TIC Investments Can Be Deceivingly Risky

Reno, NV Attorney serving Nevada & California

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Have you suffered investment losses in a Cabot TIC investment?  If so, Securities and Stock Fraud Attorney Thomas C. Bradley may be able to help you recover those losses through FINRA arbitration.

Bradley is investigating potential securities fraud claims which have been made against the broker-dealers that improperly or unsuitably recommended tenant in common (TIC) investments to their clients.

A TIC investment is when a property is sold to multiple investors who then own fractional interests in the property as co-owners.  The co-owners enjoy their own shares of the “pro rata” share of the net income (or expenses), appreciation, and share of the proceeds upon sale of the property.  Tenant in common investors are not involved in the day-to-day management of the property, but do retain certain other rights regarding its management.

Due to the relatively high interest or dividend offered by TICs, retired investors are often attracted to these products.  Unfortunately, TICs are generally unsuitable for retired or income-seeking investors.  First, the investments themselves are unsuitably risky because they are entirely dependent on the performance of the underlying real estate properties as well as the overall health of the real estate market.  Additionally, TIC investments are generally illiquid, which severely limits the investors’ ability to access his or her funds should the need arise.

The sale of TICs typically results in a high commission that is often as much as 10% (this explains the stockbroker’s motivation in recommending the TIC investment to a client).

Bradley’s investigation into the improper sales of TICs to investors includes, but is not limited to, recommendations to invest in the TICs offered by the following sponsors: DBSI, Cabot Investment Properties, Argus Realty, Covington Realty Partners, Evergreen Realty Group, FOR 1031, and Triple Net Properties (NNN).

To determine whether or not you may be able to recover investment losses which may have been incurred as a result of your purchase of a risky TIC investment, please contact Thomas C. Bradley today for your own personal consultation.

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