What is TIC ownership?
Tenant-in-Common (“TIC”) is a form of direct real estate ownership in which multiple investors each hold an undivided, fractional interest in a property. TIC ownership allows multiple purchasers to combine their equity, thus providing access to investment grade real estate. TIC investors are drawn to larger properties with professional property management, sophisticated asset management, plus a higher quantity and quality of tenant.
Many investors seek a TIC structure in order to be freed from the day-to-day management hassles of sole ownership. As Sponsor, Investors Management Group, Inc. (IMG) sources acquisition properties in select markets throughout the country, conducts due diligence, arranges financing, provides asset management and accounting reports, and executes the final disposition – all for the benefit of its investors.
Can a Tenant-in-Common ownership help me maximize a 1031 Exchange?
Yes. A TIC interest can satisfy a real estate investor’s 1031 exchange. The exchanger can not only invest in a high-caliber, income generating, professionally managed TIC property, but can also defer capital gains taxes.
In 2002, the IRS issued formal guidelines for structuring TIC offerings to satisfy the “like-kind” requirements of 1031. Since then, thousands of real estate investors have used TIC properties as an alternative to sole ownership for 1031 exchanges.
Investors Management Group, Inc., as Sponsor, designs its offerings to meet current IRS guidelines and to accommodate the needs of accredited exchange investors.
How does a Tenant-in-Common ownership differ from Delaware Statutory Trust?
Both TICs and DSTs allow investors to have a more hands-off approach to their investment. Both are structured as a security, and only accept funds from accredited investors. DST structures can have hundreds, or even thousands, of investors, allowing lower minimum investments. With TIC structures, each TIC is on title and has very proscribed involvement and voting rights — therefore, lenders prefer to limit the number of TICs in any ownership group.
Both TICs and DSTs are potentially eligible for tax-deferred 1031 exchanges, provided the structure meets IRS guidelines.
Read more in Karlin Conklin’s GlobeSt.com article: Tenancy In Common Versus Delaware Statutory Trust
Download: Tenant-in-Common – IMG Information Sheet
For more than 25 years, IMG’s principles have specialized in value-add investments in need of recapitalization, repositioning, or significant renovation in carefully selected U.S. markets.
Call (971) 888-4010 for more information.
All offers and sales of any securities will be made only to Accredited Investors through a Confidential Private Placement Memorandum and any exhibits and attachments thereto (collectively, the “PPM”). Past performance of IMG-sponsored investments may not be indicative of future results.