When owning or starting a real estate project there are large upfront costs. In addition to acquiring land there are marketing, printing, advertising and building and tenant improvement costs.
Real estate developers and owners can utilize the services provided by BizXchange to fill vacancy and reduce cash costs. When working with a real estate client, BizXchange commits to purchasing an agreed amount of property from a developer and provides an advancement of trade credits as payment. The trade credits are used by the developer to pay for cash expenses such as:
The transaction benefits the real estate developer by providing an immediate guaranteed sale and the ability to save cash resources for future investments.
- Building materials
A real estate developer identifies necessary cash expenditure in several categories.
BizXchange agrees to purchase $325,000 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.