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?

For more information and experienced guidance about TIC investments, contact 1031 DST Solution presented by Corcapa 1031 Advisors.

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