Due Diligence

The TIC Sponsor, the lender, the broker/dealer and others conduct extensive due diligence on the investment properties offered to Tenants in Common (TIC) investors. The time and resources necessary for this due diligence are usually provided in a scale far greater than most individual investors are capable of.

Due diligence is conducted by experienced members of the TIC sponsor’s acquisition team who investigate and evaluate all aspects of the property, including a thorough assessment of the physical, intrinsic, and financial aspects. Independent, third party due diligence is also conducted by the financial institution providing the non-recourse financing for the acquisition.  

In addition, the due diligence team from the broker/dealer conducts a thorough review and analysis of the property and offering documents which focus on the following:

• Sponsor Character ~ What are the character and reputation of the sponsor? What is the experience and track record of the sponsor? What is the adequacy of the business infrastructure of the sponsor organization?
• Structure and Disclosure ~ Is the program structured well in terms of fairness to the investor? Is the offering structured well from a legal and mechanical standpoint, and are the proper disclosures to the client in place?
• Economics ~ What are the fundamental real estate characteristics of the property, such as location, tenant mix and lease terms, physical condition, etc.? Are the projections of the offering reasonable in view of the facts?

Through the due diligence process for each TIC property the following items are inspected multiple times:

• Appraisal
• Outside Engineering Firms (Phase 1 & Property Condition Assessments)
• Broker/Dealer Due Diligence
• Lender review
• Legal review Title, Survey, Service

 Lastly, the investor needs to conduct their own due diligence. They can do so through the following steps:

• Use a local realtor, appraiser or visit the property on their own
• Ask their Financial Advisor to provide the data and assist in the analysis
• Review the TIC Sponsor’s track record
• Hire a Third party Due Diligence Team

AMBAR Financial Group does not offer legal or tax advice. AMBAR encourages clients and visitors to seek independent legal and tax advice from competent professionals to discuss their personal financial situations. Registered Representatives may only transact business in states where they are registered, or exempt from registration. Currently we have Representatives registered in: AL, AZ, CA, FL, MN, MO, PA, TX. If your resident state is not listed, please contact us at 408-379-6510. Under normal circumstances, securities licensing procedures for additional states may take 24-72 hours. We will not effect or attempt to effect securities transactions, or provide personalized investment advice to, or communicate directly with residents in a state in which a Representative is not registered.

Property photos shown here are being provided for educational purposes only, to illustrate the different property types available in the real estate market. These photos are not intended to represent any particular type of TIC offering nor are they intended to represent any current or future TIC offerings.