TIC Concept

A new and innovative approach to real estate investing has appeared in recent years. An alternative to sole ownership of real estate is an investment in a single commercial property by multiple owners, not as limited partners or as an entity, but as individual owners. This form of ownership is known as co-tenancy or tenants in common (TIC). Under this co-ownership structure, you will own an undivided fractional interest in an entire property and share in your portion of the net income, tax shelters, and growth. Further, you will receive a separate deed and title insurance for your percentage interest in the property and have the same rights as a single owner.

TIC replacement properties are chosen because they can provide credit-worthy tenants, secure monthly income, stability, and growth potential. Furthermore, fractional ownership provides you with the ability to diversify your 1031 Exchange into more than one property and to participate in potentially larger, institutional quality properties. Thus, small investors in one area of the country may participate in net lease properties all around the country.

Recently, the Internal Revenue Service issued guidelines concerning 1031 exchanges and tenants in common agreements or undivided fractional interest in real property. For a copy of the guidelines (Rev. Proc. 2002-22), please email your request or call us at 800-872-1031

For more information, please email or call 800-872-1031