Tenants In Common Properties
Understanding Tenants in Common (TIC)
At 1031 Exchange Place, we strive to provide our clients with comprehensive knowledge about various real estate investment options. One such option is Tenants in Common (TIC) properties. TIC is a form of ownership where two or more individuals hold undivided interest in a property. Each tenant has the right to occupy the entire property, irrespective of their ownership percentage. This structure is particularly beneficial for investors looking to diversify their real estate portfolio with manageable investment sizes.
TIC properties became wildly popular in the early 2000s. While most of the industry has moved on to DST investments, 1031 Exchange Place has access to the largest selection of TIC properties currently available. The tried and true format of single-tenant, debt-free, net-lease properties with corporate tenants has survived the tests of time and provides exchangors with as little as $35k access to investment-grade real estate. These properties are available to non-accredited investors, cash investors, or those looking to invest in real estate in their IRA.
What Are Tenants in Common (TIC) Properties?
Tenants in Common is a form of property ownership where two or more individuals hold an undivided interest in a property. Unlike joint tenancy, TIC does not require equal ownership shares, allowing flexibility in investment amounts. Each owner holds a distinct, fractional interest in the property, which can be sold, transferred, or inherited independently of the other owners.
Key Features of TIC Properties
- Individual Ownership: Each co-owner in a TIC arrangement has a separate legal title to their portion of the property.
- Flexible Ownership Shares: Investors can own different percentages of the property, making it accessible to varying levels of investment.
- Transferability: Ownership interests can be transferred without the consent of other co-owners, providing liquidity and flexibility.
- Estate Planning: TIC interests can be passed on to heirs, making it an effective estate planning tool.
Benefits of Investing in TIC Properties
Diversification of Investment
Investing in TIC properties allows investors to spread their capital across multiple properties. This diversification helps mitigate risks as it reduces the impact of any single property’s performance on the overall investment.
Access to High Value Properties
TIC ownership provides an opportunity to invest in high-value properties that might otherwise be unaffordable for an individual investor. By pooling resources with other investors, you can gain access to premium real estate assets.
Shared Management Responsibilities
In a TIC arrangement, management responsibilities are often shared among the co-owners. This can significantly reduce the burden of property management and maintenance, making it an attractive option for those looking for a more passive investment.
Find Your Ideal 1031 Exchange Property with Ease!
Are you navigating the complexities of a 1031 exchange and struggling to find the perfect replacement property? Look no further! Our expert team is here to guide you through every step of the process.
With our personalized approach and deep market insights, we’ll help you discover properties that align with your investment goals and comply with 1031 exchange requirements.
Benefits of Our Free Consultation:
- Tailored property recommendations to match your specific needs.
- In-depth analysis of potential investment properties.
- Guidance on 1031 exchange rules and timelines to ensure compliance.
- Strategies to maximize your investment and defer taxes.
TIC Properties in a 1031 Exchange
One of the significant benefits of Tenants in Common (TIC) properties is their eligibility for 1031 Exchanges. A 1031 Exchange, named after Section 1031 of the Internal Revenue Code, allows investors to defer capital gains taxes by reinvesting the proceeds from the sale of an investment property into another “like-kind” property. TIC properties qualify for 1031 Exchanges, providing investors with an excellent opportunity to defer taxes while diversifying their portfolio.
How TIC Properties Qualify for 1031 Exchanges
To qualify for a 1031 Exchange, the properties involved must be held for productive use in a trade or business or for investment purposes. TIC properties meet this criterion as they are typically income-generating investments. Here’s how TIC properties fit into the 1031 Exchange process:
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Like-Kind Property: The replacement property in a 1031 Exchange must be of “like-kind” to the relinquished property. Real estate is broadly defined under the IRS rules, so most types of real property are considered like-kind to each other. This flexibility means that investors can exchange a single-owner property for a TIC property and vice versa.
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Investment Intent: Both the relinquished property and the TIC replacement property must be held for investment purposes. This requirement ensures that the 1031 Exchange is used for legitimate investment transitions rather than for personal use properties.
Start Your TIC Investment Journey Today
Ready to explore the benefits of Tenants in Common properties? Contact 1031 Exchange Place today to learn more about how TIC investments can enhance your real estate portfolio. Our team is here to provide you with the expertise and support you need to make informed investment decisions.
Please see below for some current TIC listings. For additional information on any of these properties please fill out the form below or call us toll-free at 1-800-USA-1031.
*This page may not be up-to-date at all times so please contact us for current properties.
Dollar General - Illinois
Dollar General - Mississippi
Fresenius - OKC
Fresenius - Utah
Fresenius - Enola
Tractor Supply Co - OK
Kay Jewelers - PA
Walgreens - Phoenix
