From: G.A. 
Newsgroups: misc.invest.real-estate
Subject: Using margin loan for investment
Date: Mon, 29 Sep 2003 18:58:02 GMT

In relationship to my other recent note (thread titled "Investment mortgage
advice needed, NJ"), I'm now looking at alternatives.  One, in particular,
is to take out a margin loan against my existing securities.  I can
currently withdraw about $150K, of which about $40K is cash the rest margin
loan.  I figure that if I put the full net income ($800/month after taxes)
back into this at current margin rates (4.75%), then I'll be paying down
the margin loan at about 100-200/month.  Once the lease on the property
gets renewed (2006), I'll be able to double those payments.

Does this seem like a reasonable alternative - keeping in mind that there's
the risk of the property going unrented (small, but possible), and
obviously there's the risk of a market crash causing a margin call (again,
small but possible)

Gary