What are the benefits in owning a fractional interest in a Tenant-in-Common Property?

Simplicity

In most instances a TIC owner receives a monthly check without the responsibility of management obligations.

Ability to Invest in Larger, Institutional Grade Properties

A TIC structure allows the owner  access to a larger pool of institutional-grade investment properties or single tenant properties with Triple Net Lease arrangements, such as an office building, apartment community, retail center, industrial property, which may cost anywhere from $5 million to more than $150 million. 

Diversification

Some TIC owners can feasibly identify and acquire ownership interest in many properties.  This allows geographic diversification as well as property variety.  Risk may be decreased through diversification.

Cash Flow

Cash flow is generally paid monthly and may be partially tax-advantage because of depreciation and interest deductions.  There is a possibility for asset appreciation when the property is sold.

Flexibility

TICs provide for deferral of taxable boot on relinquished property.  By identifying a TIC property as one of the replacement choices during the Identification Period, normally the proceeds can be applied to the TIC property. Should other choices fall through or if money is left unspent after another closing, it sometimes can be invested in a TIC property.