Weighing the Risks

Tenant in common opportunities may not be suitable for everyone. Of course with any real estate investment there are risks. TIC Investments, Inc. will work with you to assess your specific risk tolerance and only extend recommendations that fall within those parameters. Two common risks frequently asked about by investors concern leases and liquidity.

Leases
Your investment will disclose the existing lease terms for each tenant and in many cases the results of the TIC Sponsor interviews with the existing tenants. These results, along with thorough industry and market analysis, will be crucial in your selection of investment. For example, a property with a majority of the space leased to government agencies or Fortune 500 companies generally offers less risk than properties where a majority of the tenants are smaller, independent companies.

Liquidity
If you are a current property owner, you already realize issues regarding real estate liquidity. Listing the property, finding a buyer, negotiating price and completing the transaction can be a time consuming process.

TIC sponsors typically project a holding period for each TIC property of three to eight years. With lender approval, investors are permitted to sell either a fraction or all of their TIC ownership without early liquidation fees. In most circumstances, the TIC sponsor can assist you with the sale of your portion, as can TIC Investments, Inc. If you expect to need your investment before the hold time is realized, a TIC opportunity may not be the best option for you.