What are the benefits and risks of entering into a TIC investment?
Because TIC properties employ professional commercial real estate management companies, the approach allows the investor to receive potential cash flows and long term appreciation without overseeing the day-to-day operations. In addition, TICs enable maximum buying power by providing the investor with the ability to own real estate that may be too costly without shared ownership. TIC ownership can diversify a portfolio as well as potentially increase net cash flow and appreciation. As with any real estate investment, there is always the possibility that the property will depreciate or that costs associated with the transaction may outweigh the tax benefits.
