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Allow's state you have a hundred thousand dollars in a bank, and afterwards you locate it an investment, a syndication or something that you're wanting to put a hundred thousand into. Currently it's gone from the bank and it's in the submission. It's either in the financial institution or the syndication, one of the 2, but it's not in both.
It really is. And I attempt to assist people understand, you recognize, how to enhance that efficiency of their, their money to ensure that they can do more with it. There's this idea. And I'm really mosting likely to try to make this simple of utilizing a possession to acquire an additional property.
Investor do this all the time, where you would build up equity in a real estate or a residential or commercial property that you own, any kind of, any type of property. And after that you would take an equity placement versus that and utilize it to acquire one more residential or commercial property. You recognize, that that's not an a foreign principle in any way, deal with? Absolutely.
And after that making use of that property to acquire even more property is that after that you end up being extremely exposed to real estate, suggesting that it's all correlated. All of those assets come to be associated. In a slump, in the totality of the actual estate market, then when those, you know, things start to shed value, which does occur.
Uh, you know, and so you don't desire to have all of your properties correlated. What this does is it provides you an area to put cash at first that is entirely uncorrelated to the real estate market that is going to be there guaranteed and be ensured to increase in worth over time that you can still have an extremely high collateralization factor or like a hundred percent collateralization of the money worth inside of these policies.
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I'm attempting to make that as straightforward as possible. Does that make good sense to you Marco? Yes, precisely. Exactly. That is, that is specifically the essential thing is that you're expanding a possession that is assured to grow, however you are able to borrow versus it, to put into one more possession.
If they had a residence worth a million dollars, that they had actually $500,000 paid off on, they can possibly get a $300,000 home equity line of credit scores because they commonly would obtain an 80 20 car loan to worth on that. And they could get a $300,000 home equity line of credit rating.
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Okay. There's a great deal of troubles with doing that though, that this fixes with my method addresses. So for something, that credit scores line is dealt with. In other words, it's mosting likely to stay at $300,000, despite how much time it goes, it's going to remain at 300,000, unless you go obtain a new appraisal and you obtain requalified economically, and you raise your line of credit, which is a big pain to do whenever you place in cash, which is normally yearly, you contribute new resources to one of these specially developed bulletproof wide range policies that I develop for individuals, your inner credit line or your accessibility to capital increases yearly.
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