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Let's state you have a hundred thousand dollars in a financial institution, and then you discover it an investment, a syndication or something that you're wishing to place a hundred thousand into. Now it's gone from the bank and it's in the submission. So it's either in the bank or the submission, one of both, but it's not in both - whole life insurance cash flow.
And I attempt to aid people comprehend, you know, just how to raise that performance of their, their money so that they can do even more with it. And I'm actually going to attempt to make this simple of utilizing a possession to acquire one more property.
And after that you would take an equity placement against that and use it to get an additional residential or commercial property. You know, that that's not an a foreign principle at all, deal with?
And after that using that property to get more actual estate is that after that you become highly exposed to genuine estate, suggesting that it's all correlated. Every one of those properties become correlated. So in a slump, in the entirety of the realty market, after that when those, you know, points start to shed value, which does occur.
Uh, you know, and so you don't want to have all of your properties associated. What this does is it gives you a place to place money initially that is completely uncorrelated to the actual estate market that is going to be there guaranteed and be guaranteed to enhance in value over time that you can still have a really high collateralization aspect or like a hundred percent collateralization of the money value inside of these policies.
I'm trying to make that as simple as feasible. Does that make feeling to you Marco? Yes, precisely. Precisely. That is, that is specifically the essential thing is that you're expanding a possession that is assured to expand, but you are able to borrow against it, to take into one more possession.
So if they had a residence worth a million bucks, that they had $500,000 paid off on, they can probably get a $300,000 home equity line of credit report due to the fact that they normally would obtain an 80 20 loan to value on that. And they might get a $300,000 home equity line of credit scores.
Okay. There's a great deal of issues with doing that though, that this fixes with my strategy resolves. So for something, that credit history line is fixed. In various other words, it's mosting likely to continue to be at $300,000, no matter how much time it goes, it's mosting likely to stay at 300,000, unless you go get a new appraisal and you get requalified monetarily, and you increase your line of credit, which is a huge discomfort to do whenever you put in money, which is generally yearly, you contribute new resources to among these specifically created bulletproof wide range policies that I develop for people, your internal line of credit scores or your accessibility to funding goes up yearly.
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