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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 wanting 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, but it's not in both.
It actually is. And I try to aid people understand, you know, exactly how to boost that performance of their, their cash so that they can do even more with it. There's this idea. And I'm really going to attempt to make this simple of using a property to buy one more property.
And then you would take an equity placement against that and use it to get one more building. You know, that that's not an a foreign concept at all, deal with?
And afterwards utilizing that property to get more property is that after that you end up being extremely subjected to realty, indicating that it's all associated. All of those properties end up being associated. In a decline, in the totality of the genuine estate market, after that when those, you know, points start to shed value, which does occur.
Uh, you know, and so you do not desire to have all of your assets correlated. What this does is it gives you a location to put money originally that is totally uncorrelated to the genuine estate market that is going to be there ensured and be ensured to increase in worth over time that you can still have a really high collateralization element or like a hundred percent collateralization of the cash worth inside of these plans.
I'm trying to make that as easy as feasible. Does that make feeling to you Marco? Yes, precisely. Exactly. That is, that is specifically the essential point is that you're growing a possession that is ensured to grow, but you have the ability to borrow against it, to place right into another possession.
If they had a residence worth a million bucks, that they had actually $500,000 paid off on, they can most likely obtain a $300,000 home equity line of credit report since they generally would get an 80 20 financing to worth on that. And they might obtain a $300,000 home equity line of debt.
Okay. There's a great deal of problems with doing that though, that this solves with my method resolves. For one point, that credit report line is repaired. To put it simply, it's mosting likely to remain at $300,000, regardless of for how long it goes, it's going to stay at 300,000, unless you go obtain a new assessment and you obtain requalified financially, and you enhance your credit limit, which is a huge pain to do every time you place in cash, which is typically annually, you add brand-new capital to among these specially made bulletproof riches plans that I create for individuals, your inner line of debt or your accessibility to resources goes up yearly.
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