Advice on Loans for a Rental Owned as TIC Instead of Partners?

[Daniel Dietz]

Hello All,

We are considering doing some upcoming rental purchases using the TIC (Tenants In Common) ownership structure instead of the traditional partnership or LLC structure. Our main reason for wanting to do this for "future buyout opportunities" using 1031 structures to defer taxes.

We currently invest in partnerships where one partner, the private money partner, brings all the down payment and the other partner (me) does all of the finding, funding, ongoing PM and business management and split things 50-50.

We are trying to figure out a way that the PMP could 'cash out' down the road in say 10 years or so and I could keep the property in my rental portfolio and give them the opportunity to roll their share over via 1031 into another investment either with me or into more of a NNN type opportunity.

Would this set, say if we own things 50-50, allow for a clean 1031 even if they wanted to invest again with me?

I have been paying attention to what @Dave Foster says on here and it seems that setting things up right from the get go might make it a lot more flexible on the back end.

Thanks, Dan Dietz