Real estate syndications are commonly used by taxpayers conducting 1031 exchanges of real property. In this article, we are going to talk about the current state of real estate syndications and whether DSTs have effectively replaced TICs.
DSTs vs. TICs
To some degree, the old TIC (Tenancy-in-Common) syndications have fallen out of favor. There are still TIC syndicated deals out there and there are instances in which TICs are an easier method for putting together a consortium of buyers.
It’s most popular with friends and family who want to get together and acquire a property as tenants-in-common. I also see it with developers who want to bring in friends and family to buy the “dirt” that will eventually become a development.
However, by and large, DSTs have replaced TICs as the modality for real estate syndication. There is an enormous amount of money going into syndicated real estate right now – particularly DST syndications. There is not enough inventory in the securitized world to satiate the demand. As a result, some firms will have trouble because there will be clients knocking on the door wanting to get in when the deal is already buttoned up.
Contact CPEC1031, LLC
If you have further questions about DSTs or TICs, don’t hesitate to reach out to the team at CPEC1031. Our 1031 exchange intermediaries have over twenty years of experience facilitating exchanges of all shapes and sizes. Contact us today to learn more about how we can help with your 1031 exchange!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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