Zamansky Warns Investors About “TIC” Or “Tenants In Common” Real Estate Investment Schemes
Zamansky & Associates LLC (“Zamansky”) warns investors who suffered losses from participating or investing in a “tenants in common” or “TIC” investment schemes that they may have been the victim of misrepresentation, material omission or unsuitable investment advice. The tenants in common or TIC transactions are private investments in real estate, such as office buildings, shopping malls or other developments. The investor receives a fractional percentage ownership interest in the real estate sold by the owner under a 1031 Tax Deferred Exchange under IRS Regulations. These programs are also called 1031 Exchanges and TIC Exchanges.
TIC investments have been sold as private investments to investors by brokerage firms, usually independent firms or firms with a connection to a large real estate enterprise. For brokerage firms and sponsors, the allure of selling TIC investments is the large upfront commissions that are generated. Investors expect the brokerage firms and sponsors to have performed substantial due diligence but this is not always the case.
Numerous investors have suffered losses from TIC investments that did not meet their expectations. Often, investors were misled into the investment through false or misleading statements that the TIC investment was a safe or appropriate vehicle for generating income. In some cases, minimum income returns of 7% were “guaranteed”. Investors report that they were given inadequate or insufficient disclosure, financial statements or background information on the promoters, both before they invested or afterwards as properties deteriorated. TIC investments are also private investments that do not trade on any securities market, so they are essentially illiquid and cannot be sold.
If you are a TIC investor with losses who experienced any of the problems described here, please contact us for an evaluation of whether you were a victim of misrepresentation, material omission or unsuitable investments. Please contact Jake Zamansky at (212) 742-1414, or by email at jake@zamansky.com.
The following brokerage firms have been involved in selling TIC investments:
Cambridge Investment Research
Grubb & Ellis
Quest Securities
Next Financial Group
Sanders Morris Harris
U. S. Advisors LLC
U. S. Commercial
Berthel Fisher & Co
Omni Brokerage Inc.
Pacific West Securities
KMS Financial Services, Inc.
DBSI Securities
QA3 Financial Corp.
Investment Security Corporation
MCL Financial Group Inc.
American Wealth Management
Securities Network LLC,
WFP Securities