Borrowing against E-trade Brokerage acct. and buying cash

4 stars based on 80 reviews

Sign up for this week's free webinars hosted by experienced investors or view previously-held webinar recordings in the Archives. Are you a wholesaler, a rehabber, a landlord, or even a turnkey investor? View all Local Real Estate forums. I have found another great 2 family that is an estate sale. I have a chance to pick up the property at a great price. This is an all brick 2 fam.

It's really picture perfect for what I am looking for. Has anyone borowed from their brokerage acct? E-trade for my example. I can borrow k 6. But I do want to make payments on it and try and look at it as a conventional loan although it etrade brokerage houses for sale not but I want to structure the payments back to it as such Has anyone done this before?

I know there is risk involved but just want to hear others opinion on this. I think that would scare me silly with the current economic climate -- one serious scare from Etrade brokerage houses for sale, incident with Iran, etc. If you have a way to do it without facing margin calls if the stock market crashes again, or have a liquid way to cover any margin call that arises, not all tied up in a house or forced sale of stock to cover, then maybe Etrade brokerage houses for sale consider it, but not sure how you do that unless you're K loan from your own brokerage account is a very small portion of what you could actually withdraw, keeping yourself well leveraged there just in case.

I have been analyzing the numbers all AM and looks like I am going to sell some securities and in the end will need about 50k to make this deal work for me. I am getting out of most of the risker holdings I have and leaving my solid etrade brokerage houses for sale chip dividend paying companies in place to hedge the risk.

The scary thing is you do etrade brokerage houses for sale have to make payments back to E-trade they just tack on the monthly interest as it accrues This will be my first cash purchase and I Am looking forward to not having to answer to those pesky underwriters! Just watch out for a margin call etrade brokerage houses for sale the market tanks. I would try to refinance the property right away and use the proceeds to pay off the margin loan.

That is the plan, to pul money out soon as I can, but there is the possability that I may not be able to. Sounds like a classic case of buying a long-term investment with short-term funds. Why not use hard money lending instead? I would consider the payments on the hard money to be insurance against getting crushed by a broker's margin call. Worse case is that he would have to sell his securities. It would suck to sell while the market is tanking since they will eventually go up again.

If he wanted to structure this even more safely, he can just sell all of his stocks and be out of the market for a little while. Etrade brokerage houses for sale that the brokerage loan is cheaper than a hard money loan but I think it's a false economy due to the risks.

The best approach might be what you suggested, just selling some stocks for a while and using the money to finance the RE purchase. Well it looks like I am doing sort of a hybrid here. I have sold of a fair amount of securities today - mostly risker stuff that has a much better likeyhood of getting crushed in the market and I am long on my blue chip dividend paying stuff.

A hard money loan I think would kill me in fees and would be approx double the interest rate. I also don't think I have time to get a HML in place. How'd it work out for you? Looking to do the same just so I have access to quick cash for deals. If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in etrade brokerage houses for sale Facebook. Full Name Use your real name. Password Use at least 8 characters. Using a phrase of random words like: Members Search overmembers across BiggerPockets Companies Explore over 19, real estate-related companies Jobs Browse real estate job opportunities in your area Events Find upcoming real estate events and meetups near you Hard Money Etrade brokerage houses for sale Pinpoint lenders near you with our nationwide database.

Properties For Sale Buy and sell real estate deals or seek out partners, financing, etc. Get the book now. Real Estate Books Shop books covering real estate investing and personal finance. Real Estate Forms Leases and other legal documents for landlords. Log In Sign up. Thx Lynn, I have been analyzing the numbers all AM and looks like I am going to sell some securities and in the end will need about 50k to make this deal work for me.

I just don't want to lose out on this opportunity. Hi Johnson H, That is the plan, to pul money out soon as I can, but there is the possability that I may not be able to. Hey Chris - How'd it work out for you? Log etrade brokerage houses for sale Sign up. Log in Email Password Forgot password?

