TIC Right for Me?
Is a TIC Right for You? Unlocking Affordable Homeownership in Los AngelesWhy Tenancy in Common (TIC) Could Be the Smartest Move in LA Real Estate
Los Angeles real estate is notoriously expensive—but what if there was a more innovative, affordable way to buy a home in your dream neighborhood without breaking the bank?
Enter Tenancy in Common (TIC)—an innovative ownership model gaining momentum in high-cost urban markets like LA and San Francisco. Whether you are a first-time homebuyer, savvy investor, or house hacker, TICs may be your best path to building equity and building roots in Los Angeles.
What Is a TIC? (Spoiler: Not a Bug)
Tenancy in Common (TIC) is a shared ownership structure in which multiple buyers each own a percentage of a property, with exclusive rights to a specific unit. Think of it as condo-style living without the condo price tag.
You'll have your own space, mortgage, and the ability to build wealth—without taking on the full cost of traditional ownership.
Why Buy a TIC in Los Angeles?
💰 More Affordable Than Condos or Single-Family Homes
TIC units are typically priced 15–30% lower than comparable condos in the same neighborhood. That's real savings—potentially hundreds of thousands of dollars less.
📍 Access Prime LA Neighborhoods
Want to live in Silver Lake, Santa Monica, Venice, or West Hollywood—without paying $1M+? A TIC could be your ticket to homeownership in these iconic, high-demand zip codes.
🏡 Lower Property Taxes
Thanks to California Prop 13, many TICs retain original property tax assessments—offering substantial long-term savings as market values rise.
🏦 Modern, Flexible Financing
Forget shared loans. Fractional financing gives each co-owner their mortgage—no co-signing or joint liability. Lenders now offer:
Up to 85% LTV
Interest-only options
Bank statement loans for self-employed buyers
Yes, mortgage lenders are finally catching up.
🧠 Ideal for Investors & House Hackers
TICs let you own rental-ready units or house hacks by living in one unit and renting out another. It's an innovative, low-barrier way to step into multi-unit real estate investing.
🤝 Shared Expenses & Built-In Community
TIC co-owners share maintenance costs, making upkeep easier. With smaller buildings (often 2–4 units), many TICs foster tight-knit, cooperative living environments.
What Are the Risks? (And How to Mitigate Them)
TICs aren't risk-free—so go in eyes wide open:
Read the TIC agreement thoroughly: This legal document outlines responsibilities, usage rights, and exit options. Treat it like a real estate prenup.
Loan options vary: Not all TICs qualify for conventional financing. Work with a lender experienced in fractional loans.
The resale market is still growing: TIC awareness is improving in LA, but it's not as mainstream as condos yet—meaning resale may take longer.
Pro Tip: Partner with a real estate agent (👋) who understands TIC nuances to guide you confidently through the process.
Should You TIC or Skip?
If you're feeling priced out of LA's ultra-competitive housing market but still want to:
Build equity
Own in desirable neighborhoods
Invest in long-term wealth
...a TIC might be your perfect real estate hack.
Ready to Explore TICs in Los Angeles?
I've helped dozens of buyers successfully navigate TIC purchases across LA. If you're curious whether Tenancy in Common is the right move for your lifestyle, goals, and budget—let's talk.
Don't give up on living in LA just yet. A smarter path to homeownership might be closer than you think.
