Friends,
We wanted to revisit the possibility of using your brokerage account to help you purchase property or get cash for a short-term cash need. A Securities-Backed Line of Credit (SBLOC) is a loan that can be drawn upon for most cash needs including business capital, tax payments or real property purchases. An SBLOC uses the stocks and bonds within a non-retirement account as collateral. This allows your account the possibility to grow without selling out of those positions (likely creating capital gains) for cash needs.
A major benefit of an SBLOC is that the underwriting process is typically quicker than taking out other loans, such as a mortgage. We work with multiple lenders to offer both fixed and variable interest rate solutions. Below, we have attached an FAQ Sheet from one of the banks we work with, TriState Capital Bank, that touches on some additional aspects of SBLOCs.
If you are considering opening an SBLOC and would like to know more, please let us know how we can help!
Andrew