How do you finance your real estate projects
We are looking at a home remodel/addition (~$1.5M) and instead of selling stock are looking to borrow against our stock portfolio (~6M).
- What type of loan is this? Chase said something like SBL (securities backed lending?), but I would need to transfer assets to them (they are at Fidelity and Schwab mainly).
- Any preferences on which brokerage to go with? I like Fidelity, my rep is out on vacation until end of the month...I can possibly wait or find someone else there. Wanted to get the group's thoughts in the interim. Who else would you suggest I shop with? The Chase relationship banker was a bit inexperienced before I landed with the investment rep.
- Is there a chance to negotiate the rates (was quoted 1.95% over SOFR).
- Are any of the interest payments tax deductible? LLMs say "generally no" I don't usually itemize my returns
- the inherent risk here is if the market crashes, i could have a collateral call. my thinking is to keep the loan <30% of portfolio to minimize this risk
I've heard of other products like PAL, SBLOC etc. Not sure I qualify (NW <$10M)