There are many things that you should do before going through with TIC financing, one in particular involving TIC: visiting the property. Before you choose any investment TIC property there are several things in particular that you should be aware of.
This includes learning about time limitations, as after the close of the old investment property the investor has a mere 45 days from the close of escrow to identify three potential TIC replacement properties. Another important issue involves the qualified intermediary, and how the 1031 exchange must be handled by an independent party qualified intermediary.
TIC: Visiting the Property
In particular regards to TIC: visiting the property, this is one of the first and most important steps that you as an investor will need to take. You need to ensure that the property you are considering is right for you and that it is going to be financially rewarding.
There are a few factors in particular that you are going to want to consider when you are choosing a property. How many units there are in the building, whether there have been any evictions on the property, and how long the current TIC partners have been in place all of these are important issues when choosing a property for a TIC.
For TIC: visiting the property, there is one major question that you are going to have to ask yourself, and that is whether you should go with the fractional or traditional TIC. A fractional TIC is one that is a recently new development in home financing, with one of the most major benefits being that each owner is only financially tied to the percentage of the building that they are actually purchasing.
Then there is the traditional TIC, and if the property is already being operated as a traditional TIC and you would prefer to individualize the loans, you do always have the option of individualizing them.
TIC visiting the property is very important because you need to make sure that you are investing your money wisely. Also keep in mind that with proper preparation and common sense, you can reap many benefits from owning property as Tenants in Common. One of the most attractive features of a TIC structure is that when you acquire an interest in an investment property as tenants in common you are not precluded from buying investment property on your own in a subsequent 1031 tax deferred exchange.
Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership.
