Where are the Real Estate TICs?

TICs are fractionalized, fee-simple interests in real property, which were increasingly used in 1031 tax-deferred exchanges since 2002 when the IRS clarified their compatibility for 1031 exchanges. While the purchase of TIC interest is technically a real estate transaction, TICs were largely sold as securities during their peak in 2003-2007. However, during that time there were many TIC sponsors that sold their TIC properties as real estate. In this format of tenant-in-common real estate ownership, investors receive their own warranty deed for the purchase of a fractional interest in an entire property. Through TIC ownership, the average person can enjoy the benefit of owning an institutional-grade property with a minimum investment. With minimums as low as $50,000, investors may own percentage interests in multiple TIC Properties for maximum diversification. TIC Properties remove the barriers of investment real estate ownership for the passive investor.

Call for Nation’s Largest TIC Selection – 1-800-872-1031

TIC Properties are particularly suited for sellers of real estate involved in a 1031 exchange (“1031 Exchange TIC Properties”). Most TIC Properties are leased to national or regional tenants, such as Walgreens, AutoZone, and Dollar General, and provide a secure monthly income with no management responsibilities or out-of-pocket expenses. Each TIC property owner benefits from any income or appreciation enjoyed by all the owners. Even today, in 2018 there are a number of firms providing these type of investments to 1031 and cash investors.

TIC Property Purchase Process

  1. Identify one or more TIC properties with your 1031 intermediary
  2. Sign the TIC purchase documents
  3. Instruct your 1031 intermediary to wire funds
  4. Your warranty deed is recorded for your ownership percentage
  5. Your monthly income is direct deposited into your checking account

Passive Income

When it comes to real estate investing “passive” is a two-edged sword. As investors approach retirement, their appetite for hassle, moving parts, and market fluctuations diminish. They want their real estate investments to work for them and not them working for the real estate. But, to benefit from the passive income these properties can provide, a person must give up some control. This can be hard for some. As you consider your objectives, you might ask yourself, “Do I own the property or does the property own me?”  Typically, when investors consider the lifestyle they want, giving up control is a small price to pay. Giving up day-to-day management headaches, ongoing decision-making, and unexpected expenses to receive passive income, can be an easy decision to make. A TIC Property owner receives their prorated share of the rent direct deposited into their bank account. Receiving passive income allows you to be anything but passive – allowing you to spread your time actively engaged in the things that matter most!

Sample TIC Properties – Contact for Current Deals

Family Dollar - Kansas

Location 1015 S 10th St, Great Bend, KS
Lease Type NN
Property Type Retail
Building Sq. Ft. 8320
Lot Size 1.87 Acres
Minimum Investment $50,000
Amount Raised: $1,066,000
Price Per Sq Ft $128.13
Rent Per Sq Ft $9.61
Current Cash Flow 7.00%

Dollar General - Illinois

Location: 301 Ea State Rt 115, Herscher, IL
Lease Type: Absolute NNN
Property Type: Retail
Building Sq. Ft.: 9026
Lot Size: 1.14 Acres
Minimum Investment: $35,000
Amount Raised: NA
Price Per Sq Ft: NA
Rent Per Sq Ft: $10.31
Current Cash Flow: 5.75%

Dollar General - Mississippi

Location: 1523 CR 101, New Albany, MS
Lease Type: Absolute NNN
Property Type: Retail
Building Sq. Ft.: 9100
Lot Size: 1.50 Acres
Minimum Investment: $50,000
Amount Raised: $1,578,500
Price Per Sq Ft: $173.46
Rent Per Sq Ft: $10.41
Current Cash Flow: 5.75%

Fresenius - OKC

Location: 7201 Cherokee Plaza Oklahoma City, OK
Lease Type: NN
Property Type: Medical
Building Sq. Ft.: 13,628
Lot Size: NA
Minimum Investment: $50,000
Amount Raised: $6,235,000
Price Per Sq Ft: $457.51
Rent Per Sq Ft: $22.87
Current Cash Flow: 5.00%

Fresenius - Utah

Location: 1735 West 2700 North Farr West, UT
Lease Type: NN
Property Type: Medical
Building Sq. Ft.: 7256
Lot Size: 1.2 acres
Minimum Investment: $50,000
Amount Raised: $6,250,000
Price Per Sq Ft: $861.36
Rent Per Sq Ft: $43.09
Current Cash Flow: 5.00%

Fresenius - Enola

Location: 390 East Penn Drive, Enola, PA
Lease Type: NN
Property Type: Medical
Building Sq. Ft.: 5139
Lot Size: NA
Minimum Investment: $50,000
Amount Raised: $2,279,187
Price Per Sq Ft: $443.51
Rent Per Sq Ft: $23.91
Current Cash Flow: 5.39%

Tractor Supply Co - OK

Location: 3105 West Third Street, Elk City, OK
Lease Type: NN
Property Type: Retail
Building Sq. Ft.: 23,878
Lot Size: 2.59 acres
Minimum Investment: $50,000
Amount Raised: $1,381,700
Price Per Sq Ft: $57.86
Rent Per Sq Ft: $3.66
Current Cash Flow: 6.33%

Kay Jewelers - PA

Location: 115 N Hermitage Road Hermitage, PA
Lease Type: NN
Property Type: Retail
Building Sq. Ft.: 2600
Lot Size: .87 acres
Minimum Investment: $55,000
Amount Raised: NA
Price Per Sq Ft: NA
Rent Per Sq Ft: $52.40
Current Cash Flow: 6.00%

Noah's - Indiana

Location: 13315 Illinois Street Carmel, IN
Lease Type: Absolute NNN
Property Type: Event Center
Building Sq. Ft.: 15,800
Lot Size: 1.86 acres
Minimum Investment: $150,000
Amount Raised: $6,260,000
Price Per Sq Ft: $396.20
Rent Per Sq Ft: $27.72
Current Cash Flow: 7.00%