A Guide to TIC: Financing
July 24, 2008
Of all the issues relating to TIC exchanges, TIC financing is one of the most important. Individual tenant in common finance implements separate financing for each owner after all, and so it is important for each owner involved here to be aware of TIC financing issues. TIC financing is a concept that has actually existed for many years now, and whenever there is a title held by multiple owners but only one of the owners has signed the mortgage, then the individual TIC financing is created automatically... Read more »
Learning about TIC: Fees and Loads in a TIC Deal
July 24, 2008
If you are considering purchasing a property with additional investors, upfront you need to know more about TIC: fees and loads in a TIC deal. Fractional interest ownership in property is a growing trend as more people see real property as a solid investment for retirement. The most predictable and profitable properties generally will have multiple investors to share the burden, and profits. If you are looking to invest in property with a group, you should be as informed about TIC: Fees and... Read more »
TIC Liquidity And Exit Strategy: Not The Same Thing
July 24, 2008
Despite other kinds of investments, TIC (tenant in common) exchanges are noted for their distinct lack of liquidity (also known as “marketability”). This is one reason why you need an ext strategy that doesn’t rely on liquidity because the odds are, it’s not going to be there. TIC liquidity and exit strategies do not go together. The Word For The Day Liquidity is the word for the day, kids. This means being able to take stuff that you have and turn it into cash quickly.... Read more »
TIC Management Risk In Plain English
July 24, 2008
TIC management risk has nothing to do with the sounds that clocks make (Then there would be a TOC management risk). TIC stands for “Tennant In Common” and is a term commonly thrown around in 1031 investing, which is usually in the real estate market. Confused yet? Good. join the club. But be sure that anything having to do with real estate is going to get the attention of the IRS. Playing With The Big Boys TIC management risk is something that is a concern for owners of incredibly... Read more »
What You Need To Know About TIC Market Risks
July 24, 2008
There are risks in any and every aspect of the real estate market, even in 1031 TIC exchanges. (1031 is the tax-deferred version of Tennant In Common or TIC real estate investment). Just trying to find out what it is carries its own risk. Just look at the headache I have now! Oh, you can’t see me. I forgot. Let’s go on to some more practical advice about identifying and avoiding TIC market risks. Let’s Be Careful Out There You wouldn’t just dive into any old pool of water... Read more »
TIC: National Association Of Securities Dealers (NASD): Keeping Real Estate Agents At Bay
July 24, 2008
The TIC: National Association of Securities Dealers (NASD) is an organization that not only regulates itself but it also deals with the securities industry that in turn is engaged in operating as well as regulating NASDAQ stock market as well as over-the-counter markets. Another aspect to the TIC: National Association of Securities Dealers (NASD) is that it also administers examinations meant to check out the capabilities of professionals engaged in investing and a typical such examination is the... Read more »
TIC: PPM and the Sponsor and Other Information
July 24, 2008
There are many questions that the average person has regarding TIC investments, and it is really no wonder as they can get to be quite complex. Issues such as TIC: PPM and the sponsor and the potential advantages and risks of TICs are especially common, and should be understood in full by any potential investor before they decide to go through with it. Private Placement Memorandum The TIC: PPM and the sponsor or Private Placement Memorandum and the sponsor, is one of the most challenging obstacles... Read more »
The Guidelines of a TIC: Agreement
July 24, 2008
A TIC: Agreement, or Tenants in Common Agreement, is an agreement that is used to establish the rights of people who own property together but who are not related by marriage. Any people who own property together but who are unmarried are considered as being tenants in common, and the TIC: Agreement is then used to cover them and to consider an entity, the property, that they own together. There are certain issues that should be covered by this agreement, including the division of property into individual... Read more »
What is a TIC: Attorney Opinion Letter?
July 24, 2008
One of the most important components of any TIC investment is the TIC: attorney opinion letter. Most PPMs of securitized TICs will, or at least should, include the TIC: attorney opinion letter, and so it is something that all investors and potential investors should be aware and understanding of. What it is The TIC: attorney opinion letter is used in particular situations. Occasionally, TIC interests are treated as real estate rather than as securities, and in this situation a TIC: attorney opinion... Read more »
What is a TIC: Call Agreement?
July 24, 2008
A TIC is a form of vesting title to property that is owned by any two individuals together but who are unmarried. Each tenant in common owns a share of the property and each tenant is entitled to a comparable portion of the income from the property. As a result they must bear an equivalent share of the expenses involved. TIC: Call Agreement It is important to be aware of the structure of a TIC: Call Agreement. Basically there are three different types of TIC: Call Agreement structures, which are:... Read more »
