The White Law Group is investigating potential securities fraud claims against the brokerage firms or financial professionals that unsuitably recommended tenant in common (TIC) investments to its clients.
A tenant in common investment is when a property is sold to multiple investors who then own fractional interests in the property as co-owners. Tenants in common investors are not involved in the day to day management of the property but do retain certain other rights regarding the management of the property. These investments are often purchased as part of a 1031 exchange, with the investor usually selling an investment property and then exchanging the proceeds into the TIC property.
These products are often improperly sold to retired investors who are attracted to the high interest that is usually offered by the TIC sponsor. In some cases, this interest is even "guaranteed" by the sponsor.
Notwithstanding the manner in which these investments are often sold and represented, tenant in common investments can be very risky because they are entirely dependent on the performance of the underlying real estate properties (and the overall health of the real estate market).
Tenant in common investments typically pay a high commission - often as much as 10%. This often explains why the financial professional would recommend the investment to his/her client.
The White Law Group's investigation into the improper sales of TICs to investors includes, but is not limited to, recommendations to invest in the TICs offered by the following sponsors:
(2) Cabot Investment Properties
(3) Argus Realty
(4) Covington Realty Partners
(5) Evergreen Realty Group
(6) FOR 1031
(7) Triple Net Properties (NYSE:NNN)
(8) Atlas Venture Partners
(9) Cole Companies
(10) Direct Invest
(11) Franklin 1031 Investments
(12) Grand Peaks 1031 Properties
(13) Inland Real Estate Exchange
(14) Kodiak Capital Partners
(15) Parthenon Realty 1031 Investors
For more information on The White Law Group's TIC investigation, visit the following links:
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.