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Let's say you have a hundred thousand bucks in a bank, and then you find it a financial investment, a submission 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 syndication. It's either in the bank or the syndication, one of the 2, but it's not in both.
It actually is. And I attempt to aid individuals recognize, you recognize, exactly how to boost that performance of their, their cash to make sure that they can do more with it. There's this idea. And I'm truly going to try to make this simple of making use of a possession to purchase one more possession.
Genuine estate investors do this all the time, where you would develop equity in an actual estate or a property that you own, any, any property. And after that you would take an equity setting against that and utilize it to acquire an additional building. You understand, that that's not an a foreign idea in any way, correct? Completely.
And after that making use of that property to buy even more real estate is that after that you become very exposed to real estate, indicating that it's all correlated. All of those possessions become correlated. So in a decline, in the whole of the actual estate market, then when those, you know, points start to lose value, which does take place.
Uh, you know, and so you don't want to have all of your possessions associated. What this does is it offers you a place to place money originally that is completely uncorrelated to the actual estate market that is going to be there ensured and be assured to raise in value over time that you can still have a very high collateralization aspect or like a hundred percent collateralization of the money value inside of these plans.
I'm trying to make that as basic as possible. Does that make good sense to you Marco? Yes, exactly. Exactly. That is, that is specifically the key point is that you're growing an asset that is ensured to expand, however you are able to obtain versus it, to take into one more asset.
So if they had a residence worth a million dollars, that they had actually $500,000 settled on, they can most likely get a $300,000 home equity line of credit history due to the fact that they normally would obtain an 80 20 loan to value on that. And they can obtain a $300,000 home equity line of debt.
For one point, that credit scores line is taken care of. In other words, it's going to remain at $300,000, no issue exactly how long it goes, it's going to remain at 300,000, unless you go get a new appraisal and you get requalified economically, and you boost your debt line, which is a large discomfort to do every time you put in cash, which is commonly when a year, you add brand-new capital to one of these specifically made bulletproof wealth plans that I produce for people, your interior line of credit rating or your access to funding goes up every year.
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