TIC: Location, Demographics, and the Building

The Popularity

TIC: location, demographics, and the building are all very popular, and one of the main reasons that the TIC are so popular is because they are institutional-grade. Because of this, investors are typically stepping up in terms of quality here.

Although TICs are usually a good investment for most people, there are certain investors that are considered poorly suited to the structure of the TIC. An investor needs to be an accredited investor, and should not be living solely on the income from the specific TIC investment.

Investors who are well suited to the TIC would be those who are tired of managing their real estate but who want to continue with real estate ownership. Any investor who is interested in diversifying outside of paper investments would be ideal for the TIC and would be most likely to profit as well.


The issue of TIC: location, demographics, and the building is a very important issue here. There are a few challenges surrounding the TIC: location, demographics, and the building, one of the biggest being the way that sponsors handle deals that go awry.

If you are considering going through with a TIC investment, just make sure that you are aware of all that is involved and are understanding of what is going to take place so you will not be missing anything, therefore saving yourself from as much financial risk as possible.

The Importance of Understanding TIC: Tenants

The TIC: tenants are on deed and considered as being direct owners of any real estate owned. They share the income, tax benefits, appreciation and depreciation. In other words they divide up both the gains and losses, and as a co-owner your undivided interest can be transferred to your heirs.

A TIC coupled with 1031 tax-deferred exchanges provide more flexibility than a traditional 1031 exchange to the investors involved, and this refers to everything from the investment size and timing to additional diversification and institutional investment quality real estate.

The purchase of a TIC structure allows investors to purchase an interest in a significant real estate asset one that is most likely larger than what they would be able to obtain individually. This is actually the main purpose for a TIC: tenants investment, and why they are such popular investments these days.

What is a TIC: Call Agreement?

A TIC is a form of vesting title to property that is owned by any two individuals together but who are unmarried. Each tenant in common owns a share of the property and each tenant is entitled to a comparable portion of the income from the property. As a result they must bear an equivalent share of the expenses involved.

As with any other investment, there are certain advantages and risks that are going to be involved with a TIC: Call Agreement. A few of the advantages include pre-arranged financing, increased potential for cash flow, flexible size, professional management, and investment diversification.