Financing TICs

Lauren Biedenharn
4 min readAug 11, 2020

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

How to finance TICs (Tenants in Common) with fractional loans

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.


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 loans are not offered at this time.

The two banks who provide fractional loans, Sterling Banks and National Cooperative Bank

Real Estate Revolution

As you may know from my other blogs, I am a big Blockchain Technology advocate for its improvements on the way we do business and our economy. I have heard about tokenizing real estate for a few years now — taking REITs to a whole new level! The tokenization of properties and the ability for crypto to facilitate multiple owners to fund a property is something that I can see changing the real estate industry. This, however, might take a long time for adoption. TICs are fractional ownerships happening here and NOW. One major limitation is that at this time there are only two fractional lenders in Los Angeles. That means you must be approved by one of these two lenders, or buy all cash — no exceptions! I will continue to report on this and other real estate trends happening in Los Angeles. Please feel free to email or message me if you have your own experience you would like to share.

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