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Let's claim you have a hundred thousand bucks in a financial institution, and after that you locate it a financial investment, a syndication or something that you're intending to place a hundred thousand right into. Now it's gone from the financial institution and it remains in the syndication. It's either in the financial institution or the syndication, one of the 2, yet it's not in both.

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And I attempt to aid people comprehend, you know, how to raise that effectiveness of their, their cash so that they can do even more with it. And I'm truly going to attempt to make this simple of utilizing a possession to purchase an additional possession.

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Investor do this at all times, where you would certainly accumulate equity in a genuine estate or a home that you have, any type of, any kind of real estate. And after that you would take an equity position against that and use it to buy one more building. You recognize, that that's not an a foreign idea in all, remedy? Totally.

And afterwards utilizing that realty to buy more property is that after that you end up being very revealed to realty, suggesting that it's all correlated. Every one of those possessions end up being correlated. In a recession, in the whole of the genuine estate market, then when those, you know, things start to lose worth, which does happen.

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It hasn't happened in a while, however I do not understand. I bear in mind 2008 and 9 rather well. Uh, you recognize, and so you do not want to have every one of your possessions associated. So what this does is it gives you a place to put cash at first that is entirely uncorrelated to the realty market that is going to exist guaranteed and be guaranteed to enhance in value gradually that you can still have a really high collateralization factor or like a hundred percent collateralization of the cash value inside of these policies.

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I'm trying to make that as simple as feasible. Does that make good sense to you Marco? Yes, specifically. Specifically. That is, that is specifically the crucial thing is that you're expanding a property that is guaranteed to expand, yet you have the ability to obtain against it, to put into an additional property.

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If they had a residence worth a million bucks, that they had actually $500,000 paid off on, they can probably get a $300,000 home equity line of credit rating due to the fact that they typically would obtain an 80 20 financing to value on that. And they can get a $300,000 home equity credit line.

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Okay. There's a great deal of issues with doing that though, that this solves with my strategy fixes. For one thing, that credit report line is fixed. To put it simply, it's going to remain at $300,000, despite how long it goes, it's going to remain at 300,000, unless you go obtain a new assessment and you obtain requalified economically, and you enhance your credit history line, which is a big pain to do every time you place in cash, which is typically once a year, you contribute new capital to among these specially designed bulletproof wealth policies that I create for people, your internal credit line or your accessibility to capital increases yearly.