Although many people invest in real estate, the sector is not without some shortcomings. Given the high cost of admission, making a mistake when investing in commercial property can be devastating.
Without a way to correct such errors, you might be stuck with a loss-making property for a long time. Fortunately, there’s a credible way to get yourself out of such a mess: you can consult a company like 1031 Exchange Place and swap your holdings for TIC real estate.
Get into a Profitable Sector
Under Section 1031 of the Tax Code, you can exchange a commercial property with another one of equal or higher value. That means that you can dispose of your problematic property for one that is less taxing to manage or more lucrative. Better yet, you can buy a tenants-in-common property.
In this case, you channel the sales proceeds toward buying a share in a high-value property. For instance, if you sold off your property for a million dollars, you can use the money to buy a stake in hospital valued at $100 million. With proper financing, you can increase your capital to two million dollars.
Enjoy Hands-off Management
Your struggle with a loss-making property might have left you feeling drained or exhausted. Buying a TIC property allows you to take a back seat while still enjoying the benefits of real estate investment. Once you’ve finalized the deal, you’ll have no role in the management of the estate.
In every sense of the word, you’ll be a silent investor who gets a return on investment. That way, you’ll have peace of mind. Your investment will be in good hands, sparing you from the hassle that comes with property management.
Making the switch to a TIC property is an incredible way to get rid of a problematic estate. You not only get to keep any capital but also get a more lucrative property.