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1031 Exchanges - Using TIC Structure to Reduce Foreclosure Rate

Company Proposing TIC Arrangements As A Foreclosure Alternative

Dees Stribling of Commercial Property News reported in his article "NetLease Q & A: New TIC Structures Proposed by Prudential Rand's Rand" that Greg Rand of Prudential Rand Realty in New York is currently exploring with his clients the idea of setting up a TIC-like structure to avoid foreclosure.

Dees Stribling describes the concept and structure, "Instead of foreclosing on a residential property - anything from single-family to owner-occupied multifamily properties - a lender becomes fractional owners in the property with a borrower who can afford a reduced mortgage payment. The lender receives a piece of the equity and the borrower still pays on the financing of his or her share of the property. Foreclosure is forestalled, and possibly both the lender and borrower are in a position to ride out the current economic storm."

The rest of the article contains an interview with Greg Rand and CPN.

This is a really creative solution that may help a lot of borrowers and the real estate market as a whole by reducing the current inventory of property.

What is your take on this concept?

If you think this post would be of benefit to the AR Community, please click on the red flag link below and nominate it for a featured post.

If you or your clients have 1031 exchange questions, please do not hesitate to call me or my company:

Lisa A. Lambert, Esq., 877-646-1031 or LisaL@apiexchange.com

Asset Preservation, Inc. 800.282.1031 or info@apiexchange.com www.apiexchange.com

Posted by Lisa Lambert, Esq. (1031 Exchange Expert) on 04/29/2008 06:04 PM

Comments (10)

1031 exchanges, investment property, multifamily, single family residence, foreclosure avoidance, foreclosure solutions, qualified intermediary

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10 Comments on 1031 Exchanges - Using TIC Structure to Reduce Foreclosure Rate

Lisa, thanks for sharing the info. Lenders are more then willing to work with home owners. Forclosure is the last thing lenders want too but if a homeowner won't return calls or show a desire to resolve the problem then the lender has no choice. Glad to see you are back! = ) Moderation in all things I guess. I just saw this post and it made me laugh: http://activerain.com/blogsview/488389/Active-Rain-Addict-in

04/30/2008 10:11 AM

by Jeff Fullmer - Credit/Investment Expert (National Foundation for Credit Excellence)

I like the concept. Anything that can slow down the number of foreclosures is at least worth looking in to.

04/30/2008 01:40 PM

by JL Boney, III (Russell and Jeffcoat)

Jeff:

As always, it's great to have you visiting my blogosphere. You always make such thoughtful comments. I'll check out the link you left.

Lisa

04/30/2008 03:11 PM

by Lisa Lambert, Esq. (1031 Exchange Expert) (1031 Exchanges - Asset Preservation, Inc.)

JL:

Thanks for stopping by my blog and leaving a comment. I really appreciate it. Your post inspired a full length post of my own. Check out "1031 Exchanges and The Serial Flipper."

04/30/2008 03:13 PM

by Lisa Lambert, Esq. (1031 Exchange Expert) (1031 Exchanges - Asset Preservation, Inc.)

I love it! It's this type of innovative thinking that I embrace wholeheartedly! Thank you for apprising us of this opportunity and please keep us posted on this subject!

The members of our Optimist group would surely appreciate this new age thinking. Please join us and enter your extraordinary blogs there! Thank you!

05/03/2008 12:00 PM

by Mirela Monte, Your Myrtle Beach Connection

Mirela:

Thanks for your kind compliment. I appreciate you taking the time to stop by and leave a comment. I will check out your Optimist group. I'm honored at the invitation.

Lisa

05/03/2008 01:05 PM

by Lisa Lambert, Esq. (1031 Exchange Expert) (1031 Exchanges - Asset Preservation, Inc.)

I told one of my clients about this today. Thanks for making me look good, Lisa!

05/06/2008 11:49 PM

by Mirela Monte, Your Myrtle Beach Connection

Mirela:

I'm so glad you were able to use the information for your clients. I hope it helps. And seriously, I doubt you need any help looking good in front of you clients. You are the consummate professional.

Lisa

05/06/2008 11:53 PM

by Lisa Lambert, Esq. (1031 Exchange Expert) (1031 Exchanges - Asset Preservation, Inc.)

I love this info and want it read more, so I posted another comment! When can we get your next blog?

05/15/2008 12:05 AM

by Mirela Monte, Your Myrtle Beach Connection

Lisa, this is too good to let it get too stale. Up at the top you go again!

08/12/2008 05:19 PM

by Mirela Monte, Your Myrtle Beach Connection