Forums / Property Investing / Help Needed! / It’s possible to Buy house for a DOLLAR?

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  • Profile photo of siewlinsiewlin
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    @siewlin
    Join Date: 2012
    Post Count: 19

    i have been reading lots of property books and i came across this RICK OTTON investor who purchased property with a dollar !!! does anyone has tried his method or have attended his bootcamp ??? it's effective and can it be applied in australia market ??? please advice

    Profile photo of GrantMckGrantMck
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    @grantmck
    Join Date: 2013
    Post Count: 36

    Hi,

    Received the book today, looks to be a great marketing tool with get this for free and that for free. I am always cautious and look for the motive from all marketing approaches, in saying this I will look into investing my next $100 into buying my next 100 properties, hopefully after reading furthermore in the book I can learn how to do so. I am sure there will be some tried and proven examples from the past, if legally they are possible today may be a question, but as I said, I need to read the book. Keep your mind open to new concepts but move forward with caution.

    Cheers Grant

    Profile photo of wilko1wilko1
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    @wilko1
    Join Date: 2010
    Post Count: 510

    For $2 you could buy a cheese burger at your local Maccas. Reckon that's your best bet here

    Profile photo of Tony FlemingTony Fleming
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    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    Normally if it sounds to good to be true it is. I'm sure it can be done otherwise you wouldn't be able to advertise it for so long without be called out which hasn't happened yet, but from what I've heard its more about trading property without ever owning it so your name is never on the contract you just kind of flip it back onto the market with the dollar as your holding depoist. I could be wrong but once you've read the book let us know would be good to hear the strategy. 

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
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    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    siewlin wrote:
    i have been reading lots of property books and i came across this RICK OTTON investor who purchased property with a dollar !!! does anyone has tried his method or have attended his bootcamp ??? it's effective and can it be applied in australia market ??? please advice

    Rick Otton's strategy is vendor financing – you can read up about it on this site and others.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of rhino101rhino101
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    @rhino101
    Join Date: 2008
    Post Count: 31

    I am just about finished this book. I own and have read dozens and dozens of real estate/ investment/ money books and I found this to be one of the most frustrating. The first 2/3 of the book were spent on vague generalisations, with every chapter telling me about how this book was going to teach me the 'how to's' of his strategy, without ever actually doing it!…………..I shouldn't say "never" – eventually, near the back section of the book it did get into specifics, but there seemed to be a number of ananswered questions apparent for anyone who has a reasonable degree of real estate knowledge and experience.

    Like a number of other strategies that can be used, I have no doubt this will work – if you have the right mindset, apply yourself to the max and ensure you do thorough research and get proffessional legal and accounting advice throughout. With so many strategies out there, it really is horses for courses. Personally i may use some aspects of this strategy to enhance my portfolio, but there are plenty of other options that are not quite so complicated, with great returns.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,018

    The concept refers to taking a Call Option against the property and can certainly be done subject to finding the right property / vendor.

    I have done a number of Options and all have been successful however in most cases you need to spend money developing or renovating the property so for this you will need additional funds.

    As i say you need to be aware of what it involves and then make a decision whether it is for you.

    Certainly not a get quick rich scheme.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Tamara43Tamara43
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    @tamara43
    Join Date: 2012
    Post Count: 57

    Richard, there's a little strategy called a HANDYMAN SPECIAL which allows your incoming buyer to use Sweat Equity to purchase the property in lieu of the renovations required. I wouldn't waste my time or money on renovating. I just don't have either. I'm a mum with 2 special needs kids so I'm limited on both of these. So in most cases No you don't need to spend money on renovating or developing to do real estate creatively.

    Profile photo of craigrachowcraigrachow
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    @craigrachow
    Join Date: 2013
    Post Count: 6

    sure you could buy a house for a dollar…… your ongoing costs will probably be aweful though :)

    Profile photo of hemi3000hemi3000
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    @hemi3000
    Join Date: 2012
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    Vendor Finance and Options all the way.  There is no such thing as can't only try. This strategy has been around for years. The name of the game is how much FEAR don't you have and how much DETERMINATION have you got?

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
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    Why not just buy property with 100% finance which has sufficient yield to pay for itself.  That way you get to keep the property as well.  Having your cake and eating it too, so to speak.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Josh AthertonJosh Atherton
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    @josh-atherton
    Join Date: 2011
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    The figure used is arbitory, its all a part of the negotiation with the vendor. Somehow you will need to flip the property without settling on it (within a pre-negotiated timeframe usually). It can be done with land, houses, units etc. 

    I use $2000 – $10,000 deposits for development sites, get the DA through (ranging from $3000 – $15,000) and then on sell to other developers under an option period. This is obviously not a strategy to build a portfolio but builds capital. 

    Your success is going to be based on the time you have to research and then action, also your ability to research the right deals. Its not the best move for a novice investor but can be done.

    Profile photo of BoughtWithEquityBoughtWithEquity
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    @boughtwithequity
    Join Date: 2013
    Post Count: 68

    Sure you can buy a house for a dollar……Detroit has plenty of them and wholesalers there buy them and flip them back out for fat profits.  Real estate is fun and there are tons of profitable strategies but P.T. Barnum once said "a sucker is born every minute" or words to that effect.  There is much to be learned just from reading through this forum.  Happy investing!

    Profile photo of JamesMonaghanJamesMonaghan
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    @jamesmonaghan
    Join Date: 2013
    Post Count: 2

    I've bought dozens of properties for $1 using Rick Otton's stratergies. I think the book is a good read. I liked it because it talks about transacting real estate without needing a deposit, don't need a bank loan, no stamp duty. It has allowed me to move forward with property, not sure if there are other ways I could have learnt as much and gained experience. That's just me.

    Profile photo of Reno101Reno101
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    @reno101
    Join Date: 2013
    Post Count: 26

    I agree with Josh , property deals can be done using very little money within  a specified timeframe using an option ,but as a novice trying to enter this agreement you could come unstuck because of not knowing how this process works .Read more  books on the subject  and if still keen  I suggest you find a mentor / coach  to walk you through this process  as it does pay well once you know the strategies , I enjoy doing  renovations ( buy , Reno , flip em )  I got some coaching  a few years ago about options  and applied it to my next  renovation project  as an option , end result $70,000  in 7 weeks  , if I was a novice this would not have been achievable , my  full story  is on their website ( Massland  $70.000 in 7 weeks renovation option )  I hope this helps you in some way deciding what to do , but give it some time and thought  , because that's what  an option is time with creative thinking . Greg :) 

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