TIC Benefits

With no more property to manage, you have more leisure time to relax or pursue other Interests. In addition, because someone else is managing the property for you, there are no geographical limitations. You are free to invest in real estate markets nationwide.

The typical Exchange Equity deal is on a long-term lease to a Credit Rated Tenant (A+-BBB) who will have strong financials and extensive experience in the management and upkeep of the property. This is the underpinning of our approach and what differentiates us from the bulk of the TIC industry. This allows us to examine offerings in all sectors, types, and locations of real estate. In addition, because we co-invest in the properties that we sponsor, we have a vested interest in the performance of the properties. You can relax because it is the tenant’s responsibility to maintain the property, and for us to collect the rents, service the mortgage (if any), and handle all of the other asset management responsibilities.

Your investment in a TIC interest provides you with a check every month. The cash flow that owners typically receive generally starts at 6.25-8% per annum. Because exchangers take on a new depreciation schedule, however, cash distributions are typically 50-100% tax sheltered, depending upon asset class and leverage. The equity appreciation in well-located real estate speaks for itself.

Exchange Equity does all of the work of locating, negotiating to purchase, providing all of the required due diligence, arranging for the financing, and other work necessary to acquire the new investment property and set up the TIC program. A wide range of TIC properties exist for sale, in many different asset classes and geographical locations, so with the help of your Exchange Equity Advisor, you will be able to easily identify possible properties within the requisite 45 days, and acquire them within 180 days. We can offer a "back-up" in case your preferred purchase becomes unavailable for some reason.

As a TIC, you end up with a larger, higher-quality building leased to Credit Tenants with greater financial strength and stability than any other type of real estate investment typically available to individual investors.

Not only can you defer capital gains taxes until death, at which point they are forgiven, but you also can gain additional tax advantages through a new depreciation schedule and in doing so typically shelter 50-100% of your cash flow.

Accredited investors assume institutional grade, pre-arranged, non-recourse (no personal guarantee) financing with easy approval. You can invest in properties that have no debt, or in ones with up to 75% leverage.

TIC investments have a much lower minimum investment than sole ownership allowing for greater flexibility. Variable investment sizes can start as low as $50,000 and can be structured to match an owners equity and debt requirements. Exchange Equity can assist in establishing a Self-Directed 401(K), or an IRA.

Large net proceeds may be split among several properties, and so invested in several different markets and asset classes.

Profits can be locked in by selling out of highly appreciated markets and then re-investing 100% of the net proceeds from those sales into growth markets.

TIC can simplify wealth transfer and estate issues. After all, it’s much easier to divide a monthly check among heirs than it is to divide a building.