You can still buy real estate, including property, homes and condos, even though you don’t currently have sufficient trade available to pay for it. Trade exchange members have recently purchased a condo in Vermont, 14 building lots in Riverhead, building lots in the Poconos, a 30,000 square foot office building, and a 10,000 square foot warehouse and a condo in Pennsylvania. These transactions ranged from $60,000 to over $1 million in value. Typically, the buyer paid a 20-30% downpayment in Trade Dollars. The balance was financed with a barter mortgage, almost like in the cash world. However, a mortgage with Collective Currency is provided at 0% interest.

Collective Currency Exchange makes mortgages available to qualified buyers of real estate, where the monthly principal is paid in Trade Dollars. It's simple. You provide your product or service to exchange members and deposit the Trade Dollars into your account. A set amount is deducted from your account each month to cover the mortgage payment. Even better, Collective Currency brokers refer the new business you need to make the payments, and online sales can enable you to pay off the property even faster. It’s a beautiful thing.

One recent such offering was a magnificent house in New Jersey. The owner wasn’t able to sell it in the year it was listed with a realtor. Because he had a need for Trade Dollars, he was willing to take 100% of his equity in the home in Trade Dollars. The asking price was $450,000. The equity of $225,000 was paid in Trade Dollars, and the balance of $225,000 was paid by obtaining financing with a bank mortgage.

Another example of creative trading would be for the buyer to apply for 60% financing of the $450,000 and get a $270,000 mortgage to purchase the house. The seller only requires $225,000 in cash to pay off his indebtedness, leaving an excess of $45,000 cash that the buyer keeps. The buyer also makes a downpayment of 25% of the barter mortgage, $56,250 in trade, leaving a barter mortgage of $168,750. This can be paid off in products or services at approximately $4,000/month for five years. The house needs approximately $25,000 in cosmetic interior renovation, most of which can be done on trade.

The bottom line is, the house can be bought for trade and cash, the buyer walks away with $45,000 in cash, and he lives in or rents the house for five years. The house can then be sold for at least $425,000, paying off the remaining cash mortgage of approximately $225,000, and the buyer/seller walks away with another $200,000 in cash. Given that this is a five-year future scenario, it's likely the selling price would be much higher.

If you are interested in creative trading opportunities that turn your Trade Dollars into cash, let us know. Then the next time a deal comes along, you’ll be in the loop.