Using a Tenant in Common Investment with a 1031 Exchange

As investors build their nestegg, the desire to spend time on family, fun, travel and other pursuit’s increases. The investor needs to answer the following question, "Do I really want to continue the day-to-day management of owning property or would I prefer to delegate the day-to-day management responsibilities to professionals?" The tenant-in-common structure allows the investor to have professional property managers take care of the mundane tasks of collecting rent, performing maintenance, etc., while still participating in the major decisions. Because a TIC or also know as a tenant-in-common ownership is a fee simple deeded interest in real estate, you have the same benefits (appreciation, depreciation, debt reduction and monthly cash-flow) associated with sole ownership of real estate.

Anderson & Kemp assists clients with 1031 exchanges, tenant in common investments and buying or selling investment properties.

Anderson & Kemp structures the TIC 1031 exchange property acquisition first by identifying and locating the TIC (tenant-in-common) investment, then evaluating to insure the investment meets our client’s requirements, arrange for non-recourse financing, identify potential professional property managers, etc. Then we oversee the TIC investment by monitoring the performance and overseeing property management company.

A Better TIC
Not all TIC's are the same!

• IRS Code §1031 explicitly states you cannot do a 1031 tax-deferred exchange into a security. Anderson & Kemp TIC investments are sold as real estate.
• Bought, sold and managed as real estate, not a security
• Because there are no security dealers or security brokers involved in the acquisition and management of the real estate, Anderson & Kemp TIC 1031 exchange real estate investment acquistion costs are much lower, therefore providing higher returns for our clients.
• Anderson & Kemp is a Real Estate Brokerage not a security Broker - Tenant in Common interests are fundamentally real estate transactions and as such consumers are best served by having the expertise of real estate professionals.
• March 18, 2005 the Governor of Utah signed into law SB 64 which exempts tenancy-in-common interests from the state’s definition of security. SB 64 places TIC transactions under the regulatory control of the Utah Department of Real Estate and specifically deems them not to be securities.