Tenants in Common (TIC) – 11 Benefits |
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Benefits of Tenants in Common: |
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Free Yourself from Property Management |
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You can trust the professional people who are managing the property on your behalf. Buildings owned by Tenants in Common (TIC) interests are professionally managed by national real estate companies with track records and extensive experience in all sectors, types, and locations of real estate. Let them maintain the buildings, do the leasing, collect rent, service the mortgage, and handle all of the other management responsibilities you would like to be free from. With no more property to manage, you have more leisure time to relax or pursue other interests. |
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Monthly Cash Flow |
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You may very likely enjoy increased monthly cash flow. Your investment in a Tenants in Common (TIC) interest is expected to provide you with a monthly check. Some investors, after comparing their current returns with the expected yields from a Tenants in Common (TIC) investment, find an increase in their monthly cash flow. To find out if you would benefit from an increase in monthly cash flow, contact one of our 1031 Exchange Consultants. |
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Managed 1031 Exchange Process |
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You don't have to do the legwork to find the building that you want to buy. A qualified, national Tenants in Common (TIC) real estate company will locate the building for you, conduct all due diligence, arrange for the financing, and do all the other work necessary to acquire the new investment property and set up the Tenants in Common (TIC) program. |
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Ready Availability |
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Unlike other Exchange options, there is a steady supply of TIC inventory. A large selection of Tenants in Common (TIC) properties exist for sale, in many different asset classes and geographical locations, so (with the help of TIC Advisors) you will be able to easily identify possible properties within the requisite 45 days, acquire within 180 days, and even have a "back-up" in case your preferred purchase becomes unavailable for some reason. |
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Own a Higher Quality Property |
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You are able to invest in larger, higher-quality institutional properties than were you to invest as an individual. You end up with a larger, higher-quality building that tends to attract tenants with greater financial strength and stability. |
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Gain Tax Advantages |
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You benefit from multiple tax advantages. You not only can defer capital gains taxes until death, at which point they are forgiven, you also can gain additional tax advantages through a new depreciation schedule and, in doing so, typically shelter a substantial portion of your cash flow. |
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Non Recourse Debt |
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You gain non-recourse debt. Accredited investors assume institutional grade, pre-arranged, non-recourse (no personal guarantee) financing with easy approval. You can invest in Tenants in Common (TIC) properties that have no debt, or in ones with up to 75% leverage. |
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Match Equity Requirements |
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You can start with as little as $100,000. Tenants in Common (TIC) properties have a much lower minimum investment than sole ownership and therefore is more flexible. Variable investment sizes can start as low as $100,000 and can be structured to match an owner's equity and debt requirements. |
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Diversify Your Real Estate Portfolio |
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You have a first-class way to diversify your assets. Large net proceeds may be split among several Tenants in Common (TIC) properties, and so invested in several different markets and asset classes. |
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Lock in Profits |
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You can potentially preserve your capital by investing in properties that continue to appreciate. Profits can be locked in by selling out of highly appreciated markets and then re-investing 100% of the net proceeds from those sales into growth markets. In addition, because someone else is managing the Tenants in Common (TIC) property for you and we have access to 1031-TIC properties across the nation, there are no geographical limitations. You are free to invest in real estate markets nationwide. |
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Simplify estate planning |
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You can simplify wealth transfer and estate issues. After all, it's much easier to divide a monthly check among heirs than it is to divide a building. |
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