Tenant in Common
Tenants-in-Common (TIC) real estate ownership is rapidly becoming the replacement property of choice for investors seeking to defer capital gains taxes through a 1031 exchange. TIC ownership allows an investor to own an undivided fractional interest in a professionally managed commercial property. Each TIC owner is issued a separate deed for his or her undivided interest in the property, and receives a pro-rata share of the cash flow, tax benefits and appreciation upon sale.
TIC ownership offers the same rights and benefits as individual property ownership, but without the management headaches. TIC properties are carefully selected by experienced real estate organizations (known as TIC sponsors).
Until recently, only large institutional investors such as life insurance companies, pension funds and real estate investment trusts (REITS) were able to afford class "A" commercial property with national credit tenants and professional property managers. Now through TIC ownership, individual investors can own top-quality apartment, office, retail and industrial properties in the most promising markets nationwide.
More about Tenants-in-Common
- Benefits & Risks
- Role of TIC Sponsor
- Role of Registered Representative
- Internal Revenue Procedure 2002-22
- Accredited Investor
- Cap Rate
- Cash on Cash Return
- Delaware Statutory Trust
- FAQ
- Glossary