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Let's say you have a hundred thousand bucks in a financial institution, and after that you locate it an investment, a submission or something that you're wanting to put a hundred thousand into. Currently it's gone from the bank and it remains in the syndication. It's either in the bank or the syndication, one of the 2, yet it's not in both.
And I attempt to help people recognize, you understand, just how to raise that performance of their, their cash so that they can do even more with it. And I'm actually going to attempt to make this simple of making use of a property to buy another asset.
And then you would take an equity placement versus that and use it to purchase another property. You understand, that that's not an an international idea at all, fix?
And after that utilizing that realty to get even more realty is that then you come to be extremely revealed to property, implying that it's all associated. All of those properties come to be associated. So in a slump, in the entirety of the actual estate market, then when those, you know, things start to lose value, which does occur.
It hasn't taken place in a while, however I don't understand. I keep in mind 2008 and nine pretty well. Uh, you know, therefore you do not desire to have every one of your possessions associated. What this does is it offers you an area to place cash initially that is entirely uncorrelated to the real estate market that is going to be there assured and be ensured to boost in value over time that you can still have a very high collateralization aspect or like a hundred percent collateralization of the cash value inside of these policies.
I'm attempting to make that as basic as feasible. Does that make feeling to you Marco? Yes, precisely. Exactly. That is, that is exactly the essential point is that you're expanding an asset that is ensured to expand, but you are able to borrow against it, to place into another possession.
So if they had a residence worth a million bucks, that they had actually $500,000 repaid on, they could probably obtain a $300,000 home equity credit line because they usually would obtain an 80 20 lending to worth on that particular. And they can get a $300,000 home equity credit line.
For one point, that credit rating line is dealt with. In other words, it's going to remain at $300,000, no issue just how long it goes, it's going to remain at 300,000, unless you go get a new assessment and you get requalified economically, and you boost your credit line, which is a big pain to do every time you put in money, which is generally when a year, you contribute new funding to one of these specially designed bulletproof wealth policies that I develop for individuals, your interior line of credit scores or your accessibility to funding goes up every year.
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