A common choice for 1031 tax deferred exchanges is Tenant-in-Common (TIC) ownership, sometimes called fractional ownership or shared equity ownership. You can own an undivided "fractional" interest in a property and receive your pro rata share of the income, tax benefits, and appreciation. You have the same rights as a sole owner.

A 1031 exchange allows one owner to sell a property to another and buy another one of equal or greater value within 180 days (the nomination of the "upleg" must be made within 45 days). This "replacement" purchase allows the seller to defer taxes from the profits of the initial property.

Some sellers are not satisfied with suitable local property listings and prefer to acquire mature, institutional grade properties that offer stable yields and low downside risk through an "economy of scale" affect. The financial size of the investment typically requires that these institutional grade properties must be purchased with other investors through a TIC 1031 sponsor, like ACACIA, who acquires quality properties and then sells portions to investors as tenancy-in-common interests. More...