1031 Exchange TIC Properties
TIC Properties For 1031 Exchange
Factually speaking, TICs come with two different types of fractional ownership products: the securitized TIC and Real Estate TIC. With the sudden surge in 1031 exchanges, people are constantly looking for TIC properties. It’s true that most investors abandoned TIC structures to favor DSTs, there are still a number of TIC sponsors whose structures are considered timeless. With our extensive industry experience, we, at 1031 Information, have the finest collection of TIC properties for 1031 exchange.
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Insight Into TICs
A TIC or Tenant In Common property is a real estate property that is co-owned by several investors. The deed to the property is held by the taxpayer, making it eligible for 1031 exchanges since the Rev Proc 2002-22. These properties can be a great option for investors looking to tackle all landlord responsibilities. The benefits are national tenants’ involvement, net leases, long-term leases and predictable monthly passive income.
TIC Property Benefits
Diversify Into Institutional Real Estate
TIC properties, with their low investment minimums, allow investors to access high-quality institutional-grade, NNN properties that are primarily available only to accredited investors.
TIC properties follow an NNN lease structure that is professionally managed and maintained by a third-party organization. This frees the investor from the headaches of day-to-day management.
TIC sponsors are usually long-term investors that perform an in-depth study on the demographics and market analysis of each area where they invest in. Sponsors try their best to ensure the business that leases their property can succeed over time so that they can benefit from it. Sponsors provide to buy in such a location that offers a chance to succeed.
TIC properties do not have an existing loan on them. So, you, as an investor, do not have to qualify for a loan or debt against the property. This makes reselling a TIC property easy.
With just $50,000, investors can purchase a single TIC to diversify their exchange.
Monthly Passive Income
In a TIC, the tenant corporation guarantees lease payments of the property to the owners of the lease. The passive income you earn will be securely deposited into your bank account every month.
Like other real estate properties, the benefit available to TIC owners is the proportionate share of depreciation to claim against property income on their tax returns.
TIC owners get a pro-rata share of any capital appreciation. The appreciation is simply a component of the overall return on investment.
Because no actual funding is involved, investing in a TIC property is a highly simplified process. You can just invest in a property from inventory and earn regular passive returns. This makes TIC an ideal option as the best backup replacement property in case the other options fail to fall through after the 45-day ID period.
Save On Expenses
From no closing costs, appraisal costs and other expenses related to real estate investments, there are no additional costs included.
Available To All
Unlike DSTs, which are only open to accredited investors, TIC properties are open to non-accredited investors as well.
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