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STAN BOTELLO
Shorewood Realtors
3300 Highland Avenue
Manhattan Beach, CA 90266
310-795-0898
310-546-7561 Ext 463
Stan@SellingBeachProperty.com
Shorewood Realtors
3300 Highland Avenue
Manhattan Beach, CA 90266
310-795-0898
310-546-7561 Ext 463
Stan@SellingBeachProperty.com
Tenant-In-Common Exchange
Listed below are some typically asked questions and answers regarding TIC programs.
Q: What is a Tenant-In-Common (TIC) real estate investment?
Basically, a TIC real estate investment consists of a fractional ownership of institutional grade real estate. The type and quality of real estate owned by institutions such as pension funds, insurance companies and real estate investment trusts.
Q: Who provides these opportunities?
TIC investment opportunities are structured and offered by professional real estate investment companies who specialize in the acquisition, management and sale of income producing investments.
Q: As an individual owner of residential income property, can I execute an IRS (sec.) 1031 exchange from my income property into a TIC investment?
Yes, and with the same benefits of deferring federal, state and depreciation recapture taxes.
Q: I'm dependent on receiving my current monthly cash flow, how do I receive investment income?
TIC programs provide immediate cash flow, which is typically paid on a monthly basis. And it is not uncommon for investment property owners to significantly improve their rental income by exchanging their current property into a TIC program.
Q: If I exchange into a TIC program, I won't have landlord responsibilities any more?
That's right, investors maintain the benefits associated with investment property ownership while eliminating day-to-day property management.
Q: What's the typical profile of an investor exchanging from their solely owned income property into a TIC property?
Typically, they have these characteristic or goals:
Listed below are some typically asked questions and answers regarding TIC programs.
Q: What is a Tenant-In-Common (TIC) real estate investment?
Basically, a TIC real estate investment consists of a fractional ownership of institutional grade real estate. The type and quality of real estate owned by institutions such as pension funds, insurance companies and real estate investment trusts.
Q: Who provides these opportunities?
TIC investment opportunities are structured and offered by professional real estate investment companies who specialize in the acquisition, management and sale of income producing investments.
Q: As an individual owner of residential income property, can I execute an IRS (sec.) 1031 exchange from my income property into a TIC investment?
Yes, and with the same benefits of deferring federal, state and depreciation recapture taxes.
Q: I'm dependent on receiving my current monthly cash flow, how do I receive investment income?
TIC programs provide immediate cash flow, which is typically paid on a monthly basis. And it is not uncommon for investment property owners to significantly improve their rental income by exchanging their current property into a TIC program.
Q: If I exchange into a TIC program, I won't have landlord responsibilities any more?
That's right, investors maintain the benefits associated with investment property ownership while eliminating day-to-day property management.
Q: What's the typical profile of an investor exchanging from their solely owned income property into a TIC property?
Typically, they have these characteristic or goals:
- They've owned their residential income property for a long time. Therefore, the equity in their property is quite substantial.
- They want to defer capital gains tax and avoid the possibility of not finding a replacement property.
- Are risk averse, and would prefer to have their equity in an institutional grade property.
- They are nearing retirement age and therefore seek reliable cash flow.
- They want to simplify their lifestyle and prefer not to be active property managers.