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Let's state you have a hundred thousand dollars in a financial institution, and afterwards you discover it an investment, a syndication or something that you're intending to put a hundred thousand right into. Currently it's gone from the bank and it remains in the submission. It's either in the bank or the syndication, one of the two, but it's not in both.
It really is. And I attempt to assist people comprehend, you recognize, exactly how to increase that performance of their, their cash so that they can do even more with it. There's this concept. And I'm actually going to try to make this simple of utilizing a possession to acquire one more property.
Real estate financiers do this at all times, where you would certainly accumulate equity in a real estate or a building that you have, any, any kind of realty. And then you would take an equity placement versus that and use it to acquire one more building. You recognize, that that's not an an international idea in any way, correct? Completely.
And after that utilizing that real estate to purchase more property is that then you become very exposed to property, indicating that it's all correlated. All of those properties become associated. So in a downturn, in the whole of the property market, after that when those, you know, things begin to shed worth, which does happen.
It hasn't taken place in a while, but I don't recognize. I remember 2008 and 9 rather well. Uh, you recognize, therefore you do not intend to have all of your properties correlated. What this does is it offers you a location to place money initially that is entirely uncorrelated to the actual estate market that is going to be there assured and be assured to boost in value over time that you can still have an extremely high collateralization element or like a hundred percent collateralization of the money worth inside of these policies.
I'm attempting to make that as simple as possible. Does that make feeling to you Marco?
If they had a home worth a million bucks, that they had $500,000 paid off on, they can possibly obtain a $300,000 home equity line of debt due to the fact that they typically would obtain an 80 20 car loan to worth on that. And they could get a $300,000 home equity credit line.
Okay. There's a lot of issues with doing that however, that this resolves with my technique solves. So for something, that debt line is taken care of. Simply put, it's going to remain at $300,000, no issue how much time it goes, it's going to stay at 300,000, unless you go obtain a new assessment and you get requalified monetarily, and you raise your debt line, which is a huge discomfort to do each time you place in cash, which is typically yearly, you add new capital to among these specially developed bulletproof wide range policies that I produce for individuals, your inner line of credit scores or your accessibility to capital increases yearly.
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