I need someone that has experience in stock portfolio loans. I currently have a sizable real estate multifamily portfolio and make about $15k a month in net cash flow. I want to start taking about $5k per month and investing into a diversified portfolio of about 10 ETFs (single stocks are too risky for me right now). My main objective is to create a stock portfolio that is constantly growing (picking growth etfs across 3 main sectors, tech, healthcare and consumer spending. Not set on this, but I think this is the best for risk adjusted returns. Maybe someone has a better diversified option I can hear) with the intention of using the stock portfolio to fund future real estate deals as well. I like secured stock loans as I think margin calls are too risky as I haven't been in the market long enough to know what a margin call looks like and if the market drops and I can't afford a margin call I don't like the idea of losing my securities. To expand on the idea I want to get to a $500k+ stock portfolio and use $250k loan to buy a 4plex (that's how much I need for a down payment in orange county, ca). I have read some loans doing a 5 year loan with interest only payments and I would only buy property that would support the interest only payments (I would be 100% leveraged, but I am a real estate agent and already have 25 units so I know the market very well. Multifamily properties don't go down in California if you are adding value). After 2-3 years fixing the units getting new market rents I could refinance the property, pull out the cash equal to the original down payment and pay back the stock loan. Rinse and repeat. I hope there is someone out there that has done this and can prove to me that it can be done. I want to know if I'm missing something or risks I can't think of or if banks will even lend on me using a stock portfolio loan as the down payment (might have to go commercial loans as they don't do debt to income ratios and lend on debt coverage). Any advice and help would be greatly appreciated.
