Why consider a 1031 Exchange to a TIC Property?
A 1031 Exchange can defer capital gains taxes and the recapture of depreciation, a tax liability that could exceed 35% of your profit in an outright sale.
Fractional (TIC) ownership gives investors the ability to diversify a 1031 Exchange into more than one property and to participate in investment grade real estate. This can allow small investors in one area of the country to reposition assets into large industrial, commercial, and multi-family properties, real estate the sponsor believes to be in the path of growth. A TIC investment can eliminate much of the expense and hassle of property management and leasing as well as provide access to otherwise unavailable Investment Grade Real Estate.
IMPORTANT
You must review the following information before gaining access to the contents of this website
TIC properties are only available to Accredited Investors. An Accredited investor is defined as “Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000, excluding personal residence” See below for further information:
| Are you an *Accredited Investor? Required Field |
|
| *Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000, excluding personal residence OR Any natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year, OR Any trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase of the securities is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment OR Any organization that was not formed for the purpose of acquiring the securities being sold, with total assets in excess of $5,000,000 OR And, any entity in which all of the equity owners are Accredited Investors. |
|
This material is for educational purposes and does not constitute an offer to purchase or sell real estate securities. Such offers are solely made through the sponsor's Private Placement Memorandum which is only available to accredited investors. IRC section 1031 exchanges of real property are complex tax planning concepts; you should consult your tax professional for details regarding your specific situation.
A TIC interest is an investment in real estate and is an illiquid investment. There is no established secondary market for the resale of TIC interests. As TIC interests are direct investments in real estate, they are subject to all risks of owning, operating and disposing of real estate. Results from investing in real estate vary through cyclical economic times. The cost to acquire a TIC interest may be more than purchasing a property by the whole due to additional expenses of making the property available to multiple co-owners and marketing it in the form of a private security offering. Additionally, the cost of debt service and relative tenant vacancies are also important considerations that can affect the overall value of your investment. Therefore, TIC investments may not be suitable for investors who are looking to resell their real estate within a relatively short time-frame.