Portfolio Based Lending
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Frequently, investors face the challenge of substantial capital gains exposure in their portfolios. Take, for instance, an initial investment of $300,000 growing to $500,000 or even $600,000. When considering a new investment like buying property or starting a business, they may need to liquidate their portfolio, incurring capital gains taxes in the process. Portfolio-based lending can be of conversation. With this approach, you can use your $600,000 portfolio as collateral to secure a line of credit without credit checks or extensive documentation. The only requirement is that the line of credit cannot be used to purchase stocks.
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Banks see the cash value in a life insurance policy as a reliable collateral asset, immune to depreciation and safe from creditors. In case of disability, the policy covers itself, and in the unfortunate event of passing away, the bank remains secure. Life insurance stands out as banks' preferred collateral due to its inherent stability and reliability.
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Portfolio loans, much like any financial tool, carry inherent risks. The level of risk involved can fluctuate, influenced by a variety of factors: the lender's underwriting practices, the mix within the loan portfolio, prevailing economic conditions, and the overarching risk management strategies implemented by the financial institution.
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If you don’t qualify for a conventional or government loan, a portfolio loan could be another option. A portfolio loan offers more flexibility to borrowers and fewer eligibility requirements but can also be riskier for the lender, often leading to higher interest and fees.
We understand that your wealth is more than just numbers on a balance sheet – it's a dynamic force waiting to be harnessed. With portfolio-based lending, you can leverage your existing assets as collateral, opening doors to a world of new financial opportunities, specifically tailored for non-IRA funds. Whether you're looking to seize new investment prospects, expand your business ventures, or simply optimize your cash flow, let us help you leverage your portfolio for long-term financial growth in a way that suits your goals.
FOCUS AREAS
✔ Life Insurance Lending
✔ Consider credit and tax implications.
✔ Real estate investing
✔ Interest rate management
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