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INVESTOR BULLETIN From the desk of Ken Shapiro


Recently you have seen some great deal alerts from me having to do with TIC (Tenants In Common.) I thought I would take a moment and expand on my thinking on this, just to help you have a full understanding of what this is all about.

As most of you know, in the current market we are in, what with interest rates having soared over the past year and a half. it is very difficult to find a multi-family that actually cash flows. There are several reasons why this is true but I don’t want to take the time in this memo to cover that, as I would rather focus on the solution to the problem.

I have known about TIC for several years but, as I was doing very well brokering multi-family transactions, I never felt the need to educate myself or get involved in this business model. Well, that has changed, and I have now spent the time and energy to get myself very well educated on the subject. What I will tell you is that, either as a seller or a buyer, or both, I can help you do lucrative deals revolving around TIC.

First of all, what is TIC? Again, I do not want to take the time in this memo to give a full explanation of that, but if anyone wants to give me a call, I am happy to do that on a one-on-one basis. Suffice it to say that, under the right circumstances, one can sell their units individually as TICs for much more money than they would sell for as the whole multi-family.

What about if you are a buyer? The answer is basically…. same thing. I can help you buy a multi-family which, as a multi-family it does not make financial sense to buy. But, if you buy it with the idea of then selling each of the individual units, it makes a lot of sense. Case in point, just to give one example:

You see the photos of this property below. This is 6 small detached bungalows (all one property) in a nice little wooded setting in a good location. The seller is asking $1.5mm. The rents add up to $6000/mo. Obviously this is not a good deal as a multi-family. But under the TIC model, one can vacate the units, clean them up and then sell them for approximately $500,000 per unit, or a total of $3.5 million! Thus, even after one spends the money to vacate the units and clean them up, one still ends up with a very nice profit, and it doesn’t even take that long to execute the game plan. With my help and guidance, which I will be happy to provide, this is not particularly difficult to do.

OK, If any of this looks interesting to you or you would like to know more, give me a call and I will be happy to take the time to walk you through it. You see? There’s always a way to do business if you look hard enough! OK, talk to you soon!

Ken Shapiro

Silverwood Properties