Typical Interest Rate
4.03% – 4.94% (market-based, tied to SPX box spreads)
8–11% (variable, bank discretion)
9–14%
10–18%+
Tax Treatment
60/40 long-term/short-term
Limited deduction, not always eligible
Standard interest — higher cost
High-rate interest, not tax-efficient
Requires Property Underwriting
No — based on portfolio collateral
Yes — bank appraisal and financial underwriting
Yes — strict DSCR requirements
Yes — but loosely underwritten, high fees
Speed to Funding
Fast — once sub advisory & custodian in place
Slow — 30 to 60 days with underwriting
30 to 45 days with full documentation
3–7 days but with heavy fees
Keeps Portfolio Fully Invested
Yes — no asset liquidation required
No — requires cash reserves verification
Yes, but loan costs significantly higher
Yes, but at punitive cost
Proof of Funds for Offers
Yes — portfolio-backed line can present as cash
No — HELOC approval not cash equivalent
With pre-approval letter
Yes, but credibility depends on lender reputation
Income Verification / Credit Check
Not required — collateral-based
Required — DTI & income screening
Required — and asset seasoning checks
Often waived, but rates compensate
