The No Load, Debt Free Alternative in TIC Investing

Finding institutional, investment grade commercial real estate can be a difficult proposition; especially when funds are limited and time is short. That’s the primary driver behind the multi-billion dollar growth in the Tennant-In-Common or ‘TIC’ investment industry. Essentially, TIC investments allow investors of all types the chance to own an interest in commercial property which—until recently—was only available to the wealthiest of investors.

Unfortunately, this boom in TIC investing has prompted most TIC sponsors to add multiple transaction fees, commissions, and other expensive charges to each investment. These costs can wipe out as much as 20% of the original investment value. Most TIC properties also carry a heavy debt load, which adds significant investment risk. Investors usually aren’t allowed much input in the management of a property, and minimum investment thresholds can be as much as $1 million. Because of their flexibility, TIC’s are now a common investment strategy, but the policies of the average TIC sponsor have eroded their attractiveness.

Fortunately, at RealtyNet Advisors, we’re not your average Tenant-In-Common sponsor. Unlike most TIC sponsors, don’t burden our properties with debt, brokerage fees, or other costly charges, and we never sell at a higher than market rate (see the Benefits of a RealtyNet TIC). With the RealtyNet’s simple, co-ownership structure, investors own an undivided, fractional interest in an entire property. They each share in their portion of the net income, tax shelters, and property appreciation. Every owner has a say in how the property is managed, and we never tell an owner if—or when—he has to sell. Most importantly, with an investment threshold of $50,000, we allow nearly every investor the chance to own a piece of commercial real estate.