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TIC's are not just for 1031 Exchanges. Sometimes people are selling
property and either are unable to do a 1031 Exchange or elect not to do a 1031
Exchange. Reasons include corporate ownership of the relinquished property, partnership ownership of relinquished property where partners are not willing to "drop then swap", holding period of the property too short for 1031 Exchange, not enough profit to justify 1031 Exchange, etc. However, such sellers often wish to reinvest in real estate. Others may be selling stocks or bonds, or liquidating CD's and want to reinvest in real estate. Others have come into money from various
sources (inheritance, legal settlements and even the lottery) and wish to
invest their money in real estate. Of course, traditional real estate, REIT’s, etc. are also available for such investors, but TIC's are candidates, too.
At least 50% of the TIC’' 1031Replace.Com assists people to purchase are not for 1031 Exchanges.
Of course, 1031 Exchangers receive the additional advantage of investing pre-tax dollars in TIC's, but all of the other advantages are available to regular cash buyers of one or more TIC's, i.e., relatively effortless entry, prepackaged with non-recourse
mortgage for leverage, investment grade properties, no management headaches,
regular cash flow, etc. Also, cash buyers usually will have more basis in the TIC to depreciate against because 1031 Exchangers bring forward the lower basis of relinquished properties into their TIC's, so cash buyers may find that more of their TIC cash flow distributions will be sheltered from tax because of the greater depreciation deductions.
If you have at least $100,000 to invest, we can assist you to be a real estate investor by purchase of TIC's (you might also consider private REITs that we have to offer that may require even less than $100,000). Purchasing one or more TIC's per year for at least ten years can provide a handsome income supplement, and you will share in any profit achieved on resale of the TIC property. |
