Do clients often come to you to discuss the quick purchase of a new home or another piece of real estate? Perhaps it is that one last spot in a retirement community or a new beach house that was just listed. These opportunities often require timely access to assets that may be tied up in their investment account or a pending home sale.
In such cases, clients typically have two courses of action that both have downsides.
The good news is that there is a third option that can provide your clients with access to funding and save them both time and money.
Advisors and clients often turn to The Bancorp Securities-Backed Line of Credit (SBLOC) for liquidity to purchase real estate without the tax ramifications of selling securities, and without interrupting their meticulous investment strategy. SBLOCs enable clients to efficiently and effectively leverage non-retirement-invested assets to secure a flexible, fee-free line of credit by pledging their investment portfolio as collateral. Most importantly, SBLOCs provide convenient access to liquidity to pay for real estate or construction costs, and meet other cash needs all year long.1
If you work with clients who make real estate purchases, a Securities-Backed Line of Credit could be a great addition to any non-qualified investment portfolio. Clients can apply for an SBLOC account when opening their investment accounts, allowing them to reap the benefits of immediate access to funding for future opportunities.3
The opinions, findings, or perspectives expressed in this content are those of the author and do not reflect the official policy or position of The Bancorp, Inc., its affiliates, or its or their employees.