Should I sell my investment portfolio if I plan to invest in property in Q3 or Q4?

[Kevin G.]

Hello Everyone,

I am unsure about the best course of action for my current financial situation. Most of my real estate money is tied up in my brokerage accounts, and I am wondering if it would be safer and smarter to sell off most of them and hold the cash in a high-yield savings account (HYSA) if I plan to invest it by Q3 or Q4. With the recent performance of the stock market and the news of SVB, I am feeling nervous about my money. It is possible that it may be too late, and the market could take a strong dive on Monday. What would you do in this situation?

Currently, most of my money is invested in mutual funds like VTSAX, which have historically performed well. I could continue investing my money into these and sell when I am 100% ready to buy, or I could hold all the cash in a HYSA for now.

Thank you!

[Denver McClure]

Hi @Kevin G., I would caution you on selling, especially in the current market cycle and not knowing your cost basis to calculate your tax exposure. Depending on your brokerage account, you can look into Margin Loans against your portfolio to borrow against those assets and use the loan for RE investments. It's a common strategy we build for RE investors, and one I've used myself. Right now I'm seeing rates between 5.42-6.08% for Margin loans. Might be the right strategy for you if you want to remain diversified and avoid selling your assets.