The TIC structure has various features that make it attractive to the real estate buyer.

Access to Preferred High Grade Properties from Reputable National Real Estate Companies - The typical investment in whole commercial building begins at $1 million, but through premium TIC ownership, the average person is able to enjoy ownership in an institutional-type property with a minimum investment. Besides reliable income and growth potential, these high quality properties are able to attract tenants with greater financial strength and stability than possible for the individual landlord.

Combined Real Estate Experience - As an alternative to sole ownership of real estate, a 1031 buyer can take ownership in a large preferred commercial property along with other unrelated buyers, not as limited partners, but as individual owners. Each of the TIC owners brings their previous real estate knowledge to the group. Thus, each decision of the TIC ownership will be backed by many years of real estate experience.

Lessee Management with up to 25 Years Experience in Real Estate - Most of the day-to-day property operations are handled by a Master Lessee. The lessee managers control or has involvement in more than $350 million in real estate assets and have extensive experience in real estate. Thus, situations that arise in day-to-day operations will be addressed quickly and efficiently, and the Premium Property TIC owner will enjoy the freedom from property management.

Simple Mailbox Management - The Premium TIC property owner avoids the time and frustration of dealing with multiple tenants. You no longer deal with "toilets, tenants and trash," and simply receive your monthly lease payment from your mailbox. Enjoy other interests, travel and time with family.

Exact Dollar Matching - In a Premium TIC property, you may be permitted to purchase any amount above the minimum. For example, if you have $152,479 of equity from the sale of a previous property you can purchase $152,479 of equity in a TIC property.

Low Minimums - Revenue Procedure 2002-22 issued by the IRS allows up to 35 TIC owners in any one property. Most TIC owners number 15-25 per property. Minimum purchase requirements are structured to meet this limitation and can range as low as $50,000 equity.

Non-recourse Financing - The mortgages on most of the Premium TIC properties offered are non-recourse. The TIC debt structure generally allows for the debt financing to assumed. Assumption usually occurs without the need for qualification or loan assumption fees.

Diversification - Due to the low minimums in Premium TIC properties, the buyer can decrease risk by diversifying into different properties in various different marketplaces.

Speed and Simplicity - Speed and simplicity are achieved due to the efforts of 1031 FEC Consultants, Associates and experienced real estate professionals. The negotiation process is complete, and survey, rent rolls, etc. are already completed and available for your review. After your review of all the due diligence used to acquire your property, and upon your approval, you are ready to close. The closing can be completed in days, not months.

No Closing Costs - Some property investments include closing costs.  Be sure of all costs in a purchase or exchange.  Absent seller default or other items outside the control of 1031 FEC, closings are generally within the agreed upon time frame. 1031 FEC does not charge the TIC owners closing costs.  Non-FEC 1031 triple-net Master Lease transactions generally result in client closing expenses.  1031 Qualified Intermediary fees are paid by the buyer/exchanger.

Deeded Interest - The Premium TIC owners buy the property and receive a deeded interest. You can transfer this interest by gift, sale, inheritance, assignment, etc. Such transfer does not need to coincide with the transfer of all TIC interests in the property. If requested to do so by the TIC owner, 1031  FEC will assist in the marketing of any TIC interest.

No Special Allocations - All the Premium TIC owners receive lease payments, sale proceeds and the depreciation tax benefits in proportion to their percentage ownership in the property.

Impasse Resolution Procedure - On a decision requiring unanimous vote, such as a sale decision, a 75% vote by the TIC owners may be sufficient to initiate the impasse resolution procedure. This procedure allows the TIC owners with 75% or more of the property to make an offer to buyout the dissenting owner with 25% or less of the property. The dissenting TIC owners can either: (1) accept this offer, (2) buy out the 75% TIC owners at the same price per percentage ownership, or (3) change their dissenting vote to a consenting vote.

Financial and Estate Planning - 1031 FEC assists with your family financial and estate planning in mind that can result in wealth building using risk tolerance and diversification considerations and passing of wealth to heirs with minimum or no tax.

As a leader in locating and providing qualified managed premium §1031 Tenants-in-Common (TIC) replacement properties, 1031 FEC can offer owners advantages for success. 1031 FEC can assist finding the proper 1031 property for your business requirements that can defer capital gains tax and recapture of depreciation taxes. 1031 FEC Consultants advise you and your CPA to assist proper IRS documentation and procedure.  Reduce stress of management or income collection with 1031 FEC TIC and other qualified income properties.

Our 1031 FEC Premium TIC Program provides real estate buyers with the monthly rental income advantage of a triple-net lease with scheduled increases plus single-tenant property with the appreciation advantages of a multi-tenant property. By owning TIC interests in premium multi-tenant commercial properties across a wide geographical area, real estate buyers can enjoy the diversification that is not possible if you were to buy just one single location property.

The 1031 FEC Managed Premium TIC Plan is well-suited for the 1031 Real Estate Exchange Property buyer seeking monthly income that increases annually, unlimited appreciation potential, and flexible and easy closings. Current and future 1031 exchange property owners and direct purchasers now have access to the advantages of a long-term, triple-net lease without the disadvantages.

No Fee to 1031 FEC 1031 Exchanger Client.  Fee paid by 1031 real estate property provider.

See Qualified Managed and Other Premium Investments   Featured Real Estate Investment Properties & state locations with minimum investment equity are at Investments.

Does your property qualify for this tax break?  For a no fee confidential consultation and for more details contact 1031 FEC.  We also can find if you qualify for a retirement tax deduction up to $100,000 for you and up to $100,000 for your spouse. We recommend your tax advisor or CPA be invited to consult and confirm details.

Other 1031 FEC Exchange Advantages

• Relieves the burden of active real estate ownership or "headache" properties (mailbox management by owners with owner controls).

• An experienced 1031 FEC exchange advisor to consult and assist you to choose the best preferred exchange investment for your portfolio with financial planning, estate planning, diversification and risk tolerance considerations.

• Exchange a non-cash flow or low cash flow producing property for a premium higher cash flow producing property.  Increase and earn more income.

• Access to ownership of income property in preferred, high grade quality corporate buildings, shopping centers, multi-residential and other triple net lease property in advantaged locations.

• Experienced proven and successful management plus the possibility of the advantage of the combined real estate experience of several owners.

• Diversify your real estate and investment portfolio by geography, property and investment type.  Exchange one property for two or more for a lower risk property portfolio.

• Relocate property when owner retires, changes location for work or health reasons.

• Facilitate estate planning.  Heirs receive property at the new 'stepped up' basis.  Multiple beneficiary solution transfers individual or multiple properties by a will or Trust.

• Consolidate many properties into less parcels for a single or more manageable parcels.

• Gain leverage for a larger or a more valuable property

• Access to cash with a partial exchange.

• Low minimum property investments and possible dollar matching exchanges.

• Exchange slower appreciating property for preferred property with increasing income and appreciation.

• Relieves the burden of future potential loss of value of temporarily inflated agriculture land or other inflated property values.  Maintain wealth with higher quality income property.

• Avoid tax penalties and taxation burden with 1031 FEC consultants to assist and guide you through the §1031 process to help assure IRS compliance, procedure and documentation.

• Non-recourse financing.

• Retirement Plan deductions possible.

Disclaimer: The above brief description is not to be construed as legal or tax advice and is qualified in its entirety by the actual closing documents. In case of any discrepancy, the actual closing documents will control.1031 FEC recommends investors considering an IRS IRC § 1031 tax-deferred exchange transaction  or an IRS IRC § 721 exchange include and consult their accountant and/or attorney.