Tenants-In-Common Investments Defined
Tenants-In-Common investments are most commonly offered as interests in commercial real estate assets. Although you will see them offered as oil and gas royalty interests as well.

Tenants-In-Common offerings, also known as fractional-ownership or co-ownership, provide investors the opportunity to buy partial interests in one or more properties as an alternative to having to provide a large sum of capital to buy an entire property .

Tenants-In-Common offer many advantages to the investor. Tenants-In-Common properties can provide a way of owning institutional grade real estate with attractive income and appreciation potential at a price the investor can tailor to their individual needs. Accredited Investors can diversify with tenants-in-common ownerships amongst different investment categories (Office, Retail, Multi-family, etc) and in different geographical markets.

Typically, day-to-day management of the property is handled by a professional management company and owners receive a monthly distribution check. Tenants in common owners are eligible for the full benefits of real estate ownership, receiving a pro-rata share of income, depreciation, build equity, tax benefits, appreciation and can enable an investor to 1031 Exchange into and out of a Tenants-In-Common property indefinitely.

Tenants-In-Common Properties and 1031 Exchanges
Tenancy in Common may be particularly attractive as a vehicle to fulfill an investor’s 1031 exchange requirements. Tenants-In-Common properties can be an important exit strategy for successfully completing a 1031 exchange with their high certainty of close. Tenants-In-Common offerings we represent are closed, funded and ready for your 1031 funds or private equity when you are. Financing is already secured, appraisal complete, a pre packaged due diligence material is readily available, everything you need to make a well-informed decision is ready for your review.

Tenants-In-Common offerings as a 1031 exchange vehicle have become popular since March 19, 2002 when IRS Revenue Procedure 2002-22 was issued. This Revenue Procedure provided IRS guidelines for the use of Tenants-In-Common offerings in 1031 exchanges.

Important Things To Consider When Investing In Tenants in Common
Securitized Tenants-In-Common offerings VS. Non-Securitized Tenants-In-Common offerings

It is important to note that Tenants-In-Common offerings may not be suitable for all investors. TIC Tenants-In-Common offerings are considered securities by the SEC and available only to accredited investors as defined by Regulation D of the Securities Act of 1933. In addition to normal risks associated with real estate such as loss of principal, variations in occupancy which may negatively impact cash flow and limits on management control of the property, Tenants-In-Common offerings also have limited liquidity, no established secondary market and unique fees not found in other real estate investments. For these and other reasons, it is important to partner with a firm that has the experience, knowledge and professionalism needed to navigate the Tenants-In-Common market with you and/or your clients. Investors need to perform their own due diligence. Most Tenant-in-Common properties facilitate this process with voluminous investment packages that should be carefully read and understood.

As with any real estate investment, “liquidity” (can it be sold after it is bought and if so for how much), is an important consideration. Unlike other fractional ownership interests where all that is owned is the right to use for a specific period of time, (ie. A time share), Tenants-In-Common opportunities represent direct/deeded ownership and control of a real estate asset which provides it with true market value.

Tenants-in-Common offerings can provide a professionally managed, institutionally funded “turn-key” real estate solution that should be carefully evaluated and compared to other real estate investments for ease of acquisition, management and sale.

In today’s market, quality Tenants-In-Common opportunities generally sell out quickly. If you are seriously considering purchasing a Tenants-In-Common offering, we suggest that you pre-register with us so we can notify you as new opportunities become available.

Please consult your CPA or tax attorney for assistance in determining the appropriateness of Tenants-In-Common investment or other investments for your particular needs.

Please contact me about this type of investment