New Ownership Method Gives Real Estate Investors Options

(ARA) - We all understand the income potential of investing in real estate. Some people decide to buy apartments or commercial buildings to rent and manage themselves. This can be rewarding, but can also be a lot of work. What if you could have the benefits of a commercial investment, but without the many subsequent responsibilities?

Many people are finding tenant in common (TIC), or undivided fractional interest, to be an investment option that makes sense. TIC is a real estate method in which a group of people buy a significant real estate asset together, often much larger than they could obtain individually. Each investor is on the title and deed for their percentage of ownership and they own and control the property. Each owner receives rental income and the tax benefits of traditional real estate investing.

"Tenant in common ownership can benefit the individual new to real estate investing or seasoned pros. Some investors are looking for a new source of income post-retirement. Others have managed apartment complexes, mobile home parks, etc., themselves, but they don't want the hassles of maintenance and management any longer," says Curt Smiley, owner of TIC Investments, Inc., a real estate company focused on offering individuals access to corporate-grade real estate. "TICs open up new options for investors with many benefits."

If you are thinking about investing in real estate, Smiley suggests you consider the following:

* Building Occupancy
How much of the building is currently leased? When investing, you should know the occupancy percentage and existing lease terms for each tenant.

* Risk Assessment
A property with a majority of the space leased to government agencies or Fortune 500 companies generally offers less risk than properties where a majority of the tenants are smaller, independent companies.

* History
Before investing, you should have adequate information about the history of the building and the history of the real estate company packaging the TIC opportunity.

* Experienced Counsel
TIC investing can be complicated. It's best to work with a TIC representative who has years of experience and knowledge in the industry. Can they tailor a program to match your specific needs? Can they analyze the proforma to determine if the projections are realistic? All your questions should be answered in detail.

There are many benefits of TIC investing. Here are some of the reasons why people are choosing this method:

Equal Ownership
Smiley explains that TIC ownership allows each investor to have the same ownership rights regardless of the equity invested so that no individual or group has direct control.

Complete Investment
Investors work with a sponsor, who is the real estate company that packages and offers the TIC opportunity to the public. The sponsor first locates and secures the property then performs due diligence on the asset. The sponsor also obtains an appraisal, Phase 1 and the non-recourse loan thus the price the investor pays is a full, complete investment.

Control without Hassle
One of the most notable benefits of TIC ownership is the property management arrangement. The property management company works directly for the TIC owners. This characteristic enables investors to have a voice in all the substantial decision-making on the property without worrying about the day-to-day, tedious aspects normally associated with owning real estate.

Income
Historically, TIC Investments have returned a 10 to 15 percent average annualized return to owners. "Just as with any investment, there are risks, but many investors are very successful by choosing TICs. A good TIC representative will work directly with you to analyze your investment goals and risk tolerance, find the best opportunities and diversify your investment if possible," says Smiley.

Tax Benefits
A 1031 Exchange is an IRS procedure which allows investment property owners to defer paying capital gains and depreciation recapture taxes on their equity principal. A TIC investment also allows individuals to write-off property depreciation, interest on the loan, etc., often sheltering much of the owners' monthly income.

An investment in a TIC property offers attractive advantages, but it's not for everyone. A TIC option may not be right for you depending on your particular tax situation or if you want complete control over the daily responsibilities of your property. However, if you are seeking a stable real estate investment that will not require your constant attention yet may provide you with reliable, monthly income, it may be a good choice.

To learn more visit www.TICinvestments.net or call 866-966-1031.

Courtesy of ARA Content

Eco-Friendly Homes Reduce Carbon Footprint, Save Energy, Money

(ARA) - Everywhere you turn, there's something "green" - whether it's a commercial for a hybrid car or a reminder to pick up reusable bags at the local grocery store. The green movement is under way and concerned Americans are looking for ways to do their part to reduce energy use and pollution, and preserve natural resources.

Whether by changing their daily routines like biking to work instead of driving, or taking up a new hobby like planting trees in the community park, more and more Americans are going green. One aspect of the multifaceted greening of America is the building and buying of "green" or eco-friendly homes.

According to a recent survey conducted for McGraw-Hill Research and Analytics, consumers list environmental concerns among the top three reasons to purchase a green home, along with lower operating costs and health benefits for occupants. Across the country, homebuilders and homebuyers are realizing the benefits of green building and living, from reduced construction waste to better indoor air quality. Homes planned by green developers can also reduce utility bills by more than 50 percent, minimize pollution and demands on infrastructure, and provide greater environmental protection.

"It's amazing how small steps can add up to big results," says Fred Maas, president and CEO of Black Mountain Ranch LLC, the developer of Del Sur - a new green 1,800-acre master-planned residential community in San Diego, Calif. "For example, tankless water heaters are as much as 50 percent more efficient than conventional water heaters - and heating hot water is second only to heating and cooling in terms of residential energy use. If every household in the United States converted to high-efficiency, tankless water heaters, America could save the equivalent of 300 million barrels of oil a year and reduce annual greenhouse gas emissions by up to 150 million tons."

Similarly, replacing just one light bulb in each American home with an efficient compact fluorescent bulb could save enough energy to light more than three million homes for an entire year. This could save more than $600 million in annual energy costs and reduce greenhouse gas emissions by an amount equivalent to removing more than 800,000 cars from America's roads.

Residents of the Del Sur community are learning firsthand the advantages of green home features. Del Sur used its unique size and buying power - 2,500 market-rate homes and 469 low- and moderate-income homes - to negotiate lower prices for solar, tankless hot water and weather-based irrigation systems, making these energy-saving, environmentally-friendly features more affordable for homebuyers.

"All things being equal, homebuyers want to go green, but they don't want to pay a fortune to do so - and they shouldn't have to. Our vision of sustainability is to integrate a core set of 'attainable' green elements into our homes that do their part for the environment and increase value and savings for the consumer," says Maas.

By providing homebuyers with green features at lower costs, homebuilders can help to reduce the nation's carbon footprint and preserve the environment without putting all of the burden on the homeowner. By taking advantage of available tax credits and incentives, it is possible to equip homes with solar photovoltaic technology to generate electricity at a reasonable cost, greatly reducing homeowners' electric bills.

"Our homeowners with solar power can draw power from the grid at night and make the meter spin backwards during the day," says Maas. "Some have cut their electric bills to nearly zero. When homeowners realize the savings, they really get a kick out of showing their new energy bills to neighbors and friends in the community."

"When I see American families living the Southern California lifestyle in 3,000-plus-square-foot homes with gourmet kitchens and all the latest appliances - and their monthly electric bill is close to zero - I know there's no barrier to America going green," says Maas. "We're doing it here in San Diego and I think that, community-by-community, the entire nation can go green."

Courtesy of ARA Content