Home Tips and Tricks Barter to Renovate a Home

Barter to Renovate a Home

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There are many ways barter can be used to renovate or restore a home. You can use barter to purchase building materials and hire contractors. Many suppliers such as tile, carpet and stone companies have huge excess inventories or items that have gone unsold. They would welcome the opportunity to get full value for the building materials instead of liquidating or discounting them.

Contractors will welcome the work during this downturn, as there are so many that are sitting at home every day with no work, and others that are laid off waiting for the next job to come in. The contractors could use the trade dollars they earn for medical and dental care for their family, to go to restaurants and attractions, or if they own their business, they can use barter dollars to advertise to get more cash sales. When business is slow, the first thing that gets cut is advertising, which then makes business even slower. Using barter dollars that they earned from new sales to new customers that they would never have ordinarily had if they didn’t accept barter, they can continue advertising or increase their advertising budget without spending cash.

If you are a builder or developer, you might be able to trade construction work for equity and then pay the contractors in cash when the condos or homes you are building are sold, but that’s a different type of barter where they are trading services now for future cash profits. The issue with that in this economy, is that the contractors need cash (or trade) now, and not months or even years from now, when the condos actually sell.

The best way to get started utilizing barter in real estate transactions or renovating real property is to own a barter exchange. It provides you with the advantage to bring in the types of new members that provide the services you need, so that you can use the barter dollars you earn from fees or from selling your own product or service to pay contractors and suppliers.

An important consideration to remember, is that barter sales are taxable the same as cash sales, so be sure to report any income from barter sales on your tax return.

Bruce Kamm
Chief Evolutionary Officer
VirtualBarter.com.

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