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Allow's claim you have a hundred thousand dollars in a financial institution, and after that you locate it an investment, a syndication or something that you're desiring to place a hundred thousand into. Currently it's gone from the bank and it's in the syndication. So it's either in the bank or the syndication, one of both, but it's not in both - become your own bank whole life insurance.
It actually is. And I attempt to aid people comprehend, you know, exactly how to boost that efficiency of their, their money so that they can do more with it. There's this principle. And I'm truly mosting likely to try to make this simple of making use of a property to acquire another property.
Actual estate investors do this all the time, where you would build up equity in a property or a residential property that you own, any type of, any type of property. And after that you would certainly take an equity placement versus that and utilize it to purchase one more home. You understand, that that's not an an international idea in any way, remedy? Totally.
And after that utilizing that property to purchase even more genuine estate is that after that you end up being very exposed to property, implying that it's all associated. Every one of those assets become associated. In a decline, in the whole of the actual estate market, then when those, you understand, points start to shed worth, which does take place.
Uh, you know, and so you don't desire to have all of your assets associated. What this does is it provides you a location to put cash at first that is completely uncorrelated to the real estate market that is going to be there assured and be guaranteed to boost in value over time that you can still have a very high collateralization factor or like a hundred percent collateralization of the money worth inside of these plans.
I'm trying to make that as simple as possible. Does that make sense to you Marco?
So if they had a house worth a million bucks, that they had actually $500,000 paid off on, they might possibly obtain a $300,000 home equity credit line because they normally would obtain an 80 20 lending to worth on that particular. And they could get a $300,000 home equity line of credit rating.
Okay. There's a lot of issues with doing that however, that this addresses with my approach solves. For one point, that credit rating line is dealt with. To put it simply, it's going to stay at $300,000, no matter how much time it goes, it's going to remain at 300,000, unless you go obtain a new assessment and you obtain requalified financially, and you enhance your line of credit, which is a big discomfort to do each time you put in cash, which is usually once a year, you contribute new funding to among these specially created bulletproof wealth policies that I create for individuals, your inner credit line or your access to funding goes up annually.
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