A Credit Line for Real Estate Investors

One of the major advantages of an institutionally managed, low-interest credit line is that it can be ideal for real estate investors or others who need to take advantage of opportunities as they arise. Because the securities remain in the client's title and account and are not sold to fund the loan, this type of financing can be attractive to partners or investors who do not want to use their current capital or to sell their securities. A low-interest, interest-only credit line can be the perfect solution when this situation arises.

A real estate investor with a handy securities-based credit line:

- Need not tie up any other assets to secure their financing.

- Can tap fund the same day or even hour as the opportunity arises.

- Can enjoy interest-only financing, the standard maintenance of the line.

- Can repay the securities credit line principal when they wish.

- Can re-use the credit line, making these perfect for quick turnarounds.

- Limited/light doc: Quality of securities at outset is primary lender focus.

- Underlying asset (securities) continue working for you; no title change.

Even those investors who may not have an immediate need may seek to open their line as a standby.

At a time when bank requirements are more stringent than ever, a securities-based line of credit is quick and easy. Because your shares do not change title, and your shares are not sold to fund your credit line, you can in effect put two asset classes to work simultaneously: real estate and your securities.

Be the first in line when your next real estate investment opportunity arises with a handy securities-collateralized line of credit with SIPC-member management.