About Rick Otton
Otton is one of the pioneers of creative property strategies in several countries like Australia, New Zealand, and United Kingdom. His greatest contribution to the real estate world is his positive cash flow and no money down property transactions strategies.The Rick Otton scam employs the following strategies
1. Positive Cash flow
- Wraps. This is a financial tool that offers intending purchasers any walkway straight into property ownership without needing to look for approval from a conventional lender. Also called dealer financing, any buyer with a weak history of credit or perhaps some other problem, will usually look for one of these agreements. Through the investor’s standpoint any cover program can certainly make constructive profit of $1, 000 per month and much more, due to distribution involving the buying price and the selling price, along with the interest rate of the investor and the market price of the buyer. Merchant financing deals are generally long lasting agreements.
- Rent to Own. The rent owning cope which is usually a short term layout is wonderful for tenant purchasers who are in a position to qualify for financial institution financing within 2-3 years. Even though an investor will normally not relish more positive cash flow throughout the term of the contract, the balancing nature is that the deals don’t persist as long as a vendor finance layout. As a result, the particular agreement earnings are going to be crystallized when the tenant buyer budgets out.
His concept of positive cash flows integrated with the rent-to-own growing market allows for the strategies to work. He cites that the reason why his strategy actually works is because buyers really want to own their property. Because of this, buyers are motivated to maintain good payment history. They also look after the property more because in the rent-to-own transaction, they have to look after their interest which is to buy the house after the lease period. Buyers in this transaction feel control over the unit because of their thrill to control the property with a little amount of money involved. The reason why this transaction really works is because most buyers exercise their right to buy at the termination of the lease period.
The best thing about it is that the tips will come from the man himself, Rick Otton. His simple guide on how to do what he does has helped save people from their own financial crises.
2. No Money down Strategies
The main point is that you don’t have to possess some property from which to money from .All that you need to do is control it. He employs a series of techniques to control or buy property using little or no money down. One of the strategies is the Sandwich Lease. This is where the dealer plans with the seller a long term delayed settlement which results in handing the control of the property to the investor. The main benefit of this plan is that only a small percentage of the value of property in cash is needed to take control of it.