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Allow's say you have a hundred thousand bucks in a financial institution, and afterwards you locate it an investment, a syndication or something that you're wanting to place a hundred thousand into. Currently it's gone from the financial institution and it's in the submission. So it's either in the financial institution or the submission, one of both, but it's not in both - Bank On Yourself: How To Become Your Own Bank.

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It actually is. And I try to help people understand, you recognize, how to increase that performance of their, their money to make sure that they can do even more with it. There's this idea. And I'm really mosting likely to attempt to make this simple of making use of a property to acquire one more asset.

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Investor do this all the time, where you would accumulate equity in a property or a residential or commercial property that you own, any, any realty. And afterwards you would certainly take an equity position versus that and use it to get an additional property. You recognize, that that's not an a foreign concept in any way, fix? Absolutely.

And after that making use of that actual estate to acquire even more realty is that then you come to be extremely revealed to genuine estate, indicating that it's all associated. Every one of those assets come to be correlated. So in a downturn, in the entirety of the realty market, then when those, you understand, things begin to lose value, which does take place.

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It hasn't occurred in a while, but I don't understand. I remember 2008 and nine rather well. Uh, you understand, therefore you do not desire to have all of your properties associated. What this does is it gives you a location to put cash initially that is completely uncorrelated to the actual estate market that is going to be there ensured and be ensured to raise in value over time that you can still have a really high collateralization element or like a hundred percent collateralization of the money value inside of these policies.

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I'm trying to make that as basic as possible. Does that make feeling to you Marco? Yes, precisely. Precisely. That is, that is precisely the key point is that you're expanding a property that is guaranteed to expand, but you are able to obtain against it, to place right into another asset.

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So if they had a house worth a million bucks, that they had actually $500,000 repaid on, they can most likely obtain a $300,000 home equity line of credit report since they commonly would get an 80 20 car loan to worth on that particular. And they might get a $300,000 home equity line of credit.

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For one point, that credit score line is dealt with. In other words, it's going to continue to be at $300,000, no issue just how long it goes, it's going to remain at 300,000, unless you go get a brand-new assessment and you get requalified financially, and you boost your credit rating line, which is a large discomfort to do every time you put in cash, which is usually when a year, you add brand-new resources to one of these specifically created bulletproof wealth policies that I create for people, your internal line of credit report or your access to resources goes up every year.