diligence as I would any real estate investment.