TIC Sponsors Are Entering The Industry In Greater Numbers
By Kathryn Landry
Today's changing real estate investment vehicles have made the industry more accessible to different kinds of investors while at the same time complicating things for professionals who are already engaged in the real estate business. A good example is TIC or tenancy-in-common through which costly investments in real estate are made accessible to many more people who otherwise would not have been able to afford to make investments individually.
Investments Must Be Considered As Real Estate
As far as TIC sponsors are concerned, they would prefer having their investments defined as if it were a real estate piece and nothing else as this would help the TIC sponsors to bypass the process of securitization that is both costly as well as time consuming. However, today most TIC sponsors may actually claim that TIC's are in fact securities and thus are willing to go through the trouble of spending more and doing more paperwork in order to treat their TIC interests as real estate as well as securities.
The fact of the matter is that for TIC sponsors it would definitely not be to their advantage to consider TIC as security because of the additional costs involved and they would actually be able to realize greater profits if they treated the TIC as being real estate and nothing else. Furthermore, there is also the fact to consider that securitization costs a lot of money and it also takes up a lot of time and thus if you ensure that TIC interest is qualified just as interest earned in real estate and not from security, as TIC sponsors you stand to save considerably in terms of securitization fees as well as costs of attorney hiring, and it would be far better for the TIC sponsors to offer the products at prices that are on the lower side and thus be able to earn greater profits.
In the present times, it is also usual for TIC Sponsors to hire a broker or dealer in securities through whom he or she can sell their TIC interests though there is also a lot of pressure being exerted by real estate brokers who would like them to be also made a part of the process as well. Real estate brokers can of course also earn commissions whenever they sell real estate to TIC sponsors, though they are not made a part of the remaining portion of the process including sales of TIC interests which is something that the brokers would like to fix.
However, the bare facts point out that today there are increasing numbers of TIC sponsors that are entering into the industry despite the fact that they have not always been successful with their first deals and an example of such TIC sponsors is DeSanto in Media, PA and Equitable Cos. in Los Angeles.
About the author
Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership. from http://www.FreeArticlesAndContent.com
|
|
Copy This Article
For FREE!!!
You can use this article and copy it on your own website
for free! All you have to do is make sure the article
is copied with no changes and includes the "About
The Author" text. Also please ensure that all url's
are hyperlinked according. Thank you. |
Link To This Article - And We'll
Link Back To Your Website!
You are more then welcome to link to this article! All
you have to do is copy this webpage address from the
address bar and create a link on your website. Please
use the title of this article for your link text. Please
get in contact once you have linked to this article
and we'll link back to you! Thank you. |
|
|
|
Other great articles from this category...
|
Related Sites
|
|
