Passive Real Estate Ownership

The Arizona Republic reports on a new way to invest in real estate that is becoming popular, "tenants-in-common" investment pools. They combine the tax, income and other benefits of real estate with passive ownership. Tenancy in common is a way to hold real estate in which every investor receives an undivided, fractional interest in a property. Each owner receives title, the ability to depreciate his or her share of the property for tax purposes, income in the form of rents and the potential for appreciation. The key is that the investments are managed by an outside entity, hence the classification as passive, versus active. Tenants-in-common ownership interests are securities, regulated by the Securities and Exchange Commission. Investors receive a disclosure booklet known as a "private placement memorandum" that details the fees and risks, describes the properties and provides other key information. Interesting way to invest in real estate without the management headaches. More...