Purchasing 1031 exchange replacement properties in the form of Tenants in Common (TIC) is a popular option for many investors.
There are a number of potential advantages of exchanging into a TIC property. As an investor, reviewing the potential benefits and potential risks prior detail prior to investing. Learn more about common FAQs about TIC investments for a 1031 Exchange.
Potential Benefits of Tenants in Common Investments
Tenants in Common are attractive for the following reasons:
Diversification
Investors can select multiple Tenants in Common (TIC) properties as part of their 1031 exchange allowing diversification of asset classes, cities and level of needed non-recourse debt.
Potentially Greater Cash Flow
Most Tenants in Common have a projected cash flow based on the anticipated rental income less expenses. This could be a higher net cash flow than you are currently receiving on your rental property. As with all real estate the income cannot be guaranteed because the rental income and expenses can increase or decrease unexpectedly.
Larger Property Access
Access to Institutional Grade properties which are typically larger commercial properties that previously required significant capital to purchase.
Lower Minimum Investments
TICs have minimum investments often as low as $100,000 – $300,000 of equity allowing investors to diversify. If you require a lower investment amount, let your Corcapa 1031 Exchange representative know and we may be able to negotiate a reduction in certain circumstances.
Non-Recourse Loans
Virtually all the loans within the TICs that are approved by DAI Securities, LLC are non-recourse which means the investor does not personally guarantee them.
Financing Access
Easier access to financing for investors needing debt on their replacement property.
Questions about Tenants in Common?
Request 1031 Exchange DST Property Listings
Please complete the information below to register for access to current 1031 exchange replacement offerings.
We respect your privacy. We Promise To Not Sell Your Information Ever.
"*" indicates required fields