A fractional ownership, structured as a tenancy in common, allows for a sponsor to offer a group of accredited investors co-ownership of a property. A tenancy-in-common investment offers real estate investors significant advantages, including:

• Access to institutional-quality real estate which would be out of reach for individual investors
• Release from the burdens of day-to-day management duties
• A steady monthly cash flow

Real estate investors often look to tenancy-in-common offerings to satisfy a like-kind property exchange when utilizing IRS Code 1031 which allows for the deferment of capital gains tax when proceeds from an investment property sale are reinvested in a like-kind property.

For more information on tenants in common, please click here.