Buying Real Estate

Buying Real Estate

Real estate provides excellent opportunities to invest Trade Dollars into real estate that will generate cash profits in the long term. Real estate isn't a particularly liquid asset, but real estate becomes more valuable over time and provides an excellent inflation hedge and tax shelter. Since Trade Dollars come from selling surplus or from additional new business and have a low incremental cash cost, many investors find that they can be more aggressive in pursuing investments such as real estate.
Because Contrabart members can earn Trade Dollars without significantly affecting cash flow, investors can buy speculative properties and wait for values to go up. In some cases, it's even possible to walk away with a pocket full of cash.

Even if the investor is forced to sell at a paper loss, the sale can still represent a cash profit. Here's how it works. Let's say a business has an incremental cost of 35 percent in its Trade Dollars.

The business owner buys a property for $500,000 with 30% Trade Dollars (T$150,000 + $350,000 cash), so the total cash cost in the property is $402,500. If he sells the property for $455,000 cash, he has still doubled his cash investment while reporting a $45,000 loss on his taxes. The ATO doesn't care whether you pay for the property in cash or Trade Dollars. The reportable loss is still the same.

Trade Mortgages
You can still buy real estate, including property, homes, units, even though you don't have sufficient trade available to pay for it. Trade exchange members have recently purchased units in Sydney, townhouses in Southport, waterfront acreage at Hervey Bay, an office building in Brisbane, and a resort in tropical North Queensland. These transactions ranged from $300,000 to over $4 million. Typically, the buyer paid between 25-30% part payment in Contrabart Trade Dollars. Where the member didn't have sufficient Trade Dollars the balance was financed with a trade mortgage, just like in the cash world.

Contrabart makes interest free Trade Dollar mortgages available to qualified buyers of real estate, where the repayments are paid in Trade Dollars over a period of time of up to 5 years interest free. You provide your products or service to members and deposit the Trade Dollars into your account. Even better, Contrabart 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 that simple.

A recent property sold was a luxury Townhouse in Sydney. The property market in Sydney was slow so the developer decided to sell the property accepting Trade Dollars as part payment. Because he had a need for the Trade Dollars, he was willing to take 30% of his equity in the Townhouse in Trade Dollars. The asking price was $500,000. The equity of $150,000 was paid in Trade Dollars; the balance of $350,000 was paid by obtaining financing with a bank mortgage.

An example of creative trading would be for the buyer to apply for 80% financing of the $500,000 and get a $400,000 mortgage to purchase the house. The seller only requires $350,000 in cash to pay off his indebtedness, leaving an excess of $50,000 cash that the buyer keeps. The buyer also makes a down payment of 20% of the trade mortgage, $30,000 in trade, leaving a trade mortgage of $120,000. This can be paid in product or service of approximately $2,000/month for five years interest free.

Bottom line is, the house can be bought for trade and cash, and the buyer walks away with $50,000 in cash and lives in or rents the house for five years. The house can then be sold for at least $500,000 plus capital gains of say 20% which would make the property worth $600,000. Pay off the remaining cash mortgage of approximately $400,000, and walk away with another $200,000 in cash.

If you are interested in creative trading that turns Trade Dollars into cash, let us know. Then the next time a deal comes along, you'll be the first to know.

GET THE BENEFITS YOU DESERVE

GET THE BENEFITS YOU DESERVE

Increase your buying power with revenue from new sales and conserve your cash. Use your new found revenue to pay for the products and services you want.

There are many good reasons why more and more businesses worldwide are bartering their products and services, but underlying them all is one fundamental business motivation; businesses profit.

Airlines and restaurants can fill empty seats, hotels and resorts can fill empty rooms, printers can fill press downtime, professionals can fill empty time slots, health care professionals can treat new patients.

Business owners and professionals can then take this newfound revenue and reduce cash expenses or expand their operations.

Businesses across Australia and the world are taking a serious look at barter as a way to build their bottom line, and the rapid growth of the online barter industry can only mean that Australian business likes what today's barter industry has to offer.
Get these benefits and enhance your business potential by joining today:

INCREASE SALES: We market your business to other exchange member businesses in the online member directory, weekly email and through our Trade Brokers. Your business gets incremental sales from buyers looking for barter opportunities within the Contrabart network.

