Stock Loans

The Stock Portfolio Solution is truly a NO INCOME DOCUMENTATION LOAN

Loans of up to 80% of your Stock Portfolio Value

This program allows you to use your investments (stocks, bonds, mutual funds and other securities) to obtain funds for any use:

1. Buying  a Real Estate property, Commercial or Residential, Owner-Occupied OR Investment. Funds can be used either for the Down Payment or to cover for the entire purchase.

2. Refinancing your commercial property. With real estate value declining it’s no wonder lenders are uncomfortable refinancing many outstanding loans.  The Stock Loan option might be the solution.  The proceeds from your Stock Loan can be used towards bringing down the balance of your loan to a level where the lender might be willing to refinance your current mortgage.

3. Buying a business. Funds can be used either for the Down Payment or to cover for the entire purchase.

4. Various projects. Have other great ideas that need financing?  This Stock Loan program might be one of your best options.

RATES between 2.5% and 4.5% – FIXED
Credit and income are not considered
– No Appraisal, No DSCR, No LTV required

– Interest-Only payments made quarterly
– Non-recourse. The only collateral are the pledged securities.
– Funds may be used for any purpose – personal or business

– Minimum loan amount – $100,000 (lower amounts on a case by case). No maximum
– Terms of 3, 5, 7, or 10 years (Note: loan cannot be paid off before its maturity)
– Retirement funds (401k’s, IRA’s, etc) do not qualify for this program

The difference between Margin Loans and Securities Based Lending

– Margin loans can only go up to 50% of the value of the stocks – we are able to go to 80%.
– Margin loans are not allowed to lend on stocks valued at less than $10.00 per share – we offer the loan on any price share.
– Margin loans rates are typically 5 – 8% ARM’s – We are between 2.5 – 4.5% fixed rate.
– Margin loans are FULL-recourse – ours are NON-recourse with NO personal liability.
– The “call” on margin loans is set at 80% of the stock value and you have one day to cure.  Our “call” is set at 80% of the loan amount (approximately 60% of the stock value) and we offer 5 days to cure and since ours are non-recourse loans if you cannot cure the loan default, you can simply walk away.

Questions & Answers

Q: “What can you not lend on?”
A: Private bonds, offset bonds, gold certificates, money market funds, annuities, CD’s, Bank Guarantees or any “restricted” security such as in an IRA or other retirement fund. Nor do we lend on real estate. If in doubt just contact me.

Q: “Am I personally liable for this loan?” or “Can the company come after me on this loan if I do not make the payments?”
A: No, this is a “non-recourse” loan; the lender cannot come after you personally. There is no personal liability associated with the loan. The only security for the loan is the securities pledged and the only recourse the lender has is against the securities. You have no personal liability exposure.

Q: “What happens if I do not make the payments on the loan?”
A: If you don’t make the interest payments when due or fail to repay the principal when due, the lenders only recourse is against the securities. The loan will be terminated and canceled. You get to keep the money received for the loan and the lender gets to keep all interest in the securities. The default or termination is not reported to any credit bureaus.

Q: “Who owns the securities during the loan?” or” Who has title to the securities during the loan?”
A: The securities are transferred to the holding company which has full title, but you retain all beneficial interests in the securities. You will receive any dividends, interest or any other benefits that flow from the securities during the term of the loan.

Q: “What kind of securities qualify for this loan program?”
A: The securities of your portfolio must be exchanged on a major world Stock Exchange trading avenue with a daily minimum volume of 50,000 shares.


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