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Other brokers that just want to sell you a DST will simply provide a list of available products and call it a day. We actually have an investment philosophy and know what qualities to look for in a sponsor. We want to share that knowledge with our investors in order for them to make the most informed decisions. We believe a confident investor is a happy one.
When you work with us, you have access to a wide selection of eligible investment properties on our innovative platform. You can assess your options and get the documentation and details you need before moving forward. Once you’ve made your decision, our expert team walks you through the buying process and the paperwork to ensure it’s completed correctly. Our online investor portal gives you easy access to all the necessary documents.
We work with all the top sponsors and have access to a wide range of DSTs, Opportunity Zone and Alternative Funds. However, that does not mean we choose to work with all of them. Breakwater carefully vets the available offering before we even have a conversation with the client. We want to make sure they fit our investment standards, then listen to you as a client to recommend those that best fit your and investment goals and needs. We can’t guarantee success, but can promise our investors a better long-term relationship and thoughtful recommendations, not just a menu of all the possible options.
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?
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.
There are many questions we want to make sure are considered before we recommend them to a client:
1. Does the sponsor have a good reputation and an established track record?
2. Do they have strong and experienced leadership?
3. Are their fees reasonable/industry standard? (Should be 2-3% of purchase price)
4. Are their fees subordinate? (Investors need to get paid before them)
5. Does the sponsor participate in the appreciation? (They should not)
1. Is it in a historically recession resilient asset class?
2. What are the quality of the tenants?
3. Does the lease have over 10-15 years left? (Commercial Properties)
4. Is the property located in a landlord friendly state?
5. Is the property located in an income tax-free state?
6. What is the strength of the economic anchor/indicators?
7. What is the local market competition like?
7. Is the financing fixed?
8. Are the financials projections sound?
9. Is there a sufficient reserve capital fund?
We are aggressively seeking to acquire properties pursuant to the following investment criteria:
Start making more informed choices for your financial future with Breakwater Capital. Schedule a free in-person or virtual consultation so we can get to know each other. During our meeting we will discuss your finances at length to determine if Breakwater Capital is right for you.
Fill out a Contact Form to Request More Information or Schedule a Consultation
9940 Research Dr. Suite 200 Irvine, CA 92618
(310) 940-9430
Josh@Breakwater1031.com
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All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future performance. There can be no guarantee that any investment or strategy will achieve its stated objectives. Speak to your tax and/or financial professional prior to investing. Securities and advisory services through Emerson Equity LLC, member FINRA and SIPC and a registered investment adviser. Emerson is not affiliated with any other entity identified herein.
There is no guarantee that any strategy will be successful or achieve investment objectives; Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments; Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities; Potential for foreclosure – All fnanced real estate investments have potential for foreclosure; Illiquidity –These assets are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments;Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions; Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefts. Stated tax benefts – Any stated tax benefts are not guaranteed and are subject to changes in the tax code. Speak to your tax professional prior to investing.
Investing in opportunity zones is speculative. Opportunity zones are newly formed entities with no operating history. There is no assurance of investment return, property appreciation, or profits. The ability to resell the fund’s underlying investment properties or businesses is not guaranteed. Investing in opportunity zone funds may involve a higher level of risk than investing in other established real estate offerings. Long-term investment. Opportunity zone funds have illiquid underlying investments that may not be easy to sell and the return of capital and realization of gains, if any, from an investment will generally occur only upon the partial or complete disposition or refinancing of such investments. Limited secondary market for redemption. Although secondary markets may provide a liquidity option in limited circumstances, the amount you will receive typically is discounted to current valuations. Difficult valuation assessment. The portfolio holdings in opportunity zone funds may be difficult to value because financial markets or exchanges do not usually quote or trade the holdings. As such, market prices for most of a fund’s holdings will not be readily available. Capital call default consequences. Meeting capital calls to provide managers with the pledged capital is a contractual obligation of each investor. Failure to meet this requirement in a timely manner could elicit significant adverse consequences, including, without limitation, the forfeiture of your interest in the fund. Leverage. Opportunity zone funds may use leverage in connection with certain investments or participate in investments with highly leveraged capital structures. Leverage involves a high degree of financial risk and may increase the exposure of such investments to factors such as rising interest rates, downturns in the economy or deterioration in the condition of the assets underlying such investments. Unregistered investment. As with other unregistered investments, the regulatory protections of the Investment Company Act of 1940 are not available with unregistered securities. Regulation. It is possible, due to tax, regulatory, or investment decisions, that a fund, or its investors, are unable realize any tax benefits. You should evaluate the merits of the underlying investment and not solely invest in an opportunity zone fund for any potential tax advantage.
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