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FRACTIONAL OWNERSHIP

A TIC investment is any syndicated investment created through a Tenant-In-Common (TIC) structure. Under a Tenant-In-Common structure, each investor (known as a co-tenant or co-owner) holds an undivided, fractional interest in the property. Since Tenant-In-Common investments are a form of direct ownership, they are 1031 Exchange eligible, provided the vehicle is not treated as a partnership for tax purposes.

DSTTIC
OwnershipPercentage of benecial ownership in a DST that owns real propertyUndivided tenant-in-common
interest in real property
Maximum Number of InvestorsNo IRS imposed limitationUp to 35
Investors Receive Property DeedNoYes
Investors Form Single Member LLCNoYes (generally)
MajorNo voting rightsEqual voting rights and unanimous approval
Number of BorrowersOne (the DST)Up to 35 (the maximum number of investors)

The above illustration is a quick chart that illustrates the differences of an Tenants in Common (TIC) and Delaware Statutory Trust (DST). This comparison is not all-encompassing and an investor should review all potential benefits and risks before making an investment.