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Hello its Rick Otton here with a little more accurate information re WA…Western Australia passed legislation that people need a real estate license in order buy, sell or trade a property option .
I had an informal chat with the commissioner as I was concerned every property developer and property speculator in WA would now need to be licensed . The state passed the legislation which also surprised many in the legal fraternity as it was never debated or challenged and many wondered if it would be upheld by the supreme court . Then a student used a cardboard box and written on it was "buy my house $500 a week"….The state charged the student with "misleading and deceptive advertising " because he did not technically own all of the house " therefore the box should have said "buy this house" WA decided to charge the student and I rightly or wrongly felt I would lend a hand to get this resolved in the supreme court once and for all. This started 18 months ago and then I released the book "How to buy a house for a dollar" that pointed out you build property portfolios by picking up existing property debt by a token dollar or pound moving between solicitors to act as the glue to hold the transaction together the same as Merrill Lynch did to buy Bank of America.
WA was concerned that if people didn't understand the concepts they may be mislead into believing they could purchase the entire house for a dollar coin. I suggested pulling all materials from WA to resolve the issue but as the strategies in the book were legal in WA they requested it be withdrawn from sale for a period of two years and I refrain from teaching strategies contained within the book for the same two year period. I agreed as well as to provide more information to remove all doubt about how buying for a dollar works.
When I started 23 years ago in my quest to change the way people buy and sell properties it was because many of the established systems and methods were hundreds or years outdated and never questioned or challenged.
I started the vendor finance association of Australia and as its founding President for 8 years I successfully lobbied Govt and taxing agencies for better legislative and tax treatment on the various types of strategies and was paramount in making vendor finance a more mainstream toolset which many make a living from today. Like any business I try to get it right every time but sometimes the market tells me I didn't so I'm constantly readjusting to market conditions an take the feedback whether it be good or bad…No other state or territory has questioned my book it has been voted one of the best financial titles by both money magazine and the Dymock book shop chain
Unfortunately I'm rarely on forums and apologise that probably my silence has no doubt created concerns but I have attempted to make amends here. R
Hello its Rick Otton here with more information re WA.
Western Australia passed legislation that people now need a real estate license to buy, sell or trade a property option. I had an informal chat with commissioner re this change, as I was concerned that every property developer and property speculator in WA would now need to be licensed.
The state passed the legislation, which surprised some in the legal fraternity as it was never debated or challenged and many wondered if it would be upheld by the Supreme Court. This is presently being argued in the courts as well as what constitutes ownership.
Meanwhile, lease options are legal in all states of Australia and you do not need a license to enter into one. This started 18 months ago and then the book “How to buy a house for a dollar” pointed out that you can simply build property portfolios by picking up existing property debt by a token dollar moving between solicitors to act as the glue to hold the transaction together.
I was contacted by DOCEP in WA who were concerned that if people didn’t understand the concepts, they may be misled into believing they could purchase entire houses for a dollar coin. The issue is now before the Supreme Court.
I suggested pulling all materials from WA to resolve the issue but as the strategies in the book were legal in WA DOCEP instead only requested that it be withdrawn from sale for a period of two years, that I refrain form teaching those strategies contained with in the book for the same two year period and that I provide more clarity which I agreed to do…
No other state or territory has questioned my book, it has been voted one of the best financial titles by both Money Magazine and the Dymock book shop chain.
Unfortunately I’m rarely on forums and apologize that my silence has no doubt created concerns but I have attempted to make amends here
Facts…
North Sydney was sold with wrap instalment contracts as was Newcastle as was Chatswood as was most other regional cities in australia…..
Fact……on one documented ontract has been disputed in court…………1
Fact……vendor finance contracts made up most real estate contracts in the first 100 years of Australias history
Fact….Meriton the biggest apartment builder in Australia built its empire on vendor finance contracts
Fact…The writer of the article asked for a phone interview but as I'm presently in London my staff asked for questions so we could research and supply accurate facts to the article……………the paper decided to run with old inaccurate outdated information
Fact… Arthur Schopenhauer German Philosopher 1788-1860 said anything out of the ordinary passes through three stages. First, ridiculed. Second, violently opposed. Third, accepted as being self-evident. Look at John Simmons and aussie home loans……..his motto think change
Fact…the federal minister for small business over lunch said he won't allow the abolition of vendor finance as its part of the way of business and couldn't understand what all the fuss was about
the what if ..Forward fear of what could happen in possible events that might eventuate
we can only move forward operating with reality and facts!
Fact…over million aussies now prefer to live and thrive overseas than live locallytherefore does anybody mind if as a country we move on and take on the rest of the world……………
P.S…Rick Otton (London)
Rcik OttonHere it is……how many are you doing?
