I am thinking to get a collateral/secured loan against my stock portfolio. AND I want to invest that in a rental property and at the end of the loan term I wish to flip the property to pay back the loan.
Please let me know your thoughts and pointers to good lenders, CPA. If someone has worked with the secure loans, please share your experience and things I need to take care of.
Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
5y
I would definitely hunt for a local CPA that you can meet in person (masked of course). Taking collateral against a stock portfolio is a move you need to really think about. Do you have good experience in real estate? If not, then you're collateralizing something with no real promise of any upside.
Not sure if that's how you'd want to start (Assuming you're new). If you have experience and know exactly how to deploy that capital. Then good luck!
Thank you Eric, this will be my first real estate investment. Yes I am making an assumption that the price of the real estate increases with time. This assumption must be true for my strategy to work.
I'm not suggesting you do this, but I funded my first real estate purchases by refinancing my home, borrowing against a life insurance policy, and taking the principal out of my Roth IRA.
I've never regretted it, but Dave Ramsey did say on the radio one time, "You know what they call people that borrow money to buy rentals? They call them idiots!" It hurt my feelings... :( haha.