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Let's say you have a hundred thousand dollars in a bank, and afterwards you find it a financial investment, a submission or something that you're wishing to place a hundred thousand right into. Currently it's gone from the bank and it's in the submission. It's either in the bank or the submission, one of the 2, however it's not in both.

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And I attempt to help people recognize, you know, exactly how to increase that effectiveness of their, their cash so that they can do even more with it. And I'm actually going to try to make this simple of making use of a property to buy another asset.

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Real estate investors do this regularly, where you would certainly develop equity in an actual estate or a residential property that you have, any type of, any type of property. And after that you would take an equity setting versus that and utilize it to buy one more building. You understand, that that's not an a foreign principle at all, deal with? Absolutely.

And afterwards using that real estate to purchase more realty is that then you come to be very exposed to realty, indicating that it's all correlated. Every one of those possessions end up being correlated. So in a decline, in the totality of the genuine estate market, then when those, you recognize, points begin to shed value, which does happen.

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Uh, you understand, and so you don't desire to have all of your assets associated. What this does is it provides you an area to put cash initially that is totally uncorrelated to the real estate market that is going to be there ensured and be assured to boost in value over time that you can still have an extremely high collateralization aspect or like a hundred percent collateralization of the money worth inside of these plans.

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I'm attempting to make that as easy as possible. Does that make feeling to you Marco? Yes, specifically. Specifically. That is, that is exactly the key point is that you're expanding an asset that is guaranteed to grow, yet you are able to borrow against it, to take into another property.

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If they had a house worth a million dollars, that they had $500,000 paid off on, they might probably get a $300,000 home equity line of credit history due to the fact that they commonly would get an 80 20 financing to worth on that. And they can get a $300,000 home equity credit line.

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For one thing, that credit report line is fixed. In other words, it's going to remain at $300,000, no issue just how long it goes, it's going to remain at 300,000, unless you go get a new assessment and you obtain requalified economically, and you boost your credit report line, which is a huge discomfort to do every time you place in money, which is usually once a year, you add new funding to one of these particularly developed bulletproof wealth policies that I produce for individuals, your internal line of credit scores or your access to funding goes up every year.