Options web services

  • Canada option stock trading tips

    Jobs in commodity trading

  • Commodities index dubai

    Trader forex yang sukses di indonesia

Kraken binary options system brokers 2016

  • Acciones beta altas con opciones semanales

    No deposit bonus binary options brokers 2018 taxes

  • Free forex charting software package

    Optionen an der borse verdienen als laier

  • Estrategias opciones financieras pdf

    100 binary option robots real

Italien verdient binaren handel

24 comments English channel crossing options trading

Estrategia divergencias opciones binarias mexico

If you're reading this, you may be planning to open a brokerage account. You may wish to invest for your retirement or a child's education, or simply to try to grow some cash you have set aside. This publication explains what to expect if you do decide to open a brokerage account, including what information you will be asked to provide, what decisions you will be asked to make, what questions you should ask your broker and what your rights are as a customer of a brokerage firm.

When you decide to open an account, there will be paperwork to complete. This will include a new account application , which brokerage firms may also call a new account form, account opening form or something similar. This application form will require you to provide some information about yourself, as well as ask you to make certain decisions about your account.

As explained in more detail below, brokers use this information for several purposes, including learning about you and your financial needs and meeting certain regulatory obligations.

While it may take a little time to fill out the application, it is important to answer the questions on the application accurately. So, be sure to read the application and the accompanying agreements and other documents the brokerage firm gives you carefully—and ask questions about anything you don't understand. In a new account application, along with other information, you'll likely be asked to provide your:.

Be accurate when you are providing the information requested on these forms. Your broker will use the information to understand your financial needs and to meet certain regulatory obligations.

In addition, you are certifying that the information you've provided is accurate when you sign the new account application. The new account form will also ask you to make some important decisions about your account, including how you will pay for your transactions, how any uninvested cash will be managed and who will have control over and access to your account. While margin loan agreements are typically used to allow investors to buy securities on margin, some firms allow their customers to take out loans for other purposes.

In connection with these loans, a firm might ask the customer to sign a margin agreement. Before you borrow money from your brokerage firm-for any reason-be sure you fully understand the terms, costs and consequences. The new account application may come with other documents-such as a "Customer Agreement," "Terms and Conditions" or the like.

Make sure to ask for copies if you do not receive them and download or print out copies of these for your records if you conduct business with your brokerage firm online. Be sure to take time to review carefully all the information in these documents, whether you are opening your account in person at your broker's office or filling out your forms at home or online. And do not sign them unless you thoroughly understand and agree with the terms and conditions they impose on you. If you haven't already done so, make sure you check out the background of your broker and brokerage firm before you open an account with them.

Although a history free from registration or licensing problems, disciplinary actions or bankruptcies is no guarantee of the same in the future, checking out your broker and firm in advance can help you avoid problems.

Also make sure that the phone numbers and addresses that your broker and brokerage firm give you as their contact information are consistent with those listed in Brokercheck. Fraudulent entities and individuals have been known to steal the identities of legitimate brokers and brokerage firms so that they can get at your personal information!

Asking questions will help you to invest wisely and avoid problems. No matter what your level of investing experience, don't be shy or intimidated—it's your money. Here's a list to get you started. The brokerage firm that you open an account with may not be the one that sends your account statements.

You may open an account with an introducing firm , which makes recommendations, takes and executes your orders and has an arrangement with a clearing and carrying firm , which is the one to finalize "settle" or "clear" your trades and hold your funds or securities.

There are also firms that take and execute orders and settle trades. If you work with an introducing firm, you may receive statements from the clearing firm. Find out what type of firm you open an account with and who will send you the account statements. You will receive an account statement at least once every calendar quarter. Whether the securities are registered in your name or in the name of the brokerage firm can affect how soon you receive your dividends and interest, the ease with which you can sell your securities and the types of communications you receive directly from the issuer of the securities, among other things.

After you open your account, you should monitor its activity regularly. Make sure that you review all of your account statements and trade confirmations for any errors or any transactions that you did not authorize.

If you see any evidence of unauthorized trading or errors, notify your broker, broker's supervisor or brokerage firm's compliance department immediately to further protect your rights. Make sure to take notes of any conversations you have with your firm concerning such disputes, to send in your complaints in writing as well and to keep copies of these notes and all communications related to such disputes for your records.

Ask yourself whether your investments are meeting your expectations and goals and whether your goals have changed. Do your investments still appear to be right for you, and what criteria will you use to decide when to sell? Information You'll Be Asked to Provide When you decide to open an account, there will be paperwork to complete.

