Help Family Pursue Real Estate Opportunities Without Disrupting Your Portfolio

Securities-based borrowing allows you to pledge eligible investment assets as collateral for a line of credit. Instead of selling securities or transferring assets outright, you can unlock liquidity while keeping your portfolio invested and potentially preserving your long-term strategy.

Securities-based borrowing can be especially useful when helping loved ones pursue real estate opportunities. By pledging eligible assets, you can create a line of credit that you—or a family member—may use to address a variety of real estate-related needs, including:

• Funding down payments
• Bridge financing during a transition
• Paying for renovations or improvements
• Supporting the development or purchase of family legacy properties
• Making competitive full-cash offers in tight markets

This approach allows you to extend meaningful financial support without permanently transferring assets or reducing your own cash reserves.

Timing is often critical in real estate. Securities-based borrowing is known for quicker underwriting and funding than many traditional mortgage or home-equity solutions, helping loved ones act swiftly when an opportunity arises. In competitive markets, being able to present a cash-backed offer can significantly strengthen their negotiating position.

One of the advantages of securities-based borrowing is the flexible repayment structure. You decide how and when the borrowed amount is repaid which allows you to offer support on terms that work for your family while avoiding the risks and obligations associated with co-signing or entering joint debt arrangements.

Because the line of credit is secured by investment assets, interest rates for securities-based borrowing are often more competitive than unsecured borrowing options. Securities-based borrowing typically uses the Secured Overnight Financing Rate (SOFR) as a benchmark and offers both variable and fixed-rate choices to accommodate different needs.

By keeping your investments intact, securities-based borrowing helps you maintain your long-term investment plan and market exposure. It also allows you to retain full ownership and control of your assets, which may be important for ongoing estate or wealth-transfer planning. Supporting family through a securities-based loan can align with long-term succession strategies without triggering a taxable event due to the sale of appreciated securities.

Talk to a Wells Fargo Advisors financial advisor for personalized guidance about how strategic borrowing could complement your long-term financial goals.

Find an advisor

Securities-based lending has special risks and is not appropriate for everyone. If the market value of a client’s pledged securities declines below required levels, the client may be required to pay down the line of credit or pledge additional eligible securities in order to maintain it, or the lender will require the sale of some or all of the client’s securities. For Wells Fargo Bank Priority Credit Line, Wells Fargo Advisors, on behalf of Wells Fargo Bank, N.A., will attempt to notify clients of maintenance calls but is not required to do so. For Priority Credit Line, Wells Fargo Advisors will attempt to notify clients of maintenance calls but is not required to do so. Clients are not entitled to choose which securities in their accounts are sold. The sale of their securities may cause clients to suffer adverse tax consequences. Clients should discuss the tax implications of pledging securities as collateral with their tax advisors. An increase in interest rates will affect the overall cost of borrowing. All securities and accounts are subject to eligibility requirements. Clients should read all Wells Fargo Bank Priority Credit Line and Priority Credit Line documents carefully. The proceeds from the Wells Fargo Bank Priority Credit Line may not be used to purchase or carry margin stock or pay down a margin account debit (talk to your financial advisor about additional restrictions on the use of proceeds). Margin stock is defined in Regulation U and includes, principally: (1) stocks that are registered on a national securities exchange or any over-the-counter security designated for trading in the National Market System; (2) debt securities (bonds) that are convertible into a margin stock; and (3) shares of most mutual funds. The proceeds from the Priority Credit Line may not be used to purchase additional securities or pay down a margin account debit (talk to your financial advisor about additional restrictions on the use of proceeds). Securities held in a retirement account cannot be used as collateral to obtain a securities-based loan. Securities in a Wells Fargo Bank Priority Credit Line or Priority Credit Line collateral account must meet collateral eligibility requirements.

Wells Fargo Bank Priority Credit Lines are offered by Wells Fargo Bank, N.A. as the lender, in partnership with Wells Fargo Clearing Services, LLC as agent, servicer and intermediary holding the collateral accounts. Priority Credit Lines are provided by Wells Fargo Advisors and carried by Wells Fargo Clearing Services, LLC, as the lender.

There are conflicts of interest when Wells Fargo Advisors recommends that you use a loan secured by your Wells Fargo Advisors account assets as collateral. Wells Fargo Advisors and its financial advisors have a financial incentive to recommend the use of securities-based lending products rather than the sale of securities to meet client liquidity needs. Financial advisors will receive compensation on the outstanding loan balance in your Wells Fargo Bank Priority Credit Line or Priority Credit Line account. In addition, your financial advisor’s compensation will be reduced if your interest rate is discounted below a certain level. There is an incentive for financial advisors to recommend the Wells Fargo Bank Priority Credit Line, Priority Credit Line, and other securities-based lending products, such as Margin, as well as an incentive to encourage you to maintain a larger loan balance and to discourage interest rate discounts below a certain level. The interest you pay for the loan is separate from, and in addition to, other fees you may pay related to the investments used to secure the loan, such as ongoing investment advisory fees (wrap fees) and fees for investments such as mutual funds and exchange traded funds, for which Wells Fargo Advisors and/or our affiliates receive administrative or management fees or other compensation. Specifically, Wells Fargo Advisors benefits if you draw down on your loan to meet liquidity needs rather than sell securities or other investments, which would reduce our compensation. When assets are liquidated pursuant to a maintenance call or demands for repayment, Wells Fargo Advisors and your financial advisor also will benefit if assets that do not have ongoing fees (such as securities in brokerage accounts) are liquidated prior to, or instead of, assets that provide additional fees or revenues to us (such as assets in an investment advisory account). Further, different types of securities have higher release rates than others, which can create a financial incentive for your financial advisor to recommend products, or manage the account, in order to maximize the amount of the loan.

Wells Fargo Bank, N.A. has a lien on the account assets that are used as collateral for the Wells Fargo Bank Priority Credit Line. Wells Fargo Clearing Services, LLC has a lien on the account assets that are used as collateral for Wells Fargo Bank Priority Credit Line. We will act to protect ourselves as the lender in connection with the loan and this may be contrary to your interests and/or investment objectives. This lien also creates a conflict of interest with respect to the recommendations your financial advisor makes to you. For example, your financial advisor may recommend that you allocate your investments to your collateral account pledged for the loan rather than to another account that is not pledged. Also, your financial advisor may recommend an investment solely to minimize the risk of loss with respect to the collateral.