| FAQ - TIC Investing
Suggested Reading |
Co-owning Raw Land by the Pacific Ocean for AppreciationTenant in Common (TIC) Investments |
Loring offers an investment in raw land appreciation in Costa Rica though a co-ownership security. An investor buys a half interest in a lot currently owned by Loring and managed by Pat O'Neil. Now the investor and Loring are co-investors (tenants in common) in a lot. The land will stay undeveloped for 2 - 5 years, then sold and profits divided between Loring and the investor.
Loring offers TIC investors an Emergency Out and agrees to buy back 100% of the original investment after a 60 day notice. Please keep in mind that as an investor you would lose any property appreciation by taking advantage of the Emergency Out.
Our first 7 TIC lots from 2005-2007 were just sold (see 2 of them below)
$10,550 gain on $22,000 invested
Helen and Kevin of CA bought a half share for $22,000 in November 2005. We sold the lot in September 2008 and split the gains. Their $10,550 gain was 47.9% in 2.9 years (16.9 % annualized)
$5,275 gain on $13,000 invested
Tom R of MN bought a half share for $13,000 in March 2006. We sold the lot in September 2008 and split the gains with Tom. His $5,275 gain was 40.6% over 2.6 years (16.2 % annualized)
What is TIC (tenant in common) investing?
Loring and an investor co-own raw land and share appreciation, ongoing costs and risk.
How long before the property is sold?
2 - 5 years, depending on when we can get the best deal. Lots may be sold individually or multiple lots may be packaged and sold to a resort or developer. (Holding an investment over one year means your tax rate on the gain is 15% instead of 35%).
Our first lots from 2005 were sold in September of 2008 and all investors made over 30%. Our next group of lots for sale are in our San Miguel by the Sea subdivision.
Why sell 50%? Why don't you just keep 100% of your lots?
Bringing in co-owners returns some of our original investment money (otherwise it would all be tied up for 2-5 years) and we get to still share in the appreciation.
Who pays the bills during the 2-5 years?
We manage the property and pay the bills (taxes, insurance, etc) until the property is sold. When we sell, we settle up your share of the bills and split the gains 50-50. Annual maintenance and insurance is about $50 per lot per year.
What is your management fee?
We get 1% of the sale price for our 2-5 years of management time.
What if I need my money before it is sold?
You can always take an "emergency out" and get 100% of your initial investment back. (60 days notice required and you'd lose any market appreciation).
Is the title good?
We buy title insurance.
Is the land mortgage and debt free?
We paid cash to own all our land free and clear.
Can I do this through my IRA?
Yes, you use a self directed IRA.
Who controls the sale of the property?
Loring's manager (Pat O'Neil).
What if Pat dies?
Loring Costa Rica’s managing partner, Reese Langston takes over.
What if Coldwell Banker Loring Costa Rica goes out of business?
TIC Investors still own a legal half share of their lot and the lot cannot be sold by the court without their approval.
Can I buy the property?
Yes, when it goes on the market owners may have first option to buy it below market value.
How to Invest: Contact pat@LoringCostaRica.com or call Pat at: 612 879 0039
See Available Lots
San Miguel North (The TIC price is half the listed price)
San Miguel Mountain (The TIC price is half the listed price)
Land Valuation by James Boykin
The Roaring 2000s by Harry S. Dent
Costa Rica Investing by Financial Times
Top of Page
Loring offers TIC investors an Emergency Out and agrees to buy back 100% of the original investment after a 60 day notice. Please keep in mind that as an investor you would lose any property appreciation by taking advantage of the Emergency Out.
Our first 7 TIC lots from 2005-2007 were just sold (see 2 of them below)
$10,550 gain on $22,000 invested
Helen and Kevin of CA bought a half share for $22,000 in November 2005. We sold the lot in September 2008 and split the gains. Their $10,550 gain was 47.9% in 2.9 years (16.9 % annualized)
$5,275 gain on $13,000 invested
Tom R of MN bought a half share for $13,000 in March 2006. We sold the lot in September 2008 and split the gains with Tom. His $5,275 gain was 40.6% over 2.6 years (16.2 % annualized)
What is TIC (tenant in common) investing?
Loring and an investor co-own raw land and share appreciation, ongoing costs and risk.
How long before the property is sold?
2 - 5 years, depending on when we can get the best deal. Lots may be sold individually or multiple lots may be packaged and sold to a resort or developer. (Holding an investment over one year means your tax rate on the gain is 15% instead of 35%).
Our first lots from 2005 were sold in September of 2008 and all investors made over 30%. Our next group of lots for sale are in our San Miguel by the Sea subdivision.
Why sell 50%? Why don't you just keep 100% of your lots?
Bringing in co-owners returns some of our original investment money (otherwise it would all be tied up for 2-5 years) and we get to still share in the appreciation.
Who pays the bills during the 2-5 years?
We manage the property and pay the bills (taxes, insurance, etc) until the property is sold. When we sell, we settle up your share of the bills and split the gains 50-50. Annual maintenance and insurance is about $50 per lot per year.
What is your management fee?
We get 1% of the sale price for our 2-5 years of management time.
What if I need my money before it is sold?
You can always take an "emergency out" and get 100% of your initial investment back. (60 days notice required and you'd lose any market appreciation).
Is the title good?
We buy title insurance.
Is the land mortgage and debt free?
We paid cash to own all our land free and clear.
Can I do this through my IRA?
Yes, you use a self directed IRA.
Who controls the sale of the property?
Loring's manager (Pat O'Neil).
What if Pat dies?
Loring Costa Rica’s managing partner, Reese Langston takes over.
What if Coldwell Banker Loring Costa Rica goes out of business?
TIC Investors still own a legal half share of their lot and the lot cannot be sold by the court without their approval.
Can I buy the property?
Yes, when it goes on the market owners may have first option to buy it below market value.
How to Invest: Contact pat@LoringCostaRica.com or call Pat at: 612 879 0039
See Available Lots
San Miguel North (The TIC price is half the listed price)
San Miguel Mountain (The TIC price is half the listed price)
Suggested Reading
For additional information on waterfront land appreciation, we suggest the following:Land Valuation by James Boykin
The Roaring 2000s by Harry S. Dent
Costa Rica Investing by Financial Times
Top of Page
