Discover a Vehicle to Invest in Real Estate Using Little of Your Own Money
How can you invest in real estate using little of your own money? In this article, you will discover an amazing way of gathering investors that won’t break your bank.
There a relatively unknown form of ownership to effectively gather active investors. It is called tenants-in-common (TIC). It’s an easy, low-cost method of funding real estate investments while maintaining tax benefits.
OWNERSHIP FEATURES THAT PROVIDE FLEXIBILITY
Tenants-in-common is a form of ownership that may involve two or more people, and it does not require a marital relationship. With a tenants-in-common ownership:
1. There can be two or more co-owners, but their ownership interests need not be equal. For example, if three people are co-owners, one could have a share of 25 percent, another 30 percent, and the third 45 percent.
2. There is no automatic right of survivorship. Unlike joint tenancy, a share in the property held by one owner does not automatically pass to the other owners at death. When a tenants-in-common owner dies, that owner’s interest is transferred to his or her heirs and not to the other tenants-in-common, unless there’s an agreement giving title to the co-owners.
3. Interest held by tenants-in-common may be sold separately by individual owners. In many cases, when tenants-in-common first acquire the property, they agree to give the other co-owners a “first right of refusal” to buy out one another.
WAYS TO SAVE WITH A TENANTS-IN-COMMONOWNERSHIP
Here are seven advantages of the tenants-in-common ownership over other entities:
1. Low set-up costs: Compared to……
There a relatively unknown form of ownership to effectively gather active investors. It is called tenants-in-common (TIC). It’s an easy, low-cost method of funding real estate investments while maintaining tax benefits.
OWNERSHIP FEATURES THAT PROVIDE FLEXIBILITY
Tenants-in-common is a form of ownership that may involve two or more people, and it does not require a marital relationship. With a tenants-in-common ownership:
1. There can be two or more co-owners, but their ownership interests need not be equal. For example, if three people are co-owners, one could have a share of 25 percent, another 30 percent, and the third 45 percent.
2. There is no automatic right of survivorship. Unlike joint tenancy, a share in the property held by one owner does not automatically pass to the other owners at death. When a tenants-in-common owner dies, that owner’s interest is transferred to his or her heirs and not to the other tenants-in-common, unless there’s an agreement giving title to the co-owners.
3. Interest held by tenants-in-common may be sold separately by individual owners. In many cases, when tenants-in-common first acquire the property, they agree to give the other co-owners a “first right of refusal” to buy out one another.
WAYS TO SAVE WITH A TENANTS-IN-COMMONOWNERSHIP
Here are seven advantages of the tenants-in-common ownership over other entities:
1. Low set-up costs: Compared to……