Investment Programs» Fractional-Deed Co-Ownership
Fractional-Deed Co-Ownership enables individuals, through Licensed Real Estate Brokers/Agents, to acquire an interest in high-quality properties or developments and step away from personal day-to-day property management. These properties are larger, professionally managed, and require significantly less hands-on involvement than sole-owned real estate. In many cases Fractional-Deed Real Estate conforms to IRS standards for a 1031 Exchange, making them a solid solution to identifying the like-kind property for an Exchange.
How Our Fractional Ownership Program Works
Our Fractional Ownership program does vary from project to project, however the underlying structure remains the same. Generally, a limited liability corporation TIC is established for acquiring, developing, improving or remodeling, and then selling of a specific property. The LLC Tenants in Common provides for individual investors to own an undivided fractional interest in the entire property. Under this co-ownership structure, the investor shares in the net income, tax shelters, and growth. Further, investors will receive a separate deed and title insurance for their percentage interest in the property and have the same rights as a single owner. By purchasing real estate through our Tenant in Common program you gain superior efficiencies in the identification, acquisition, financing, closing, and operating stages of real estate ownership.
The Benefits of purchasing Real Estate through the Fractional Ownership program
- Cash flow in the form of a guaranteed lease payment is generally paid monthly and is tax-sheltered via depreciation pass through and interest deductions. You may also share in the appreciation of the property when it is sold.
- Minimum equity requirements as low as $50,000 allow you to purchase high quality property. These low minimums also allow you to diversify, which can reduce your risk by acquiring properties in different locations, with various property types, tenants, industries, etc.
- Ownership as a Tenant In Common can potentially increase your net cash flow, provide you with substantial tax write-offs, and, like any real estate, potentially give you appreciation, all without the time commitments of active property management.
