New to Real Estate · Lakewood, CA · Member since 2021 · 26 posts · 8 votes
Hello!
My aerospace company (over 10,000 employees) pays me highly in private stock, more than my salary at this point. My the average yearly return on the company stock is over 30%. Since this is much higher than conventional real estate buy and hold, I’d like to not sell any of it.
I’ve heard of banks lending based on stock portfolios for collateral. However being a private stock with offerings to cash out only twice a year, it doesn’t seem like any bank or private lender would want to let me borrower against it due to illiquidity and private shares.
Have you ever heard of a less liquid private stock used as collateral for a loan? What type of lender should I be looking for?
Lender · Austin Texas · Member since 2022 · 319 posts · 156 votes
4y
Hey Zach,
Depending on the lender they can usually take into account about 50% of your stock holdings illiquid or not. However, the first question they are going to ask you is how you are intending to pay for the down payment.
New to Real Estate · Lakewood, CA · Member since 2021 · 26 posts · 8 votes
4y
@Issac San Miguel
The purpose of the line of credit would be for a 20% down payment on an investment property. My credit score is high, but I don’t have cash for a down payment. So I was wondering if I could borrow against my private stock. Do you have any recommended lenders that would do this line of credit for use on a down payment?
New to Real Estate · Lakewood, CA · Member since 2021 · 26 posts · 8 votes
4y
@Issac San Miguel
I have not chosen a property yet, though I’ve had a few options in mind. It’s partly dependent on how much credit would be allowed, but looking in TX at the moment.