One of the unique capabilities we offer to clients is the ability to use a line of credit against their portfolio for fast access to liquidity called a Pledged Asset Line. One of the more common scenarios where this tool is a good fit is in real estate purchases, where it gives you the advantage of speed and the ability to be a cash buyer compared to the mortgage process.
We recently interviewed one of our clients about his experience leveraging one of these portfolio-based lines of credit to purchase a second residence in Florida. He was kind enough to share his story with us. Here is a snippet of that conversation that focused on the mechanics of how this lending model works.
Summary: When Craig and his wife found a Florida condo they loved, he called his wealth coach to ask if they were in a position to become owners instead of renters. The baseline assumption was that they would have to:
- Sell a portion of their portfolio (trigger capital gains taxes).
- Go through the mortgage process, hopefully in time for the property to still be on the market.
Our team shared with him a tool called a Pledged Asset Line (PAL) that could solve the main logistical hurdles in their path. A PAL lets investors borrow against their portfolio without selling assets or triggering taxes—essentially acting as a cash buyer.
Within two weeks, Craig had funding in place, made a clean offer, and closed remotely with ease. The purchase didn’t disrupt his investments or long-term plan, and afterward, he could choose when and how to pay down the balance. The PAL gave him what every buyer wants: speed, flexibility, and tax-smart liquidity.
This testimonial was given by a current client of Wellfull. The client did not receive compensation and there are no material conflicts of interest which would affect this testimonial. Client experiences may not be representative of all clients, and there is no guarantee of future results.
The information discussed in this content is provided for illustrative purposes only and does not constitute investment, tax, or legal advice. Clients should consult their own financial, legal, and tax professionals to determine what strategies may be appropriate for their individual circumstances.