1031 Exchange and Tenancy-in-Common: Seeking the Right Investment Advisor tic to Achieve Goals

A long-standing in the federal tax code, section 1031, allows real estate investors to sell property that has been held for investment purposes and defer capital gain and depreciation back taxes if they acquire “like-kind” exchange property of equal or greater value and reinvest all of their equity. Since mid-1990’s, many investors have experienced the benefits reinvesting their equity into investment property interests structured as Tenancy-in-common (tic). Tic fractional owner holds full ownership interest in investment property evidenced by the trust deed.

Tic, also known as the Co-ownership of Real Estate (CORE), which allows investors to participate in the ownership of institutional-grade, professionally managed investment properties. Investor’s equity can be diversified among several properties, geographic markets and real estate companies, potentially increasing both the value and safety of investment real estate. Tic / CORE investments are designed to offer preservation of capital, predictable cash flows and long-term appreciation in institutional-quality investment property assets, the greater advantage of economies of scale.

With the features and benefits, tic / CORE is the increasingly popular 1031 exchange option for many real estate investors. However, the 1031 exchange and tic / CORE transactions are very complex, with both tax and legal issues topping the list of potential pitfalls. It is therefore important that the investor will be knowledgeable about what to look for in a quality advisor. Financial advisers are required by securities laws to be properly licensed to consult on client tic / CORE transactions and interests in real estate investment. Financial adviser should hold both Series 7 and Series 63 securities licenses to qualify as a broad, fat consultant in the investment process. It is important that they have experience in commercial real estate business, in addition to the understanding of private client investment goals and fitness problems.

But perhaps the most important component to look for in a tic financial advisor is their intimate, trusted and very rooted relationships with key real estate companies. This attribute is important for their ability to provide the best for their clients. There are almost 80 real estate companies across the country

Countries that either already involved or considering involvement in tic / CORE industry as a real estate provider. As with any industry, 80 companies representing different levels of intellect, experience and quality. To achieve the great potential for the client, a financial adviser must be consistent access to ten percent of the company to provide clients access to the best properties available. Of course, a new financial advisor with little or no experience or knowledge of the industry may not have access to top real estate providers, as service providers prefer to work with the specialist consultant experienced this unique market segment.

Investors should also be aware of how their financial advisor stacks up, you explore the history of successfully completing a transaction. A long and proven track record that is a professional financial advisor experienced. Investors want to be a counselor in the corner asking all the right questions, make recommendations for appropriate and suitable, the nuances successfully completed the tic / CORE transactions and providing answers to any and all tax and legal questions.

If you want to or need to make money fast, you are more interested in high-risk investing, which will provide a greater return in a short time. If you save for something that far in the future, such as retirement, you want to do a safe investment to grow again during the period of time.

Overall investment goal is to create prosperity and security, during the period of time. It is important to remember that you will not always be able to obtain income … You will eventually want to retire.

You also can not be calculated on the social security system to do what you expect to be done. As we have seen with Enron, you also can not always rely on the company’s retirement plan either. So, again, investment is the key to insuring financial future of your own, but you need to make smart investment!

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