WORDS I LIKE — Confidence follows understanding.
Your wealthiest clients call you before they call anyone else.
When a purchase comes up, they usually reach for the same lever: sell some stock, wire the cash.
It feels clean. Fast. Straightforward.
It's also often the most expensive way to get there.
Here's The Shift.
Pledged-asset lending uses a client's investment portfolio as collateral instead of selling it. The portfolio stays invested. The loan covers the down payment.
Denver's luxury condo market just posted its strongest month in over a year. Sales are up 81% from last July. More wealth-partner clients are facing this decision right now.
Most advisors default to liquidation because it's familiar. But selling triggers a taxable event and pulls money out of a market sitting near highs. Pledged-asset lending sidesteps both.
For a client whose investments have grown a lot in value, that tax bill can run into six figures. Borrowing against the asset instead can be the difference between a smart purchase and an expensive one.
The lender matters here as much as the strategy. Not every portfolio lender moves fast enough for Denver's tightest luxury listings.
THIS WEEK'S TAKEAWAY
Before a client sells anything to buy, find out what borrowing against it would cost instead.
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PS
If this got you thinking about a smarter way to fund your next move, reply 'clarity' — happy to talk it through.
No spam. No sales pitches. Just clarity.
— Neil Christiansen, Certified Mortgage Advisor