In a new account application, along with other information, you'll likely be asked to provide your: Social Security or other tax identification number: Like banks, credit unions and other financial institutions, brokerage firms must report to the Internal Revenue Service the income you earn on your investments. Driver's license or passport information, or information from other government-issued identification: Employment status, financial information—such as your annual income and net worth—and investment objectives: Collecting this information helps your broker to fulfill regulatory obligations.

In addition, the information can help your broker determine suitable investment recommendations for you. Note that the terms used to describe investment objectives often vary across brokerage firms and new account applications.

You might hear terms such as "income," "growth," "conservative," "moderate," "aggressive" and "speculative. Make sure that you describe your financial goals, how much risk you are willing to take with your investments and when you expect to need access to the funds in your account as comprehensively as possible. Effective February 5, , new account forms may include a section asking you to provide information for a trusted contact person. Your broker might ask for this information in a conversation or via email as well.

You should expect to be asked to provide the name, address and telephone number s for a trusted contact person that your brokerage firm may contact about your account.

While you are not required to provide this information to open an account, it may be a good idea to do so. By choosing to provide this information, you are authorizing the firm to contact such person and disclose information about your account in certain circumstances, including to address possible financial exploitation, and to confirm the specifics of your current contact information, health status, or the identity of any legal guardian, executor, trustee or holder of a power of attorney.

You also will receive a written disclosure from the firm that lays out these details. Decisions You'll Be Asked to Make The new account form will also ask you to make some important decisions about your account, including how you will pay for your transactions, how any uninvested cash will be managed and who will have control over and access to your account.

Do you want a cash account or margin loan account? Most brokerage firms offer at least two types of accounts—a cash account and a margin loan account customarily known as a "margin account". In a cash account, you must pay for your securities in full at the time of purchase.

In a margin loan account, although you must eventually pay for your securities in full, your broker can lend you funds at the time of purchase, with the securities in your portfolio serving as collateral for the loan.

This is called buying securities "on margin. There are risks that arise from purchasing securities on margin that do not come with most other types of loans. For example if the value of your securities declines significantly, you may be subject to a "margin call.

The brokerage firm decides which of your securities to sell. Even if the firm gives you notice that you have a certain number of days to cover the shortfall, the firm still may sell your securities before that timeframe expires. Also, the firm may change, at any time, the threshold at which customers can be subject to a margin call. Be sure to read carefully your new account application and any other documents that your broker gives you about margin loan accounts.

Be sure that you understand how these accounts work before you sign up for one. With some firms, you sign up for a margin loan account by default unless you indicate otherwise on the application. If you have opened a margin account, but you pay for your securities in full at the time of purchase, you incur no more risks than you would in a cash account.

No "Margin" for Error. How do you want to manage your uninvested cash? Sometimes there is cash in your account that hasn't been invested. For example, you may have just deposited money into your account without giving instructions on how to invest it, or you may have received cash dividends or interest. Your brokerage firm typically will automatically place—or "sweep"—that cash into a cash management program customarily known as a "cash sweep" program.

On your new account application, your brokerage firm may ask you to select a cash management program. Cash management programs offer different benefits and risks, including different interest rates and insurance coverage. Be sure you understand the different features of the cash management programs that your firm offers so that you can make an informed decision if you are asked to choose one. Who will make the final decisions for your account? You will have final say on investment decisions in your account unless you give "discretionary authority" in writing to another person, such as your financial professional.

With discretionary authority, this person may invest your money without consulting you about the price, amount or type of security or the timing of the trades that are placed for your account. Some firms allow you to indicate who has discretionary authority over the account directly on the new account application, while others require separate documentation.

There may be other types of authority that you may provide over your account, including a power of attorney and authorized trading privileges. Make sure you think through the risks involved in allowing someone else to make decisions about your money.

Other Account Opening Documents The new account application may come with other documents-such as a "Customer Agreement," "Terms and Conditions" or the like. Check Out Your Broker If you haven't already done so, make sure you check out the background of your broker and brokerage firm before you open an account with them.

Questions to Ask Asking questions will help you to invest wisely and avoid problems. Is this a margin account or a cash account? Can you explain the differences between the two? What choices do I have regarding cash sweep programs? What are the different features, including interest rates and federal insurance coverage?

If the firm offers both bank deposits and money market funds, what are the advantages and disadvantages of selecting one over the other? Who will control decision-making in my account? How often will I get account statements? Who will provide the statements and will they be online or in paper? Will my securities be registered in my name, or in the name of the firm?