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Phil Jemmett
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Phil brings over 35 years of business, financial and real estate experience to Breakwater. He is not only the Chief Executive Officer but one of its founding members. Originally from Australia, he worked in the mining industry and studied engineering. From there Phil moved to London to work with a nonprofit and outreach organization. He later transplanted to the United States to pursue a degree in economics at the University of Wisconsin, Madison, and worked in the brokerage department of Merrill Lynch. Phil then started an import/export business, which he ran successfully for over 20 years, traveling extensively throughout the world. Phil transitioned into commercial real estate and co-founded LJL Funding to address a need in the residential markets. Seeing firsthand the broad, deep-seated crisis in the residential market allowed Phil to prepare for the challenges facing the commercial market. This led to the founding of Breakwater Equity Partners. Phil’s vision to build a multi-disciplinary team that has the knowledge and experience to assist property owners with workout solutions for their real estate challenges is a daily reality at Breakwater.

Entries by Phil Jemmett

The Basics of a 1031 Like-Kind Exchange for Commercial Property Investors

(0) Comments | Posted January 21, 2014 | 4:01 PM

Section 1031 exchanges can provide significant tax benefits to commercial property owners, especially when dealing with distressed property. Through a 1031 exchange, an investor can defer recognition of gain, by reinvesting in like-kind or similar property within certain time limitations and other restrictions.

A 1031 exchange is an extremely flexible...

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Workout Strategies for Distressed TIC-Owned Properties -- The Section 721 Roll-Up

(0) Comments | Posted January 9, 2014 | 10:51 AM

Dealing with a distressed real estate investment is always difficult. The difficulty is compounded with tenant-in-common ("TIC") projects, where ownership is often divided among as many as 35 different investors.

Many mortgage loans secured on TIC projects during the real estate boom in the early and mid-2000s have now...

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Pros and Cons of a 1031 Tax-Deferred Exchange of Commercial Property

(0) Comments | Posted December 9, 2013 | 7:25 PM

A 1031 Exchange, also known as a tax-deferred exchange, is a common, fairly straightforward strategy that affords significant tax advantages to commercial property owners. Thanks to IRC § 1031, real estate investors may sell or relinquish certain qualified property, reinvest proceeds from that property and acquire a replacement property, pursuant...

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Solution to Tax Hazards on Distressed Commercial Properties: Zero Basis 1031 Exchange

(0) Comments | Posted December 5, 2013 | 12:31 PM

When considering various workout strategies for distressed commercial property, one must carefully weigh the potential tax consequences of each option. Unfortunately, many commercial real estate property owners, understandably wanting to quickly put an end to a stressful situation, underestimate the potentially very expensive tax ramifications that could ensue...

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Cancellation of Debt Income Can Mean Severe Tax Consequences for You and Your Commercial Property

(1) Comments | Posted November 14, 2013 | 6:57 PM

For owners of distressed commercial real estate, loan restructuring, loan modifications or even foreclosure can be seem like a light at the end of a long and arduous tunnel, but one shouldn't be lulled into a false sense of security. Be aware that without ongoing proper tax planning, all that...

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Determining Tax Basis on Your Commercial Real Estate

(0) Comments | Posted November 13, 2013 | 4:58 PM

Properly determining the "basis" on your commercial real estate asset is critical. It is particularly important when you are looking to determine depreciation deductions (other than for the land itself) and whether you will incur a profit or loss when you decide to sell. If not calculated properly, on a...

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Thinking of Buying or Selling Real Estate? A Quick Method to Estimate Value

(1) Comments | Posted November 6, 2013 | 10:30 AM

For many people, the primary purpose of investing in commercial real estate is to generate rental income. Knowing a property's net operating income (NOI) can help you to estimate the property's value. However, knowing NOI is not enough to determine a property's value; you must know the risk associated with...

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Is a National Credit Tenant the Best Choice for My Retail Property?

(0) Comments | Posted October 28, 2013 | 4:34 PM

If you own a shopping center then you know that high occupancy rates and stable tenants are vital to the success of your asset. Many owners of neighborhood, community, and regional centers believe that having at least one credit tenant on the rent roll will ensure a stable rental income...

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How Can I Exit My Tenant-in-Common Investment?

(0) Comments | Posted October 23, 2013 | 5:58 PM

Tenant-in-common (TIC) investments were a popular investment choice for retirees during the early 2000s. These commercial property investments were supposed to be low risk and provide a moderate return on retirement savings. Multiple investors pooled their resources and purchased an industrial, multi-family, retail, or office asset. The...

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Is an LLC the Right Choice for my Commercial Real Estate Investment?

(0) Comments | Posted October 11, 2013 | 11:13 AM

Protecting personal assets is often a matter of great concern for new commercial real estate investors. When forming an entity, more real property investors are now using limited liability companies (LLCs) to protect their personal assets. The LLC is a newer form of business entity and it has benefits that...

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What Happens to Depreciation of Your Commercial Property When You Sell?

(0) Comments | Posted October 2, 2013 | 3:42 PM

As we mentioned in our previous blog post, "Lower Your Taxes and Increase Your Cash Flow," many owners of commercial real estate are not fully utilizing the possible tax deductions available via depreciation.

Before discussing what happens when you sell a commercial property, it is important to understand what happens...

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What Is FIRPTA, and How Does It Affect My Commercial Real Estate Investment?

(0) Comments | Posted September 25, 2013 | 1:08 PM

In 1980, the U.S. Congress passed the Foreign Investment in Real Property Tax Act, more commonly known by the acronym FIRPTA, to tax foreigners' gains on income from and sale of U.S. real estate and other real property. Before FIRPTA became law, the U.S. had no way to tax foreigners...

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Commercial Real Estate Lenders and Servicers: Changing Faces

(1) Comments | Posted September 12, 2013 | 9:36 AM

Coauthored by Derek Uldricks

If you own commercial real estate as a partner, limited partner, member, or tenant-in-common, the odds are that neither your lender nor your servicer is the firm that lent you the money for your property. Many of the outstanding commercial real estate loans in the United...

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Lower Your Taxes and Increase Your Cash Flow

(0) Comments | Posted August 28, 2013 | 5:42 PM

Are you maximizing your tax deductions?

Many commercial real estate investors are not maximizing the tax depreciation deductions from their assets, foregoing a potential savings of hundreds of thousands of dollars. If you own commercial real estate, there are likely many assets that you are depreciating over a much longer...

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What Is Defeasance? How Does It Affect My Commercial Real Estate Loan?

(1) Comments | Posted August 8, 2013 | 12:45 PM

The rules that govern home loans are not the same as the rules that govern commercial real estate loans. One of the major differences is that there is usually no penalty for early repayment of a home loan, whereas investors in commercial real estate can face stiff penalties for early...

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The Secret Financial Tragedy Costing Thousands of Seniors Millions of Dollars

(1) Comments | Posted June 24, 2013 | 3:22 PM

There is a largely unknown tragedy happening to seniors nationwide. Tenant-in-common (TIC) investments became popular among seniors starting in 2001 - 2002. But now many of these seniors have lost their investments - often entire life savings - because they were misled or victims of fraud. In fact, a quick...

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