tic vs reo investing
TRANSCRIPT
TIC
NorthPoint REO Llc Fund OpportunityBy Steve Roesch
Sales of tenant-in-common interests have plummeted this year. WHY?
Regardless, there is still demand for
investors to leverage partners
to buy larger investments.
TIC
Offerings have dropped 56% from
2008 to 2009
TIC Equity has dropped 85% from
2Q08 – 2Q09
TIC
What attracts a TIC buyer want?
To be a small part of something largerTo have hands off ownershipTo have a steady and safe return on the investmentTo have an investment secured by Real Estate
TIC
What Killed the TIC market
2009 Economy = Large Commercial Vacancies
Mortgage back securities gone. Was lead source for additional income.
Limited Exit Strategies
TIC
Both offer to be part of larger investment vehicles
Both are secured by real estate
Both are managed by someone other than the investor
Both bring steady return
TIC vs REO Llc
Exit strategy is the key difference.REO Llc. Is more like a maturing CD.TIC exit is when everyone unanimously agrees to sell, or you sell your (timeshare) parcel to someone else
TIC vs REO Llc
REO Llc focuses on distressed opportunities with high yield resale
Extensive research and due diligence
Does not rely on occupancy
REO Llc Fund
Invest in REO Llc Fund, for 6 to 12 month increments.
10-15% annualized returns paid on schedule
Profit sharing each time capital is turned
Investment is secured by individual real estate assets
REO Llc Fund
