Call Us Today at 866-405-1031 www.1031alternatives.

net

The 1031 Solution

“What Real Estate Professionals Need to Know
about the National Association of Realtors (NAR)
Recent Exemption Request to the Securities and
Exchange Commission (SEC) on Securitized
Tenant-In-Common (TIC) Transactions”
Accredited Investors Only
Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
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Legislation Guideline Changes

2002: IRS issued official guidance in Revenue Procedure 2002-22 on

how Tenant In Common investments would qualify for replacement
property under Section 1031
• TIC Industry exploded into a multi-billion dollar a year business.
• Vast majority of TIC investments are sold through the securities
industry by licensed securities representatives and broker-
dealers (not though the traditional means of licensed real estate
professionals)

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
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2007: On October 11, 2007, the NAR issued an exemption request

letter to the SEC on behalf of it’s 1.3 million members.
• The original exemption request to the SEC, if adopted, would
grant commercial real estate professionals with “substantial
experience” in commercial real estate transactions, exemption
from broker-dealer registration requirements of Section 15(a)(1)
of the Securities Exchange Act of 1984.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
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More Changes To Come

In a recent teleconference with members of the Tenant In Common
Association (TICA), NAR’s Associate General Council reviewed some of
the revisions made to the original exemption request following meetings
with the SEC. While all of the revisions of the request by NAR are not
publicly known, many points were discussed on the TICA call.
According to the representative of NAR, the revised exemption request,
if adopted, would allow real estate professionals to obtain one of two
types of fees for their part in referring or advising a client on a
securitized TIC investment.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
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Fee Type 1: TIC Referral Fee

•Would permit “all” real estate professionals (commercial or residential)

a referral fee for their role in introducing a potential investor-client to a
licensed securities representative engaged in selling a TIC investment.

•A client acknowledgement form and compensation agreement (or client

disclosure) would need to be completed by the real estate professional
along with a letter to selling broker dealer stating that he/she is legal to
do business in that particular state (in other words a statutory
qualification with the state).

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

•The real estate professional may have to complete a form with the
selling broker dealer stating that the agent is predominately engaged in
the real estate business or other business, not just the TIC referral
business.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

Fee Type 2: TIC Advisory Fee

•Fee would be limited to real estate professionals with a “substantial”

real estate background, for example a CCIM or other designation or
perhaps a real estate degree.

•A form would need to be presented with an acknowledgement of

“substantial experience” as well as a letter or form to the selling broker
dealer stating that he/she is predominately engaged in the real estate
business or other business, not just the TIC referral business.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

•The real estate professional would need statutory qualification with the
state like the “TIC Referral Fee”, however, these real estate
professionals may advise an investor-client on the real estate
characteristics of specific properties once the investor-client was
deemed suitable by the licensed securities representative engaged in
selling the TIC investment.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

1031 Alternatives Group Is Your Link To The Latest

News
As the TIC Industry and its new regulations evolve, 1031 Alternatives
Group remains committed as your Tenant In Common (TIC) strategic
planning partner. Our website www.1031alternatives.net will be
available to bring you the latest news and updates on this proposed
exemption.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

As a cooperative effort to educate the professional real estate

community on the benefits and risks associated with TIC investments,
1031 Alternatives Group would be honored to conduct either an in-office
educational presentation or a personal/small group consultation on TIC
investments. Please feel free to contact our offices directly
866.405.1031 to schedule a date and time.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

investor to review, and all the financing would be in place. You

simply work with your advisors and then subscribe into the TIC deal
that best meets your goals, objectives and risk tolerance. TIC
ownership has given everyday investors a right of entry into an
investment vehicleEducational
that has beenPresentations
historically dominated by pension
funds, insuranceMay Illustrate
companies, the Following
or ultra high net worth individuals.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

How totoAcquire
investor New
review, and all Listings withwould
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that besttaxes
• Deferring meets your goals,
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and build
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investment vehicle that has been historically dominated by pension
funds, insurance
• Investors companies,
can avoid or ultra
the day to day high
property net worth headaches
management individuals.

• Investors may diversify their real estate portfolio geographically

potentially avoiding high property taxes and skyrocketing insurance
costs

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

investor to review, and all the financing would be in place. You

• Investors
simply workmaywithdiversify real estate
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then subscribe typethe
or asset
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that best meets your goals, objectives and risk tolerance. TIC
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funds, insurance dollars or ultra high net worth individuals.
companies,

There are risks associated with TIC investments which are

outlined in the Private Placement Memorandum.

Accredited Investors Only

Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.
Call Us Today at 866-405-1031 www.1031alternatives.net

Thank You!
For further information or to receive a
FREE handbook, please contact us:
6751 N. Federal Highway, Ste. 100
Boca Raton, FL 33487
Toll Free . 866.405.1031
Fax . 954.874.4501
Accredited Investors Only
Securities offered through Pacific West Securities, Inc. – Broker Dealer – Member FINRA/SIPC. This
material is neither an offer to sell nor the solicitation to purchase any security. Purchases may only be made
upon thorough review of risks and merits located within the Private Placement Memorandum or Prospectus.
Pictures are not current offerings and are used for illustration purposes only.