Why TICs

The Tenant in Common (TIC) method of real estate ownership is an attractive and viable option for many investors. There are numerous benefits to the tenant in common method of real estate investment.

Ownership
Your TIC ownership offers you (or your entity) “title and deed” to the property. Most TICs are sold with non-recourse debt included in the offering. This feature offers two crucial benefits to the owners. If you are completing a 1031 Exchange, the need to match debt from your previous property is potentially eliminated. You may also be able to claim depreciation on your ownership portion of the property. Finally, since the TIC investors own the real estate, you will participate in any potential appreciation, or depreciation, of your property when it sells.

Property Management
One of the most notable benefits of TIC ownership is the property management arrangement. The property management company works directly for the TIC owners, often on an annual contractual basis. This characteristic enables you to have a voice in all the substantial decision making in your property without worrying about the day-to-day, tedious aspects normally associated with owning real estate.

In nearly every circumstance, the property manager is one with substantial experience and a credible reputation. Since they will work for you, TIC Investments, Inc. also spends a great deal of time analyzing these companies and the structure of their arrangement. The property management company should systematically report to you, and the other TIC owners, all pertinent aspects regarding your property on an annual and quarterly basis

An investment into a TIC property offers attractive advantages to many investors. However, TICs are not for everyone. A tenant in common option may not be right for you depending on your particular tax situation or if you want complete control over the daily responsibilities of your property. However, if you are seeking a stable real estate investment which will not require your constant attention yet may provide you with reliable, monthly distributions, TIC investing may be right for you.