Tenant In Common Investing 1031 Exchanges

Slide 1: Call Us Today at 866-405-1031 www.1031alternatives.net 1031 Exchange: Investing “Triple Net Lease vs. TIC: Where Should Your 1031 Money Go?” 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.

Slide 2: Call Us Today at 866-405-1031 www.1031alternatives.net Introduction There’s a lot of investors out there seeking replacement property for their 1031 exchange, but can’t decide on whether to go with a single- tenant NNN (triple net) property or a Tenant In Common (TIC) property. Some of the arguments discussed below make it pretty clear why TICs are becoming more and more popular. 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.

Slide 3: Call Us Today at 866-405-1031 www.1031alternatives.net About TICs TICs are passive income properties that require no daily responsibilities and can free up your time to do other things besides fixing toilets and dealing with tenants. Not to mention, they have the potential to give investors a competitive annual income (paid monthly) which could be partially tax-sheltered due to a new depreciation basis and mortgage interest deductions. 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.

Slide 4: Call Us Today at 866-405-1031 www.1031alternatives.net TICs Benefits •Qualify as replacement property for a 1031 tax-deferred exchange (IRS Rev. Proc. 2002-22) •Easy and simple to acquire compared to many other types of real estate properties. •Reduces the stress of a 1031 exchange by providing prepackaged properties ready for purchase almost immediately within the giving 45 days an investor has to “identify” properties he would like to acquire. 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.

Slide 5: Call Us Today at 866-405-1031 www.1031alternatives.net •Provides an exclusive opportunity for investors with little equity to get into institutional-grade properties. •Minimum equity requirements varies from $100,000 to $300,000 •Single-ownership properties worth $300,000 to $950,000can be leveraged for roughly $100,000 to $300,000 (depending on the tenants in place, the type of building and your credit for a bank loan). 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.

Slide 6: Call Us Today at 866-405-1031 www.1031alternatives.net About NNN: Triple Net NNN (triple net) properties have been common for 1031 investors for a long time and some deem them as viable option of no-management investment property. A NNN property typically has a single tenant. The lease term is usually long (15-20 years). In a NNN lease, the tenants pay for everything regarding the property including rent, taxes, insurance, maintenance, utilities, and so forth. The guarantee could be corporate or franchisee. The typical price range is about $1.2 million to $3.5 million, but can reach $5 million or higher. 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.

Slide 7: Call Us Today at 866-405-1031 www.1031alternatives.net TICs vs. NNNs (Triple Nets) We’ve already concluded the fact that most NNN properties are not going to be institutional quality but they can provide a management-free investment. On the other hand, a lot of investors prefer multi-tenant investments to reduce risk. Think about it. If that single tenant leaves your building, breaks a lease, or goes out of business, you have no cash flow and will need time to figure out what to do while continuing to pay debt service. If one of the “multiple” tenants leaves in a TIC, you may have a reduction of cash flow but all of your “eggs are not in one basket,” like a NNN property. 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.

Slide 8: Call Us Today at 866-405-1031 www.1031alternatives.net would be ready to purchase, all the due Investigate be completed for the investor Reasons to diligence would TICs to review, and all the financing would be in place. You simply work with your advisors and then subscribe into the TICsingle ownership property •Multiple tenants instead of deal that best meets your goals, objectives and risk •Ready to purchase with duegiven everyday investors a right of entry into an tolerance. TIC ownership has diligence completed investmentto investments that have been dominated by pension funds, insurance •Access vehicle that has been historically historically dominated by companies, or ultra high net worth individuals. pension funds, insurance companies, or ultra high net worth individuals. 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.

Slide 9: Call Us Today at 866-405-1031 www.1031alternatives.net 1031 Exchange: Investing “Triple Net Lease vs. TIC: Where Should Your 1031 Money Go?” 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.