We have completed hundreds of 1031 Exchanges, and in doing so we have developed a process that allows us to communicate value with clients effectively. Most importantly, we promise that we will be with you every step of the way to ensure the exchange is completed properly and in a time-efficient manner.

Breakwater will never charge a fee before, during or after this entire process. Our services are complementary to the client as we are paid directly from the offering for a percentage of the amount we help them raise. While this compensation does come from invested assets, your equity in the offering is not reduced. We will work at your pace and cater to all different sorts of clients, whether this is your first exchange or you are a seasoned vet.
Please see a detailed summary of our end-to-end execution process: 

STEP 1

01  Discovery AND General Education 

The first step is to have a conversation with you and determine whether we are a good fit for your needs. We inquire about your specific financial situation, as well as your goals and objectives, and discuss all potential real estate investment solutions. 

STEP 2

02  SPONSOR INTRODUCTION & SPECIFIC PROPERTIES

Once we determine the best course of action and narrow the field down based on your feedback, we will then connect you to the proper sponsors to discuss current actual properties that are in-line with your exchange timing. We believe it is important that investors have a direct relationship with the sponsor(s) who will be managing the property and get comfortable with their investment philosophies and decision making processes. 

STEP 3

03  RESERVATION  AND ID PROPERTIES 

After you are comfortable with a selection of possible DST targets, we can then begin the process of reserving equity in each property. While the sponsor will often endeavor to hold this reservation for as long as possible, sponsors cannot typically decline other investors indefinitely. Nonetheless, it is important that you take the time you need to ensure you are comfortable with an offering prior to investing. Should you change your mind or if your sale fails to close, you are under no obligation to the sponsor. We will also work with your QI to ensure that the properties are correctly identified to satisfy all IRS requirements. If you do not have a QI we can recommend one of our trusted partners. 

STEP 4

04  PAPERWORK AND DOCUMENTATION

Once you are 100% confident in the property selections, we will provide all the necessary documents and streamline the process as much as possible. You will be surprised how much more efficient this process is when a bank is not involved. 

STEP 5

05  PERFORM EXCHANGE/ PLACE FUNDS

If done properly, the entire process of funds transferring from escrow to the QI to the DST can take place in as little as 3-5 business days. Our clients love when this is done efficiently because this short time frame allows for the potential of avoiding an income stream disruption. 

STEP 6

06  Potentially start receiving income immediately – The fun part!

Your potential income distribution will begin to accrue from the day you close on the DST. The first month may be prorated based on the day of the month you close, and sponsors typically seek to pay distributions mid-month for the previous month of operations. Of course, any dividend payment is not guaranteed.

STEP 7

07  Monitor, Plan & Adjust Throughout The Years 

We remain by your side throughout the lifetime of your investments. We track your individual plan to review whether it is working for you over the long haul. 

STEP 8

08  POTENTIAL LIQUIDITY OPTIONS FOR YOUR PROPERTY-INTERESTS

Over time you may require liquidity to address income needs or other unexpected variables. When this happens, Breakwater provides a potential option for selling or exchanging individual property interests with other investors. 

Of course, it is important to remember that these investments are illiquid, and, as such, there may be no secondary market, and you should never invest unless you believe that you are able to hold the investment for the life of the offering.