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

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And I try to assist individuals recognize, you understand, just how to raise that efficiency of their, their cash so that they can do more with it. And I'm truly going to try to make this simple of using an asset to acquire another property.

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And then you would take an equity position against that and use it to purchase one more residential or commercial property. You understand, that that's not an a foreign principle at all, deal with?

And afterwards using that genuine estate to get more property is that after that you end up being extremely exposed to property, indicating that it's all associated. All of those properties end up being correlated. In a downturn, in the whole of the actual estate market, after that when those, you recognize, things begin to shed value, which does occur.

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It hasn't occurred in a while, yet I don't understand. I remember 2008 and 9 quite well. Uh, you recognize, therefore you don't wish to have all of your properties correlated. What this does is it provides you an area to put money initially that is completely uncorrelated to the genuine estate market that is going to be there assured and be assured to boost in value over time that you can still have an extremely high collateralization factor or like a hundred percent collateralization of the cash money value inside of these plans.

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I'm trying to make that as easy as possible. Does that make good sense to you Marco? Yes, specifically. Exactly. That is, that is precisely the crucial point is that you're expanding a property that is guaranteed to expand, yet you are able to obtain versus it, to place into an additional property.

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So if they had a home worth a million bucks, that they had $500,000 repaid on, they can probably get a $300,000 home equity credit line due to the fact that they commonly would get an 80 20 loan to worth on that. And they might obtain a $300,000 home equity line of credit history.

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For one point, that credit rating line is repaired. In other words, it's going to continue to be at $300,000, no matter exactly how long it goes, it's going to remain at 300,000, unless you go get a brand-new appraisal and you get requalified financially, and you increase your credit rating line, which is a big discomfort to do every time you place in cash, which is usually once a year, you contribute new funding to one of these particularly developed bulletproof riches policies that I produce for individuals, your inner line of credit scores or your access to capital goes up every year.