At the current time the banks are not lending on TICs (Tenants-In-Common: A fractional or partial ownership interest in a piece of property, rather than owning the entire piece of property) outside of San Francisco proper. Or so they say. I’m planning to call Renee Rymer, Corte Madera branch manager (and manager of the year) at Bank of Marin tomorrow because Patti Cohn, a superstar agent with FHAllen, has a potential buyer with BIG accounts that may want a loan…. There is a loan on one of the other four units with Circle Bank … I called and they turned down a ‘we’ll put money on deposit with you if you will do another loan on this project.’ Anyway, due to the need for buyers to bring in an all cash offer, the price has been reduced and this is now one heck of a good buy – a beautiful, private, one bedroom, furnished cottage one property from the surf for $399,000?

Last evening I got the following email from Terry Pearce, the owner:

Tom: Since there has been so much discussion about the form of the TIC, thought it might be prudent to synopsize the reasons it is a perfect form for me. I realize that it might not be for everyone, and certainly not for every environment, but for a small recreational property at the beach, it has worked out perfectly for me.
  1. I don’t rent the property, so I depend on my partners and neighbors to let me know if anything needs to be handled. Since we all have an interest in one another, there is never a question about notification or competition….we work together.
  2. In a TIC, the partners are critical. This group is a wonderful mix of talents and commitments. Three of the owners have been there a long time, so they really know the ropes, they know the neighbors, they know the process and they are truly nice people.
  3. The property manager, Bob Walker, was the original owner of my property, so he knows the whole history.
  4. On the street, there are two contractors who are full time residents. They are both members of local boards and of advisory boards for the county who deal with the creek and the road.
  5. One of the contractors takes care of the maintenance of the road and the access issues. We have no problem with the public parking on our road in the summer.
  6. There are two other full-time residents on the street. (other than the contractors) One is the full-time manager of Slide Ranch, the other is retired and is rapidly and impressively upgrading her property. She is also active in local politics.
  7. The TIC requires that the partners get together every year. There is a good camaraderie and cooperation to maximize the enjoyment of the property.
  8. If you do wish to rent the property, you have four other partners looking out for your interest.
In short, if I had the choice to own this property as a TIC or not, I would definitely choose TIC. It encourages community, protects the property and allows me to have a great deal more security knowing that I have partners with the same interest.


Posted by:Tom Verkozen