In April of 2002, the IRS issued Revenue Procedure 2002-22 which effectively created a 'safe harbor' for structuring Tenant In Common (TIC) investment real estate holdings that allows an I.R.C. §1031 tax deferred exchange of fractional TIC interests at the investor level. This important development changes the way multi-investor real estate is now structured. This program is presented by TIC industry leaders and designed to be a comprehensive, substantive program for the benefit of investment real estate professionals, attorneys, certified public accountants, securities broker dealers, securities advisors, qualified intermediaries and real estate investors.
- Tax deferred exchanges under I.R.C. §1031
- Structuring a tenant in common under Revenue Procedure 2002-22
- Real estate securities compliance
- Sponsoring and marketing TIC investment programs
- Delaware statutory trusts under Revenue Ruling 2004-86
- TIC real estate due diligence considerations
8:30 a.m. - 10:00 a.m.
I. Tenants In Common ('TIC') Real Estate Investment Programs: Tax And Regulatory
A. I.R.C. §1031 Tax Deferred Exchange Overview
B. Structuring A TIC: IRS Private Letter Ruling Guidance Under Revenue Procedure 2002-22
C. Is It Real Estate, A Security Or Both? Investment Contracts And The Howey Test
D. Exempt Securities Transactions And TIC's: Regulation D
10:00 a.m. - 10:10 a.m.
10:10 a.m. - 11:15 a.m.
II. Finding TIC Investors And Developing A Marketing Strategy: Real Estate vs.
A. Size And Composition Of The TIC Industry
B. What Sells And What Does Not?
C. Do You Need A Real Estate Or Securities License Or Both?
D. Who Can Do What?
E. To Be Or Not To Be
F. The Profile Of A Successful TIC Broker
11:15 a.m. - 12:15 p.m.
III. Structuring A TIC: A Sponsor's Perspective
A. Identifying And Acquiring Appropriate Property
B. Structuring The TIC Transaction
C. Coordinating Due Diligence, Third Party Reports And Financing
D. Going To The Market
12:15 p.m. - 1:15 p.m.
Lunch (On Your Own)
1:15 p.m. - 2:15 p.m.
IV. TIC Due Diligence
A. Investor Rights And Obligations
B. Disclosure Standards And Anti-Fraud Considerations
C. Real Estate Underwriting, Third Party Reports And Other Procedures
D. Sponsor Due Diligence, Background And Capabilities
2:15 p.m. - 2:25 p.m.
2:25 p.m. - 3:30 p.m.
V. Delaware Statutory Trusts: Structuring 1031 Investment Programs Under Revenue
A. What Is A Delaware Statutory Trust ('DST')
B. Entities And The Exchange Rules
C. Classification Of The DST As A Business Entity Or Trust
D. Sponsor, Investor And Lender Benefits
E. IRS Requirements Causing Concerns
F. DST vs. TIC, Pros And Cons
3:30 p.m. - 4:30 p.m.
VI. TIC Panel Discussion And Questions