The 4 key players in the Tenant-In-Common space are: Sponsor, Broker Dealer, Registered Representatives & The Investor

1. Real Estate Sponsor National Income Property via our strategic partnerships can help you access over 30 of the Nations leading real estate sponsors that structure Tenant-In-Common programs.

Sponsors are real estate investment company that structure a Tenant-In-Common Investment property for purchase by individual Investors, locates, negotiates and contracts to acquire the property, perform initial property due diligence, arrange the asset and property management along with financing, and offer the property to Broker/Dealers for participation by Broker/Dealer clients. The Sponsor usually takes on up font monetary risk associated with contracting to purchase property by putting up earnest money, funds for inspections, lender and legal fees, registering the investment as a security and time associated in performing due diligence. Most sponsors have a vested interest in the performance of the property. These companies usually have strong track records and extensive experience in various sectors, types, and locations of real estate.

• A Sponsor will acquire institutional quality properties available in various geographical locations. This process of acquiring institutional properties often requires significant financial resources and management expertise.
• A Sponsor performs extensive due diligence on a property before a commitment to purchase the property is made.
• Investors benefit from Sponsors packaging institutional properties that put a "Securities Wrapper" on them so that investors/exchangers may participate in owning a larger property that may not be available to them on their own.
• Financing typically consists of a non recourse loan to the investors/exchangers. In a Tenant-In-Common transaction, each co-owner will be required to individually qualify for their share of the debt in the property.
• An institutional property owned by co-owners requires daily property management, which is typically supplied directly by the Sponsor or by a professional third party. Tenant-In-Common owners receive updates on the investment through regular reports, including: payment of distributed cash flow, year-end tax documentation, and overall property performance.
  

  Property Photos are unrelated to any Tenant-In-Common offering, but are being provided for education purposes only in order to illustrate the different property types available in the real estate market. These comments are for general educational purposes only, and do not address the entire topic. You must be an accredited investor. Prior to implementing any strategy, taxpayers are urged to seek the advice of their tax advisors. For more specific information on investment risks, you should consult the offering's prospectus.

2. Broker Dealer (B/D)
Broker Dealers “engage in the business of effecting securities transactions for the account of others,” as defined by the Securities & Exchange Act of 1934.

• A securities B/D is responsible for assessing the Investor’s suitability for the Tenant-In-Common investment and for making recommendations, according to a familiarity, with the Investor’s financial resources, risk tolerance and investment experience.
• B/Ds operate within self regulatory organization guidelines to ensure all Investors are protected and are well advised throughout the investment process.
• After extensive due diligence, if a B/D deems that an investment opportunity is something that Investors might be interested in, the B/D can approve the offering and then offer the B/D approved investment through their network of Registered Representatives.
• B/Ds are paid a commission by the Sponsor based on the equity invested by their clients.

3. Registered Representative (REP)
Registered Representatives are individuals who hold securities registrations and who are registered to offer securities to qualified Investors. Informed Representatives (Rep) can provide an Investor access to many Tenant-In-Common structured opportunities. The Rep can help Investors understand the property fundamentals and advise them regarding market characteristics. Tenant-In-Common opportunities are available in all real estate asset classes in multiple markets by many different Sponsors, and investors should investigate as many alternatives as possible before arriving at a decision. A Rep can assist the Investor during their 45-day window by introducing many properties and Tenant-In-Common opportunities otherwise unknown to the Investor.

• Reps are the Investor’s first source of information on available Tenant-In-Common properties, potential options and specific information regarding each investment opportunity.
• Reps are there to understand the Investor’s goals, objectives and risk profile to ensure that investment opportunities presented meet the Investors’ needs.
• Reps are compensated based on a percentage of the commissions earned by the B/D which are paid by the Sponsor.
  

4. Investors Who can invest in Tenant-In-Common offerings?

Tenant-In-Common investments have no more than 35 investors, all of whom are accredited. An “Accredited Investor” is defined by the Securities and Exchange Commission (SEC) as: Accredited Investor. Rule 501(a) of Regulation D under the Securities Act of 1933 (1933 Act) provides the categories of "Accredited Investors". For purposes of the investments being offered, the relevant categories of Accredited Investors are: 1. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer or general partner of a general partner of that issuer; 2. Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000; 3. Any natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; 4. Any trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase of the securities is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment; 5. Any organization that was not formed for the purpose of acquiring the securities being sold, with total assets in excess of $5,000,000; and 6. Any entity in which all of the equity owners are Accredited Investors.

Investors must meet two conditions to invest in any Tenant-In-Common offering.

1. They must be accredited and should understand the risks associated with investing in real estate.
2. Must have a preexisting, substantive relationship with their Representative or B/D prior to reviewing any Tenant-In-Common offerings.

Once these conditions are met, Investors work with their Representative to review and understand available investment opportunities.

A Tenant-In-Common Investment is offered by means of a Private Placement Memorandum (PPM). The PPM is a highly detailed, stand-alone document that allows an investor to make an informed and educated decision. The PPM is a legal document prepared by the Sponsor outlining and disclosing the terms of the investment, the associated risks and a description of the property.

An Investor must evidence, in writing, that they have thoroughly reviewed the PPM before they are permitted to invest. By sharing goals, objectives and risk profile with their Representative, the educated Investor ensures all investment opportunities presented to them meet their investment needs.

ACCREDITED REAL ESTATE INVESTORS SURVEY
1. Selling an investment property? Click here for Tax Strategies
2. Tired of managing properties?
3. Looking for new opportunities to preserve wealth and diversify your portfolio?
4. Do you think the real estate market is at or near its peak?
5. Are you ready to realize the built in appreciation of your real estate holdings?
6. Do you want to learn how to potentially defer up to 100% of long term capital gains?
7. Would you like to invest in larger, institutional grade properties?
8.  Are you looking for ways to potentially increase net cash flow and current income?
9. Would you like access to nation's leading real estate providers?
10. Is access to extensive due diligence & complete investment disclosures important to you in your decision making process?