A Cool Real Estate Story about the use of Barter

Several years ago my wife and I decided to build a new office warehouse and both of our companies would move into it. The cost of the building was about $2,000,000.00. We were able to barter for about $400,000.00 of the cost of the building. Here’s how it worked.

I was able to sell $400,000.00 of my products to businesses in a barter exchange. I would have never sold these products if I didn’t belong to the barter group so these were additional sales. I received $400,000.00 barter dollars or barter credits for the products I sold. I was then able to use these barter credits to pay the sub contractors on the building. I used the dollars to pay the cement contractor, the wall paper supplier, the landscaper, the carpet installer and many others,

When I sold the $400,000.00 of product I had about $150,000.00 cost for labor and materials and aIso generated a profit of about $250,000.00. I used this profit to reduce the amount of cash we needed to build our building and the net result is that we have $250,000.00 less of a mortgage on the building today than we havew without the use of barter. When you figure the interest we would have paid on the $250,000.00 over the life of the mortgage the decision to use barter in this example probably is saving us over $500,000.00.

The net result here is that we generated several hundred thousand dollars in additional sales that we would have never seen without the use of barter. We then used those additional dollars to pay for goods and services that saved us hundreds of thousands of dollars in cash. Here is another great example of how the use of barter will find you new customers for your business and help you protect your cash.