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Let's say you have a hundred thousand dollars in a financial institution, and after that you locate it an investment, a submission or something that you're wishing to place a hundred thousand into. Currently it's gone from the financial institution and it's in the syndication. It's either in the bank or the syndication, one of the two, however it's not in both.
And I try to assist individuals understand, you know, how to raise that efficiency of their, their cash so that they can do more with it. And I'm actually going to attempt to make this simple of utilizing an asset to acquire another possession.
And after that you would take an equity position versus that and use it to get another property. You recognize, that that's not an a foreign concept at all, deal with?
And afterwards making use of that property to purchase even more actual estate is that after that you come to be very exposed to genuine estate, indicating that it's all associated. All of those assets come to be correlated. So in a slump, in the totality of the property market, after that when those, you recognize, things start to decline, which does take place.
It hasn't taken place in a while, but I do not recognize. I keep in mind 2008 and nine pretty well. Uh, you recognize, and so you do not intend to have every one of your assets associated. So what this does is it offers you a location to put money initially that is entirely uncorrelated to the realty market that is going to exist guaranteed and be ensured to increase in value over time that you can still have a really high collateralization variable or like a hundred percent collateralization of the money value inside of these policies.
I'm trying to make that as basic as possible. Does that make feeling to you Marco? Yes, precisely. Specifically. That is, that is precisely the key thing is that you're expanding an asset that is assured to grow, yet you have the ability to obtain versus it, to place into an additional property.
So if they had a home worth a million dollars, that they had $500,000 repaid on, they can possibly obtain a $300,000 home equity credit line since they generally would obtain an 80 20 funding to value on that particular. And they can get a $300,000 home equity credit line.
Okay. There's a great deal of issues with doing that though, that this solves with my method solves. So for one point, that line of credit is dealt with. To put it simply, it's mosting likely to remain at $300,000, regardless of for how long it goes, it's going to remain at 300,000, unless you go get a new evaluation and you get requalified financially, and you raise your credit history line, which is a big pain to do every time you put in money, which is usually annually, you contribute brand-new funding to one of these specifically designed bulletproof wide range plans that I produce for individuals, your inner credit line or your accessibility to resources increases each year.
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