Tenant In Common (TIC) Investing

[Eric Simich]

I have come across the topic Tenant In Common (TIC), many times, while researching REITs.

How does one become a TIC investor?
How does one find a TIC?
What are the added benefits/disadvantages of becoming a TIC investor?

Thank you for your time and patience, I appreciate it! Advice is much appreciated!

[Dave Foster]

@Eric Simich and @John Hagen, better late than never. But TIC investing is very much alive and on the rise. There are several ways to invest in TICs. @Alex Kim is referring to a recent phenomena that is becoming especially prevalent in the Bay area where several investor get together and share ownership in an expensive asset as tenants in common.  Each one simply owns a % interest of the actual real estate asset.  

There is another type of TIC that adheres to the regulations of Rev Proc 2002-22 and acts a lot like a syndication. The investors are passive but actually own a % of the asset (usually a NNN property with a large national tenant).

In both the cases the key is that the investors actually own or purchase tenant in common interests in the property itself.  this makes it qualify as replacement property for 1031 exchanges.  As the market continues to mature these types of products become increasingly am important exit strategy for an investors portfolio.