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Let's state you have a hundred thousand bucks in a financial institution, and afterwards you discover it a financial investment, a submission or something that you're intending to place a hundred thousand right into. Currently it's gone from the financial institution and it remains in the submission. It's either in the financial institution or the submission, one of the two, yet it's not in both.

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It actually is. And I attempt to aid individuals understand, you know, how to increase that efficiency of their, their cash so that they can do more with it. There's this principle. And I'm truly going to try to make this simple of utilizing a possession to acquire one more asset.

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And then you would take an equity position versus that and use it to acquire one more residential or commercial property. You recognize, that that's not an a foreign principle at all, fix?

And after that using that realty to purchase more property is that then you come to be very exposed to genuine estate, suggesting that it's all correlated. All of those properties come to be correlated. In a recession, in the entirety of the genuine estate market, after that when those, you understand, things begin to lose value, which does take place.

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Uh, you recognize, and so you do not desire to have all of your assets associated. What this does is it gives you a location to place cash initially that is entirely uncorrelated to the genuine estate market that is going to be there ensured and be guaranteed to boost in value over time that you can still have a very high collateralization aspect or like a hundred percent collateralization of the money value inside of these policies.

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I'm trying to make that as easy as possible. Does that make good sense to you Marco? Yes, precisely. Precisely. That is, that is specifically the essential thing is that you're growing a possession that is ensured to expand, but you are able to borrow versus it, to take into one more 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 obtain a $300,000 home equity line of debt because they generally would get an 80 20 funding to worth on that. And they can obtain a $300,000 home equity credit line.

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Okay. There's a great deal of problems with doing that however, that this addresses with my technique resolves. So for one point, that credit limit is fixed. In other words, it's going to continue to be at $300,000, despite how much time it goes, it's going to remain at 300,000, unless you go obtain a brand-new appraisal and you obtain requalified financially, and you enhance your credit limit, which is a huge discomfort to do each time you put in cash, which is usually annually, you add brand-new funding to among these specifically made bulletproof riches plans that I create for individuals, your inner credit line or your accessibility to capital goes up annually.