1031 Tenants-in-Common Investment Companies
Has anyone had any experience with the 1031 tenants-in-common companies? It's almost like a REIT, but you are an actual owner. Depending on how expensive the target property is, the investment company will gather 20-50 investors to pool their 1031 proceeds together to buy a large investment property. Most of them buy large upper-scale apartment complexes and strip malls anchored by major retailers. Usually the minimum investment is $200k on up and then you own an undivided interest in the property. Their is an exit strategy in place before purchase. Usually the property is held 5-7 years and you receive monthly checks based on approx 6-8% annual return.
Has anyone else heard of this? Although the returns are lower than I currently receive, there are no management issues, tenant issues, checks to write, etc. Any thoughts? :-?
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Yes, I do between 5 to 10 1031 exchange seminars each week with TIC Brokers and TIC Sponsors. I would be happy to answer any questions that you might have. We are not compensated by any TIC Broker, Sponsor or transaction and are not biased.
One correction, the maximum number of investors that a TIC can have is 35 per revenue procedure 2002-22.
You are more than welcome to call me. Phone numbers are in profile.
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