NEW CASH SALES: The number one source of advertising for small businesses is "word of mouth." If you do a good job for an Contrabart member, they will refer their cash-paying friends, customers, family and other businesses to you. Additionally, barter revenue from the incremental sales that we will bring you can be used for radio, television, print, direct mail, outdoor, online campaigns and other types of advertising to attract more cash customers and build your brand.

IMPROVE CASH FLOW: You can improve cash flow by increasing sales and reducing costs. Participating in a barter exchange does both! Barter enables you to pay for the products and services you need with what you have. When you hire a contractor, paint your office, or buy office supplies with Trade Dollars, you conserve your cash to pay other expenses. And, when you purchase using Trade Dollars, you pay for it with revenue from new sales - sales that you probably would never have had.

MOVE EXCESS INVENTORY AND FILL IDLE TIME: Every business owner has excess inventory, production, capacity or appointment time. That unscheduled appointment today has zero value tomorrow. When you join Contrabart, we provide you with new business to put your excess to use in profitable ways. We accomplish this by matching your product or service with businesses looking to purchase them on trade.

WHOLESALE BUYING POWER: With barter, the actuall cost of the products you purchase on trade is the wholesale cost of your Trade Dollars earned. Making sales with built-in profits makes the cost of your purchases more economical on trade. When you join Contrabart, you open the door to a new, cash-free way of handling every day business and personal expenses.

PROVIDES A COMPETITIVE EDGE: Contrabart members will patronize your business over the competition because your barter affiliation is an incentive to do business with you. Barter attracts new customers to your business, without affecting the existing cash sales already being generated by your company.

NO BAD DEBT: We eliminate collections. When you make a barter sale to a Contrabart member, you process the transaction using a touch tone phone or online postings to verify that the buyer has the Trade Dollars available to pay for their purchase.

COLLECT RECEIVABLES: A small business might find it difficult to pay you the cash they owe, but would welcome the opportunity to fulfill their obligation with payment in products or services. Contrabart members can then offer these goods and services to members for Trade Dollars which get deposited to your barter account for the balance you were owed. Your non collectable receivable just became revenue that can be spent on a variety of business expenses.

EMPLOYEES INCENTIVES: By using exchange member dentists, you can provide a much appreciated benefit to employees without having to pay cash for it. Barter is also a great way to offer contest prizes, bonuses, wellness programs and tickets - all available to you without using cash, and all based on your cost of the incremental business that we have brought you.

CONNECT, NETWORK, TRADE AND GROW

Sell excess inventory, capacity or production to a new market of buyers locally & worldwide. Then, trade for the Products and Services you want instead of spending cash to improve cash flow and grow your business.

It's simple. Barter companies are third party record keepers just like banks and credit card companies. When you join Contrabart, you get a barter trade account, which is much like your business cheque account at your bank except that deposits and payments to your barter account are made with Trade Dollars instead of cash. And, one Trade Dollar = one cash dollar.

Unlike direct trading, barter exchange members enjoy multi-party trading, so that when you provide your product or service, you are not limited to receiving the product or service of the person or company you traded with.

With your exchange membership, in addition to your cash cheque account at your bank, you will also have your barter cheque account. Each time you spend Trade Dollars instead of cash for the products, services, travel and advertising you need, you conserve cash. And, we will refer new business to you from new customers that you most probably would never have had.

With online e-commerce enabled multi-party trading, Mr. Green, the massage therapist, who earned $800 Trade Dollars by filling empty appointment slots with exchange members, can get a new sign for his business from Mr. Blue, the owner of local sign and printing shop, who can trade for office cleaning services from Miss Violet. Miss Violet uses the Trade Dollars she earned from cleaning Mr. Blues shop each week, to get a massage for herself and her husband, keeping them in tip top physical shape for her cleaning business.

Most businesses that join a barter exchange can anticipate getting 15% to 20% in additional new sales from buyers referred to you by the exchange that will pay you in Trade Dollars for your products, services, excess inventory or capacity. Then, use your new found revenue from those sales to pay for purchases instead of using cash. The cash savings goes right to your bottom line profits!

Get your share of this enormous business potential and Join today!