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DIVERSIFYING YOUR INVESTMENTS Through Real Estate Ownership

Diversifying Your Investments

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Tenants in Common Real Estate Investments

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Page 1: Diversifying Your Investments

DIVERSIFYING YOUR INVESTMENTS

Through Real Estate Ownership

Page 2: Diversifying Your Investments

Greystone Real Estate Group

Mission Statement

Wealth Preservation

Tax Deferral

Appreciation of Property

Page 3: Diversifying Your Investments

What is a Tenant-in-Common Ownership?

Tenant-in-Common Ownership, also known as TIC Ownership, is rapidly becoming the most popular choice among real estate Exchangers seeking ideal Replacement Properties. While it is often difficult to locate a property that has the right purchase price, debt ratio and closing schedule within the 45-day time limit, TIC Properties are flexible enough to meet almost all of the 1031 Exchanger’s needs. A TIC interest represents Co-Ownership between two or more investors and is especially suited to investors involved in the 1031 Exchange process because the Properties can be identified and closed in a timely manner thanks to prearranged financing.

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What are the advantages of TIC ownership?

Since TIC Investors receive separate deeds to undivided interests, they are able to own fractional interest in potentially larger, higher valued and better located Properties than what they could own independently. The resulting advantages may include uncured net cash flow, tax write-offs and appreciation without the headaches and time commitments of real estate management. With a TIC 1031 Exchange you can trade your management-incentive property for a triple net lease or institutional-quality property that will appreciate and generate steady income on its own. Through your management contract, a manager can be retained to deal with the hassles of tenants, maintenance and upkeep while you enjoy your free time.

Page 5: Diversifying Your Investments

What are the advantages of TIC ownership?

TIC owners have the same bundle of rights as if they solely owned the reinvestment property outright. TIC ownership is a direct, undivided ownership interest in an Investment Property. Simply one co-investor with other Exchange investors is a Tenant in Common, with each Exchange investor having individual and undivided rights in the whole property. Each TIC Exchange investor is entitled to his/her percentage interest to possession of and the profits of the entire property subject to the same rights of the other TIC Exchange Investor.

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Why are TICs popular?

TIC sponsors have carefully conducted their selection and extensive due diligence process when they purchased or tied up the property (which is provided to you), they have arranged the financing with excellent terms (and it is the desirable non-recourse financing), and the have done all the work that you, the investor, would have to do. Investors and their team (attorney, accountant, etc.) can review the due diligence information. Investors can “slide” into properties with little fuss.

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Why are TICs popular?

Another more obvious reason why TICs are popular with the “smaller” investor is that the investor is able to buy into institutional-grade properties they could not buy on their own, especially management-free credit-tenant real estate that would be too expensive or out of reach to them.

Page 8: Diversifying Your Investments

Why are TICs popular?

Some “larger” investors like TICs because they can spread their investments into a number of properties and diversify the portfolio, much like their stock portfolio. TIC properties can provide a stable cash flow, appreciation and all the tax advantages of owning investment real estate while not requiring the headache of management.

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Why are TICs popular?

TICs are popular because they are simpler to acquire than many types of properties, can be conservative and straight-forward, and the returns are generally projected and estimated. Cash flow is not guaranteed and can fluctuate, but the Proforma reports and projections help the investor to know the studied scenario based on tenants, leases, expenses and such. No management, no fuss, no tenant problems – this is appealing to more and more people. The investor is also able to diversify – for instance, some funds into a Class A office building, some funds in a Class A apartment complex, and some funds into a prime retail powercenter.

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How do I find TIC opportunities?

When someone mentions that they are part owner of a shopping center or office complex people always wonder how? Truthfully, the chance to invest via a TIC is not quite as difficult as most would assume. Greystone Real Estate Group, LLC has many TIC opportunities that are waiting for new investors. Through a few select companies, we are able to offer our Exchangers many options to re-invest their Exchange proceeds.

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Greystone Real Estate Group

Equity funds can be re-invested in institutional properties.

Returns are paid at competitive rates.

Should you need additional advice, we can direct you to our team of tax, legal and brokerage advisors through our partnerships.

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Caromont Medical Center

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Midtown Plaza

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Abbey Place

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1100 South Tryon

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Lincoln Center

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Summit Medical

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201 West Moorehead

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624 Tyvola

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Manor House

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Waterford One

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Ridgelake

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Greystone Real Estate Group, LLC

Douglas M. ClaytonPrincipal

Kimberly A. Willis-SmithDirector of Acquisitions

Arnetta A. ClineDirector of Client Relations

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Greystone Real Estate Group, LLC

2423 Highway 17 SouthNorth Myrtle Beach, SC 29582

Office: 843.272.1030Toll Free: 866.396.1031

Fax: 843.272.1347

Email: [email protected] Site: GreyStone1031Exchange.Com