Using Securities Backed Line of Credit for liquidity

[George Lynch]

I want to make some more deals. I have a taxable investment account that I could borrow against in a Securities Backed Line of Credit or Margin Loan. I would only borrow 30% of investments in this volatile market. I see advantage of saving capital gains and not selling at low value.  Thoughts? War stories? advice?  Open ears here.....

[Bob E.]

@George Lynch I have done that myself.  It has allowed me to make cash offers and then work out the financing latter.  You seem to understand the risk of declining markets and margin calls, as long as you don't push your limits you should be OK.

FYI the interest on the margin debt should be deductible and if you have dividend income that can help pay for the interest expense on your loan.