1031 & Tenants-In-Common

[Payman A.]

Ladies & gentlemen,

I am selling some properties, which is great in a seller's market, but looking to exchange, which isn't great in a seller's market. An option I'm looking at is to partner with someone using a TIC purchase but wondering if I'd be able to buy additional ownership from other owner(s) of the same TIC ownership if I sell more properties down the line. Anyone have any knowledge or experience? Thanks!

[Payman A.]

Originally posted by @Dave Foster:

@Payman A., Yes you can. That's one of the nice things about a TIC structure and flexibility. When you own as tenants in common with another person or entity both of you actually own your own property. That property just happens to be part of a bigger property. But your % is a unique piece of real estate.

So if you went in with a parter (or a seller was willing to sell you a % of the property they own) to complete a 1031 exchange that is fine.  And if you later sell another property and want to purchase their remaining tic interest as a replacement that is fine as well.

I like the creative thinking.

Hi Dave and nice to be in touch with again!

I appreciate the response and glad to know this is an avenue I can consider.  I'll update the thread with what we end up doing.

Best,

Payman