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International
Real
Estate
Equity
Xchange |
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Real Estate Investors
Switzerland’s WIR Bank Trade System has developed a network of
502 real estate brokers and 43 accommodators who use the
financial model to generate, on behalf of investors, 1.5
billion dollars in real estate exchanges annually.
Our company has endeavors to create a similar system for
U.S. investors. To be admitted to the system an investor
must:
1. Have creditworthiness and a substantial
net-worth.
2. Be regularly engaged in buying, selling and
exchanging investment properties with an acquisition as well
as a
disposition plan.
To this type of client the system provides a financial
model that facilitates the disposition as well as the
acquisition of properties. The service consists of:
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The extension of credit
in the form of a credit line in the System's trade
credit. If the line of credit is activated, there is interest charge, on the amount borrowed, in the
amount of 2.5% per annum. The loan is not placed on
an amortization schedule and is not repaid in cash.
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Purchase Financing
allows for System funds to be used, as part of the
consideration, to acquire real estate. The trade
credit portion
ranges between 20% and 35% of
the purchase price.
The Swiss operation has proven that an investor,
typically using the services of a broker and an
accommodator, can use exchanging as a means to reduce
debt, improve cash flow and the overall portfolio
performance.
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The
mechanics of
the American
Trade System
operation
are
described in
some detail
in the
"ATS" website.
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