Let’s talk about TIC vs. DST! In the world of real estate investing, there are a plethora of ownership structures available to investors, each with its own unique characteristics. Two common forms of real estate ownership are Tenancy-in-Common (TIC) and Delaware Statutory Trust (DST). While both offer distinct benefits, this article will focus on the advantages of TIC investments and shed light on why they can be more advantageous than DST options. Here at Millcreek Commercial, we specialize in TIC investments and always have properties available for your investment. Let us explain why investing in a TIC with us is the best commercial real estate investment on the market:
Flexibility and Control
One of the key advantages of TIC investments lies in their flexibility and control. TIC investors have the ability to customize their ownership structure based on their specific preferences and needs. Unlike DSTs, where decision-making authority is typically limited to a trustee or sponsor, TIC investors can actively participate and have a say in property management decisions. This control allows TIC investors to have a direct impact on the property’s performance, enabling them to make swift adjustments when necessary.
Customization of Ownership Interests
TIC ownership provides the opportunity for customization of ownership interests. In a TIC, investors can have different ownership percentages, allowing for tailored ownership structures that align with individual investment strategies and financial goals. Millcreek Commercial is especially flexible with our investors and TIC offerings—with low minimums, we aim to work with your investment to the dollar. TIC investments accommodate diverse investor profiles and offer more versatility in structuring ownership arrangements.
Variety of Property Types
TIC investments are commonly associated with small commercial properties. This broader range of property types provides investors with increased flexibility and the opportunity to diversify their portfolios. TIC investments typically focus on NNN leased commercial properties such as high traffic retail, medical office and special purpose – (think daycare). This versatility allows investors to target specific market segments and coupled with the small minimums it allows them to diversify by geographic areas. This allows even a modest investor to create a portfolio that aligns with their investment objectives.
Portfolio diversification is one of the many benefits of investing with Millcreek Commercial. We have a variety of property types in several locations that we can utilize to further diversify your portfolio. For example, we can take portions of your investment and give you rental income through a dollar store in Alabama, a childcare center in West Chicago, a Soda Shop in Herriman, and an ambulatory surgical center in Texas. Click here to browse our current inventory options.
Lower Minimum Investment Thresholds
TIC investments often have lower minimum investment thresholds compared to DSTs (and that is true here at Millcreek Commercial). This accessibility makes TIC investments more feasible for individual investors with limited capital. We are here to debunk the myth that only the wealthy can invest in commercial real estate—through Millcreek Commercial’s model, we can provide you a safe, secure, and stable investment for a fraction of the price.
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TIC investments provide more flexibility in terms of exit strategies compared to DSTs. While DST investments typically have limited liquidity options, TIC investors can explore various exit avenues. They have the opportunity to sell their ownership interest in the property to another investor or even choose to convert the property into a different ownership structure. This versatility in exit strategies grants TIC investors greater control over their investment and the ability to adapt to changing market conditions.
While both TIC and DST investments have their merits, Tenancy-in-Common investments offer distinct advantages that make them more advantageous. Between the benefits of a TIC and the stability of a Millcreek Commercial property, there truly is no better commercial real estate investment offering on the market. The flexibility and control TIC investors enjoy, the customization of ownership interests, a wider variety of property types, lower investment thresholds, as well as the flexibility in exit strategies are all factors that contribute to the attractiveness of TIC investments. These advantages empower investors to tailor their investments, actively participate in decision-making, diversify their portfolios, and adapt to changing market conditions. Here at Millcreek Commercial, we provide Safe, Secure, and Stable returns and a rigorously vetted property that is fully-managed, meaning you have more time to do what you love. Say goodbye to the Triple-T Monster: Tenants, Trash, and Toilets, through a passive, stable Millcreek Commercial real estate investment!
In conclusion, while both TIC and DST investments have their merits, TIC investments offer unique advantages in terms of flexibility, customization, property variety, lower investment thresholds, and exit strategies. These benefits make TIC investments an appealing option for investors seeking greater control, customization, and the potential for a more personalized investment experience in the realm of real estate.
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