Some brokers simply present a list of available offerings and leave the decision to the investor. At Breakwater Capital, we take a different approach. We operate with a defined investment philosophy and a disciplined process for evaluating sponsors, structures, and risk. Our goal is to equip investors with clarity, context, and confidence—so decisions are informed, not rushed.
While we have access to investments from many of the industry’s leading sponsors, access alone is not our standard. Each opportunity is carefully vetted before it is ever discussed with a client. Only after an offering meets our internal criteria do we take the time to understand your objectives and recommend solutions aligned with your goals.
We cannot guarantee outcomes, but we do promise thoughtful guidance, disciplined due diligence, and a long-term advisory relationship—rather than a transactional menu of products.
Aside from finding the right Qualified Intermediary to perform the exchange, you want to find a firm you can trust to help educate you on ALL your options. Here’s why hundreds of investors have chosen Breakwater Capital over the years:
We are not a high-volume broker focused on pushing transactions. We take the time to understand your goals and recommend only the opportunities that truly fit. Instead of overwhelming you with options, we narrow the field, explain what matters most to your situation, and help you make clear, confident decisions through education.
Our platform is designed to make identifying and acquiring replacement property more efficient. From initial identification through closing, we streamline the process to reduce both time and complexity. By removing unnecessary friction and stress, we help make the 1031 exchange process more manageable and client-friendly.
Unlike firms that focus on a single strategy, we specialize in the full spectrum of 1031 exchange solutions—not just DSTs. We believe offering only one option creates an inherent conflict of interest. There are multiple ownership structures that can address capital gains considerations, and the right solution depends on your specific circumstances. Our role is to evaluate those variables and guide you accordingly.
While we have access to virtually every DST offering in the marketplace, we are highly selective. Certain properties are excluded due to elevated risk profiles, excessive fees, or insufficient performance history. This goes beyond standard broker-dealer due diligence. Many firms continue to offer investments we choose not to, which is why investors should always understand both risks and structure before proceeding.
Our broker-dealer, Emerson Equity, has professionals licensed in all 50 states, Washington, D.C., and the U.S. Virgin Islands, with offices nationwide. Collectively, the team brings over 150 years of real estate experience and more than $30 billion in DST participation. This depth of experience supports a disciplined and well-established due diligence process.
We do not operate our own DSTs, nor are we affiliated with sponsors. Some large brokers promote proprietary offerings under the guise of reduced commissions, while collecting higher fees as sponsors—a huge conflict of interest. We believe these practices compromise objectivity. Breakwater represents only the client, recommending investments based on merit, structure, and alignment—not internal incentives.
Members of our team are personally invested in many of the offerings we recommend. We believe in alignment and accountability, and our guidance is informed not only by analysis, but by firsthand experience.
Our advisory approach extends beyond individual real estate transactions. We consider your broader investment portfolio, tax considerations, and long-term planning objectives. Investment planning is dynamic, and effective advice requires context. We are financial planners first, bringing a wider perspective than firms focused solely on product placement. Breakwater does not have any conflict of interest like this, we only represent the client and recommend offerings based on their quality.
Clients work directly with our President, Josh Chapin, as their single point of contact. We do not hand relationships off to junior advisors. Our goal is to build trusted, long-term partnerships and serve as a consistent resource throughout your investment journey.
You will never speak with anyone other than Josh when it comes to advice, a fully-licensed DST expert with over a decade of experience in the field. We want to actually build a relationship and be a long-term resource.
Large DST brokers must place very large sums of exchange funds in a given year, some over $100M. Therefore, they have to utilize many more DSTs to place these funds. We can be much more discerning and selective because we are not obligated to take on such large volumes of investor money. We carefully vet each offering and make sure they fit our investment standards, then listen to you as a client to recommend those that best fit your risk tolerance and investment goals. We want our clients to get the best of the best, not just offer all the possible options. We believe that investors will understand and comprehend the investments much more this way and therefore feel more confident in their decision making.
Others may just advise on a DST with no respect to the client’s overall financial picture. We are full service financial planners specializing in alternative investments that can provide a much more well-rounded plan (at no extra cost). Real estate is just a component of a much larger picture, and we have the experience, knowledge and tools to take all these other things into consideration. Do you want a financial advisor or a DST salesman?
*We do not recommend these to clients for various reasons
We serve as a dedicated advisor with a singular focus: protecting our clients’ capital through disciplined due diligence. Every investment we present is subjected to a rigorous, multi-layered review designed to evaluate risk, alignment, and long-term viability before it ever reaches a client conversation.
Our vetting framework evaluates opportunities across three critical dimensions: the sponsor, the property, and the offering structure. This process is intentionally conservative and designed to identify potential weaknesses—not just highlight strengths.
We begin by evaluating the sponsor, as execution and stewardship are critical to investment outcomes. Key considerations include
Next, we assess the underlying real estate to determine durability across market cycles. Our analysis includes:
Finally, we scrutinize the structure of the offering itself, focusing on transparency, alignment, and downside protection. This includes:
Only investments that meet our standards across all three categories are considered suitable for client review. While no investment is without risk, our objective is to ensure that clients are presented with opportunities that are thoughtfully structured, appropriately aligned, and supported by disciplined underwriting.
Breakwater typically recommends assets that historically have less correlation to the economy or reliant on any single factor. We want our clients invested in assets that have the potential to perform in any economic weather and provide services people will always need.
Emerson Equity follows a rigorous due diligence process in line with their obligations as a broker-dealer. They apply multiple layers of diligence when evaluating new opportunities, beginning with documents and materials provided by the deal sponsor, a review of third-party due diligence provider (like FactRight, Buttonwood, or Mick Law) reports to assess key risks and deal structure.
Emerson Equity analysts then conduct their own review, analyzing financials, management, business model, and regulatory considerations. Final approval requires sign-off from a principal to ensure alignment with our standards and regulatory obligations. This process is designed to identify potential risks and confirm that offerings meet their suitability requirements.