The Advantages of TIC Investments

apartment propertyMost people believe that real estate is a good investment. It is, in general, but it also means putting in quite a bit of money. Tenant-in-common or TIC investments may be a bit of a compromise in that sense. Here, 1031 Exchange Place explains that you can buy a part of a bigger property with some other investors, and your share of the profits will depend on the percentage you own.

A TIC can have as many as 35 owners. In many cases, TIC owners stay with the investment for about five years before selling it. Here are some of its advantages.

Stress-Free Management

Renting out property may seem like an easy way to make money. However, ask any property owner about it, and you’ll see it is a lot of hard work. If you own part of a TIC investment, a property management company handles all of that stress. All you have to do is wait to get your share of the profits to come in.

Deferred Taxes

Under Section 1031 of the Internal Revenue Code, you can delay paying taxes on the capital gains from selling a like-kind property if you buy into a TIC. Of course, you have to qualify for it. You can usually rely on a 1031 exchange service to handle that for you as well.

Flexibility

The great thing about buying into a TIC is that you have a wide range of choices. You can choose to invest in a residential apartment building, a commercial block, or even a mall. Since you can put in any amount you want for a part of the pie, you can actually afford anything on offer. Ask your exchange service if they can find the type of property you want with a TIC structure.

TIC investments are a great option for some people because of the huge advantages they offer. You do have to be careful where you invest it, however. Consult your exchange service for some advice.