Growth in the TIC 1031 ownership sector has exploded with the many benefits of a 1031 exchange arrangement. Simply, multiple investors invest in undivided fractional interests in real property by pooling their assets and benefiting from the efforts of others, such as through contracts concerning leasing, management and operation of the acquired property.
- TIC ownership is a form of real estate ownership.
- Two or more persons have undivided, ownership shares, which is not required to be equal.
- Each co-investor receives an individual deed at closing for his or her undivided percentage interest in the entire property.
- Owners of investment real estate are able to enjoy a commercial-type property with a lower or smaller investment.
- Owned property can be exchanged for property that requires less hassle - less time and labor - to manage.