Bob Khalsa

TIC is a form of investment property ownership where you are holding title to the property along with other investors as a "tenant in common" owner. You can buy and sell your share of the ownership as a TIC sale and you can even do a tax deferred exchange on your portion of the ownership. This is a specialized investment property purchase transaction. It is also treated as a Securities transaction meaning that most real estate agents would probably not be either licensed or qualified to represent you in the purchase.

It is not feasible to detail how this transaction will work without knowing what your requirements are. Incidentally, what is being offered is ownership of 1050 SF out of the 7,442 SF that is available. As a TIC owner, to the best of my knowledge and experience, you cannot specify which portion of the property you own. Your return will be prorated on the proportion you own after expenses are deducted from the income that the property produces. The listing states that you can have an option to purchase. Is this what you want to do?

There are pros and cons of TIC holdings but without knowing your plans and how you want to invest and length of holding it is not possible to give you a simple answer.

Bob Khalsa
Certified Commercial Investment Member
Broker Owner
United America Realty
bobfoxbat@gmail.com - Sat Nov 21 2009, 18:40