Buying an LA TIC — Everything you need to know about TIC ownership

One of the new TIC properties popping up for sale in Los Angeles →

It’s here. It’s finally happened. TIC is becoming a ‘thing’ here in Los Angeles.

SPOILER: Want to see TICs for sale in LA right now → TIC Listings

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What is a TIC in Real Estate?

TIC stands for Tenants in Common. Tenants in common is a form of ownership- some other common ways to hold title are Sole Proprietorship, Joint Tenants, and community property. TICs are the best form of ownership for a group of unrelated owners or investors because it allows ownership interests in the TIC to be sold separately, ownership interest can be divided in any way, and there is no right of survivorship. Think of TICs like fractional ownership of a small apartment building conversions (usually 2–8 units). In the case of a TIC building in Los Angeles, we are not referring to the form of ownership so much but rather the tic property type.

What are the benefits of owning a TIC?

Affordability: The number one reason to buy a tic is affordability. Entry level pricing in LA is 500K- 600K right now. TICs typically sell for 10% to 20% less than comparable entry level condos in the market so if you have been priced out of the market, TICs offer you a way to get in. I see TICs in the $400K to 500K price range. How can you use this affordability to your advantage? TIC homes in Silver Lake and Echo Park are comparable to the price of what you can buy a condo in Koreatown! That means you can use TICs affordability to get access to a better neighborhood also! TIC offers new ownership opportunities for Millennials trying to start a new life or those trying to break into Real Estate market.

What are the disadvantages of a TIC?

Difficulty to finance: There are only a handful of lenders who are experienced loaning against TICs. I expect as TICs become more common for this to improve, but for the time being you don’t have a lot of options.

Is buying a TIC safe?

Yes. Buying a TIC is perfectly safe. Hundreds of TICs are bough and sold each year in Los Angeles, several I have sold myself. San Fran has been utilizing and marketing the TIC lifestyle for years now. Mostly because of the Tech Boom in SF, housing prices have sky-rocked! Enter TICs. Because of the low development cost and shared ownership home buyers can purchase an ownership interest in a TIC Building for a fraction of the cost of traditional forms of real estate.

Owning A TIC

How does maintenance work in a tic?

Want to know what TICs you can buy right now in Los Angeles?

TICs for sale in L.A. right now!

Details and Legalities

While you should always do your own due diligence, there are several helpful articles and videos to get you up-to-snuff with the TIC trend and legalities.

Hipsters, Houses and Horses

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