The Biggest TIC: Cash Flow Risk - Part 3

Advantages

It is also important to understand the advantages of the TIC, because there are many, and in most cases the benefits far outweigh the possible TIC: cash flow risk issues.

TICs offer investors an easy way to diversify their real estate holdings, and also, because most TIC properties are investments in Class A or Class B buildings and are often located in central business districts or other important and busy areas, an investor may realize a higher quality investment through an improved tenant profile.

The cash flow is generally paid monthly which is obviously nice, and as well because the minimum equity requirements can be as low as $100,000, and this means that the investor can invest in multiple high quality, institutional grade properties.

The TIC ownership is an extremely popular choice among real estate investors around the world, and definitely one that you should consider if you are a real estate investor yourself. TIC investments enable you to replace your exact amount of equity and debt from your relinquished property for your 1031 exchange and so this can definitely be one of the most profitable investments you ever make.