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Tenant In Common

Friday, April 21, 2006
Tenants in Common is an investment vehicle that allows a group of investors to purchase real estate. While it has other uses relating to inheritance, this article is going to focus mostly on using Tenant in Common to purchase property with a group of other "partners." This type of investing is becoming increasingly popular among investors looking to trade up in their properties with 1031.

One of the benefits of Tenants in Common is that individual investors can purchase a much larger piece of property than they would typically be able to purchase. A few examples of typical Tenant in Common investments are malls, hotels, and restaurants. There are several securities firms that specialize in helping clients structure a TIC and obtain financing.

There are a few structures that are often used in this kind of an investment. One setup is where the owners elect to hire a property management company in order to make decisions on the short run. Then another setup is where the owners manage the property internally and make decisions as a whole. This structure can often be found in restaurant ownership.
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