Slideshow Transcript

1. Slide 1: Call Us Today at 866-405-1031 www.1031alternatives.net The 1031 Solution “What Real Estate Professionals Need to Know about the National Association of Realtors (NAR) Recent Exemption Request to the Securities and Exchange Commission (SEC) on Securitized Tenant-In- Common (TIC) Transactions” Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
2. Slide 2: Call Us Today at 866-405-1031 www.1031alternatives.net Legislation Guideline Changes 2002: IRS issued official guidance in Revenue Procedure 2002-22 on how Tenant In Common investments would qualify for replacement property under Section 1031 • TIC Industry exploded into a multi-billion dollar a year business. • Vast majority of TIC investments are sold through the securities industry by licensed securities representatives and broker- dealers (not though the traditional means of licensed real estate professionals) Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
3. Slide 3: Call Us Today at 866-405-1031 www.1031alternatives.net 2007: On October 11, 2007, the NAR issued an exemption request letter to the SEC on behalf of it’s 1.3 million members. • The original exemption request to the SEC, if adopted, would grant commercial real estate professionals with “substantial experience” in commercial real estate transactions, exemption from broker-dealer registration requirements of Section 15(a)(1) of the Securities Exchange Act of 1984. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
4. Slide 4: Call Us Today at 866-405-1031 www.1031alternatives.net More Changes To Come In a recent teleconference with members of the Tenant In Common Association (TICA), NAR’s Associate General Council reviewed some of the revisions made to the original exemption request following meetings with the SEC. While all of the revisions of the request by NAR are not publicly known, many points were discussed on the TICA call. According to the representative of NAR, the revised exemption request, if adopted, would allow real estate professionals to obtain one of two types of fees for their part in referring or advising a client on a securitized TIC investment. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
5. Slide 5: Call Us Today at 866-405-1031 www.1031alternatives.net Fee Type 1: TIC Referral Fee •Would permit “all” real estate professionals (commercial or residential) a referral fee for their role in introducing a potential investor-client to a licensed securities representative engaged in selling a TIC investment. •A client acknowledgement form and compensation agreement (or client disclosure) would need to be completed by the real estate professional along with a letter to selling broker dealer stating that he/she is legal to do business in that particular state (in other words a statutory qualification with the state). Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
6. Slide 6: Call Us Today at 866-405-1031 www.1031alternatives.net •The real estate professional may have to complete a form with the selling broker dealer stating that the agent is predominately engaged in the real estate business or other business, not just the TIC referral business. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
7. Slide 7: Call Us Today at 866-405-1031 www.1031alternatives.net Fee Type 2: TIC Advisory Fee •Fee would be limited to real estate professionals with a “substantial” real estate background, for example a CCIM or other designation or perhaps a real estate degree. •A form would need to be presented with an acknowledgement of “substantial experience” as well as a letter or form to the selling broker dealer stating that he/she is predominately engaged in the real estate business or other business, not just the TIC referral business. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
8. Slide 8: Call Us Today at 866-405-1031 www.1031alternatives.net •The real estate professional would need statutory qualification with the state like the “TIC Referral Fee”, however, these real estate professionals may advise an investor-client on the real estate characteristics of specific properties once the investor-client was deemed suitable by the licensed securities representative engaged in selling the TIC investment. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
9. Slide 9: Call Us Today at 866-405-1031 www.1031alternatives.net 1031 Alternatives Group Is Your Link To The Latest News As the TIC Industry and its new regulations evolve, 1031 Alternatives Group remains committed as your Tenant In Common (TIC) strategic planning partner. Our website www.1031alternatives.net will be available to bring you the latest news and updates on this proposed exemption. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
10. Slide 10: Call Us Today at 866-405-1031 www.1031alternatives.net As a cooperative effort to educate the professional real estate community on the benefits and risks associated with TIC investments, 1031 Alternatives Group would be honored to conduct either an in-office educational presentation or a personal/small group consultation on TIC investments. Please feel free to contact our offices directly 866.405.1031 to schedule a date and time. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
11. Slide 11: Call Us Today at 866-405-1031 www.1031alternatives.net investor to review, and all the financing would be in place. You simply work with your advisors and then subscribe into the TIC deal that best meets your goals, objectives and risk tolerance. TIC ownership has given everyday investors a right of entry into an Educational Presentations investment vehicle that has been historically dominated by pension funds, insurance companies, or ultra highthe worth individuals. May Illustrate net Following Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
12. Slide 12: Call Us Today at 866-405-1031 www.1031alternatives.net How to Acquire New Listings with TIC Investments investor to review, and all the financing would be in place. You simply work with your advisors and then subscribe into the TIC deal that best meets your goals, objectives andDeferring taxes encourageshas given everyday their properties of entry into an • risk tolerance. TIC ownership investors to sell investors a right and build wealth by reinvesting undiminished gains investment vehicle that has been historically dominated by pension funds, insurance companies, or ultra high net worth individuals. • Investors can avoid the day to day property management headaches • Investors may diversify their real estate portfolio geographically potentially avoiding high property taxes and skyrocketing insurance costs Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
13. Slide 13: Call Us Today at 866-405-1031 www.1031alternatives.net investor to review, and all the real estate holdings place. You simply work with your • Investors may diversify financing would be in by property type or asset advisors and then subscribe into the TIC deal that best meets your goals, objectives class and risk tolerance. TIC ownership has given everyday investors a right of entry into an investment vehicle thatprovided historically dominated by pensionreturnsinsurance • Investors may be has been the opportunity to earn higher funds, and maximize their investment or ultra high net worth individuals. companies, dollars There are risks associated with TIC investments which are outlined in the Private Placement Memorandum. Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.
14. Slide 14: Call Us Today at 866-405-1031 www.1031alternatives.net Thank You! For further information or to receive a FREE handbook, please contact us: 6751 N. Federal Highway, Ste. 100 Boca Raton, FL 33487 Toll Free . 866.405.1031 Fax . 954.874.4501 Accredited Investors Only Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus. Pictures are not current offerings and are used for illustration purposes only.