Reserves for Maintenance & Repairs

When TICs are formed, there is a certain amount of cash reserves that are set aside for repair and maintenance of the property. These will vary in size depending on the age and condition of the property. These reserves are to protect the TIC owners from having to put in additional funds for normal every day operations, maintenance and repairs such as landscaping, roofs, appliances and the like. In some instances, following the close of the TIC property, the first month’s rents or a portion of the rent will be put into the reserve account prior to the owners beginning to receive their monthly distribution.

These reserves belong to the TIC owners. In some cases they are returned to the TIC owners at the sale of the property and in other cases they are negotiated as part of the sales price of the TIC.

Investors should consider what safeguards (reserves) a TIC sponsor has in place. This, and other specific details, can be found the TIC Sponsor’s PPM.

AMBAR Financial Group does not offer legal or tax advice. AMBAR encourages clients and visitors to seek independent legal and tax advice from competent professionals to discuss their personal financial situations. Registered Representatives may only transact business in states where they are registered, or exempt from registration. Currently we have Representatives registered in: AL, AZ, CA, FL, MN, MO, PA, TX. If your resident state is not listed, please contact us at 408-379-6510. Under normal circumstances, securities licensing procedures for additional states may take 24-72 hours. We will not effect or attempt to effect securities transactions, or provide personalized investment advice to, or communicate directly with residents in a state in which a Representative is not registered.

Property photos shown here are being provided for educational purposes only, to illustrate the different property types available in the real estate market. These photos are not intended to represent any particular type of TIC offering nor are they intended to represent any current or future TIC offerings.