The whole TIC thing is very foreign to many people but basically what it refers to is a partnering with other people to purchase a piece of real estate. You get a group mortgage with the other owners, and so instead of owning your space you own a percentage of the building. It is very similar to condos on the market, as one of the main risks lies in the group financing.

Depending on how you agree upon the term of purchase you are able to have equal share in the entire property, or you may opt to have one larger share than the other. There are a few major differences between TICs and buying a piece of real estate, one being that when you purchase a property on your own you do not have to consult or get agreement from anyone when you go to sell.

The TIC is a form of holding title to real estate, and is one that allows the owners to own an undivided fractional interest in the entire property. These investments provide simplicity by eliminating active property management headaches, and cash flow is generally paid monthly and is also tax sheltered via depreciation pass through and interest deductions. It is usually very financially rewarding and offer the investors great opportunity.

TIC: The Subscription Process

Before you get involved with these activities, it is important that you understand the TIC: the subscription process. These may seem complex to the beginner, but is quite simple once you become more knowledgeable on it.

Basically how the TIC: the subscription process works is that TIC identifies a new buy-to-let investment opportunity. You decide how much to invest, and contacts are exchanged and you then put down a deposit. You will be kept up to date by your portfolio manager as your development is progressing, and prior to completion your property will be marketed.

The aim of the marketing in this TIC: the subscription process is to have you gain a tenant upon completion, and then on completion of the development, you will settle all remaining funds and charges.

Remember that there is no limit to the number of properties that you can purchase, and as well no restriction on the number of units that you can have in a purchase cycle at any given time. This means you get a lot more flexibility and versatility, allows you to have more options.