TIC sponsors are generally experienced and well-financed real estate organizations that specialize in acquiring, syndicating and managing commercial real estate on behalf of TIC investors.

The TIC sponsor's first job is acquiring a property suitable for TIC investment. Once this is accomplished, the Sponsor initiates a variety of activities necessary to bring a TIC offering to the marketplace. This includes:

• Conducting extensive due diligence
  
• Arranging institutional financing
  
• Preparing detailed financial projections
  
• Preparing and publishing a Private Placement Memorandum (PPM) that adheres to treasury guidelines (IRP 2002-22) so that 1031 exchange investors can participate

Once the due diligence effort and the PPM are completed, information is made available to Securities Broker/Dealers (the selling group) for their review and approval. If a Broker/Dealer approves the offering, its Registered Representatives (such as TIC Consultants) may present it to suitable accredited investors. The ultimate goal of the TIC sponsor is to transfer its ownership of the property to the TIC investors and then manage it on their behalf.

During the period of ownership, the TIC Sponsor is responsible for managing, paying bills, remitting monthly distributions to the TIC investors, and preparing performance reports (generally on a quarterly basis). At any time, the TIC sponsor and your TIC Consultants Registered Representative are available to answer any questions you might have.

When the TIC sponsor believes the time is right to sell the property, the investors are notified. The investors will then vote to decide whether or not to sell the property (a two-thirds majority is generally required). Upon sale, the mortgage is repaid and the remaining equity is distributed pro-rata to the TIC investors according to their instructions.