Were can I get a secured loan?

I am having a hard time researching if I can do this. Does anyone here know of a bank or institution that will make a secured loan using investments in a mutual fund as collateral?

The background is that I plan to buy a car this year and have been making "imaginary" payments to myself. By year end I will more than cover the purchase. But I would like to explore various alternatives for loans. A HELOC will not work as the equity is not there. I would like a line of credit and if it was interest-only that is even better. The reason is the fund has done pretty well and the place I am looking at has prices good enough that I may mark the car up and try to resell at a profit then do it again. So I want flexibility.

Any ideas?

You might try Lending Club. I have a fair bit of money invested with them.

Rates are ridiculously low on cars right now. Why pay a higher rate to secure the loan with an appreciating asset (your fund), when you can pay a lower rate to secure it with a depreciating asset (the car)? You can have the car, your money free from encumberance, and a lower payment. Reselling the car is a non-issue, you can sell a car with a lien. All that matters is the cost of use of funds.

Re Lending Club... a California corporation that sells fractions of loans.

Flashback... Los Angeles Early Seventies. California corporation sold "fractions'' of second/third mortgages/deeds of trust but failed to immediately deliver to such purchasers certificated evidencing their fractional ownership. When Seller of fractional loans petitioned for bankruptcy discharge his discharge was denied but his customers were ruled to be unsecured general lenders to his business and not actual owners of fractional interests in specific mortgages.

Any lawyers here remember that mess and what the rulings were?

Quote: AZDuffman

I am having a hard time researching if I can do this. Does anyone here know of a bank or institution that will make a secured loan using investments in a mutual fund as collateral?

The background is that I plan to buy a car this year and have been making "imaginary" payments to myself. By year end I will more than cover the purchase. But I would like to explore various alternatives for loans. A HELOC will not work as the equity is not there. I would like a line of credit and if it was interest-only that is even better. The reason is the fund has done pretty well and the place I am looking at has prices good enough that I may mark the car up and try to resell at a profit then do it again. So I want flexibility.

Any ideas?

Last car I bought, took out a home equity loan, really good interest rate. Wrote out a check for the entire amount for the car.

Quote: terapined

Last car I bought, took out a home equity loan, really good interest rate. Wrote out a check for the entire amount for the car.

It is what I want to do but with other collateral. Not enough equity in the house.