The Katalyst 4-Step Strategy

1

Assess Current Value

Determine your property's current market value and existing equity position to understand what you're working with.

2

Refinance

Pull out equity tax-free at favorable rates. Up to 60% CLTV is common maximum. This cash is available immediately for any business purpose.

3

Wait 6-12 Months, Then Sell

Create clean separation between your refinance and eventual property sale to satisfy IRS requirements. Use this time to plan your transition, then list and sell your property.

4

1031 Into New Property

Complete your 1031 exchange into a new investment property. You maintain all benefits of direct ownership—depreciation, appreciation, cash flow—while deferring capital gains taxes.

Why Direct Ownership Through 1031 Exchange?

A traditional 1031 exchange allows you to defer capital gains taxes while maintaining complete control over your investment. You're not just preserving wealth—you're positioning yourself for continued growth.

✅ Full Ownership Benefits:

  • • Complete control over asset decisions
  • • Direct access to depreciation benefits
  • • 100% of property appreciation
  • • Flexible exit strategies
  • • Ability to refinance again in the future

🔄 Tax Advantages:

  • • Defer capital gains indefinitely
  • • Maximize depreciation write-offs
  • • Estate planning benefits (step-up basis)
  • • Can exchange multiple times

💡 Consider: Professional Property Management

Want to maintain ownership benefits while reducing day-to-day headaches? Professional property management offers a middle ground:

You Keep:

  • • Full ownership and control
  • • All appreciation and equity
  • • Tax benefits of direct ownership

You Delegate:

  • • Tenant management
  • • Maintenance coordination
  • • Day-to-day operations

Calculate Your Strategy

See how much cash you can access today while planning your 1031 exchange

Your Property Details

$
$
%
$
10% 80%

Note: 60% is the typical program maximum, but higher amounts can be arranged depending on property type and borrower qualifications.

0% 15%

Adjust based on your situation (realtor fees, closing costs, etc.)

Powered By

ETHOS Lending

Enter your property details to see your results

Self-Managing Everything

  • ❌ Midnight emergency calls from tenants
  • ❌ Coordinating repairs and maintenance
  • ❌ Dealing with vacancy and tenant turnover
  • ❌ Time-consuming property inspections
  • ❌ Limited time for other opportunities

Professional Management Option

  • ✅ Professional team handles day-to-day
  • ✅ You retain full ownership and control
  • ✅ All tax benefits of direct ownership
  • ✅ More time to pursue opportunities with equity you've pulled out
  • ✅ More time for family, hobbies, or other interests
Katalyst Strategy Visualization

Send Me My Report

Enter your details and we'll send you a detailed breakdown of your 1031 exchange strategy.