The benefits of exchanging into Tenant In Common (TIC) property ownership can be compelling, but must be considered against risk, fees, value and suitablitlity.
Defer Taxes, shelter income and continue doing it
1. By utilizing TIC’s for your 1031 exchange you can completely defer all capital gains and recapture taxes and keep your money working or you. Federal tax rates for long term capital gains are 15% and 25% for recapture taxes. State taxes vary, but often are between 7-9%. In the future event that the TIC property is sold for additional profit, another 1031 exchange can be transacted with continuous tax deferral.
No more management Hassles
2. TIC investments are professionally managed offering direct real estate ownership without the hassles of day-to day management.
Diversification
3. Diversification allows you to reduce the risk of having large amounts of equity in one location and one type of real estate. You can diversify extensively geographically and by type of property, e.g. office, multi-family, self storage, retail industrial warehouse etc. If you sold land, a duplex, rental home or an office building for example, for $900,000 of equity, you could then exchange $300,000 into a 300 unit apartment complex in North Carolina, $300,000 in a class A office high rise in San Diego and $300,000 in an industrial warehouse in Iowa and be much better diversified. We can help you match your suitability and financial goals, objectives and comfort levels to meet your needs.
Large Institutional Grade Income Properties
4. TIC exchanges have made possible direct ownership in large high grade income properties previously only available to large institutions buyers such as REIT’s, pensions or other large investors.
Net Cash Flow
5. Exchanging into TIC’s can potentially significantly increase your cash flow. Large institutional class property is usually bought and sold on capitalization rates (cap rates) or net income rates. This potentially allows you to sell when property values are high in one part of the country and exchange into other parts where cash flow may be significantly more attractive. Additional, non recourse debt (meaning no personal liability) can also provide further depreciation and shelter significant portions of your net cash flow.
Access to Carefully Selected National Real Estate
Providers
With a TIC property investment, you also gain access to our carefully selected, national real estate companies who source investment property and garner fixed-rate, non-recourse financing with institutional terms for Tenants In Common owners.
Extensive Due Diligence
Extensive due diligence is conducted on each investment property offered to Tenants In Common by the real estate company, the lender, and the securities industry. Our team of MBA’s and experienced real estate professionals will work hard to match your specific needs and financial goals with the most appropriate and attractive properties available.
The Experts in 1031
Exchange Strategy.
The material contained herein is for informational purposes only and
does not constitute an offer to sell or buy real estate or securities.
Investments suitable for accredited investors only. There are material
risks associated with the ownership of real estate.
Securities offered through
Steven L. Falk & Associates, INC.
11280 Granite Ridge Drive
Suite 1042
Las Vegas, NV 89135
(T) 702-240-0174
(F) 702-254-4962
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