Use Brokerage Account for Down Payment

[Heidi Foster]

Hello! First post on biggerpockets.com!

I invest in a brokerage account, but would also like to buy rental property. I put every ounce of cash I have available into the brokerage account, because I have a risk allocation that is relatively risk free, and generates close to 10% in interest per year.

I want to invest in a rental home. However, I would really like it if a lender could use my brokerage account as my "skin-in-the-game", vs putting 10-30% down on the deal in cash. By doing this, I figure I can significantly increase my ROI.

Most banks/brokerages I’ve spoken to want me to put the funds in a pledged asset account. This would allow me to take out cash against the brokerage account, but at the steep cost of approx. 5.5%. Then they want the cash put towards the mortgage.

I would like to find a lender that would secure the brokerage account, but not require this pledged asset conversion—I’m fine with pledging assets, I just don’t want it to cost money. Does anyone know of any Brokerage/Bank combinations that would allow for this?

Thanks so much guys, and have a great day!

Heidikin