Working with an FSBO - Bartering might work

Bartering is coming back into popularity with the credit crunch in full effect. Obviously, the sellers motivation and need are the keys to bartering being a possibility. If you have something of value such as a boat, classic car, newer car, fine art, jewelry, bonds, precious metals, etc that have value and are of interest to the seller, you might use these as collateral to get into a property. It could be your down payment.

If the seller is willing to wait for their money and just need to get out from under the maintenance issues with the property or they want to reduce their tax hit and spread it over time, you might have a seller who is willing to barter with you.

You will not know if they are open to bartering until you speak with them and ask them what they have an interest in, why they are selling, and what they need to get out of the property they are selling. If you never ask, you will never know. A question never asked is 100% NO, but a question asked could be a 50/50 shot at a YES.

I have taken trade ins for my properties over time. It depends on how long I have had it on the market, how much interest I have had in it, and what I want to do with the profit from that property. I enjoy classic cars, so I have taken a few of those on barter as well as a single wide mobile home.

The mobile home was resold the moment I took title to it. The person who traded it in had a friend who wanted to move in right away. I received $1,000 down and $100 a month for 10 years. They have never missed a payment!!

Thinking outside the box in any market will create more opportunity and profit than you could find inside the box.