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Allow's say you have a hundred thousand bucks in a financial institution, and afterwards you find it a financial investment, a syndication or something that you're intending 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 syndication, among the two, yet it's not in both - infinite banking system.
And I try to aid people comprehend, you know, just how to increase that effectiveness of their, their money so that they can do even more with it. And I'm truly going to attempt to make this simple of using a property to purchase another property.
And then you would take an equity placement versus that and use it to buy another 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 after that you come to be highly revealed to property, suggesting that it's all associated. Every one of those assets come to be correlated. So in a recession, in the entirety of the genuine estate market, then when those, you understand, things begin to shed value, which does take place.
Uh, you know, and so you don't want to have all of your properties associated. What this does is it gives you an area to place cash originally that is completely uncorrelated to the real estate market that is going to be there guaranteed and be guaranteed to raise in value over time that you can still have an extremely high collateralization factor 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 good sense to you Marco? Yes, specifically. Exactly. That is, that is specifically the key thing is that you're expanding a property that is assured to grow, however you are able to obtain against it, to take into another asset.
If they had a home worth a million bucks, that they had $500,000 paid off on, they might probably obtain a $300,000 home equity line of credit score since they generally would obtain an 80 20 financing to value on that. And they can obtain a $300,000 home equity line of credit scores.
For one thing, that credit scores line is repaired. In other words, it's going to continue to be at $300,000, no matter exactly how long it goes, it's going to stay at 300,000, unless you go get a new evaluation and you get requalified economically, and you boost your credit score line, which is a huge discomfort to do every time you put in money, which is usually once a year, you contribute brand-new capital to one of these specifically developed bulletproof wide range policies that I create for people, your inner line of credit score or your access to resources goes up every year.
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