Do Your Due Diligence Before Investing in a TIC

Every investor wants to be certain that they are putting their money into solid investments, especially when it comes to complex real estate transactions. Due diligence – the analysis of the circumstances surrounding an investment – and full disclosure of all material facts is an essential component of the investment process. Especially when it comes to Tenancies in Common (#TIC) and Delaware Statutory Trusts (DST).

Every responsible investor should make sure they complete this very important process before entering into any potentially complex real estate transactions.

Property Inspection – Never assume the property has been pre-vetted. Ensure that you are confident in the physical condition, that all environmental matters are cleared and that the property is performing comparably with similar properties in the area.

Structural Review – Enlist the assistance of an experienced attorney to closely review all documentation related to the transaction.

Sponsor Analysis – Be sure to scrutinize the experience, financial condition, performance record and backgrounds of the key players involved in the sponsorship.

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