What is a TIC

Tenancy-in-Common real estate ownership

A Tenancy-in-Common (TIC) is a form of real estate ownership in which:

• two or more people own undivided, fractional interests in a property
• ownership shares do not have to be equal
• ownership interests can be inherited
• owners receive a proportionate share of the income, gain, loss, deductions and credits generated by the property
• each owner receives an individual deed at closing

Benefits of TIC ownership may include:

• monthly cash flow
• depreciation tax advantages
• property appreciation
• ownership of higher-grade properties - such as multifamily housing complexes, office buildings or shopping centers - with minimal investment
• ownership without the day-to-day hassles of managing the properties

IRS rules cap the number of investors at 35, and the equity required to invest varies with the purchase price of the property and the percentage of leverage against the property. Minimum investment amounts can range as low as $100,000.