Margin Loans. Under utilized strategy?

[Jeremy Horton]

I've had several thoughts here lately regarding margin loans in a traditional taxable brokerage account.

- Open ended loan

- Interest rate can change (several brokerages offering 5% and lower right now)

- Amount varies depending on how much you have invested

- Interest rate also varies with how much you have invested and changes with marker rates

-Margin interest is tax deductible

Why would I take a hard money loan when I can use margin? Interest rate is unlikely to change much over the course of a flip/rehab. Could also even use for a down payment, then pay it back with cash flow.

It's seems like it's almost an arbitrage opportunity. I've been fairly adverse to leverage in the past, so I guess I didn't learn about this stuff sooner

But it seems like there's some opportunity here.

Thoughts?