Thursday, July 17, 2008

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.

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