To cope with this scenario, many real estate investors and individuals are looking for partners in real estate acquisition. This joint venture is best described as Tenancy in Common or TIC. This kind of venture allows individuals to pool their resources together to purchase one or more properties to further expand their business, or to maximize profit quite impossible to achieve as a single individual.



This kind of venture is quite popular with its ability to reduce the financial risk of the parties involved. Other advantage includes minimizing the business expenses of each co-owner by sharing it with the rest of the group, depending on the percentage shares of each individual. This further reduced the risk of over-financing the business over unnecessary expense.

Fractional loans

TIC lenders have formed a consortium regarding the idea of fractional loans which allows co-owners to individually initiate mortgage from lending firms; which can be paid individually depending on the allocation of shares in joint ventures. TIC lending firm offer different rates, like interests, depending on the scale of the business of these TIC ventures.

A co-owner can engage in a separate loan with TIC lenders which involves a signed note covering the individual's share in the property, along with a deed of trust of covering the co-owners share. In case of a defaulted loan, TIC lenders can immediately foreclose the co-owner's share without affecting others in the process, unlike those in group financing by other lenders. Many TIC groups are now aiming for TIC lenders who offers fractional loans to minimize the risk of tarnishing the company's image through bad credit, or worse, terminating the business..

Since its advent roughly around 20 years ago, many private lending firms pushed the idea of TIC lenders to various individuals in the joint venture. These lending firms now offer individual notes and finances for fractional vacation home developments, which is on the rise since the steady influx of tourism.

Many TIC lenders such as banks and other private firm's look into the possible profit to be had in fractional loans, as opposed to normal loans engage in home development and business refinancing. Considering the low-risks involved in such a venture, many TIC lenders recognized the possible growth to be had in profit and capital gains through this individual specific loans for tenancy-in-common organizations.