Role of Registered Representative
The role of the Registered Representative (RR) is to provide advice and counsel to TIC investors. In essence, the RR serves as the investor's window to the TIC marketplace. To properly carry out this role, the RR must understand each investor's needs, and provide suitable and timely guidance.
It is important to understand the different perspectives of the RR and the TIC Sponsor. The RR is an advisor to the investor, with no affiliation to any TIC Sponsor. His or her job is to understand the TIC marketplace as well as the needs of the investor, and make recommendations that are in the investor's best interests. The TIC Sponsor, on the other hand, is primarily concerned with raising the necessary equity capital for each TIC offering with 35 or fewer investors. The TIC Sponsor does not represent the investor.
You may have wondered why TIC offerings are marketed through Registered Representatives rather than real estate brokers. This is because the Securities and Exchange Commission (the SEC) has classified a TIC offering as a security since it is structured by a 3rd party (the TIC Sponsor) and marketed to multiple investors (the TIC Owners). Because of this classification, a TIC offering is required to undergo extensive due diligence, risk disclosure, and be marketed by properly licensed Registered Representatives in accordance with the federal securities laws. A real estate broker can also market TIC offerings, providing he or she holds the necessary securities licenses.
At Liberty Group we specialize in helping our clients find appropriate 1031 exchange replacement properties. As an advisor to our clients, we continually review TIC offerings, research markets, visit properties, and uncover opportunities as well as potential concerns. Our close ties with leading TIC Sponsors gives us the ability to provide our clients with a wide variety of TIC properties to choose from.