banks. Private lending is a viable option to obtain capital.
OTHER TECHNIQUES Here are more alternatives for readers who want to negotiate in the cashless acquisition of real estate. NO. 1 CRAIGSLIST™ Try placing two ads on Craigslist™ under “Barter” (free) and under “Real Estate Wanted.” Make them marketing campaigns, which means refine your ads and see what works. You might get a deal or two per year, but at $5.00 per month you can just keep the ads running. NO. 2 BARTER ORGANIZATIONS See what is available in your area. Sometimes you can barter for an item that you can successfully use to buy a piece of real estate! Acquiring real estate in these ways requires creative thinking, but it is also fun to be in these kinds of negotiations. So, take inventory of your personal property and tradeable skills to see if any of these alterna- tive options could help you start your real estate portfolio. •
I have seen a gorgeous, 1930s, wooden motor yacht used for a down payment. Vehicles, motorhomes, promissory notes, gemstones, jewel- ry, securities, shop equipment, and antiques are some other examples. Use your imagination. I even once gave an unfinished rolltop desk for a down payment on TWO rental hous- es! See if you can beat that! BUYINGWITH PROFESSIONAL OR PERSONAL SERVICES A third way of purchasing real estate is with professional or per- sonal services. Examples here are an endodontist installing implants, a plumber installing piping, or a land- scaper planting a front yard. Example wording might be: “Dr. Malcolm and Mrs. Bright will provide dental implants to seller based on the attached Dental Services Con- tract valued at $60,000.00 as a down payment on the subject property.”
Using this approach has an added benefit. The dentist, plumber, and landscaper provide their services at their cost, but they get credit at a retail value. They are making a profit on their service or getting a discount on the property, depending on how you want to look at it. DEALINGWITH LENDERS In these transactions, it will be unproductive to go to major lenders because they package their loans into securities and sell them to replenish their funding supply. Local banks and credit unions are worth a try because they retain and service their loans. Having or opening an account there should help. You can be sure that they will want apprais- als and inspections for their loan file. Your best bet is private lenders. With the Federal Reserve keep- ing interest rates low, investors are seeking yield in alternatives to
Bruce Kellogg has been a Realtor® and investor for 40 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+
apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, churches, and several group investments of commercial properties. He has not done marina or airport hangar properties yet! Mr. Kellogg is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed inWho’s Who in America 2019. Mr. Kellogg is available for consulting about syndication, “turnkey”, joint- venture, and other property purchases nationally, and other consulting assignments. Reach him at brucekellogg10@gmail.com or (408) 489-0131.
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