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 DST

With the profits from your sale of the property, complete your planned 1031 exchange into the DST. The DST maintains your 1031 tax-deferral benefits, and provides the opportunity for passive monthly income without management responsibilities.

What is a Delaware Statutory Trust (DST)?

A DST is a fractional ownership structure that qualifies for 1031 exchange treatment. Instead of buying an entire property, you own a beneficial interest in institutional-grade real estate managed by professionals.

Benefits of DST Ownership:

  • • No property management responsibilities
  • • Professional asset management
  • • Monthly passive income distributions
  • • Diversification across multiple properties
  • • Lower minimum investment ($100K+)

Still Qualifies as Like-Kind:

  • • IRS approved for 1031 exchanges
  • • Defers capital gains taxes
  • • Can exchange from any investment property
  • • Multiple DSTs available for diversification

Calculate Your Strategy

See how much cash you can access today while planning your transition to passive ownership

Your Property Details

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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.)

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Life as an Active Landlord

  • ✕ Midnight emergency calls from tenants
  • ✕ Coordinating repairs and maintenance
  • ✕ Dealing with vacancy and tenant turnover
  • ✕ Equity trapped in single property
  • ✕ Feeling stuck in 1031 cycle forever

Life with DST Investment

  • ✓ Professional management handles everything
  • ✓ Monthly distributions to your account
  • ✓ Can be diversified across multiple properties
  • ✓ Already cashed out equity tax-free
  • ✓ Taxes still deferred through 1031
Katalyst Strategy Visualization

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