1031 Into Passive Investment Through TIC?

[Paul V.]

1031 exchanges have been interesting to me, although, outside of a DST, they still require active management.

I received an invitation from a well regarded real estate developer to 1031 exchange into an acquisition they are doing. This is made possible by them setting up a Tenants In Common (TIC) structure.

Has anyone done this before? Looking forward to hearing your experience.

[Jake Andronico]

@Paul V.

These are super common. There are pros and cons to everything, DST's included.

Typically: 

Pros: 

- Fully passive

- Equity growth (hopefully) 

- Smooth process 

Cons: 

- No control

- When they liquidate, you liquidate and need to 1031 again (usually they have other funds set up, however) 

- Make sure debt is rolled over correctly 

Hope this is helpful! Best of luck to you!