The single most important consideration in any TIC deal. Even if the structure is flawed, the sponsor is inexperienced, or the underwriting is grossly inaccurate, the asset can still perform. Build quality, location, age, tenant mix, well, you know - quality real estate.


The science. Or, is it an art? Either way, it's vital to cipher the numbers. There's nothing quite like market knowledge. Beware the deals that are underwritten for yield rather than lending standards. Study rent growth. Consider reserve adequacy. Evaluate occupancy projections. Tempered expectations lead to predictable results.


The difference between market and investment value. Remember, the higher the markup, the lower the returns and the longer the holding period. Unless you think selling at a loss is a good idea. Find a sponsor that's margin conscious and you'll find investments that make sense.

Beware the smoke and mirrors - yield enhancements that mask real returns. Look beyond the first three years' cash yield. Evaluate the on-going after tax return with principal pay down. Fundamentals can't lie. Numbers can.


Not all loans are created equal. Or lenders. Investor-centric is the key. Recourse is a curse word. Read the fine print. Understand the carve outs. In the end, the loan determines a lot. Don't let leverage devalue the investment.


Realize that bigger doesn't necessarily mean better. It does mean more overhead, less flexibility, and a larger markup, though. Investment experience, track record, marketing channels, and high ethical standards; just a few key considerations. Anybody with a healthy balance sheet can buy real estate. It doesn't mean they're buying it right.