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Allow's say you have a hundred thousand dollars in a bank, and then you find it an investment, a syndication or something that you're wishing to place a hundred thousand into. Currently it's gone from the bank and it remains in the syndication. It's either in the bank or the syndication, one of the 2, but it's not in both.

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It actually is. And I attempt to aid people understand, you understand, just how to boost that efficiency of their, their money to make sure that they can do even more with it. There's this concept. And I'm actually going to try to make this simple of making use of an asset to acquire one more asset.

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And after that you would certainly take an equity placement versus that and use it to get another residential or commercial property. You know, that that's not an a foreign idea at all, fix?

And afterwards using that property to buy even more realty is that then you come to be extremely subjected to property, indicating that it's all associated. Every one of those possessions become correlated. So in a recession, in the totality of the actual estate market, after that when those, you know, things start to decline, which does occur.

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Uh, you recognize, and so you do not desire to have all of your properties correlated. What this does is it offers you a place to place cash originally that is completely uncorrelated to the genuine estate market that is going to be there assured and be ensured to raise in worth over time that you can still have a very high collateralization element 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 easy as feasible. Does that make good sense to you Marco? Yes, precisely. Precisely. That is, that is exactly the crucial point is that you're growing a possession that is assured to expand, however you have the ability to borrow against it, to put right into one more possession.

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So if they had a residence worth a million bucks, that they had actually $500,000 repaid on, they can probably obtain a $300,000 home equity line of credit history because they usually would get an 80 20 finance to value on that. And they could obtain a $300,000 home equity line of credit.

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For one point, that credit report line is taken care of. In other words, it's going to remain at $300,000, no issue how long it goes, it's going to stay at 300,000, unless you go get a new appraisal and you get requalified economically, and you raise your credit scores line, which is a huge pain to do every time you put in money, which is commonly once a year, you add new capital to one of these particularly developed bulletproof riches policies that I create for people, your internal line of credit scores or your access to capital goes up every year.