Bad Tenant in Common TIC Investment Problems Fraud Investment Recovery Attorney for Real Estate Securities

Attorney Daniel Bakondi seeks recovery for investors who have put money into bad Tenant in Common TIC investments. Many people who were advised to invest in risky Tenancy in Common TIC real estate 1031 investment properties have gotten some or all of their money back by properly bringing a securities claim against their broker.

Tenant in Common investments often stop paying dividends, have cash calls, go into foreclosure, and bankruptcy. Sometimes, problems are hidden, and investors have little warning before it is too late.

Many investors never bargained for an Tenant in Common TIC investment that was so risky that their entire principle hinged on bad or conflicted property management, a bad mortgage, an overpriced property, bad deal structure, or just a handful of tenants.

Many investors will first realize there is a problem when a tic property investment stops paying distributions, lowers distributions, or when some problem or dispute arises between management and owners. Sometimes it will appear that the property has bad management, or that the property managers or the master tenant is failing to follow the rules or the contract. It may appear as though the management is not finding good tenants, or that there is a conflict of interest, or that they are not paying owners as promised. There may be costs and operating expenses that are too high and tenant revenues that are too low. These are often symptoms of a more fundamental problem - that the investment was poorly structured from the beginning, and was bad when sold ot the investor. Why didn't the broker who sold you the investment warn you of this?

Many of these TIC real estate projects are horrible investments full of structural problems and should have never been sold

Many TICS were sold with bad appraisals, overpriced, and structured to enrich sponsors and brokers, leaving the investor taking not only all the risk, but the sour end of the deal. Many cannot pay dividends or stay afloat even with a large percentage of the property rented. TICS are illiquid, and often sold to investors for millions of dollar above appraisal value of the building. Then, costs and fees in the management and ownership structure in addition to mortgage payments make it even harder for an investor to get paid distributions. Brokers often fail to explain the risks, and leave out material facts you should have known before investing. Often times, brokers lure unsophisticated investors into tenant in common real estate projects through offering information and advice about 1031 exchanges, when in fact such speculative securities should be only for very sophisticated investors.

Contact Attorney Daniel Bakondi. Attorney Daniel Bakondi brings securities arbitration claims, often seeking rescission (undoing) of the entire transaction, and seeks back for investors the full amount of the investment. Many of these investments are sold with multiple violations of the law, allowing for unwinding of the entire transaction. Many of these Tenant in Common TIC investments are such bad investments, that the Financial Industry Regulatory Authority (FINRA) arbitration panel, upon hearing the facts under which they were sold, may force the broker to buy back the entire investment and allow the investor to get back and recoup their entire investment, sometimes plus interest.

Often these tenant in common investment should never have been sold to an investor like yourself because of your lack of experience in such investments, your net worth is not high enough, your risk tolerance is not high enough, your age, income, and other factors.

Broker violations in connection with the purchase and sale of a tenancy in common investment include:

- Selling an unsuitable investment for your age, financial condition, investor sophistication, and risk tolerance

- Material misrepresentations and material omissions (securities fraud), 10b5, Cal. Corp. 25401 (often this happens in the Private Placement Memorandum (PPM))

- Poor investment structure/investment has no built-in tolerance for market/tenant fluctuations

- Violation of the FINRA (Financial Industry Regulatory Authority) rules, such as to make full disclosure

Some TIC tenancy in common investments even have a reserve of distributions for the first year or two that make the investment look successful at first, but are actually false profits, paying investors from investors' own money. When this money runs out, many TIC investment properties stop paying distributions, and after a while, go into foreclosure.

Sponsors often get poor loans, often "interest only" for years, and heavily leverage these properties just to get the deal through, because the sponsors and broker dealers get paid largely from the sale of the TIC to investors, not based on how successful the investment ultimately is. This is a severe conflict of interest that investors are often not informed of.
Sponsors and brokers who make millions in "fees and costs" from selling these bad investments to investors whether investors make money or not.

The law limits the amount of time you have to seek a recovery. Those who sold you a bad investment are often waiting for your time limit to bring an arbitration claim to run out. After that, you will lose your chance to recover some or all of your money.

After the time for an investor to act runs out is usually when these TIC investments often start going into foreclosure. Then, it often doesn't matter if your entire principal is lost - after the statute of limitations has run, there is little you can do. Often, TIC sponsors, property managers, master tenants and brokers are fighting to keep you hoping until your time to do something has passed.

