MULTI-FAMILY VALUE-ADD TIC

Investing in Multi-Family Value-Add TICs

Our multi-family value-add TIC (Tenancy-In-Common) investments are designed to maximize returns through strategic property renovations and individual unit sales. We acquire underperforming multi-family properties with significant potential for transformation, renovate them, convert them into TIC units, and then sell each unit separately.

Legacy’s syndication model pools funds from multiple investors, enabling participation in a multi-million-dollar property with a low minimum investment. Our experienced real estate team manages every aspect of the project from start to finish. By leveraging the expertise, knowledge, and connections of our seasoned team, we ensure professional oversight and execution, making your returns completely passive.

The Benefits of Investing in Multi-Family TICs

High Demand.

Strong market demand in LA due to low TIC housing supply.

Maximize Sales Price.

Achieve higher returns through individual unit sales.

Short-term.

Quick project completion (12-18 months) by renovating existing properties for fast returns.

Wide Range of Buyers.

Larger buyer pool with affordable housing options.

Make a Positive Impact.

Contribute to affordable housing solutions.

Our TIC (Tenancy in Common) Strategy

A TIC is a form of co-ownership where each buyer owns an undivided share of the property, known as “tenants in common.”

TICs are popular in high-cost markets like Los Angeles due to their affordability and accessibility. Given LA’s expensive real estate, TICs offer a more realistic option for homeownership compared to single-family homes or condos.

We renovate TIC properties to meet the expectations of buyers seeking long-term homes, focusing on quality, privacy, and a homey feel with a tailored finishing package.

TICs not only benefit buyers but also yield substantial returns for investors, typically selling for 10-20% more than traditional rental properties.

Difference Between a Condo and a TIC

Benefits of TIC vs. Condos

Why TIC is in Demand

Who Buys TIC Properties?

The Process of a Multi-Family Value-Add TIC Investment

Choosing the Right Property

Through years of experience, our team of experts has developed a proven system to maximize profits. This starts by identifying properties with the greatest transformation potential, using our industry connections to find qualified opportunities.

Key Considerations for TIC Properties:

- We choose neighborhoods and streets carefully, focusing on areas with a mix of single-family and multi-family properties to give the TIC a home-like feel.
- We target centrally located, up-and-coming submarkets with entertainment, parks, job opportunities, and good schools.

- We look for neighborhoods experiencing strong rental increases and property value growth.
- Walkability is crucial, so we prioritize locations with access to public transportation, dining, and other conveniences.

- A good TIC area will have some nearby condo sales to inform pricing but not so many that competition becomes too stiff. We perform extensive due diligence to ensure the perfect balance of comparable units and potential for TIC development.

- We seek existing, well-priced multi-family properties, typically with 10 units or fewer, that allow us to immediately add value by improving the overall look and feel of the property.
- We specifically target properties that have been mismanaged, have below-market rents, or are otherwise underperforming. These properties provide opportunities to secure favorable purchase prices while achieving successful sales.

The specific neighborhood, street, and lot chosen for this project have limited inventory and high demand for TICs, making it an ideal location.

The Renovation Phase

Our construction team is committed to enhancing both the interior and exterior of the building. We revitalize common areas with new facades, upgraded landscaping, and refreshed lobbies and hallways, complemented by modern light fixtures.

Each unit undergoes a thorough remodel, featuring new cabinets, countertops, flooring, and updated fixtures. We meticulously select materials and appliances that offer both quality and cost-effectiveness to ensure optimal returns. Every detail is executed with precision to achieve a stunning final result.

Thanks to our experienced professionals, skilled workers, and efficient systems, Legacy delivers high-quality renovations within relatively short timeframes.

Property Sale

Months before project completion, we begin drafting key documents for the Tenancy in Common (TIC) arrangement. These include:

TIC Agreement (TICA): Defines each owner’s share and outlines co-owners’ rules and responsibilities.
TIC Budget: Details operating expenses (property taxes, insurance, management fees, etc.) and maintenance reserves for future upkeep.

We also prepare a Division of Space and Survey Map, which outlines the property’s layout and common areas.

Upon receiving the Certificate of Occupancy (CofO), we take final property photos and list the units for sale. Our team markets and sells TIC properties in Los Angeles, targeting qualified buyers.

After all units are sold, we hold a Hand-Off Meeting to introduce new owners, review the TIC Agreement, budget, and survey map, and provide a Homeowner’s Binder and Closing Package. This meeting marks the project’s conclusion and ensures a smooth transition to communal living.

Timeframe

Our multi-family value-add TIC projects typically span 14-18 months from start to finish, beginning with the opening of escrow for the property purchase. The key phases include:

Purchase Escrow
Interior Design and Permitting
Construction Phase
Unit Sales and Selling Escrow
Hand-Off Meeting with Residents

After the property sale and escrow closure, investors receive their distributions as a lump sum within 15 business days.

Placing and Tracking an Investment

All investment opportunities are offered directly on the website under the tab “Invest” when clicking “View All Investments.”

You can click on an investment project to view detailed information about each specific deal, including the property address, financial breakdown, estimated timeframe, investment strategy, area comps, and photos of the property. There is also an ROI calculator feature available for each project, which states the minimum and maximum investment available. You can enter an amount in this calculator to find your estimated target share in the property and estimated return.

Placing an investment is easy! You will be guided step-by-step to finalize your investment request on the website. When your investment has been placed, you will be given the wire transfer and ACH instructions. You will then have five business days to send the funds and secure your place in the investment.

Once the investment is active, you can track your investment from start to finish through the user-friendly online dashboard. You’ll be able to see the project’s progress bar as well as progress photos of the renovation and ADU construction. We also send email updates when the project moves from one status to another.

When a project is completed and sold, you will receive your disbursements via wire transfer. After receiving the funds, you can enjoy your proceeds or look for new investment opportunities to continue to grow!

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