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Risk Factors
As with every investment, there are risks involved. Investors must weigh the pros and cons associated with TICs as well as consider their own financial situation, personal needs and goals. Real estate investments are AMBAR’s specialty. However, because TIC interests are complicated investments, involving various legal agreements and tax consequences, you should seek independent legal and tax advice before investing. Neither AMBAR Financial Group nor Pacific West Securities, Inc. offers legal or tax advice. All risks need to be carefully evaluated, then weighed against the benefits of TIC ownership such as lower acquisition cost and lower ongoing maintenance and management burdens and potentially higher cash flows and appreciation. Be sure to read carefully the TIC Sponsor’s private placement memorandum (PPM)1. The PPM contains more specific details about risks, costs, and expenses.
Some of the risks to consider when evaluating a TIC investment are:
- Tenant-In-Common investments are only available to accredited investors and are not suitable for everyone
- Speculative nature of the investment
- Variations (including decrease or halting) in cash distributions
- Lack of liquidity - there is no secondary market for further sale of TIC interests
- Various risks associated with owning, financing, operating and leasing properties
- Reliance on the asset and property manager for property management decisions
- TIC investments require a high level of due diligence
- Property may be highly leveraged
- Risks associated with the loss of a major tenant or tenant turnover
1 TIC Interests can only be offered by private placement memorandum (“PPM”). Before you invest, be sure to obtain and read carefully the PPM, which contains more specific details about the investment including risks, costs, and expenses. TIC investments are complicated; you should seek independent advice from legal and tax advisors.
Contact Us
Securities offered through Pacific West Securities, Inc. Member FINRA/SIPC. Advisory services offered Pacific West Financial Consultants, Inc. A Registered Investment Advisor. AMBAR Financial Group is independent of Pacific West Securities, Inc.
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Multi-Family,
Hartford, Connecticut |
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Multi-Family
Little Rock, Arkansas |
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