Net Lease
Alternative
For investors considering NNN Properties but who would like to
invest less capital (cash) and still have little to no management
responsibilities Tenants in Common (TICs) are a good option to consider.
Advantages of Tenant in Common are the lower minimum investment
(starting at $50,000); prepackaged financing (if any) and due diligence
material. Because Tenant in Common is a deeded interest in real estate and not
a security like a mutual fund or REIT they qualify for 1031 exchanges providing
they follow IRS Rev Proc 2002-22.
The most frequent objection to Tenant in Common ownership is that
Tenant in Common owners have a proportionate vote on major ownership issues as
opposed to 100% owned NNN Properties.
Tenant in Common investors can invest in fractional ownership in
NNN Properties and other multi tenant real estate. A major advantage of Tenant
in Common ownership is the ability to reduce overall risk by diversifying into
a number of investment properties.
J. Michael Sigrist
Compass Investment Properties, Inc.
861 W. Morse Blvd. #250
Winter Park, Fl. 32789
Office 407-647-5111
Fax 407-629-9220
Cell 407-953-2605
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