Case Studies

Client was looking to purchase real estate for $3,000,000. The purchase was very competitive, and the client needed to come in as a cash buyer to win the deal. One alternative was to liquidate his investment portfolio which would have triggered significant capital gains. Another option was to leverage the portfolio with a securities-based line of credit, but the client was worried about this option in an uncertain market and preferred a longer-term fixed rate.

AUM Growth Strategies, through examining the client’s full financial situation provided a two-step solution. They recommended a securities base line of credit, which allowed the client to be a cash buyer and acquire the property. Once the property was purchased, AUM Growth provided mortgages on existing properties to lower the rate and provide a long-term fixed rated cost of borrowing.

The solution allowed the advisor to keep the assets invested in the market. The client was able to acquire the property as a cash buyer and secure attractive long-term fixed financing.

Client was going through a divorce and did not have a mortgage on her primary residence. As part of the divorce settlement, she needed to pay off some debts (which were at higher interest rates). She chose to work with our mortgage lender who was able to put a mortgage on her primary residence. The process took about three weeks, and she locked in a very favorable fixed rate which helped to further stabilize her cashflow. She then paid off the higher interest debts.

This referral helped to further strengthen the advisory relationship with this client and kept her fully invested. The alternative would have been to liquidate a large proportion of her account.

The current liquidity issues many regional banking institutions are working through are resulting in those institutions requiring many clients to find alternative lending providers:

The advisor’s business owner client was being pressured by its current bank to find a new lending relationship.  The client’s original borrowing relationship.

• Line of Credit $1,000,000
• Term Loan $1,500,000
• Total Loans $2,500,000

AUM Growth Strategies was able to find a new lending institution which provided the following:

• Line of Credit $1,500,000
• Term Loan $2,000,000
• Total Loans $3,500,000

The Financial Advisor positioned themselves as full financial solution provider and has fortified their relationship with this client.  All future asset management business will be directed to this Financial Advisor.