There are large upfront costs on starting a real estate project. Besides acquiring land, there are marketing, printing, advertising and building and tenant improvement costs.Barter provide services to fill vacancy and reduce cash costs for Real estate developers to utilize.
By providing the developer an advancement of trade credits as payment and commits to purchasing an agreed amount of property, the trade credits are used by the developer to pay for cash expenses such as:
- Advertising
- Marketing
- Printing
- Building Materials
The transaction benefits the developer by providing an immediate guaranteed sale and the ability to save cash resources for future investments.
Plan 1
A real estate developer needs cash spending in various categories
- Printing = $20,000
- Advertising = $100,000
- Marketing = $30,000
- Building Materials = $150,000
- Total = $300,000
A Barter member agrees to purchase $300,000 of property from the development prior to its completion and pays for the transaction in trade credits. The developer uses the trade credits to acquire the same dollar amount in the categories identified above. The result is the development company made a guaranteed sale of property prior to completion and used the revenues of the sale to offset the necessary cash expenses.
The informations above will make you wants to know more :
Lets Retweet Me and Buzz Up and will provide you with more tips and updates! ;}
Looking at your suggestions or some comments? Please leave your comments below and kindly join my mailing to receive latest updates and corporate barter group focus network invitation.
