WHAT IS 3D EXCHANGE ON ASSETFAIR.COM

Unlike other trading, barter or swap websites, AssetFair includes a unique program that caters both to seekers and providers of financing of listed assets.

Since AssetFair allows you to trade your encumbered property, your receivable or debt (backed up by an asset of higher value), it creates a unique opportunity for lenders. When a potential provider of new financing joins an exchange opportunity, the stage is set for a three-party deal. AssetFair trademarks such a situation as a “3-D Exchange”, where the three parties to a deal are defined as follows:

Owner – Owns an encumbered asset

Redeemer – Acquires the Owner’s asset and the underlying debt through 3-D Exchange

Lender – Provides new financing to Redeemer

Our 3-D Exchange platform enables any two from the above parties to seek the third counterpart as per following examples:

1.                  You are an owner of an encumbered property. While you are confident that the property’s fair market value sufficiently exceeds the amount of debt on it, you are falling behind in your payments or you just want to get rid of your debt, willing to exchange any positive equity you have in the property for another asset. The lien holder is willing to extend the financing to a qualified new borrower, or you have located a new lender who would provide a new loan to a qualified borrower, secured by the property. You are then seeking a new borrower (Redeemer) who would assume your property, sign a note for a new loan with the lender you recommend and trade you an asset of his own in exchange for any positive equity you have in your property, subject to mutual agreement. You will pursue this deal on 3-D Exchange by posting the proposal as “Owner and Lender seek Redeemer”. The same deal may be initiated by the original Lender who holds the note and who, for whatever reason, prefers to extend the financing, in the original or a different amount, to a new qualified borrower. In either case, the Lender and the Owner are looking for a Redeemer.

2.                  You own an asset with a debt on it. You have located a party (Redeemer) ready to take over your asset and assume the debt. He has even agreed (if applicable) to compensate you for your equity in the traded asset in cash or in form of an asset he will transfer to you. However, the lien holder/the existing lender, would not extend the financing to the new party and wants to be paid off. You need to find a lender who will provide a new loan to your Redeemer. You post your deal, including information about the new borrower, on 3-D Exchange as “Owner and Redeemer seek Lender”. Financing opportunities presented by AssetFair, and those generated by its 3-D Exchange in particular, are regularly scanned by both institutional and hard-money lenders. If you are contacted by one of them, you may introduce the Redeemer to work out a new financing deal and complete the 3-party transaction.

3.                  You are looking for a particular asset in a particular area. You believe you qualify for a mortgage or another form of loan on the sought property (preferably, you have a potential lender lined up). Instead of using cash for a down payment, you are willing to trade another asset that you own. Through a reasonable combination of the financing available to you and the value of the asset you want to use in lieu of down payment, you assess your buying power and list your search for the desired asset on 3-D Exchange as “Redeemer and Lender seek Owner”. Once displayed on AssetFair, your listing is likely to attract a lot of attention since it provides a potential relief to owners troubled by their debt service. If you have different assets that you may be willing to use in lieu of down payment, we encourage you to post multiple listings since they enhance your buying power.