For those searching for this attractive 1031 option, 1031 Exchange Place, can help connect them with a selection of properties for TIC 1031 exchanges. Here are some basics on these, and some of the benefits they may offer you.
A TIC investment refers to any real estate that is co-owned by multiple investors. TIC investments fall under like-kind rules of tax code section 1031 due to the fact that the taxpayer holds a deed to the property deemed tenant-in-common.
In many cases, TIC investments are best for regular exchangers who own rental properties but no longer wish to manage them. These investments general bring long-term leases and secure investments from large tenants.
TIC investments have low investment minimums – as low as $50,000 in most cases. This makes 1031 and cash buyers open to high-quality NNN properties that might not have been available to people in this price range in the past – only larger investors would have been able to take advantage, but this is no longer the case. Additionally, unlike the DST format that has grown in popularity, TIC properties are available to non-accredited investors.
As we noted above, the TIC investment is often great for property owners who do not wish to manage their rental properties. NNN lease structures can be combined with third-party property management easily, allowing you as an investor to focus on life outside your investment.
Many investors are easily able to purchase more than one TIC property at a time, what with investment minimums so low. This can help you diversify your exchange.
In most cases, TIC sponsors are real estate professionals with a long track record in the field. These professionals have a great personal interest in the businesses leasing their properties finding success – they want the real estate to appreciate, of course. As such, you’ll generally find fantastic locations within TIC investments.
Many aren't aware that properties like TICs are a great fit for retirement monies like a self-directing IRA. With current low interest rates and the volatility of the stock market, TICs are a popular choice for those wanting to receive a consistent return with their retirement.