Who manages the property?
Rockwell helps the co-owners to get an experienced, professional property manager into place. The property manager ensures that the tenant complies with the terms of the lease, coordinates communication, distributes the monthly lease payments to the co-owners and prepares regular reports and tax statements.
How are decisions made?
Upon closing, a tenancy-in-common agreement is executed that outlines the relationship among the co-owners and how decisions are to be made. In short, minor decisions are made by a majority vote while major decisions are made by a unanimous vote. For practical purposes however, because the tenant and lease are already established before the co-owners purchase an interest, there are very few decisions to be made.
How do I get out?
Each co-owner receives an undivided, fractional interest in the property so each has the right to sell his portion at any point in time. The tenancy-in-common agreement gives the other co-owners the first right to buy if one of the co-owners decides to sell. The resale of a TIC interest in a debt-free property is made easier because a new buyer does not have to qualify for an existing loan. All of the co-owners can also agree to sell the entire property whenever they choose. A TIC ownership can be listed with a real estate broker or sold by owner. Rockwell can also serve as a resource for a past client seeking to sell his fractional interest.
What are the costs of buying and owning a Rockwell property?
Rockwell pays all of the closing costs so that you do not have to pay any fees to buy a property. The only ongoing cost the co-owners incur is the property manager’s fee, which is typically only $35 per month. The tenant pays for the property taxes, insurance and the majority of the repairs and maintenance.
When do I get paid?
The property manager sends a payment to each co-owner during the first ten days of each month in the form of a mailed check or direct deposit into your bank account.
How many co-owners are there in an average property?
Rockwell properties are designed to be smaller in scale than those offered by other TIC sponsors. While many TIC properties have 30 or more co-owners, most Rockwell properties have fewer than ten.
What is the worst case scenario?
The worst case scenario would be if the tenant went out of business and there were an interruption in the lease payments. However, because there is no debt to service you would not be in danger of losing the property and thereby your original investment. In this circumstance the co-owners could elect to have the property manager find a buyer or a new tenant to lease the property. By design, Rockwell properties are smaller, freestanding buildings which are typically much easier to lease than a larger facility. It is important to point out that Rockwell only works with strong corporate tenants with excellent track records and proven business models. To date, no Rockwell property owner has ever missed a monthly payment.
Can I buy a Rockwell property with funds from my 1031 exchange?
Yes. Many of our clients sell other investment properties and save tens or hundreds of thousands of dollars in capital gains tax payments by reinvesting the proceeds from their sale in a Rockwell TIC property. These clients are always thrilled to transition into a passive, cash flowing investment. Rockwell properties are specifically structured to qualify for 1031 exchange treatment. A copy of our legal opinion relating to 1031 exchange matters is available upon request.
Can I buy a Rockwell property with my IRA or other retirement account?
Yes. Many Americans are taking a more active role in their retirement planning. Self-directed IRAs and other similar programs allow you to decide where to invest your money. A Rockwell property is a tremendous option for your retirement account as it is designed to provide security and a very predictable, reliable return on your investment.