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1031 Exchanges

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Jeff Klein
  • New Hyde Park, NY
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18
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Question about TIC "reserve fund"

Jeff Klein
  • New Hyde Park, NY
Posted Apr 22 2018, 10:20

I want to exchange into an investment which is management free on my part. I'm very interested in TIC's. The sponsor with who I'm discussing possible investments has said that I will have to contribute to a reserve fund which will be used for repairs and improvements. Will I be asked for more beyond my initial contribution? Is there a risk that a reserve fund is a financial black hole?

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