Would you finance your real estate with interest-only payments without giving up participation in your stock portfolio?

Suzie Shareholder wants a new house. She needs a down payment, but she believes in her Mistress of the Universe stock and isn't willing to sell right now -- It is worth about $150,000. The house she wants is $500,000 and she wants to put $100,000 down.

Consider

With a loan against her MOTU stock, she can get up to 85% of the value of the stock on a limited recourse basis. If MOTU goes up, she can participate in the upside, and if it goes down, she can exercise her right to default on the loan (and no hit to her credit!)

Her MOTU stock fully satisfies the loan obligation.

The good news? Either way, she keeps the capital she needs for financing her house.

• She owns 15,000 shares of Mistress of the Universe stock currently priced at $10 a share and puts them up for her stock loan.

• With her portfolio worth $150,000, @ 85% this yields $127,500 in cash to put towards her downpayment, with $27,500 left over to spend on her horses.

Call me Traci Gregory 678.239.4872

or send me an email - traci@tracigregory.com