When they pay out a claim, the money comes out of their pocket.

For example Hospitable has a option for this through there direct bookings payout sections but it is only for specific states.

I just was on BP's Real Estate Rookie podcast and talked about the small and mighty game plan. 

Also, most Umbrella Policies only pay out if your underlying policy pays out, and the underlying policy will do everything they can to find an exclusion or that you were negligent (which you probably were) in the cause of action to get out of paying the claim.

I am new to the real estate game.

The moment the first payout hits your bank account, all that goes away.

GP's typically have to put skin on the game.

So to that end they are new to the game never went through a deep downturn cycle.

So on page 6, Modern Money Mechanics: Federal Reserve Bank of Chicago, it explains that banks don't "pay out" the funds for loans from money in other depositor's accounts.

Thanks tons and if this question sounds very immature, i'd say 'that's about right' given how new to this game we are.Thanks again!