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Allow's state you have a hundred thousand dollars in a financial institution, and afterwards you discover it an 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. So it's either in the financial institution or the syndication, among both, yet it's not in both - infinite bank.

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And I try to help people recognize, you know, just how to increase that performance of their, their cash so that they can do more with it. And I'm actually going to attempt to make this simple of utilizing an asset to purchase an additional possession.

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And after that you would take an equity setting against that and use it to buy another building. You understand, that that's not an an international principle at all, correct?

And after that using that property to buy even more property is that after that you come to be highly revealed to actual estate, meaning that it's all associated. Every one of those properties come to be associated. In a downturn, in the totality of the real estate market, then when those, you know, things begin to lose value, which does happen.

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Uh, you know, and so you do not desire to have all of your possessions associated. What this does is it provides you a location to place cash at first that is completely uncorrelated to the actual estate market that is going to be there assured and be guaranteed to boost in worth over time 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 basic as possible. Does that make good sense to you Marco? Yes, precisely. Specifically. That is, that is specifically the key point is that you're expanding an asset that is assured to grow, yet you have the ability to borrow against it, to place into another asset.

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

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For one point, that credit score line is fixed. In other words, it's going to remain at $300,000, no matter just how long it goes, it's going to stay at 300,000, unless you go obtain a new assessment and you get requalified monetarily, and you increase your credit line, which is a huge pain to do every time you place in cash, which is generally when a year, you add new capital to one of these specially designed bulletproof wide range policies that I create for people, your inner line of credit rating or your access to capital goes up every year.