TIC investments are investments that essential give a person ownership of a piece of large, institutional grade property and a sharing of the income among one or more other people.
The TIC: subscription risk is a very important issue to be aware of, especially if you are considering going through with the TIC investment yourself. You need to be aware of all the different risks and then weigh out the pros and cons and use this to decide whether it is a good idea for you or not.
Risks
The TIC: subscription risk is one of the biggest possible problems that can come with a TIC investment. There is currently a lot of debate surrounding the TIC investments and whether they are really worth it, and whether the investment should be considered real estate or a security.
The TIC investments offered as securities have the advantages of offering full disclosure of all the possible risks that surround the real estate investment, and they give investors and their tax and legal advisors a good opportunity to really check into a potential real estate investment to determine whether or not it is suitable for them and their situation.
Along with the TIC: subscription risk, there are a number of significant tax risks that are involved in purchasing a TIC investment.
Because of the TIC: subscription risk and other risks that are involved with this investment, it is imperative that anyone considering going through with it take the time to consult their tax advisor and legal counsel, so they can intelligently and properly evaluate the possible consequences as well as the possible benefits and decide on the specific type of property that is going to best suit their individual needs.
Remember that a TIC investment is one that is illiquid, and there are restrictions and limitations that are set on the transferability of interest. These investments are not suitable for any investors that are only looking for a short term investment or holding period.
With the TIC: subscription risk and others in mind, you may decide that this is a worthy investment for you and wonder how to get started. You should first fill out the investor questionnaire which will ask you for some basic and personal information and help you get your foot in the door.
Your tax consultant can then work with you, give their own input, and help you to make the best decision here.
Related Articles
Tenancy in Common: Federation of Exchange Accommodators
By: Kathryn Landry | 25/07/2008 | Investing
Many investors are now delving into the idea of going into a joint venture on real estate acquisitions to maximize profits with the minimum financial investments. The idea of tenancy in common (TIC) is to pool financial reserves together with your partners to purchase or acquire multiple properties to maximize profits and capital gains
Tenant In Common: Securities Or Real Estate: A Matter That Is Open To Interpretation
By: Kathryn Landry | 25/07/2008 | Real Estate
Mostly, people that make TIC (tenant in common) investments will have 1031 exchange in mind and even though TIC as an industry is just a small part of 1031 market, it is still increasing at a good rate and thus worthy of serious consideration.
TIC: PPM and the Sponsor and Other Information
By: Kathryn Landry | 25/07/2008 | Investing
There are many questions that the average person has regarding TIC investments, and it is really no wonder as they can get to be quite complex. Issues such as TIC: PPM and the sponsor and the potential advantages and risks of TICs are especially common, and should be understood in full by any potential investor before they decide to go through with it.
TIC: How is the Real Estate Community Involved?
By: Kathryn Landry | 26/07/2008 | Real Estate
With the demand of prime properties worldwide, real estate communities are boasting of profits and capital gains when it comes to their acquired real estate. But despite the knowledge of these investors in the business, there is a way to consolidate as many properties as they can to maximize their profits.
TIC Liquidity And Exit Strategy: Not The Same Thing
By: Kathryn Landry | 25/07/2008 | Investing
Despite other kinds of investments, TIC (tenant in common) exchanges are noted for their distinct lack of liquidity (also known as "marketability"). This is one reason why you need an ext strategy that doesn't rely on liquidity because the odds are, it's not going to be there.
The Guidelines of a TIC: Agreement
By: Kathryn Landry | 25/07/2008 | Investing
A TIC: Agreement, or Tenants in Common Agreement, is an agreement that is used to establish the rights of people who own property together but who are not related by marriage. Any people who own property together but who are unmarried are considered as being tenants in common, and the TIC: Agreement is then used to cover them and to consider an entity, the property, that they own together.
TIC Management Risk In Plain English
By: Kathryn Landry | 25/07/2008 | Investing
TIC management risk has nothing to do with the sounds that clocks make (Then there would be a TOC management risk). TIC stands for "Tennant In Common" and is a term commonly thrown around in 1031 investing, which is usually in the real estate market. Confused yet? Good. join the club. But be sure that anything having to do with real estate is going to get the attention of the IRS.
Everything You Need to Know About TIC: Reserves, Financials, Proforma
By: Kathryn Landry | 26/07/2008 | Investing
The TIC investment is one of great popularity, one that offers many advantages but which also holds many potential risks. In this investment, multiple qualified property owners come together in order to purchase a property or piece of real estate.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Investing Articles
Unsecured Bad Credit Loans: Bad Credit Unsecured Loans Requiring No Collateral
By: Mack Dowse | 21/08/2008
The unsecured bad credit loans are very important to people who have a history of bad credit. Since these loans require no collateral, they are best suited to people with bad credit history. These loans are also very helpful to those people who are reluctant to pledge any of their property. Tenants are also able to take advantage of these loans moreover if borrowers repay these on time it gives people a chance to improve their credit ratings.
