Definition of Restricted Stock:
Insider holdings that are under some other kind of sales restriction. Restricted Stock must be traded in compliance with special SEC regulations. These regulations are outlined under Section 1244 of the Internal Revenue Code.
It's true!!!
Granted, the headlines are not pretty. Our government seems committed to making the greatest number of mistakes possible. But I am here to tell you that underneath all of that, small businesses are really making things happen! That is a VERY good thing.
At J. Eggers & Associates, we are busier than we ever have been, and since most of my loans are to small businesses, this is a positive for the economy. Many of the CDC's I know are also having very good years (CDC's are companies that administer the seconds on SBA 504 loans). If the SBA is busy, then again, small businesses are working. There is almost a mini-boom happening in franchising right now. It seems like every franchise out there is very busy which again, means new businesses are starting. This means jobs are being created. I am seeing another big trend-a lot of boomers are quitting corporate America for good, cashing out or rolling over their IRA's and, starting their own businesses. Now financial planners may cringe at that point, but the owners I speak to are putting it this way, "These large companies I have invested in don't seem to be very "with it" and with so many risks, I feel better controlling my own destiny".
I say all of this not to debate investment strategy but, to share what I am seeing in the front lines, in the trenches of this economic battle. There are warriors out there, small business men and, women and they are cautious but, they are determined and they are not backing down. As a small business owner myself, I acknowledge that there are dangers ahead, not the least of which is our Government's essential bankruptcy but, I also see opportunities everywhere. I am attacking those opportunities because sometimes, the best defense is a strong offense. I am not alone.
So take what you hear on the news with a grain of salt and, know that there are people fighting the good fight. Maybe you are one of us. Take heart! Because behind the news, on every street corner, the fight goes on. These warriors will find a way to win. Opportunities abound today, in spite of or possibly because of, the broader economic news. Properties are cheap, rates are low and, there are some people doing very well. Those stories are all around you and, THAT is what will keep America going. Entrepreneurship lives on and with it, lays the hope of this economy. We are America, and we are not dead yet!
Talk soon :)
Jim
P.S. - If you happen to be one of those boomers looking to cash out the 401k or IRA... let's talk first. Because we at JEA might have a better solution than exposing yourself to tax liability. Our SBLOC can work for you as a Business Line of Credit. Roll the 401k into something self-directed is the advise I hear from our lending partners. Call us today at 239.8787.7873.
When you need cash for home improvements, medical costs, or other expenses, explore all of your options. Before you sell your investments and disrupt your investment portfolio, consider taking advantage of the securities-based lending options available through J. Eggers & Associates.
A Securities-Based Line of Credit lets you borrow money using your eligible marketable securities as collateral. Funds you borrow can be used toward a wide range of purchases. As long as you have sufficient eligible marketable securities in your account to use as collateral, leveraging your investments in this manner may be easier and more cost-effective than other alternatives.
For more information how you or your business may benefit by opening a Securities Based Line of Credit... Click Here or give us a call at: 239.878.7873
It makes perfect sense. Using liquid assets like Money Market Accounts to purchase U.S. Treasuries that can be leveraged at 2.5% Interest Only on the amount drawn. Even GOD would say... That's CHEAP MONEY!!! Our SBLOC - Securities Based Line of Credit then becomes a Church Financing Alternative for Churches everywhere. Unlike a traditional Commercial Mortgage that would require a Church to provide proof of things such as steady attendance, number of members and giving totals. Start-Up Churches and Churches that are looking to expand, often run into difficulties when banks ask them for the numbers. They even ask... "What denomination are you?" It's because they have to be main stream.
There are also many other reasons why Churches find it hard to obtain financing, but there's one underlying fear that holds lenders back. It looms in the back of the mind of every banker that would lend to the Church. NOBODY wants to foreclose on GOD!!!
So, with that being said - taking the path of a SBLOC would cast out that fear. The buildings, structure and land are no longer the collateral. The investments are safe, fruitful and multiplying. Church expansions are helping people in time of need.
GOD is happy and the good stewards of the Church are happy!!!
In today's market - it seems like everyone is looking for creative ways to finance their endeavors. Well, recently there has been a rush of BIG Boat Buyers searching for "A Yacht Financing Alternative."
Here’s why…
When making a purchase of this magnitude, most individuals will finance a portion of the vessel. Traditional Marine Lending usually requires 20% down or more and full documentation of income and assets. Employment and credit scores are some of the other important driving factors with this type of lending. In other words… the yacht buyer pretty much has to WALK ON WATER to qualify. At best, a yacht buyer will get a fixed rate for up to 20 years with a rate somewhere in the mid 5% range or even higher.
