Benefits of Tenants In Common

The Tenants in Common structure has various features that make it attractive to the real estate buyer.

Access to Higher Grade Properties - The typical entrance in whole commercial building begins at $1 million, but through Tenants In Common ownership, the average person is able to enjoy ownership in an institutional-type property with a minimum purchase. Besides reliable income and growth potential, these 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 commercial property along with other unrelated buyers, not as limited partners, but as individual owners. Each of the Tenants In Common owners brings their previous real estate knowledge to the group. Thus, each decision of the Tenants In Common ownership will be backed by many years of real estate experience.

Lessee with an established history of 1031 experience in Real Estate - Most of the day-to-day property operations are handled by a "Master Lessee." The lessee has extensive experience in real estate. Thus, situations that arise in day-to-day operations will be addressed quickly and efficiently, and the Tenants In Common owner will enjoy the freedom from property management.

Simple Management - The Tenants In Common 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 rental income from your mailbox. Enjoy "tennis, travel and time with family."

Exact Dollar Matching - In a Tenants In Common property, you can 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 Tenants In Common property.

Low Minimums - Revenue Procedure 2002-22 issued by the IRS allows up to 35 Tenants In Common owners in any one property. Minimum purchase requirements are structured to meet this limitation and can range as low as $150,000 equity.

Non-recourse Financing - The mortgages on most of the Tenants In Common properties offered by FOR 1031 are non-recourse. The Tenants In Common 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 Tenants In Common 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 the All States 1031 Exchange team. 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.

Deeded Interest - The Tenants In Common 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 Tenants In Common interests in the property.

No Special Allocations - All the Tenants In Common owners receive monthly rental payments, sale proceeds and the depreciation tax benefits in proportion to their percentage ownership in the property.

Call the knowledgeable exchange professionals at All States 1031 at
1-877-395-1031 for a complimentary consultation regarding your specific investment objectives.