It's Derby week in Louisville, Kentucky. Derby season is exciting of course because of all the parties, food, bourbon, mint juleps, extravagant hats, obnoxious outfits, and certainly the big race. It is also a great time in the Bluegrass to make some very creative real estate deals.
Annually, the Kentucky Real Estate Exchangors host the KREE Derby Marketing session, where highly sophisticated brokers, agents and investors from all over the country meet for two full days to help their clients achieve their goals through real estate (KREE.org). Each member brings their own set of clients or property circumstances with them in an effort to find a solution to the myriad of challenges that each situation faces. It is then when all the magic happens.
Many people think real estate can only be bought and sold. I have cash or ability to finance, you have a property, and boom - we have a deal. Of course this happens on a daily basis, but there are endless other ways to make a deal happen. Contrary to popular belief, real estate can be exchanged for with many different items, if and only if those items bring particular value to another party. What can those items include, you ask? Well, simply put, anything really. I'll give you an idea of some proposals that were presented this week. One apartment building owner wished to dispose of his multi-family asset and is willing to accept any passive income stream as an exchange, to reduce his time invested in his holdings. One solution to this situation would be to obtain a note, where he could earn interest as the mortgagor with no time or effort required. Another solution could be a NNN leased commercial asset, where tenants pay all utilities, taxes, insurance and take care of all of the maintenance. An additional solution could be a land lease where no time is required and merely collects a check each month while the new owner operates the property. These are only a few solutions, and of course, the exchange would have to favor both parties to happen.
In the end, it is important to know that anything can be done. One person's trash is another person's treasure, so to speak. Creative minds are the most valuable minds, especially in the world of real estate. Thanks for reading, and enjoy your Derby weekend - I hope you win big!