Risks and Disadvantages Involved In A TIC Investment Property

Tenant-in-common investment properties have many benefits for a real estate investor, but there are also risks associated with any real estate investment, and TIC investment property interests in particular, that should be addressed when evaluating a tenant-in-common investment property offering.

Risks and Disadvantages

There are many risk and/or disadvantages that should be addressed by any real estate investor that is contemplating investing in a TIC investment property.  The following are just some of the issues that we thought should be mentioned. 

• Illiquid investments
• No active or liquid secondary market
• Potentially long-term holding period
• Unique upfront fee or load structure
• Fluctuations in market value due to occupancy and economic factors
• Potential for capital calls if poor property performance or management
• Only available to accredited real estate investors
• Must meet suitability requirements
• Not all good real estate investments

The TIC investment property strategy is not appropriate for everyone and should always be reviewed by your legal, financial and tax advisors prior to making any investment decision. 

Comments

[BizBlogged1]

Some of the other issues with TIC are,

Owners must be tenants in common under the local law of the jurisdiction where the property is located.
Owners may undertake only certain real estate activities.
Owners must retain the right of partition.

[Investment Advice]

Their articles here are a platform for policy debate, and discussing other developments in Westminster.

Thanks for this nice post..

Thanks
Rakesh