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Let's say you have a hundred thousand dollars in a financial institution, and then you discover it a financial investment, a syndication or something that you're wishing to place a hundred thousand right into. Now it's gone from the financial institution and it's in the submission. It's either in the bank or the submission, one of the two, but it's not in both.
And I try to aid individuals recognize, you recognize, how to increase that performance of their, their money so that they can do even more with it. And I'm actually going to attempt to make this simple of using an asset to acquire an additional possession.
Investor do this all the time, where you would accumulate equity in a property or a property that you have, any type of, any kind of actual estate. And afterwards you would take an equity position against that and utilize it to acquire another residential property. You understand, that that's not an a foreign idea in any way, correct? Completely.
And then utilizing that property to get even more real estate is that after that you come to be very subjected to realty, suggesting that it's all associated. All of those assets come to be associated. In a recession, in the entirety of the actual estate market, then when those, you recognize, things begin to shed worth, which does happen.
It hasn't happened in a while, but I don't understand. I bear in mind 2008 and nine pretty well. Uh, you know, and so you do not intend to have every one of your assets associated. What this does is it gives you an area to place cash originally that is entirely uncorrelated to the genuine estate market that is going to be there assured and be guaranteed to increase in value 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.
I'm attempting to make that as easy as feasible. Does that make feeling to you Marco?
So if they had a residence worth a million bucks, that they had actually $500,000 settled on, they might possibly get a $300,000 home equity credit line since they typically would get an 80 20 finance to worth on that particular. And they can obtain a $300,000 home equity line of credit scores.
Okay. There's a great deal of troubles with doing that though, that this addresses with my approach addresses. For one thing, that credit rating line is fixed. Simply put, it's going to stay at $300,000, regardless of for how long it goes, it's going to stay at 300,000, unless you go get a brand-new appraisal and you get requalified monetarily, and you enhance your line of credit, which is a large discomfort to do every single time you place in money, which is typically annually, you contribute new funding to one of these specifically made bulletproof riches policies that I produce for people, your interior credit line or your access to capital goes up each year.
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