Tenants in Common (TIC) properties are very wise and useful tools for real estate investors. With a TIC property, you own an undivided interest in a real estate property. You can receive the tax benefits, income, and the growth that is directly proportionate to your interest in the property. A single tenant may own a larger interest than the other tenants, yet, each owner receives a deed with the rights of a single owner.

Tenants in Common properties offer several benefits to real estate investors. Low equity requirements allow smaller individual investors to invest in large institutional properties. TIC properties eliminate the hassles of being a single landlord or property manager. Income from a TIC property can often be tax-sheltered through using depreciation and interest deductions.

When combined with a 1031 tax exchange, TIC properties can be even more attractive. 1031 tax exchanges allow you to defer capital gains taxes by investing in a like property. When using TIC properties with a 1031 tax exchange, you can defer capital gains while diversifying your investments. You can purchase shares of various TIC properties in different locales with the proceeds of the 1031 sale.