Subject: File No. S7-26-07
From: Gary L Ely, CFP

December 6, 2007

The proposal to allow real estate agents to sell TICs is flawed and I am opposed to it. There are four valid reasons to oppose this proposal.

Generally, real estate agents do not have the extensive training necessary to successfully complete the licensing requirements currently required by the regulatory agencies to sell these products.

Additionally, most licensed financial planners use TICs as an allocation to an overall investment program and do not rely on real estate as their clients sole investment vehicle.

Still further, the substantial experience requirement currently outlined in the proposal is vague and, in some instances, non-measurable.

Finally, real estate agents generally do a good job of knowing their local market. If they are allowed to sell TICs, many of which will, by definition, be for properties in other real estate markets, there is a danger clients will assume the agents expertise extends to markets outside their local market.