Equity repositioning
Equity repositioning is a very long and tricky term that grown-ups use. It means changing the way we use things we own to make more money. Just like when you play with your toys and sometimes you have to move them around to make a fun new game.
For example, imagine that you have a toy that you really like, but you're not playing with it anymore. Your friend, let's call him Tim, comes over and sees your toy. Tim is really excited about your toy and he wants to play with it too. But you don't want to give it away, because you still like it.
So you and Tim come up with a plan. Tim has a toy he's not playing with anymore, but you really like his toy. So you both decide to trade toys. You give Tim your toy and Tim gives you his toy. Now you both have toys you like and didn't have to spend any money on them.
This is kind of like equity repositioning. People have things they own that they're not using anymore or not making money from. For example, imagine that your parents have a big house, but they only use a few rooms of it. They could sell the house and make some money, but they still need a place to live. So instead, they decide to rent out the rooms they're not using to other people, who will pay your parents money to live there.
This is equity repositioning because your parents are changing the way they use their house to make money. They're not selling it, but they're using it in a different way to make money. People can do this with other things they own too, like stocks, businesses, or land.
So that's what equity repositioning means - it's changing the way we use things we own to make more money. Just like when you trade toys with your friends to have more fun!
For example, imagine that you have a toy that you really like, but you're not playing with it anymore. Your friend, let's call him Tim, comes over and sees your toy. Tim is really excited about your toy and he wants to play with it too. But you don't want to give it away, because you still like it.
So you and Tim come up with a plan. Tim has a toy he's not playing with anymore, but you really like his toy. So you both decide to trade toys. You give Tim your toy and Tim gives you his toy. Now you both have toys you like and didn't have to spend any money on them.
This is kind of like equity repositioning. People have things they own that they're not using anymore or not making money from. For example, imagine that your parents have a big house, but they only use a few rooms of it. They could sell the house and make some money, but they still need a place to live. So instead, they decide to rent out the rooms they're not using to other people, who will pay your parents money to live there.
This is equity repositioning because your parents are changing the way they use their house to make money. They're not selling it, but they're using it in a different way to make money. People can do this with other things they own too, like stocks, businesses, or land.
So that's what equity repositioning means - it's changing the way we use things we own to make more money. Just like when you trade toys with your friends to have more fun!