Do one and you get hit unless you can prove this is the business you are in
if this is the business you are in then you pay the tax when you receive the profit
http://www.rickotton.comBecause of market corrections it is always good to be armed with the right strategy for the right market timing……now it is probably wiser to simply assume or take control of mortgages attached to the existing house your thinking of buying…this way you didn’t create the debt and are not liable for it but can profit greatly from it being available…many of my students in the last 12 months have moved this direction as it enables you to get much more bang for the money. Today a student was able to back pay a defaulted loan by 12k and assume a 700k house and i think this is where you may wish to look. You can then move that on for say 800k but you’ve only get 12k involved…hope this helps
http://www.rickotton.comThe power of these are amazing they come in a variety that is proving to be very popular …
To use these strategies to assume home loans and buy into big properties for pennies. Only today one of my students bought a 1.5mil property tennis court and pool for the cost of next months mortgage payment and a organized a car to be left in the driveway…
These transactions are the way of the future for now with the market the way it is
http://www.rickotton.comI suggest you put some meat in the copy and remove the advertizing jargon.How about the costs, the money required to get involved.Price on application I haven’t found sits well with buyers.Listen to a teleconference I had last week with a student of mine and she’ll tell you how she changed her add style and received over 40 calls…she tells what she had initially similiar to yours and what it changed to.You should grab her ideas it may well assist you in your journey http://www.rickotton.com
P.S. the link will go up TuesdayI pay 1% for prescreened buyers
http://www.rickotton.comThank you for the question.Before I agreed to this purchase I asked the agent (whom I’ve bought from before)what else had just sold in the street to support this property as being below market and a good buy.Two houses had sold in the same street one for 348k and one for 355k.I will shortly put up on my site some downloadable footage of this transaction taking place with the agent in the driveway of this house.www.rickotton.com
The event this year moves with the massive growth in the market place of assuming loans through lease options and creating debtfree income streams through 2nd mortgage carrybacks.I’m sure we’ll cover all the other types of vendor financing somewhere but for the benefit of those not familiar with the power of the 2nd mortgage carrybacks as a great cashflow strategy here is something that came together this week.
Some readers of this post will know about a pretty new, but smelly house I picked up a couple of weeks ago for a great discount because the agent simply could not get anybody to look at it.
The house was worth 350k and we paid $276,800 including smell. We asked the selling agent to get it painted for 3k then a mortgage broker bought us a buyer who could get a loan with RAMS but did not wish to pay the mortgage insurers fees.We received 10k deposit in cash and a second mortgage for 60k paying us $384 a month cashflow for 30 years with the buyer taking title with his new RAMS 80% loan. All this done by either the agent or the mortgage broker with no underlying loan debt for us and never leaving the office.The cashflow creating power of this strategy is awesome.www.rickotton.comtip:experience is what you get when you don’t get what you want
Tip:you can never pay too much, just too soon
May I suggest you feel free to contact me if you want some assistance or advice with Texas as it was in Texas I started my We buy Houses business some 15 years ago and bought many foreclosues in the good old days of the Savings and loans collapse as well as many since.p.s. it doesn’t get cold till about Thanksgiving. http://www.rickotton.com
I have managed to achieve many of these transactions Texas over the years, the advantages are you can do so with only one form and $7 and you can use a 1031 exchange to defer taxes on profits by applying the profits to the next property.Downside is from experience doing this from a distance means you’re relying on Texans thinking like Australians.www.rickotton.com
“Tea bagging” is becoming quite popular at the moment and really is one of the most popular types of vendor finance.This is where a buyer finances 90-95% of his property purchase and you supply the remaining 5-10% either by gifting or cash in.You carry back from settlement 2nd mortgage or first on other unemcumbered property
for 100% to 300% of loaned value with future interest capitalized.Discounts applied for early payout.No loan liability, no debt service and no applications http://www.rickotton.comRemember the secret here is your providing and supplying opportunity …not a two bed unit as a two bed brick unit has no emotive impact http://www.rickotton.com
May I suggest a couple of things here…
1/ A letter from her lender which is pretty standard stating the payout figure from the property in order to release title…this is different from loan balance letter
2/ You don’t mention how much she needs upfront which is important to know
3/ in this market I always mention to sellers and get them to agree that since this is a fair deal for everybody they won’t mind if I test the market first before my obligation takes place under their existing mortgage
http://www.rickotton.comAs you guys know I buy in dallas twice a year because that is where I started out so If you’d like to come along next time drop me a line
[email protected]Hi again, re the interview
I refused to do the current affair interview and it was agreed to only at the last minute under two conditions
A/ I would only talk about the association with I was the spokes person for at the time but not the President
B/ I received the questions in advanceNeither of these two things happened and unfortunately asking cameras to be turned off usually comes across worse
Questions about my business were not answered as the interview was not granted in order to discuss my business!
Hello,
in answer to my comment about never having been to a Steve seminar, I remember being interviewed and it became obvious from the beginning that the interview was really a set up for an industry bashing with the interviewer to set both Steve and myself up and pitch us against each otherAt the time I made the statement to the journo my intent was to move the conversation into a more positive direction and away from the negative direction it was leading
Although I have not participated in Steve’s more recent events, I actually did attended one of Steve’s earlier events at the university in Sydney and found it to be of great value as well as purchasing one of Steve’s courses which I have also found to be great value as well as his book.
Seems to me, if you enjoy golf it is probably best to buy every book on golf!
re the association…
Jack Dempsey is the current President of the association and I’ve offered to help out this year as it would be great to recharge the association. His number is 0405475764
Rick Otton
fair comment about the copy writing it is a little gimmicky and i will address that but buying the house for $1000 deposit is correct so is last months for $452.00 deposit……full stop no more to pay….it is because it is hard to believe I do all these things that i put up the actual contracts, the actual cheques and in many cases actual pictures of the people involved(if i can get them to stand still)…when you think about it i wouldn’t have had the abc guys around for 18 months making that doco if the numbers didn’t stack up but i will fix those copy writers (they get so excited) soon as i get back from good old Texas where i’m presently buying and selling some houses and condos with good ‘ol boys an real small deposits
see ya’ll real soon
Rick Otton
p.s. rick otton with an o might get you their quicker than rick otten with an e
