Up to 35 investors purchase and co-own a larger, institutional-quality property that has professional management set by the TIC sponsor
Unanimous voting for all major decisions (sale, refinancing, lending, management)
Co-owners share proportionate share of cash flow, and capital upon the sale
Tax Deferral Calculator SALE VS. EXCHANGE (Example) 1) Calculate Net Adjusted Basis Original Purchase Price (Basis) $500,000 + Capital Improvement $50,000 - Depreciation -$150,000 = Net Adjusted Basis $400,000 2) Calculate Capital Gain Sales Price $1,200,000 - Net Adjusted Basis -$400,000 - Cost of Sale -$80,000 = CAPITAL GAIN $720,000 3) Calculate Capital Gain Tax Due Recaptured Depreciation (25%) $37,500 + Federal Capital Gain (15%) $85,500 + State Tax (IN 3.4%) $24,480 TOTAL TAX DUE $147,480
Typically a real estate company (Sponsor) will purchase the real estate asset, syndicate it as a TIC security, and then sell the undivided interests to accredited investors. The sponsor provides management for the property, as well as financing, which is usually non-recourse to investors.
The TIC Sponsor is responsible for all periodic distributions, all tax documents for the interests, and ensure that investors receive up-to-date information on the property. They do this via monthly/ quarterly conference calls and direct email. Sponsors must send quarterly operating reports and forecasts to the TIC investors.
The track record of TIC Sponsors, in many cases, consists of decades of industry experience.
This presentation does not constitute an offer to sell or a solicitation of an offer to purchase securities of any particular type or in any specific entity or real estate property. Definitive offering materials regarding any particular securities will be provided to prospective investors before any offer or sale is made. Accredited investors only my invest in TIC securities.
There are several risks associated with investing in tenancy-in-common securities as well as real estate. These include, but are not limited to, fees and expenses outweighing potential tax benefits, change of tax status, illiquidity, devaluations of property, and loss of direct management.
Oak River Investments, Inc. does not provide tax advice or legal counsel and this brochure does not constitute tax or legal advice. Each prospective investor should consult his own attorney, accountant or other professional advisor as to legal, tax and other related matters concerning any investment offered by or through the Company.
Oak River Investments, Inc. is a licensed broker-dealer, registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA).