Introduction To TIC

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Introduction To TICs
Joe Wagner The Geneva Organization joe_at_genevawealt
h.com 608-825-4551

• Alex Kowalski
• Alta Exchange Group
• alex_at_altaexchangegroup.com
• 920-540-1072

Registered Representative of and securities
offered through Berthel Fisher and Company
Financial Services, Inc. (BFCFS). Member
FINRA/SIPC. Alta Exchange Group and The Geneva
Organization are independent of BFCFS.
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DISCLOSURE

• This material does not constitute an offer to
  sell or a solicitation to buy any security. Such
  offers can be made only by a Private Placement
  Memorandum to accredited investors. These
  investments involve a high degree of risk and are
  not suitable for all investors. Please refer to
  the Risk Factors section of any specific Private
  Placement Memorandum.

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The ABCs of TICs

• Undivided Fractional Interest
• Everything Is Pro-Rata
• Non-Recourse Debt
• Entity Selection Is Critical
• No Day to Day Management

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The ABCs of TICs

• Free From Partners After Disposition
• Low Leverage 50-66 LTV
• Guarantee of Close Sponsor Owns
• All 1031 Exchange Requirements Apply
• Not Limited to 1031 Exchange Money

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Risk Factors

• TIC Interests are Illiquid
• Use of Significant Leverage May Increase Risk of
  Loss
• Future Tax Code Changes
• Costs Associated With 1031 Investments May Offset
  the Benefits

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Definitions

• Sponsor A company who provides institutional
  properties for co-ownership.
• Registered Rep A securities licensed person who
  assists investors in finding replacement
  property.
• Tenant-In-Common (TIC) Interest Fractional
  ownership interest in a property.

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Total Annual Equity Invested
Source OMNI Brokerage
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Key Drivers

• Guidance From IRS In 2002
• Revenue Procedure 2002-22
• Highly Appreciated Assets
• Baby Boomers Assets To Income
• Inability To Find Replacement Property
• Desire For Stability/Cash Flow
• Little Management Responsibility

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Whos Investing

• Must be an Accredited Investor
• An accredited investor is an individual with a
  net worth, or joint net worth with their spouse
  that exceeds 1MM at the time of purchase or an
  individual with income exceeding 200,000 in the
  last two years or joint income with a spouse
  exceeding 300,000 for those years and a
  reasonable expectation of the same in the current
  year or a trust with assets in excess of 5MM,
  not formed to acquire the securities offered,
  whose purchase a sophisticated person makes.

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Whos Investing

• Farmers
• Large Tax Hit, Looking to Retire
• Mr. Fix It
• Capital Gains Tax and Recapture Tax, Wants Income
• Business Owners
• Tax Deferral and Income
• Developers
• Hard to Match an Exchange

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What Are They Buying

• Office Single Tenant and Multi
• Retail Single Tenant and Multi
• Multifamily With Good Demographics
• Hospitality/Senior Housing - Increasing
• Industrial In Key Areas
• Oil Gas Higher Cash Flows/Alpha

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• Questions?