Capital Sourcing Guide
Most investors don't need $100K in cash savings. They need to know where to look. This guide covers 30+ strategies for assembling your investment capital — with real scenarios and tax implications.
30+ Capital Strategies
Most Redoubt Capital investors use 2–3 of the strategies below
Educational resource — not financial advice
What Is Capital Stacking?
Capital stacking means combining multiple capital sources to reach your investment target. Instead of saving $100K in a single account, you assemble it from 2–3 sources tailored to your financial situation.
Example: Building $100K from Three Sources
$50K
HELOC
$40K
401(k) Loan
$10K
Cash Savings
| Strategy | Typical Rate | Amount | Speed |
|---|---|---|---|
| HELOC | 6.5–8.5% variable | Up to 80-90% LTV | 2–4 weeks |
| Home Equity Loan | 6.0–8.0% fixed | Up to 80-85% LTV | 2–6 weeks |
| Cash-Out Refinance | 6.0–7.5% fixed | Up to 80% LTV | 4–8 weeks |
Example
$300K home, $200K mortgage → $100K available equity at 80% LTV. Interest on investment-purpose HELOC may be tax-deductible.
SBLOC (Securities-Backed Line of Credit) and Pledged Asset Lines let you borrow against your investment portfolio without selling assets — avoiding capital gains taxes while keeping your portfolio invested.
$50K–$5M+
Typical credit line
6.0–8.5%
Interest rate
1–7 days
Funding speed
Borrow vs. Sell Tax Comparison
Selling $100K stock: ~$16,674 capital gains tax
Borrowing against same stock: $0 tax, portfolio stays invested
Whole life policy loans and universal life cash value access provide tax-free borrowing with no credit check and no mandatory repayment schedule.
- Tax-free borrowing against cash value
- No credit check required
- No mandatory repayment schedule — interest accrues against policy
- Consult your insurance advisor regarding trade-offs
Self-Directed IRA (SDIRA)
Invest in real estate through a tax-advantaged IRA. Roth SDIRA offers tax-free growth potential. Requires a qualified custodian that supports real estate investments.
Solo 401(k)
For self-employed investors — higher contribution limits and loan provisions. Can invest directly in real estate or take a loan against the balance.
401(k) Loans
Borrow up to $50K from your employer-sponsored 401(k). Interest is paid back to yourself. No credit check, no tax event (if repaid on time). Typically 5-year repayment.
Important: Prohibited transaction rules apply to SDIRAs. You cannot use the property personally or conduct transactions with disqualified persons. Compliance guidance is provided during onboarding.
Best suited for business owners and high-income professionals with access to business capital and specialized lending products.
- S-Corp distributions — use excess business income for investment
- Business lines of credit — leverage business creditworthiness
- Physician mortgage programs — low-down-payment options
- Stock options / RSU strategies — exercise and deploy
- Family/friend loans at IRS-minimum AFR (3.56–4.70%)
- Trust distributions — access trust-held capital
- Asset liquidation — sell underperforming assets
- Income partnerships — pairing equity-rich with income-qualified investors
Real Examples — Four Investor Scenarios
W-2 Physician, Age 38
$100K assembled from 3 sources
~$1,084/mo blended payment
Business Owner, Age 52, S-Corp
$100K assembled from 3 sources
~$371/mo blended payment
Retiree, Age 67
$100K assembled from 2 sources
~$787/mo blended payment
Dual-Income Couple, Age 42
$100K assembled from 3 sources
~$927/mo blended payment
Tax Implications Quick Reference
| Strategy | Taxable Event? | Interest Deductible? | Complexity |
|---|---|---|---|
| HELOC / Home Equity | No | Possibly (investment purpose) | Low |
| SBLOC | No | Possibly (investment interest) | Medium |
| Life Insurance Loan | No | No | Low |
| SDIRA / Solo 401(k) | No (tax-deferred) | N/A | High |
| 401(k) Loan | No (if repaid) | No (paid to yourself) | Low |
| Business LOC / Distributions | Varies | Possibly | Medium |
| Stock Sale | Yes (capital gains) | N/A | Low |
Key takeaway: Borrowing against assets is almost always more tax-efficient than selling them.
What Redoubt's Capital Advisor Does
Your capital advisor walks you through these options during Steps 1–2, tailored to your specific situation. They assess your complete financial picture and help you build a customized capital sourcing plan — no pressure, just informed options.
Meet Your Capital AdvisorImportant Disclosures
- Redoubt Capital is not a registered investment advisor, broker-dealer, tax advisor, or insurance agent.
- All strategies require consultation with a qualified CPA, attorney, and/or financial advisor before implementation.
- Rates, terms, tax treatment, and regulations are subject to change without notice.
- Redoubt Capital has no compensation relationships with lenders, custodians, or insurance companies.
- Past performance and example scenarios do not guarantee future results.