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Number of Investors Allowed in TIC Investment

IRS Rev Proc 2002-22, issued on March 19, 2002, specifies the conditions under which the IRS may consider the purchase of a TIC interest an investment in real estate. This issue greatly helped to clarify, especially for the CPAs, the conditions under which the IRS recognizes valid TIC ownership.

One of the items in the issue addressed is how many investors may be included in a TIC. These guidelines dictate that there can be no more than 35 investors in any one TIC. The typical TIC structure has from 12-20 Tenant In Common investors in a property although larger TICs may have 30 to 35 investors. A husband and wife are counted as one entity in TIC ownership.

The number of investors and also the amount of equity being raised is used to determine the minimum investment for the particular property. Typical stated minimum investments range from $200K to $700K, though some of the larger properties will have much higher stated minimums. The minimum investment is calculated by dividing the amount of equity being raised by the number of investors.

Securities offered through Pacific West Securities, Inc. Member FINRA/SIPC. Advisory services offered Pacific West Financial Consultants, Inc. A Registered Investment Advisor. AMBAR Financial Group is independent of Pacific West Securities, Inc.

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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.