Fractional-Deed Co-Ownership: Advanced Real Estate Strategy

Fractional-Deed Co-Ownership enables investors to acquire an interest in high-quality properties. These properties are large, professionally managed, and require significantly less hands-on involvement than sole-owned real estate.

Think about Properties like Strip Malls with big box anchors like Best Buy or Hy-Vee that have very long leases, low turn over, and triple net leases. Or Luxury Apartments with upper scale retirement communities or upper scale college studen housing that have high occupance rates and very few vacancies. Or Medical Office Buildings with specialized properties that have low turn over and long term leases. Think very safe investments.

Fractional-Deed Real Estate conforms to IRS standards for a 1031 Exchange, making them a solid solution to identifying the like-kind property for an Exchange. So when an investor needs to 1031 funds quickly, they can buy into a Co-Ownership Property quickly and easily with companies that sell these properties.

It's an opportunity for individuals to own quality real estate while stepping away from day-to-day property management and deferring capital gains taxes.

Why would an investor want a Co-Ownership Situation?

Fractional-Deed co-ownership is ideal for knowledgeable real estate buyers tired of personally managing property day-to-day, but still seeking the benefits of real estate ownership.

Sole-owned real estate and co-ownership properties offer the same tax benefits, wealth preservation, cash flow, and long-term appreciation potential. Co-ownership properties, however, eliminate the headaches of day-to-day management: all management duties are overseen by independent, third-party national firms.

A group of prospective purchasers is identified and organized under a co-ownership structure, and as co-owners are able to purchase a more substantial property than they would as individuals. Each co-owner receives a fractional fee title ownership deed and title report at closing.

The co-owners exit the co-ownership agreement when they unanimously elect to sell the property. Co-owners may also sell their individual interest at any time, either to another co-owner or to a buyer outside of their co-ownership agreement. At this point, the co-owner may either pay taxes on the profit or execute a 1031 Exchange and defer capital gains tax.
Co-ownership agreements include other aspects of the IRS guidelines and enable all participants to benefit from a structured operational agreement.

Key Benefits of Co-Ownership

• Each co-owner has the same rights as an individual owner.


• Fee-simple deed at closing


• Title insurance coverage


• Pro-rata share of all net monthly income, tax benefits, and appreciation.


• Deferred capital gains taxes


• Purchases can be made to fit exact-dollar-amount 1031 Exchange requirements.


• Third-party property and asset management with reporting responsibilities to each co-owner.


• Monthly distribution checks (typically) and an annual property operating statement.


• Economically feasible to acquire a co-ownership interest in multiple properties, decreasing risk through diversification

Institutional-Quality Co-Ownership Properties

• Wide variety of Class-A replacement properties.


• Maximum flexibility in transaction size and property type diversification.


• High-quality properties with more reliable monthly cash flow.


• 1031 Exchange Buyers preserve 100% of their equity by deferring taxes.


• Increased depreciation potential.


• Third-party due diligence reports.


• The opportunity to consolidate several smaller properties into one larger property.


• The opportunity to acquire an interest in a substantially larger property and to use 60%-70% leverage to enhance future overall returns.


• The opportunity to buy an interest in a larger, better-located, higher-quality, or anchored property than a smaller purchase could provide on its own.

Our Co-Ownership Process

Our co-ownership process is straightforward. As a real estate principal, we acquire top-quality properties that meet our stringent acquisition criteria. We acquire these institutional-quality properties from the nation's top brokerage firms, REITS, and other institutions.

We then offer co-ownership in these properties exclusively through Licensed Real Estate Brokers/Agents. Their clients are typically individual real estate owners seeking a quality, alternative asset choice for a 1031 Exchange.

A 1031 Exchange Accommodator facilitates the 1031 Exchange Process. SCI never takes possession of any 1031 Exchange funds. Instead, the buyer's 1031 Exchange Accommodator transfers 1031 Exchange funds directly to the property purchase escrow account.

Upon close, each co-owner is delivered a fractional fee title ownership deed and title report. From there forward, all net monthly cash flow is paid directly to co-owners by the institutional-grade, third-party property management company overseeing the property. We has no control over co-owners' funds. Also, we never dilute co-owner funds for any cash flow, depreciation, or net profit upon disposition.

We are so confident in the quality of our institutional-quality, fractional-deed properties that we buy our own significant fractional interest in each, standing right alongside our co-owners.

Would you like to learn more about

Co-Ownership - Fractional-Deed - Tenants in Common?

To buy in you do need to have

• Good Credit
• A Minimum of $200,000 down for a 30% to 40% down payment
• And can expect returns of 7% to 8%

I am working with a large company with opportunites all over the country for investors to buy into. They believe in their properties and hold a large percentage of each property in their own portfolio. And if you have something that you think might be a property for this company to consider purchasing, please tell me more about yourself by clicking here to fill out an informational form and our expert on co-ownership will contact you..