Tenancy in common investments (‘TIC’ or ‘TIC Investments’) have become a booming industry worldwide in recent years, as evidenced by the popularity of Fractional Ownership projects and Private Residence Clubs (PRCs).
A tenancy-in-common investment (normally in real estate) in one which is co-owned with other investors. TIC investments are typically made in projects such as apartment houses, shopping centers, office buildings, etc. More recently leisure or vacation properties have begun to offer this investment vehicle.
This type of investment appeals to buyers who are tired of managing real estate. TICs can provide a secure investment with a predictable rate of return on their investment, and appreciation potential. Management responsibilities are provided by management professionals. Syndicators of TICs are called ‘sponsors.’ Investment offerings can be made directly by the Sponsor or by brokers who can assist taxpayers with an assortment of offerings currently on the market.
Buyers considering a TIC investment need to be prepared for an investment which may last for several years with limited liquidity. Buyers should research track records and management performance of sponsors who are offering TIC investments. They should also carefully review any available proforma operating statements and prospectus, and thoroughly understand resale provisions and management fee structures.
Tenancy in Common is an alternative for many who want a 2nd home or investment property in a resort area, and do not plan to use it themselves year round. Contact our Coldwell Banker agents to discuss these real estate opportunities and local laws.
