Simplify The 1031 Tax-Deferred Exchange With A No-Management Investment

St. Petersburg, Florida— A new book has been published on a specialized commercial real estate investment type called Tenant in Common or TIC properties. Effortless Cash Flow: the ABC’s of TICs (Tenant in Common properties) by Kathy Heshelow, a commercial real estate broker and private placement securities specialist.

Effortless Cash Flow: the ABC’s of TICs was written to educate investors, real estate professionals, accountants, advisors and others. TICs are passive income, institutionalgrade, pre-packaged commercial real estate properties that pay a monthly cash flow and offer all benefits of real estate ownership. In a TIC, there is not one investor but many, and there is no management responsibility or day-to-day involvement. The largest amount of offerings are in Office, Retail Centers and Apartment complexes. However, other asset types such as hotels, industrial buildings or even golf courses are offered from time to time.

Why can a TIC simplify the 1031 exchange? An investor must identify the properties that he intends to purchase in 45 days from the sale of his investment property, so time is very short and difficult to handle (letters of intent, contracts, due diligence, financing arrangements, etc.). With a TIC, all due diligence and financing has been done and is ready; all tenants are in place and paying rent; and the management company is already in place. An investor can review the due diligence and property information in short timeframes and make decisions well within the 45 day deadline. Not only that, but they could also diversify into several properties (the minimum equity required will vary from property to property, but the minimum is usually at about $200,000 or higher). In addition, the investor usually moves to a higher-quality asset – most TICs are Class A institutional-grade properties.

Call Our Toll Free: (888) 275-2757 or Contact Us Online For a No-Obligation Consultation