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Let's state you have a hundred thousand dollars in a financial institution, and then you find it an investment, a submission or something that you're wanting to place a hundred thousand into. Currently it's gone from the financial institution and it remains in the submission. So it's either in the bank or the syndication, among both, but it's not in both - whole life infinite banking.
And I attempt to help people recognize, you understand, how to enhance that performance of their, their money so that they can do more with it. And I'm actually going to try to make this simple of using a possession to buy one more possession.
Actual estate investors do this all the time, where you would develop up equity in a realty or a property that you own, any, any type of actual estate. And after that you would take an equity setting versus that and use it to acquire an additional home. You recognize, that that's not an a foreign idea in any way, fix? Absolutely.
And after that using that property to acquire more property is that then you come to be very exposed to genuine estate, indicating that it's all correlated. Every one of those assets come to be correlated. In a slump, in the totality of the actual estate market, then when those, you know, points start to shed worth, which does occur.
It hasn't happened in a while, but I do not know. I remember 2008 and 9 rather well. Uh, you understand, and so you do not want to have all of your assets correlated. What this does is it offers you a place to place money at first that is entirely uncorrelated to the actual estate market that is going to be there ensured and be ensured to increase 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 plans.
I'm trying to make that as straightforward as feasible. Does that make good sense to you Marco? Yes, exactly. Exactly. That is, that is precisely the crucial point is that you're expanding a property that is ensured to expand, yet you are able to borrow versus it, to take into an additional property.
If they had a home worth a million bucks, that they had $500,000 paid off on, they might possibly obtain a $300,000 home equity line of credit rating because they usually would obtain an 80 20 loan to value on that. And they might obtain a $300,000 home equity credit line.
For one thing, that credit history line is fixed. In other words, it's going to stay at $300,000, no matter just how long it goes, it's going to stay at 300,000, unless you go get a new appraisal and you get requalified financially, and you boost your credit score line, which is a huge discomfort to do every time you place in money, which is normally when a year, you contribute brand-new capital to one of these particularly designed bulletproof riches policies that I produce for individuals, your interior line of debt or your accessibility to resources goes up every year.
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