How To Make a Killing in Forex Trading
By: Hector Milla | 21/08/2008
It could be stated that, a great percentage of people think that in order to be successful in the forex market you need years of experience, and much important than that a lot of money in your bank account, while this can be truly helpful in some way, it is not a recipe for success. This article is intended to list some basic but useful forex trading advise.
The Road to Become a Super Affiliate in 2008
By: Jasbir Kaur | 21/08/2008
Every affiliate marketer would like to be a super affiliate one day. In fact, you cannot just join an affiliate program and hope that you can make a lot of money. You have to work in order to make your living.
Is Online Futures Trading For You?
By: Sai Vallejos | 21/08/2008
This article is an introduction to online futures trading
How to Succeed in Online Futures Trading
By: Sai Vallejos | 21/08/2008
This article is a guide on how to earn big in online futures trading.
What Are All the Types of Mutual Funds Available?
By: Amy Nutt | 20/08/2008
When it comes down to it, there are thousands of choices when it comes to investing in mutual funds. The only way you're going to know which fund is the best for you is by assessing the investment strategy of that fund and looking at the risks that are associated with it.
Has the Rally Ended?
By: Sy Harding | 20/08/2008
The S&P 500 is still down 14% for the year, still 19% below its peak of last October, and this second bear market is already looking 'Toppy'!
Buying Off Plan Property in Kefalonia, Greece
By: Michelle Jackson | 20/08/2008
Why Buy Off Plan and What Does It Involve?
There are many reasons why off-plan property in general and in particular in Kefalonia is interesting to investors.
Off-plan properties offer an excellent opportunity for investors looking to buy properties at a price that is generally below the market value. In addition, most development companies are prepared to offer a lower price when the project is in an early stage of its development and then the prices increase as the project develops.
More from Kathryn Landry
Learning About TIC: How Does Subscription Process Work?
By: Kathryn Landry | 03/08/2008 | Real Estate
The whole TIC thing is very foreign to many people but basically what it refers to is a partnering with other people to purchase a piece of real estate. You get a group mortgage with the other owners, and so instead of owning your space you own a percentage of the building.
TIC Sponsors Are Entering The Industry In Greater Numbers
By: Kathryn Landry | 03/08/2008 | Investing
Today's changing real estate investment vehicles have made the industry more accessible to different kinds of investors while at the same time complicating things for professionals who are already engaged in the real estate business.
What is a TIC: LLC Placement?
By: Kathryn Landry | 02/08/2008 | Investing
A TIC investment can be very profitable and well worth your time, but before you get too far into it you need to be aware of all that is involved here and learn about the different elements that are contained within the investment.
Tenancy In Common Attorney To Destroy The Venture
By: Kathryn Landry | 02/08/2008 | Investing
Joint venture in real estate is the current trend in this type of business. Many investors have realized that the risk in going into a real estate acquisition, whether for business or commercial, comes with its own financial problems. In order to minimize this problem from occurring, many individuals in the industry are going in Tenancy in Common (TIC) with their partners.
TIC: Due Diligence on a Sole Owner Property and its Importance
By: Kathryn Landry | 31/07/2008 | Investing
The TIC investment is one that has become widely popular, especially over the past few years in particular. Before you can really appreciate the benefits of the TIC exchange properties, it is important that you take the time to become educated and that you understand what a TIC property actually is.
TIC Securities Broker/Dealers Stand To Make Lots Of Money
By: Kathryn Landry | 31/07/2008 | Investing
The TIC industry is entering into its eleventh year and expectations are high that growth in this industry will be appreciable because investor confidence is growing all across the board and volumes of transactions too are rapidly increasing and more and more new sponsors are also entering the market.
Private Placement in Securities Regulation D Defined For Your Understanding
By: Kathryn Landry | 31/07/2008 | Finance
The purpose of this article is to have private placement in securities regulation D defined so that you can understand it. Security law can be very complicated for anyone who is not a lawyer, so getting it defined in easy terms will help you understand how regulation D applies to you and your sale of equity.
Tenant in Common Properties: Several Co-Owners with Different Shares in the Ownership
By: Kathryn Landry | 26/07/2008 | Investing
The simplest answer when it concerns learning more about what are tenant in common properties is that it is a form of co-ownership of property in which two or even more people can have part interest in an investment property.
Finance 
