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Allow's state you have a hundred thousand bucks in a financial institution, and after that you locate it a financial investment, a syndication or something that you're wanting to put a hundred thousand right into. Currently it's gone from the bank and it's in the submission. It's either in the financial institution or the syndication, one of the two, yet it's not in both.
It really is. And I try to aid individuals recognize, you understand, how to increase that efficiency of their, their money to ensure that they can do more with it. There's this idea. And I'm actually going to attempt to make this simple of using a property to buy one more asset.
And then you would take an equity placement against that and utilize it to purchase another residential or commercial property. You recognize, that that's not an a foreign concept at all, deal with?
And after that using that property to purchase more realty is that then you become very revealed to property, implying that it's all associated. Every one of those properties come to be associated. So in a decline, in the totality of the real estate market, after that when those, you understand, things start to decline, which does occur.
It hasn't taken place in a while, yet I don't know. I bear in mind 2008 and nine quite well. Uh, you recognize, therefore you do not want to have every one of your assets correlated. So what this does is it offers you a place to put money initially that is entirely uncorrelated to the real estate market that is mosting likely to be there guaranteed and be assured to increase in value over time that you can still have an extremely high collateralization element or like a hundred percent collateralization of the cash money worth within these plans.
I'm attempting to make that as easy as possible. Does that make good sense to you Marco? Yes, exactly. Specifically. That is, that is specifically the key thing is that you're growing a property that is ensured to grow, but you are able to obtain against it, to put right into another asset.
So if they had a home worth a million dollars, that they had actually $500,000 repaid on, they could possibly get a $300,000 home equity credit line because they commonly would obtain an 80 20 lending to worth on that. And they could obtain a $300,000 home equity credit line.
For one thing, that credit score line is fixed. In other words, it's going to remain at $300,000, no issue how long it goes, it's going to stay at 300,000, unless you go get a new appraisal and you get requalified monetarily, and you increase your credit scores line, which is a big pain to do every time you place in money, which is generally when a year, you contribute new funding to one of these specially created bulletproof wealth plans that I produce for people, your inner line of credit or your access to resources goes up every year.
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