Case study
This case study highlights how Breakwater Exchange’s direct title security structure empowered one investor with full ownership, control, and tax-deferral benefits.
Our client owned a single tenant, multi-family property that he wanted to sell and perform a 1031 exchange on. The property was fully paid off and had about $1M in proceeds after closing costs. The investor desired a more passive approach in order to take the day-to-day responsibilities of property management off his plate, however remained adamant on maintaining control over the decision and ability to sell his property sometime in the future
Breakwater Exchange presented a portfolio of pre-vetted direct title securities across growth-focused markets. The investor selected three single-family homes in two landlord-friendly states, boosting tenant quality and diversification. Because the selection occurred before his relinquished property closed escrow, we coordinated a simultaneous exchange with zero disruption to his rental income. He gained increased monthly cash flow, investment-grade tenants, and created a refinancing pathway to access tax-free liquidity at any point, without ever involving a traditional bank.
Outcome
The investor transitioned from managing a single property to owning three stabilized homes leased to stronger, more financially secure tenants. With Breakwater Exchange’s vetted process and direct title security solutions, his monthly income increased and became more predictable. The transaction closed simultaneously, ensuring no income gap or exchange risk. Additionally, a built-in refinancing option gave him access to up to 65% of his equity, tax-free, should future liquidity be needed. Most importantly, the investor maintained full decision-making power, positioning his assets to grow in value while providing dependable cash flow with long-term exit control.
Our team crafts 1031-qualified direct title strategies that keep you in control, offering fixed monthly income, exit flexibility, and full-title ownership.
Breakwater Exchange structures each direct title security solution as a single-member LLC that owns a physical property with a title and CUSIP. This structure is eligible under IRC Section 1031, allowing you to defer capital gains taxes while maintaining 100% ownership.
Breakwater Exchange’s direct title offerings come with professional property management, handling all leasing and maintenance, while you retain full ownership rights. You choose when to sell, refinance, or hold.
Yes. Breakwater Exchange offers flexible financing options so you can meet your 1031 replacement debt requirements without the constraints of traditional bank loans. You stay in control while fulfilling IRS guidelines.
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Read moreDST marketplace · Preview
Three of twelve sample structures: asset class, leverage, minimum and hold. The sponsor, the distributions paid and the offering size are what marketplace access adds, after a short suitability call. Request access and the current list follows.
Six states · Midwest
A portfolio of free-standing stores leased to a national pharmacy chain, spread across several states.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Pacific Northwest · West
A newer mid-rise community in a supply-constrained coastal market, carrying more leverage for sellers with large loans to replace.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Texas metro · Southwest
A stabilised garden-style community in a growing Texas metro, with a non-recourse loan already in place.
Shown with marketplace access
Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.
Sample offerings: hypothetical illustrations of structure types, not actual or current offerings. Photos are representative of each asset class. Current offerings are private placements for accredited investors, described by private placement memorandum.
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