|
 No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. Investments in real estate involve a substantial degree of risk and are not suitable for all investors. A prospectus, private placement memorandum, or contract should be read thoroughly and understood before investing. Per Section 501 of Regulation D, TIC investments are typically suitable only for accredited investors.
There are a number of significant tax risks and tax issues involved in purchasing Tenant in Common interest via a 1031 exchange. Investors considering purchasing Tenant in Common interest should consult their tax advisor and legal counsel to evaluate any tax consequence of investing in Tenant in Common interest. Investors should also consult their tax advisor or legal counsel regarding the type of property or properties that best suit their individual 1031 exchange needs. TIC interests are speculative non-conventional investments and involve a high degree of risk; investors should be able to bear the complete loss of their investment.
The purchase of real property with other investors, i.e., as a TIC, presents risks related to owning minority interest in real estate and risks related to the relationships and financial status of other owners. Some TIC interests are subject to recourse liability, i.e., the investor may be responsible for providing any cash needed in the future in connection with the property.
Prospective investors must review the offering materials for each proposed investment. The offering materials, including the Private Placement Memorandum, will contain certain risk disclosure specific to the property. Prospective investors should also consider the projected holding period for each property.
Diversification in a portfolio or by investment is no guarantee against loss. A single TIC investment should not be considered a diversified investment. There is the risk of concentration of assets in a single asset class that may be unsuitable for most investors. Cash flows and returns are not guaranteed and may be lower than anticipated. Past performance is no guarantee of future results.
A TIC investment is an illiquid investment and there are restrictions and limitations on the transferability of interest. There is no established secondary market for the resale of a TIC investment. TIC investments are not suitable for investors who are looking for a short term investment/holding period.
Investments in Real Estate involve substantial risks that include but are not limited to the potential for property value loss, foreclosure, potential tax risk, general downturns in the real estate market, as well as downturns in specific geographic areas, vacancies, and devaluation based upon adverse economic and regulatory changes. An investment in real-estate will fluctuate with the underlying properties; the price at redemption may be more or less than the original price. Be advised that the property manager will ultimately be responsible for making the day-to-day business decisions regarding the operations of the TIC property.
There are significant fees paid to the manager and affiliates. These fees may be paid despite the performance of the property and may impact cash distributions or the overall return of the investment. The fees for each investment are outlined in the Private Placement Memorandum for each property which should be reviewed in its entirety prior to investment. Higher than expected operating expenses can potentially affect an investors cash distributions. Costs, fees and loads should be carefully considered prior to purchase as these costs could offset some of the income tax deferral benefit. TIC transactions in many cases may not provide complete tax-free exchanges for investors. An investor should take this into careful consideration when reviewing a "TIC" recommendation. Please reference Section 1031 of the Internal Revenue Code for further information regarding the requirements and guidelines for 1031 exchanges. Investors should carefully consider an investment in a 1031 exchange or TIC interest, any implied tax advantages, and should consult with a qualified tax professional before making a decision.
|
