At Millcreek Commercial, we utilize Tenants in Common (TIC) ownership to divide up high-quality, recession-resilient commercial real estate for two or more investors to co-own. As we have discussed this type of ownership with interested investors, it has become apparent how few are aware of this powerful investment tool.
There are many advantages to owning commercial real estate as a TIC. We’d like to share two compelling reasons. As tenants in common, each investor holds its own separate stake in the property, with their interests not required to be equal. Investors possess a deeded interest in the property. Additionally, TIC properties are available to non-accredited investors, allowing more individuals to reap the unparalleled benefits of commercial real estate investment.
TICs Provide Access and Flexibility
Creating streams of passive income is quite possibly one of the most powerful ways to acquire and multiply wealth. Throughout history, the purchase of land and property has been a constant and reliable source of investment revenue, and commercial real estate, in particular, is considered the gold standard. While the benefits of commercial real estate are clear, this investment class has traditionally been reserved for those with enough capital to purchase a property in full.
The TIC model enables us at Millcreek Commercial to offer properties with reduced minimums – as low as $50,000. This gives each investor the ability to purchase an interest in the property that best fits their current investment plan—anywhere from one to one hundred percent.
Freedom From Property Management
Due to the time requirements of managing tenants, fixing toilets, replacing damaged carpets, and painting walls, it’s no wonder many residential real estate owners grow tired of this model. At Millcreek Commercial, we help landlords elevate their portfolio’s quality by owning a portion of a commercial real estate asset. Our properties are fully managed by a third-party property management company that works with the tenant to ensure they are fulfilling the terms of the lease.
The power is in the lease! Our NNN leases, property improvements, taxes, and maintenance all rest on the tenant’s shoulders. Streams of income become truly passive by having a property management company in place, providing increased opportunities to focus on the more important things in life.
Diversification
As tenants in common, many investors can easily purchase more than one TIC property at a time. Diversifying your portfolio in different properties provides safety, security, and stability in your future investments. The following is an example of what an investor could do with 500k:
John has $500,000 to place in an investment property. Under the traditional commercial real estate investment model, it is unlikely that John could purchase a commercial building with a NNN lease. He would, therefore, be unable to reap the unmatched benefits of this class of investment. With our model and utilizing the TIC ownership structure, John could invest $150k into a property leased by CVS Pharmacy in West Virginia, $150k into an urgent care center, guaranteed by a publicly-traded company in Illinois, $100k into a property leased by Dollar General in Georgia, and the remaining $100,000 into a property leased by a surgery center in Utah. Diversifying across geographic regions, building types, and industry sectors provide safety, security, and increased opportunity to your investment portfolio.
Great For IRA/401k
Many are not aware that commercial properties with the TIC structure are a great fit for retirement accounts. With the volatility of the stock market, our TIC properties are a popular choice for those wanting to reduce risk and receive consistent returns for their retirement.
Give us a call today to see how we can help you now or in the future — 801.899.1943
