TICs (Tenants in Common)

[Austin Deardorff]

Hello Everyone,

For the topic at hand - I recently learned about Tenants in Common (TICs) as a real estate investment option. Although I am not currently pursuing one, as I understand they can be fairly pricey, I was wondering if anyone had any experience purchasing or selling a TIC and if so, did you use it to continue deferring your capital gains since, if done correctly, it is my understanding a TIC can be used with a 1031 exchange. The only case I can see this occurring is for an experienced investor with a fair amount of cash produced directly from capital gains and not a single lucrative investment has presented itself to justify purchasing, even with a 1031 exchange, therefore a TIC is used, which is less costly than the taxes which would be paid on the gains.

From what I've read, there can be a lot of downsides to TICs and a firm understanding of the investment is required to ensure you don't end up spending more than you would if you were to just cash out with the capital gains. 

I hope this make sense and I would love to learn more from someone with experience or more knowledge than myself on the topic!

Thanks