Guidelines issued by the Treasury in 2002 (IRP 2002-22) have a major effect on how TIC's are structured today. Regulators wanted to make sure TIC's are structured as "like-kind" property, one of the requirements of a 1031 exchange. They also wanted to make sure TIC owners have the sole authority to make major decisions such as leasing, refinancing or selling the property. Here is how a typical TIC transaction is structured:

• Up to 35 co-owners, each with an undivided fractional interest in a commercial property
  
• Each co-owner proportionately shares in the income, expenses and net proceeds upon sale
  
• Property values from $5 million to $150 million
  
• Equity minimums from $100,000 to $1.5 million
  
• Pre-arranged non-recourse financing (5-10 year term and 50%-60% LTV is common)
  
• Professional property management
  
• Holding periods of 3 to 10 years