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Allow's say you have a hundred thousand dollars in a bank, and then you discover it an investment, a syndication or something that you're wanting to put a hundred thousand into. Now it's gone from the financial institution and it remains in the submission. It's either in the bank or the syndication, one of the two, yet it's not in both.
It actually is. And I attempt to aid people understand, you recognize, just how to raise that performance of their, their cash to ensure that they can do even more with it. There's this concept. And I'm really going to try to make this simple of using a property to purchase another property.
Investor do this all the time, where you would construct up equity in an actual estate or a property that you possess, any kind of, any kind of real estate. And afterwards you would take an equity placement against that and utilize it to acquire one more home. You know, that that's not an an international principle in all, fix? Absolutely.
And after that making use of that realty to get more actual estate is that then you end up being highly subjected to real estate, suggesting that it's all correlated. All of those properties come to be associated. In a recession, in the whole of the real estate market, after that when those, you recognize, things begin to lose value, which does occur.
It hasn't taken place in a while, yet I do not know. I remember 2008 and 9 quite well. Uh, you understand, therefore you do not desire to have every one of your properties correlated. What this does is it provides you a place to put cash initially that is completely uncorrelated to the actual estate market that is going to be there assured and be guaranteed to raise in value over time that you can still have a very high collateralization aspect or like a hundred percent collateralization of the cash value inside of these plans.
I'm attempting to make that as straightforward as possible. Does that make feeling to you Marco?
So if they had a house worth a million dollars, that they had actually $500,000 settled on, they can probably obtain a $300,000 home equity line of credit scores since they normally would obtain an 80 20 lending to value on that particular. And they could obtain a $300,000 home equity line of credit rating.
For one point, that credit line is taken care of. In other words, it's going to continue to be at $300,000, no issue exactly how long it goes, it's going to remain at 300,000, unless you go obtain a brand-new appraisal and you get requalified economically, and you enhance your credit report line, which is a big discomfort to do every time you put in cash, which is generally once a year, you contribute new funding to one of these specially made bulletproof wealth plans that I create for individuals, your interior line of credit or your accessibility to resources goes up every year.
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