The idea behind the growing tenants in common (TIC) 1031 industry is really quite simple:  with a minimum investment, the average owner of appreciated real estate can sell their property to a third party and exchange into an undivided interest in an institutional quality asset. 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.

A TIC investment replacement property enables the average investor to participate in an echelon of real estate previously reserved for institutional investors. TIC investments are chosen because they potentially provide a secure monthly income, stability, and growth. TIC investments may provide passive long-term income, eliminate active property management, and alleviate the burden of being a landlord.  

Now the typical accredited investor can complete their 1031 exchange and own institutional quality assets.
TIC investments are an attractive alternative for real estate owners looking to potentially:

• Realize built in appreciation of real estate holdings
• Defer long term capital gains
• Eliminate management burden of current holdings
• Reduce risk through owning institutional quality real estate assets
• Manage retirement income

TIC Marketplace Growth

• In 2002 the Internal Revenue Service issued Revenue Procedure 2002-22 providing guidance as to the proper structure of TIC investments to qualify as like kind property in a 1031 exchange
• 550% growth in equity invested from 2002 to 2004*
• Number of “Sponsors” or real estate companies offering TIC investments has grown from nine in 2001 to over 45 in 2005*
• Total value of TIC investments closing in 2005 is estimated to be over $8 billion*

For a Free TIC Investment Guide please visit our contact page and fill out a form.

 

*source: Tenants-In-Common Association

Securities offered through Welton Street Investments LLC, 4600 S. Syracuse Street, Suite 530, Denver, CO 80237, 888.569.1031. This is neither an offer to sell nor a solicitation of an offer to buy a security. Such an offer may only be made by means of a private placement memorandum. As with any real estate investment, there are various risks including, but not limited to: loss of principal, variations in occupancy which may negatively impact cash flow, limited liquidity, and limits on management control of property. Tom Newman is a Registered Representative of Welton Street Investments.