Hey BP community,I’m exploring a creative financing strategy and was wondering if anyone here has firsthand experience with this approach — or any insights on potential pitfalls or advantages.Here’s the general idea:Use a securities-backed line of credit (SBLOC) against my investment portfolio to purchase a rental property.Once the property is stabilized (rented and possibly improved), do a cash-out refinance to pay back the SBLOC and effectively recoup my initial investment.In theory, this seems like a way to:Move quickly on deals (cash offers are attractive)Avoid triggering a taxable event by selling securitiesRetain the upside of the invested portfolio while acquiring real estateBut I’m curious:Has anyone on here actually used a securities-backed line of credit (SBLOC or similar) to purchase a rental property?

Also, how effective is their CRM—does it integrate well with other tools, and does it offer automation for follow-ups?

Here’s a simple but effective method:Tenant Screening Checklist✔ ID Verification – Confirm the applicant is who they say they are to prevent fraud.✔ Income Verification – Use a service that pulls actual bank deposits rather than relying on pay stubs or bank statements (which can be faked).✔ Eviction & Rental History – Look for past evictions, late payments, and landlord references to spot red flags.✔ Criminal Background Check – Run a nationwide search to ensure compliance with local laws while identifying potential risks.✔ Judgments & Liens Search – Since these no longer appear on credit reports, a separate search helps uncover unpaid debts or financial issues.For Section 8 tenants, screening should be the same—rental history and income verification are key since they’re still responsible for a portion of the rent.

So find an independent broker and task him with finding you the most cost effective carrier.But, remember always (as so many forget) that even though he is independent, he is the carrier's agent not your agent and his duties are to the carrier and not to you.

I'm hopeful that I can now assemble a more effective team to advance my plans for this property.If you know anyone, please send me DM.

Also, since this is effectively more CRE exposure, there might be an extra headwind there as well. 

Identify your overall financial goals and refine your investment strategy to effectively achieve them.Moreover, BP serves as an exceptional platform not just for networking and building connections, but also for enhancing your knowledge.

You can find them all over Facebook groups, but you would need to do your due diligence and ensure they have the experience to run a short-term rental effectively.

Glad to see there are still some original voices on here. 

Facebook Marketplace and local real estate groups can also be effective depending on your area.