With the issuance of IRS Rev Proc 2002-22, Real Estate held for investment as a Tenant-in-Common was promulgaged as being eligible for a Tax-Deferred, 1031 exchange, subject to 15 provisions or restrictions.

Since that ruling 5 years ago, the total equity being invested in eligible TIC offerings has escalated at a phenomenal rate - from several hundred million to several billion.  And, there are a whole set of questions investors must resolve before jumping in (see To Buy into a TIC or Not -- That is the Question.  Searching the Internet will return literally 100's of references, particularly from the 1031 folks, but Rev Proc 2002-22 does open up the opportunity of acquiring Class "A" investment property to groups of investors that would otherwise be locked out (see TIC Buys Give Mom & Pops a Shot at Institutional-Quality Assets ).  Fortunately, you don't have to be an "accredited investor" (although it helps) yet then there are lots of rules, controlled by each states SEC-like regulatory agency which oversees offerings that are exempt from SEC regulations.     

But what does this bonanza in TIC-offerings mean to you, if anything?   If you market investment properties, particularly larger multi-family or commercial property, it might in fact mean something.  But if you're not looking to expand your share of this market or if it's not in your business plan to do so somewhere down the line, then this blog is not for you.  Click your back button and read something that will be of greater interest. 

However, if you are looking to expand your horizons and possibly interested in building a network among primarily RE/MAX REALTORS who would market TIC-types of investments across the US of A, then read on. 

These investments would not be bundled as securitized offerings.  We're REALTORS, we sell Real Estate, and if we structure the investment offering properly, with under 35 investors in the pool, and don't even mention the word "partnership", then we don't need a securities license to offer these to our investor clients.  

What we do need, however, is a channel for distribution. A group of trusted fellow REALTORS who might have clients who want access to these types of investments but the offering may be outside of the usual and customary region in which they invest.  We need trusted associates, in a network. 

This is why the big stock brokerage houses are beating us to the punch on this -- they have the investors, they have the resources, developing the offering as both sponsor and promoter, subscribing the offering before it ever passes our radar screens. 

If any of this is of interest, post a comment and we'll see where this takes us.  I'll do some checking to see if there is a TIC group (RE/MAX agents in particular, but I believe there may be room for others) already established here.  If so, perhaps we don't need to reinvent the wheel -- i.e. I could just join that group.  Point me to it.

Party on ...