I want to borrow a couple hundred thousand bucks to put into two or three hundred dividend paying stocks, funds, reits, royalty trusts, muni bonds etc. I want to have the stock be collateral for the loan (like when you get a mortgage the house is the collateral). Plus you'd think banks might be more willing to accept stocks as collateral since they are more easily liquidated than houses. Of course on the flip side you can't remodel your stock to make it worth more. Obviously for this to work the APR on the loan would need to be lower than the average APY on the stocks/funds etc. Initially my thought was borrow 200K at around 5% to 6% and diversify it into instruments paying 7% to 12%. DD would be performed before buying any of the stocks etc. I could probably put 20 to 25K into a CD at a bank to act as additional collateral. What do you guys think? Are they going to laugh me out of the bank?