How to finance a TIC (Tenants in Common) with a fractional loan.

Fractional Loan

Today, TICs can only be financed through fractional loans. These loans allow each TIC buyer to qualify independently and sign an individual note. Each note is secured by a deed of trust covering only that owner’s percentage.

Lenders

Currently there are two lenders who offer fractional loans: Sterling Bank & National Cooperative Bank. As TICs become more popular, more lenders may offer fractional loans.

Financing Options

Sterling Bank and National Cooperative Bank offer ARMs for TIC Financing. You must have at least a 10% down payment.

Note: 30 year fixed rate…

The TIC Guru — Everything TIC in Los Angeles

Andy Sirkin is a real estate attorney who specializes in fractional ownership. He has paved the way for TICs since the 1980s when he bought his first property with his friends in San Francisco. They created a community together and he wrote the TIC Agreement for this community. Now, he writes almost all the TIC Agreements here in Los Angeles.

What is a TIC Agreement? The TIC Agreement is the contract between all owners in a TIC Community that convey the rules of the community much like CC&Rs or HOA Docs…

The answers to your toughest TIC (Tenants in Common) questions.

What is the difference between TICs and condos?

What are TICs and what’s so special about them?

Tenants in Common

Tenants in common co-own a property together, and are allocated a percentage of the property that makes up their individual unit.

Check out current TICs for sale here!

What does that mean?

This means that you can buy a fraction of a property with others under a special TIC contract (we call this contract the ‘TIC Agreement’). This allows for you to sell or leave your portion of the property to someone else, without needing to involve the rest of the owners.

Why are TICs so hot right now?

TICs are rental communities converted to home-ownership communities. These new communities are offered…

Welcome to week ten! The final chapter in my step-by-step guide designed to make anyone feel confident while buying a home. Today we will go over closing on a property. If you are ready to close it means you’ve house hunted until you felt that intuitive nudge indicating that this is home. You’ve gone through the process of submitting an offer, gaining acceptance, and opening escrow. Now it is almost time to break out those dream home boards on Pinterest!

Are you excited? You should be, closing on a property is a huge accomplishment. However, before you start putting all…

Inspections? Check. Appraisal? Check. As escrow is winding down, we have one more contingency to be released before closing this deal and getting the keys to your new property!

To recap, this is week nine of my ten step tutorial about how to purchase a property. Whether it is your first time, or fifth time, buying a home can feel complicated and overwhelming — but it doesn’t have to be. As an expert of all things home, I’m here to make it simple so that anyone can feel knowledgeable and confident when playing the real estate game.

For the last…

Hi there! I am an LA-based Realtor who has been spending the last few weeks going over all the questions I hear about the home buying process. Welcome to week eight of my ten step tutorial designed to help anyone feel like an expert when purchasing a property. So far I’ve broken down concepts like opening escrow, making an offer, and why pre-approval letters might just be one of the most important steps when buying a home.

Last week we dived into the first of three contingencies: the inspection. Which means that today I’ll be going over The Appraisal Contingency…