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Introduction To TIC’s

Learn about Tenant-In-Common (TIC) investments, including benefits, risks, and definitions to make informed investment decisions. Discover how TICs can help diversify your portfolio and potentially yield stable cash flow. Contact us for more information!

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Introduction To TIC’s

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  1. Introduction To TIC’s Alex Kowalski* Alta Exchange Group alex@altaexchangegroup.com 920-540-1072 Joe Wagner The Geneva Organization joe@genevawealth.com 608-825-4551 *Registered Representative of and securities offered through Berthel Fisher and Company Financial Services, Inc. (BFCFS). Member FINRA/SIPC. Alta Exchange Group and The Geneva Organization are independent of BFCFS.

  2. DISCLOSURE This material does not constitute an offer to sell or a solicitation to buy any security. Such offers can be made only by a Private Placement Memorandum to accredited investors. These investments involve a high degree of risk and are not suitable for all investors. Please refer to the Risk Factors section of any specific Private Placement Memorandum.

  3. The ABC’s of TIC’s • Undivided Fractional Interest • Everything Is Pro-Rata • Non-Recourse Debt • Entity Selection Is Critical • No Day to Day Management

  4. The ABC’s of TIC’s • Free From “Partners” After Disposition • Low Leverage: 50%-66% LTV • Guarantee of Close – Sponsor Owns • All 1031 Exchange Requirements Apply • Not Limited to 1031 Exchange Money

  5. Risk Factors • TIC Interests are Illiquid • Use of Significant Leverage May Increase Risk of Loss • Future Tax Code Changes • Costs Associated With 1031 Investments May Offset the Benefits

  6. Definitions • Sponsor – A company who provides institutional properties for co-ownership. • Registered Rep – A securities licensed person who assists investors in finding replacement property. • Tenant-In-Common (TIC) Interest – Fractional ownership interest in a property.

  7. Total Annual Equity Invested *Source: OMNI Brokerage

  8. Key Drivers • Guidance From IRS In 2002 • Revenue Procedure 2002-22 • Highly Appreciated Assets • Baby Boomer’s – Assets To Income • Inability To Find Replacement Property • Desire For Stability/Cash Flow • Little Management Responsibility

  9. Who’s Investing • Must be an Accredited Investor An accredited investor is an individual with a net worth, or joint net worth with their spouse that exceeds $1MM at the time of purchase; or an individual with income exceeding $200,000 in the last two years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same in the current year; or a trust with assets in excess of $5MM, not formed to acquire the securities offered, whose purchase a sophisticated person makes.

  10. Who’s Investing • Farmers – • Large Tax Hit, Looking to Retire • Mr. Fix It – • Capital Gains Tax and Recapture Tax, Wants Income • Business Owners – • Tax Deferral and Income • Developers – • Hard to Match an Exchange

  11. What Are They Buying • Office – Single Tenant and Multi • Retail – Single Tenant and Multi • Multifamily – With Good Demographics • Hospitality/Senior Housing - Increasing • Industrial – In Key Areas • Oil + Gas – Higher Cash Flows/Alpha

  12. Questions?

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