1031 Exchange and TIC's

General Real Estate Investing
1

I’ve been researching 1031 Exchanges lately and what I have found is most of the companies that perform these for you are also trying to get you involved with TIC’s. I am estimating that my proceeds from my oil and gas mineral sale will be over $1,000,000 and I want to turn that into real estate investments. TIC’s look very nice as an investment because they generate around 7-8% returns per year. Plus you get to keep any appreciation the building generates, principal equity, and you have tax shelters on your cash flow from depreciation and interest deductions.

I plan on keeping this money in the TIC for a long time so the illiquity factor is minimal for me. But my question to the forum is:

  1. Does anyone here own an interest in a big TIC?

  2. If so, what company would you suggest I use? (There are so many).

  3. Would you do it again if you had the chance?

Thank you in advance.

2

Howdy Agee77:

Part of the 1031 rules state that the investment be like kind. Have you gotten input as to the TIC deals being like kind with oil and gas deals?

3

Hi Agee77,

Not sure when you posted this, but I think I can help. I am on here as Hammer753, but my name is Tom. 26 years in financial planning, 18 years in real estate, and selling TIC’s to my clients. A great deal of due diligence done on companies, so I can share with you what I have found in my looking things over (if you still need the advice).

Tom