| Tenants In CommonDelaware Statutory Trust1031 Exchange |
Institutional-grade investments for the individual investor.
Also known as Co-ownership of Real Estate (CORE), a TIC-structured investment enables a group of up to 35 investors to co-own a single investment property.
TIC investments generally share these features:
- Co-owners are direct owners of the property, sharing pro rata in monthly income, tax benefits, and appreciation.
- The minimum equity is based on the price of the property, then number of co-owners, and other factors.
- Your investment can be bought, sold, gifted, willed, or inherited.
- Your investment is subject to property, gift, estate, and other taxes.
- The term of the loans generally range from 5-12 years.
- Minimum investments range from $100K to $650K, but can be much higher.
TIC investments can offer these benefits:
- Institutional-grade real estate.
- Monthly cash flow, sheltered through depreciation, and property appreciation.
- Potentially substantial tax benefits, including deductible interest.
- Freedom from active property management responsibility.
- Valuable diversification for your overall investment portfolio.
- Real estate diversification by property type and geographic location.
- Extensive due diligence conducted by the real estate provider, the lender, and the securities industry.
- Opportunities available only to qualified investors.
- If you're contemplating or involved in a 1031 exchange, Tenants In Common investments are especially suited to your situation. Due to pre-arranged financing, these properties can be identified and closed in a timely manner.
As with all real estate investments, TIC investments present certain risks:
- They may potentially lose value.
- Investment may affect your income bracket and/or tax status.
- There is a potential for foreclosure with any real estate investment. However, extensive due diligence helps minimize this risk.
- Real estate can be a relatively illiquid asset.
- If a TIC property unexpectedly loses tenants or sustains substantial damage, there is potential for disruption of cash flow distributions.
- Costs associated with the transaction may impact returns, and may outweigh the tax benefits of the real estate.
- While TIC co-owners vote on major issues (such as selling the property), they do not have direct say over day-to-day property management situations.
TIC investments offer freedom from active property management responsibility.