Tenant In Common Explained
Tenant In Common Explained
A
tenant in common is an investment in a single large commercial
income property by multiple property owners, not as limited partners, but as individual property owners. Each
property owner receives an individual deed at closing for his or her undivided percentage interest in the entire income property. A
tenant in common exchange qualifies as a 1031 exchange according the internal revenue code. 1031 Exchanges allow property owners to use all of the proceeds from the initial sale of
income property to invest in other like kind income properties. Many property owners use
tenant in common exchanges as a method for entering more lucrative
income property deals. Tenant In Common’s increase cash flow and diversify investment portfolios while at the same time consolidate investments into one income property.
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