Best west coast market for multifamily investment

[Tony F.]

I am looking to leverage my equity some by selling some paId off single family homes I have and 1031 exchanging into bigger multifamily complexes. I have a construction back ground, I don’t have time for big renovation projects, but would like the buildings to be located somewhere I could visit semi easily yearly and lay eyes on my investment. I’m living in Northern California. Consider Reno, Boise, Sac, Sf baY, So CaL, Spokane, Seattle, Oregon all to be with in my reach/comfort zone as far as being able to visit easily to shop and monitor after purchase. I’m looking for buy hold properties for long term investments. I have another job and don’t need huge cash flow right away, just don’t like seeing my money not working for me sitting in paid off single family houses. Thanks for any thoughts or advice.

[Matt Ward]

Originally posted by @Kelley Phan:

@Matt Ward

Hey Matt, I stumbled over this and I am wondering what is a TIC? What are the pros and cons to this?

@Tony 

@Tony F.

A TIC (tenancy in common) is where you own a fractional percentage of the property and share in the profits and losses in accordance with your ownership %.

Instead of owning a % of an LLC like a syndication you own the property on paper (title, loan, etc). There will propabaly be investor qualifications (accredited or sophisticated) but it's a great alternative that allows folks who want to get out of a participation (hands on) ownership role and 1031 up into a more risk averse large MF building while being hands off.

The sponsor will take fees of course like a normal syndication (most likely) and the returns may be slightly less, but you should still share the appreciation rights and ultimately just continue to 1031 up and up.

Happy to answer questions.  My knowledge is derived from advising clients about these deals and also preparing the tax returns at the sponsor level as well.  I am not an expert.  😃