These TIC investments have become incredibly popular around the world, especially over the past few years in particular. They are considered as being one of the best exchange solutions for investors who are seeking to defer capital gains taxes and free them from property management.

Potential Benefits

There are many potential benefits that can come out of a TIC investment. For one you are able to own management-intensive real estate, but at the same time you are free from many of the problems that are associated with management.

There is also the fact that the TIC allows you the investor to exchange your management-intensive property for an institutional quality property with the potential to generate steady income, tax benefits and appreciation.

TIC: Tenants

The TIC: tenants are on deed and considered as being direct owners of any real estate owned. They share the income, tax benefits, appreciation and depreciation. In other words they divide up both the gains and losses, and as a co-owner your undivided interest can be transferred to your heirs.

A TIC coupled with 1031 tax-deferred exchanges provide more flexibility than a traditional 1031 exchange to the investors involved, and this refers to everything from the investment size and timing to additional diversification and institutional investment quality real estate.

The purchase of a TIC structure allows investors to purchase an interest in a significant real estate asset one that is most likely larger than what they would be able to obtain individually. This is actually the main purpose for a TIC: tenants investment, and why they are such popular investments these days.

These investments are also commonly chosen because they can provide credit-worthy tenants and because they can secure monthly income and growth potential. There are also certain risks that are possible as well however, and which all investors and potential investors should be aware of before getting themselves involved here. Also it is very important to know that there are certain federal securities laws which may govern the marketing of TIC interests in many cases.

By taking the time to weigh out both the pros and cons of this investment you will be able to decide not only if it is worth it but whether it is the right investment for you.