I'm about to close on the sale of an investment property and was wondering;  What is the size of a typical tic investment? 

Hi JW,

Welcome to the Exeter Discussion Board.  What are you referring to when you are asking about the size of a TIC Investment?  Are you referring to the size of the over all property (purchase price), the size of the capital raise (investors equity), etc? 

I think you might be (and correct me if I'm wrong) referring to what TIC Sponsors/Brokers call the "minimum", ie. the amount of money you must have available to buy into a TIC deal? This really varies substantially from offering to offering, and depends somewhat on the amount of equity they need to raise and whether or not the offering is securitized, but a general rule of thumb seems to be about 250k or greater.... Can't emphasize enough however that this does vary, so the best course of action is to call either the sponsor or a TIC broker and let them know how much equity you are working with and see if they can find a fit for you.

The optimal amount of equity to invest in order to obtain the better properties is usually between $400,000 and $600,000.  However, like Alexis said, always consult with a TIC Broker to discuss your best and most appropriate options.  TICs can provide you with a great way to diversity your investment positions, so in some cases you may want to opt for diversification over placing all of your equity in any one particular investment position.

JW

I cannot spreak for other sponsors but as for SCI, our minimum TIC positions range from $250-400K depending on the size of the property. Once the minimums have been met, any amount above the minimum is accepted as long as there is equity available in the property. As Bill mentioned, one of the benefits of TIC ownership is the ability for an investor to diversify their exchange dollars by both asset class (retail, multi-family, student housing) and geographic location. Many investors invest in 2-3 properties.

Lew 

While the initial minimum investment is generally established by the lender,the sponsor can reduce the required minimum as larger investments are made to their current offering. Suggest you find an experienced financial planner who works in the TIC world - the planner will need to know your financial suitability -  specifics such as date of your escrow closing (when is day 45), the amount held by the QI, and loan to value. Once established, the planner can check with a variety of approved TIC sponsors to attempt to match your particular situation.