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Introduction To TIC’s Alex Kowalski* Alta Exchange Group 920-540-1072 Joe Wagner The Geneva Organization

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Presentation on theme: "Introduction To TIC’s Alex Kowalski* Alta Exchange Group 920-540-1072 Joe Wagner The Geneva Organization"— Presentation transcript:

1 Introduction To TIC’s Alex Kowalski* Alta Exchange Group alex@altaexchangegroup.com 920-540-1072 Joe Wagner The Geneva Organization joe@genevawealth.com 608-825-4551 *Registered Representative of and securities offered through Berthel Fisher and Company Financial Services, Inc. (BFCFS). Member FINRA/SIPC. Alta Exchange Group and The Geneva Organization are independent of BFCFS.

2 DISCLOSURE This material does not constitute an offer to sell or a solicitation to buy any security. Such offers can be made only by a Private Placement Memorandum to accredited investors. These investments involve a high degree of risk and are not suitable for all investors. Please refer to the Risk Factors section of any specific Private Placement Memorandum.

3 The ABC’s of TIC’s Undivided Fractional Interest Everything Is Pro-Rata Non-Recourse Debt Entity Selection Is Critical No Day to Day Management

4 The ABC’s of TIC’s Free From “Partners” After Disposition Low Leverage: 50%-66% LTV Guarantee of Close – Sponsor Owns All 1031 Exchange Requirements Apply Not Limited to 1031 Exchange Money

5 Risk Factors TIC Interests are Illiquid Use of Significant Leverage May Increase Risk of Loss Future Tax Code Changes Costs Associated With 1031 Investments May Offset the Benefits

6 Definitions Sponsor – A company who provides institutional properties for co-ownership. Registered Rep – A securities licensed person who assists investors in finding replacement property. Tenant-In-Common (TIC) Interest – Fractional ownership interest in a property.

7 Total Annual Equity Invested *Source: OMNI Brokerage

8 Key Drivers Guidance From IRS In 2002 Revenue Procedure 2002-22 Highly Appreciated Assets Baby Boomer’s – Assets To Income Inability To Find Replacement Property Desire For Stability/Cash Flow Little Management Responsibility

9 Who’s Investing Must be an Accredited Investor An accredited investor is an individual with a net worth, or joint net worth with their spouse that exceeds $1MM at the time of purchase; or an individual with income exceeding $200,000 in the last two years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same in the current year; or a trust with assets in excess of $5MM, not formed to acquire the securities offered, whose purchase a sophisticated person makes.

10 Who’s Investing Farmers – Large Tax Hit, Looking to Retire Mr. Fix It – Capital Gains Tax and Recapture Tax, Wants Income Business Owners – Tax Deferral and Income Developers – Hard to Match an Exchange

11 What Are They Buying Office – Single Tenant and Multi Retail – Single Tenant and Multi Multifamily – With Good Demographics Hospitality/Senior Housing - Increasing Industrial – In Key Areas Oil + Gas – Higher Cash Flows/Alpha

12 Questions?


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