Benefits of Diversification: One of the advantages of tenancy in common is that the tenants have the option of diversifying their portfolio of real properties by investing in different regions and in properties involving different levels of risk and return. A sufficiently diversified portfolio, that includes high grade, institutional-type properties and properties yielding stable returns, will help in reducing the overall risk of the portfolio.
Obtaining Loans: Tenancy in common allows a co-tenant to use his/her share of the property as collateral for seeking loans. Moreover, the creditors can place liens only against the co-tenant's portion of the property.
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