WHY TENANCY IN COMMON (TIC) COULD BE YOUR BEST BET IN LOS ANGELES REAL ESTATE

If you're looking to buy in Los Angeles, you’ve probably noticed that home prices are...well, a little expensive. But there’s a clever workaround that doesn’t involve winning the lottery or moving to Barstow: Tenancy in Common (TIC).

TICs are gaining traction in high-cost cities like LA and San Francisco, where buying a home can feel more like auditioning for Survivor: Real Estate Edition. So, what is a TIC, and why should it be on your radar? Let’s break it down—minus the real estate jargon headache.

WHAT IS A TIC (AND WHY DOES IT SOUND LIKE A BUG)? A Tenancy in Common is a shared ownership structure. Instead of owning a whole building or your very own unit (like in a condo), you own a percentage of the property but get exclusive rights to a specific unit. You get to live in your unit like it’s all yours—but without paying the full “this-is-all-mine” price.

WHY BUY A TIC IN LOS ANGELES

💸 More Affordable Than Condos or Homes TICs usually sell for 15–30% less than condos in the same neighborhood. That’s real money—not just “skip-a-latte-a-day” savings.

📍 Own in Prime Locations Want to live in Santa Monica, Silver Lake, Venice, or West Hollywood—but not drop $1M+? A TIC might just be your golden ticket to a killer ZIP code without the financial anxiety.

🏡 Lower Property Taxes Thanks to Prop 13, many TICs in LA keep their original property tax rates. Translation: You won’t get gouged every year when the market spikes.

🏦 Smarter, Flexible Financing Fractional financing = your own mortgage. No shared debt. No awkward convos with your co-owners when rates go up.

Lenders offer up to 85% LTV, interest-only, and bank statement loans. Yep, they’re finally catching on.

🏠 Great for Investors & House Hackers Want rental income without buying a full fourplex? TICs offer a low-barrier way to get your foot in the multi-unit game. For owner-occupants, it’s a savvy house-hack strategy with long-term upside.

🤝 Built-in Community (and Shared Expenses) TICs often come with good neighbors and shared maintenance costs—like a roommate who pays their share of utilities.

OKAY, BUT WHAT’S THE CATCH? TICs aren’t all sunshine and avocado toast. Here’s what to watch:

  • Read the TIC agreement carefully—it’s your real estate prenup.

  • Not all TICs are eligible for conventional loans. Some require higher down payments or creative financing.

  • The resale market is growing, but it’s still not mainstream yet. (Though awareness in LA is climbing fast.)

SO, SHOULD YOU TIC IT OR SKIP IT? If you’re priced out of LA’s traditional market but still want to build equity, grow wealth, and stop paying your landlord’s mortgage, a TIC might be your real estate life hack.

Are you considering buying a TIC or wondering if it’s right for you? I’ve helped clients navigate this path before—happy to walk you through it.

Let’s chat before you give up and move to a yurt.