For these reasons, Yacht Buyers have been seeking a Financing Alternative for many years now. They use our "SBLOC – Securities Based Line of Credit" as A Yacht Financing Alternative. When you think about it… it makes perfect sense. There are no strings on the money… you can use it for anything. People use the proceeds for business and personal use. Personal use could be - buying a yacht! Business purposes could be - buying a yacht for business purposes (In other words… Chartering).
Most Marine Lenders DO NOT allow the chartering of a vessel in which they have secured as collateral. This isn't a factor with our "SBLOC" - as the collateral is no longer the vessel.
With the vessel no longer the collateral, the yacht buyer has options as to how they document the vessel and how they want to use the vessel.
There’s another reason why our “SBLOC” is making a “BIG SPLASH In Yacht Financing.” Unlike a margin loan or margin account from a client’s brokerage firm… our “SBLOC” doesn’t report to Credit or Public Records. In fact, credit is never an issue nor do you have to be concerned with a margin call. There’s no employment verification, no other asset verification and no income verification. With our “SBLOC” – clients can leverage up to 99% of their portfolio value without tax liability… it’s because securities are NOT SOLD to make the loan. Our Line of Credit becomes a safe way to tap the assets for short term needs, while protecting them for long term goals… i.e. retirement etc..
So, going back to a Marine Lending scenario, that happened with us not so long ago. The yacht buyer was making a purchase of 1M and trying to get 80% financing… $800,000. The marine lenders were all cutting back on what they would lend. They could only do 65% or $650,000. A real DEAL BREAKER that happens often in the Marine Lending World. This yacht buyer happened to have over 1.4M in a Money Market Savings Account. He had another $250,000 in an Ameritrade account. We converted the MMS account AND the Ameritrade account to U.S Treasuries and then we set-up the “SBLOC” for 1.6M at 2.9% interest only on the amount drawn. Now, he only drew 1M to buy the yacht, but I want to show you something. Even if (let’s say) he did get approval from the Marine Lenders for $800,000 – his monthly payment for 20 years at 5.5% would have been $5,503 / month. With our “SBLOC” – drawing 1M at 2.9% - Mr. Yacht Buyer’s monthly payment IS… $2,416. It’s a substantial savings per month!!!
That’s why our “SBLOC” is making a BIG SPLASH in Yacht Financing. To learn more about how a Securities Based Line of Credit may benefit you or EVEN help you buy a yacht…
Call J. Eggers & Associates today at 239.878.7873
Hey, check out our new ad... tell me what you think.
Is it possible to be BULLISH on a Credit Line? Well, we are. This particular type of Credit Line allows you to use your investments as collateral. Your investments are overseen by a top tier US Bank / Brokerage Firm with over 75 years under their belt. The credit line works simular to an equity line... hence the name SBLOC. Securities-Based Line of Credit - SBLOC for short. Rates are very attractive and based somewhat on the amount / size of the credit line. For example... 1M+, you could see an interest rate in the 2.9% area. That's some of the cheapest money out there period. The borrower is only charged interest on the amount drawn... another fantastic perk with this SBLOC. Also, and probably one of the BIGGEST features - is that ownership and title remain with the borrower. Let me say that another way. There's NO Transfer-of-Title.
Another BULLISH aspect of our SBLOC, is that (with US Treasuries) for instance... you can leverage up to 99% of the portfolio value.
Make sure you call us to learn more about this exciting Alternative Lending vehicle... 239.878.7873
You want a quick and low cost way to secure cash...
Using your investments as collateral, we provide low fixed rate financing...
When you repay the loan in accordance with it's terms - we return the identical pledged securities.
It's that simple... 3 easy steps!!!
24 hours to underwrite and 3 days to fund...
Rates as low as 2.5% -4.5%
For more information about how our Stock Loans may benefit you (Click Here)!
Well for starters... "Equities Now" is a Non-Recourse Loan. That means, that IF for any reason the borrower does default on the loan... there's no recourse to them personally or business wise. The securities that were pledged are just forfeited by the borrower - BUT, the borrower gets to keep the monies given to them from the loan.
I should note that... with this product being very much like an equities line of credit, default would and should be a very LOW possibility!
