ORION REAL ESTATE

One of the newer ways of buying real estate, tenant-in-common programs, or T.I.C.'s, offer fractional ownership of large properties and are primarily aimed at people who have recently sold other commercial property and seek to defer capital gains taxes.

Unlike real estate investment trusts, which sell shares in portfolios of properties, sponsors of tenants-in-common investments sell interests in individual properties. The concept of tenancy-in-common as a way that two or more people can buy real estate together, with each having an undivided interest in the property, goes back to English common law. But it was only in 1994 that tenant-in-common properties were used as an investment vehicle for people who do not know each other.

To qualify, the investment must have certain characteristics that differentiate it from a partnership: each investor must have the same ownership rights; no single owner or group of owners may have more control than any of the other investors; all major decisions have to be made by unanimous vote; investors must have the right to sell their interest but may have to offer it to the other investors first; and no more than 35 investors can participate.

Increasingly, tenant-in-common investments are drawing people who do not need a tax deferment but simply want to diversify their holdings.  

Give us a call to have us explain the benefits of this program and whether or not you qualify.

ORION REAL ESTATE
630 First Street South
Waite Park, MN 56387
320-251-1177