When a long-standing client came to us earlier this year, the challenge was one we have seen before – and one that trips up far too many families in transition. He and his wife found their next home and were ready to move. The problem? Their existing home hadn’t sold yet, leaving a gap in the cash they needed to purchase the new property outright. A traditional bridge loan seemed like the obvious answer, but bridge loans come with costs, complexity, and timelines that aren’t always in a client’s best interest.
We saw a better path..
By looking at their complete financial picture – not just their real estate situation – We recognized that their non-retirement investment portfolio could serve as collateral for a securities-backed line of credit. This allowed them to access the liquidity they needed without disturbing their investments or taking on a mortgage. The solution was elegant, efficient, and – most importantly – tailored specifically to them.
This line of credit was established and fully accessible within 21 days. The total interest cost to the clients came to just $1400 – a competitive daily rate with no origination fees, no closing costs, and none of the excess charges that typically accompany a bridge loan or new mortgage.
Disclosure: This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.