"Fractional TIC mortgage loans have become the dominant financing choice for TIC owners, but such loans are not offered by most lenders. Until recently, only three local lenders were offering these special mortgage loans, but in the summer of 2017, Redwood Credit Union joined the club, and is now marketing these useful financing arrangements, which have helped TIC groups avoid the pitfalls of a group mortgage loan (see within).
In 2013, San Francisco drastically reduced the number of properties allowed to convert to condominium ownership. Since that time, many TIC properties – some as large as 33 units – have established themselves as “permanent” TICs. Adding insult to injury, on June 26, 2017, the City suspended accepting new applications for condo conversions for properties with tenants, following the filing of a lawsuit protesting the City’s Lifetime Lease requirements. Properties without tenants remain unaffected, but condo conversion prospects for buildings with tenants in one or more units continue to recede."