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What are the pros and cons of purchasing a TIC?

  • September 30 2011 - Nob Hill
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Answers (5)

Currently, I recommended most of my clients to stay away from Tic's.,,,

Fractional TIC's were okay for some of my clients and it depends on the person's individual financial situation.

Briefly, pros of TIC's: Cheaper and less money....period.

Cons: Financing harder and interest rates higher....others I won't name for now.

Peter T. Chin Realtor #01866332 [Phone removed by Zillow moderator. Please see our Good Neighbor Policy for more information.]
  • June 07 2012
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I love TIC's ! I just sold 1051 Oak St. in hayes valley/nopa to a first time buyer and he just loves the place.  There are many pros to a TIC for example it is great entry level housing here in the city.  We all can't afford jumbo loans ! You can fulfill a dream of owning your home at a reasonable budget and as you grow and lifes changes occur you can sell it off and move somewhere more fit for you at that specific time.  One major thing is TIC's have different lending parameters, you cannot obtain a 30 year fixed loan on a TIC.  you have to get a 3/1 5/1 or 7/1 product, statistically most people move within the 3-7 year mark anyway.  Now another thing worth mentioning is TIC's can convert into Condominiums in the city (lottery process) now if your building converts you can refinance your loan to a 30 year fixed product, rent it out at a premium and move your next home ! Win/Win situation.  I hope this helps, if you have any more ?'s feel free to contact me anytime i am always happy to consult with you.

-Roh
  • June 07 2012
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I agree with Rudi- there are more cons than pros. This includes difficulty in acquiring financing, right off the bat.

  • March 20 2012
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There's a lot more cons than pros. If possible, I suggest choosing a SFR or Condo.

Happy funding, Rudi
  • September 30 2011
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There is a good explanation of TIC types here. They look like they have different pros and cons depending on the variety.
  • September 30 2011
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