Learn more about "Equities Now"
Sometimes a regular Business Loan like an SBA Loan or even money from a Hard Money Lender doesn’t work.
You need money fast and you don’t have TIME to jump through lending hurdles…
The SOLUTION: our “Equities Now” Securities Based Loan…
Leverage your stocks, bonds or mutual funds…
Keep (ownership and upside) of Securities being pledged…
Works like an Equity Line of Credit…
You’re only charged interest on the amount drawn…
24 hours in underwriting and 3 days to close…
Great Rates… (2.5% - 4.5%)
No Employment Verification, No Credit Check, and No Margin Call EVER!!!
Call J. Eggers & Associates today to learn more about “Equities Now”
239.878.7873 Phone
I wanted you to see first hand at how well our "Equities Now" product FITS Business!!!
Today I wanted to show you some of the highlights and features of our new "Equities Now" product. You'll soon see why many business owners are taking advantage of this Business Loan Alternative!!!
Features:
Ability to Lend on Control and Restricted Stock
Loan can be established in a third party name (Business, Real Estate Partnership, etc)
Excellent Rates (see below)
US or Non-US Residents OK
24 hours underwriting
3 Day Funding.
Today's Rates:
Loan Amt Adjustable
100K-249K 4.5%
250K-499K 4.0%
500K-999K 3.75%
>1M 3%
>5M ** Negotiable
**We will tailor a loan to fit the client's needs
Acceptable Collateral and LTV:
Equities, ETF(s) and Mutual Funds ($10 or higher) 65%
US treasuries 94%-99%
Foreign Sovereign Debt (AAA+ - AA-) 90%-95%
Investment Grade Bonds Up to 90%
Municipal Bonds Up to 90%
Control or Restricted Stock (case by case) Up to 60%
Features:
Ability to Lend on Control and Restricted Stock
Loan can be established in a third party name (Business, Real Estate Partnership, etc)
Excellent Rates (see below)
US or Non-US Residents OK
24 hours underwriting
3 Day Funding.
Today's Rates:
Loan Amt Adjustable
100K-249K 4.5%
250K-499K 4.0%
500K-999K 3.75%
>1M 3%
>5M ** Negotiable
**We will tailor a loan to fit the client's needs
Acceptable Collateral and LTV:
Equities, ETF(s) and Mutual Funds ($10 or higher) 65%
US treasuries 94%-99%
Foreign Sovereign Debt (AAA+ - AA-) 90%-95%
Investment Grade Bonds Up to 90%
Municipal Bonds Up to 90%
Control or Restricted Stock (case by case) Up to 60%
Business Loans have... in the past been somewhat difficult to obtain. There are many reasons why the above statement is true. I'm sure you could name ten or so off the top of your head. Reasons like credit, income or the lack of a good solid P&L Statement, etc...
Well, what we've noticed as of late (when we rolled out our new "Equities Now" product is this. Business Owners taking advantage of leveraging their "Treasuries." Say for instance that they wish to borrow $500,000 but don't qualify for an SBA Loan or other commercial lending programs. Hard Money rates are too high but they need the money fast. "Equities Now" allows the borrower to retain ownership of their invested "Treasuries" and leveraging them up to a 94% - 98% LTV, while getting an extremely low rate at the same time - interest is ONLY charged on the amount used. It works somewhat like an Equity Line of Credit and remains a safe way to tap the asset for long term needs like retirement, etc...
It takes about 24 hours to underwrite and approximately 3 days to fund... perfect for borrowers in need of a "Bridge Loan" of sorts. So, a borrower with $500,000 in treasuries (in the above example), could take advantage of using 98% of this portfolio's power. There is no income verification, no other asset verification, and employment or citizen issues don't apply.
To learn more about "Equities Now" - you can shoot me a personal email at eggers.jim@gmail.com or call us at 239.878.7873
IF You Have Stocks, Bonds or Mutual Funds... we can leverage up to 80 - 85% of your portfolio. Then, we can give you a loan at 2.5% or there abouts...
This could be your solution!
What do you do? Well, if you have Stocks, Bonds, Mutual Funds or other Securities... it's possible to then utilize our Stock Loan.
I think that our "Stock Loan" will soon see its time come. Actually, I think its time is now. There will be and already are individuals taking advantage of the low interest rates that come along with our "Stock Loan" - (2.5% - 4.5%).
I've got a great read for you about "Shadow Inventory."
Helping you stay informed, and hope this article helps devise opportunities.
Check out this article... CLICK HERE
