In 2002, the
IRS issued guidelines (Revenue Procedure 2002-22) governing
the structure of Tenant In Common (TIC) property investments.
These guidelines dictate that a Tenants In Common, also
known as co-ownership of real estate (CORE), should
have no more than 35 investors. The typical structure
includes from 12 to 20 TIC/CORE investors in a property.
Tenants In Common investments vary from property to
property. The minimum equity amount varies depending
on the property, the amount of equity being placed,
and the number of co-owners. Generally, loans range
from 5-10 years and coordinate with the specific business
plan set forth for buying the investment property. The
typical stated minimum investments range from $100K
to $650K, though some of the larger investment properties
will have much higher stated minimums.
Each Tenant In Common investor receives monthly checks,
with initial cash flow ranging between 5-8% of the initial
equity (cash) invested. Overall annual returns are projected
in the low to mid teens including cash flow, appreciation,
and principal reduction of the non-recourse financing,
depending on the property.
Each Tenant In Common investor receives monthly checks,
with initial cash flow ranging between 5-8% of the initial
equity (cash) invested. Overall annual returns are projected
in the low to mid teens including cash flow, appreciation,
and principal reduction of the non-recourse financing,
depending on the property.
An investor's TIC/CORE interest can be purchased, sold,
gifted, bequeathed by will, or inherited, and is subject
to property taxes, gift tax, estate and inheritance
taxes in the same manner as a sole ownership property.
Contact us for
more info on CA Real Estate Investments - Tenants in
Common
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