Either way, it can be a real a win-win for you as a real estate professional as well as your client. The buyer can buy the property from a stronger position without losing their stocks. If structured properly, liability for repayment in default can be limited as well.
With these loan programs, you’ll be shifting some or all of the risk from your real estate to your securities. And they come with many additional features, including a line of credit if your stocks do well and increase in value over time. Or the possibility of swapping one set of stocks for another if you want to free up your stock collateral for some reason.
With today’s volatile market, your client can still enjoy the appreciation of the securities portfolio while it secures your loan, if the stocks do well. At the same time, they’ll be able to make a second investment in real estate. The borrower will have diversified his/her investments.
Here are some features and benefits of the stock loan