If your tenancy in common is not performing as expected, or is not what you believe you were promised, contact Attorney Daniel Bakondi to investigate your case and determine whether your broker may have done something wrong in selling an investment to you, and whether some or all of your investment may be recoverable.

Dont be afraid to admit that this investment was not what was promised to you. Contact our law office today. Only an attorney who knows exactly why and how these TICs are structured the way they are can see exactly what the brokers and sponsors have done wrong. Do not wait until there is nothing you can do to recover your loss.

We are currently examining a number of tenant in common real estate projects, including the following. We are not making any representation that anyone did anything wrong on this website. Please contact us if you own a Tenancy in Common TIC investment that is having problems and sold by one of the following sponsors:

Please note: This website does not make any allegation against anyone other than that we are investigating various tenant in common investments sponsored by the sponsors above.

Below is a general list of businesses involved with sale of Tenant in Common TIC investments

The following is a list of broker dealers, sponsors, and other parties involved in tenant in common and related transactions. These are not necessarily firms under investigation just a list of businesses involved in the Tenant in Common market. This website makes no allegations of any kind regarding these people and businesses – this is simply our business list of parties who may be involved in tenant in common tic real estate transactions. if you are having a problem with a tenant in common TIC real estate project involving one of these parties, we would like to hear about it.

For an analysis of your TIC investment, and the potential liability a registered rep, broker, broker dealer, financial, advisor, or sponsor may have, please contact Mr. Bakondi at danielbakondi@yahoo.com, or click here for more information about TIC investment problems. Mr. Bakondi does take some Tenant in Common TIC investment loss recovery cases on a contingency fee basis, for a percentage of the recovery, including broker and financial advisor fraud cases. If you have concerns about your investment, please contact Mr. Bakondi for a discussion and free analysis of your case.

As a securities fraud attorney, I handle matters involving Tenancy in common investment fraud.

Often, people end up in tenancies in common because they are looking to do a 1031 tax exchange. A so-called “real estate advisor” or “investment advisor” may suggest that a person looking for a “like-kind” property to exchange for the real estate they just sold purchase a tenancy in common interest in a commercial building. These percentage ownership interests in a tenancy in common usually come with a building management contract, or a master lease. This means that such investments are often sold with the promise that the investor and owner will have little time and effort because someone else handles all tenant and building management issues. Such investments are also often sold with the promise of secure returns because someone has done all the research in this investment.

One of the problems is that the due diligence into such investments is often not done, or not done properly. Investment advisors often dont do research when they should, but often rely on the private placement memorandum. Unfortunately, those private placement memorandums are put out by people who have a strong interest in selling the investment, to in being honest. Just because the law requires complete disclosure of all material facts doesn’t mean it always happens.

The next problem is that the investment advisor or broker who sells a tenancy in common interest also has a strong financial interest to sell the investment. While they may get 1.5% commission on a sale of a stock, the same advisor for recommending the tenancy in common investment may receive 7%! That, on a risky million dollar tenancy in common investment may be $70,000 commission for a single sale. For some stock brokers, securities dealers, or investment advisors, this allows them to overlook some problems with a tenancy in common investment.

Other problems include that the investment is not suitable for all types of investors. Illiquid investments are not right for most people. What illiquid often means,
is that the investor cannot take their money out for years, sometimes 5-7 years, or until sale of the property. If there is no income, and the investor cannot sell the investment, they may be simply stuck with it, watching the investment principal lose value, and not to mention not receiving any distributions. It is often then, or when they contact a securities fraud attorney such as myself, that they discover problems with the tic, including that the building sold for millions of dollars above appraisal price, that due diligence wasn’t done, and that the tenancy in common sponsor who was supposed to be this experienced real estate expert has a past of accumulating securities fraud lawsuits slowly catching up with them.

Stock brokers and investment advisors have a fiduciary duty to their clients.

If you have investment money in a tenancy in common and you are not receiving distributions, or cannot get out of an investment you believe is problematic, or if you are being asked to contribute more money for an investment that just might be troubled, please contact my law firm for a free consultation.

As a Securities Fraud Attorney, I may take matters on a contingency fee basis, meaning, I only get a fee if I recover money for your lost investment.

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