Has anyone taken out a loan with a bank/broker using your stock portfolio as collateral?
I am thinking of taking out a $50k loan to make a private RE investment. Total potential collateral pool is around $300k of stocks. With interest rates and inflation where they are, seems like a good time to do this.
I was hoping someone could share some of the risks / issues associated with taking out a loan like this. Do I have to give them my entire portfolio as collateral? Can I still buy/sell stocks within this portfolio? Can I sell stock to make interest payments? Fees / Penalties?
No need to answer those specific questions, just trying to figure out what I’m missing and why this might not be a great idea.
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