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This loan is perfect for Real Estate Investors but can be used for anyone who is looking to leverage their portfolios and turn it into cash!   Below are the most common uses: 

Increase Down Payments.  With today’s more stringent loan-to-value guidelines, many deals are lost due to insufficient down payments. A larger down payment can mean the difference between closing the deal or losing it.

Purchase of Real Estate: Having access to a sizable credit line allows the investor to pay cash for a property, avoiding the normal delays associated with traditional mortgages or hard money loans. Once approved, your line of credit is accessible immediately when the right opportunity comes along. The ability to pay cash for real estate increases your overall equity and buying power while preserving your credit for future financing opportunities.

Pay down existing mortgage or refinance: As property values have plummeted and LTV limits reduced, it has become more and more difficult to refinance existing real estate. A securities-based line of credit gives the investor the ability to pay down existing mortgages to stay within current LTV limits and take advantage of today’s lower interest rates.

Cover hard costs of REI: Successful real estate investing requires cash, and lots of it. Even hard money loans allow for only a small percentage of acquisition and rehab costs to be financed. That leaves property listing fees, appraisals, marketing costs, property management fees or loan payments on unoccupied properties to be paid for in cash. A securities-based line of credit can be used for all these items, with zero out-of-pocket cost.

Bridge Loans: This is a short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. Bridge loans come with relatively high interest rates and are typically backed by some form of collateral such as real estate or inventory. A securities-based line of credit can be a perfect alternative.

REO/Fix and Flip: Investors interested in purchasing bank owned properties to rehab and flip will find a securities-based line of credit especially flexible given the ability to draw funds to cover acquisition and all related costs, creating a true “no out-of-pocket” investment. Once a property is rehabbed and sold they can simply pay the line down and be ready for the next opportunity. Interest is paid only on the outstanding line balance.

Bottom line…..This loan is based on Simplicity-Flexibility-Security

You’ve worked hard to build a strong portfolio and want the safety of knowing your nest egg will be there when you need it. Our securities-based line of credit offers: 

• Top-tier, fully regulated and licensed management
• SIPC-insured institutional accounts
• No title transfer required
• Prepay anytime
• All dividends paid to borrower
• All upside appreciation goes to borrower
• Limited-recourse option
• Not secured by real estate
• No obligation, no-cost quotes
• Free consultation with professional advisor prior to loan docs

 Facts: 

     •       LTV limits are significantly lower than ever
•        Credit score requirements are much higher
•        Stated income is all but a thing of the past
•        FNMA and FHLMC impose limits regarding the number of financed properties allowed
•        Second mortgages and lines of credit on investment properties no longer exist
•        Traditional mortgages do not allow for financing of rehab or other incidental expenses
•        Hard money loans have become very difficult to qualify for
•        Banks do not finance property listing fees, appraisals, marketing costs, property
          management fees or loan payments on unoccupied properties. 

Solution:

One solution is a securities-based line of credit. Borrowers who own securities now can leverage their securities into ready cash for real estate investments. In essence, investors can stay in the market, invest in real estate, and enjoy the potential benefits of two appreciating asset classes instead of one.

Interest rates - Rates vary depending on the credit line amount. Credit lines of $100,000 to $250,000 average about 5.25% while lines of $1,000,000+ start from 3%. (Fixed and variable rates available)
Line of credit terms - The typical term is 3 years but can be prepaid and closed at any time without penalty with no additional fees.*  *Variable rates loans also available.
Minimum/maximum line amounts - Depending on the type of securities, the minimum line amount is approximately $100,000, no set maximum.
Documentation – A No-Doc line of credit? Yes, since a securities based line of credit is not underwritten based on credit, income or debt ratio, we require only a current account or brokerage statement to issue a formal quote, usually within 24 hours.
Fast Closing – The entire process from start to finish can take place in as few as 5 days.
Up-front Costs – There are no up-front or out-of-pocket costs.

What securities DO NOT qualify: 

Private Company Stock
Medium-Term Notes (MTN’s)
Restricted Stocks
Standby Letters of Credit
Stocks with little or no trading
Securities listed on foreign exchanges
Real Estate

What DOES qualify: 

Fannie Mae and Ginnie Mae CMO’s
Exchange Traded Funds (ETF’s)
US and selected non-US Stocks
Mutual Funds
Publicly Traded REIT’s
US Treasury Notes/Bills/Strips
US Government Agency Bonds
Municipal and Corporate Bonds
Selected Bank CD’s
Unit Investment Trusts
Stocks traded on US, Australia, UK, and most European exchanges

Give us a call today to see what we can do for you.

817-738-5626