Borrowing against brokerage account

[Derrick R.]

First of all, I am in no way an expert at this, so please call me out if this sounds ridiculous! I'm looking for info on the wisdom (or stupidity!) of borrowing against a brokerage account for RE investments. Basically, my brokerage firm allows a customer to borrow against their current assets for a variety of uses, including real estate purchases.

My thoughts were that it could be very useful for making cash offers. Once approved by my brokerage firm, the funds are easily accessible, therefore a cash offer could be made on certain properties. After the purchase, I'm thinking a transition could be made to a traditional 80/20 LTV Mortgage then rinse/repeat for the next property.

Now, I can see the negative aspects of this in that a bad RE deal could really hurt my current investments. I am sure there may be some other negative aspects that I am overlooking as well...that's why I'm reaching out to YOU BP community!