Category Archive for Property Finance

Just this last week I was lucky enough to be sent one of the new Massive Property Packs from Rick Otton. Rick wanted someone in the field doing the sorts of creative finance transactions he puts together that could comment and review his new property course.

I was so excited that when the courier left a sorry we missed you card i felt like i had let him down by not being home to get the pack. Sorry mate I was trying to tie up a townhouse complex with a buck and the conversation went way too long,but we can talk later! So I did not receive the pack until the following Tuesday.

Just to let you know the first property pack I bought from Rick was the Wrap pack in 2001 and for memory it came as a tape, folder, legal docs and calculator set. Not much bigger than most over night postage packs. The Massive Property Pack came in a box that the courier said was 7kgs! so this added to the anticipation!

You can see in the picture that its a very professional looking set of items that will help create a basic business if you simply follow the system step by step. And don’t change anything in the system besides your telephone numbers on the offers and forms he lets you use! Otherwise people will call him rather than you!

In the 2nd page of the folder manual states ‘How to Buy A House on One Days Pay‘ is really the basis of the pack. We all know that less money in any transaction reduces the risk of the transaction, but what if you could control, manage and on-sell a property you have no more exposure than a day’s pay?A true No Money Down strategy to buy property.

The general concept is not new and most property ‘educators’ are talking about options now the property boom is in a downturn and they cannot rely on capital growth to secure more seats to seminars and conferences. Rick has been doing Lease options and other no money down transactions for years. 15 or more years to be precise. His experience comes from the savings and loans crisis in the United States when banks were not lending on any property and guys like him had to buy houses and transact property without any banking system.

I am not saying he made the whole system up, that would be untrue, but I do not know of anyone who is so upfront and honest in the way he educates his students. I used to be able to call Rick on his mobile just because I bought his Wrap Pack years ago! Who else lets you do that? I think this shows he actually cares about what his students are doing with his material out in the marketplace.

My feeling is that Rick is trying to help people setup a business similar to his company We Buy Houses. The fact that the examples and checklists we received in the pack are branded We Buy Houses is a testament that nothing is off limits in his eyes to help his students build their own property business.

So what is the Massive Passive Property Pack like?

Well here are my initial findings!

1. There is literally so much audio content that you will have to drive to Perth and back to get through it! Seriously, you will have to spend some serious time getting through these, but the content is fantastic, you just fly through them. You may think this is a drawback, but I think that as a hands on sort of guy I need to hear someone talking about the concepts and ideas for the lessons to kick in.

There are private phone calls, conferences and meetings, one on one conversations and private mentoring sessions that are covered and heaps of professional people who have supported Rick are involved. Guys like Tony Cordato, the vendor financing lawyer everyone uses in Sydney. There is Lewis O’Brien who is the Lawyer for the Victorian Guys using Rick’s techniques. Most of the audio is transcripted in a seperate folder and for those of us who appreciate being able to re-read something is a handy resourse.

2. There is a couple of hundred pages of how to, what to and when to articles aswell as a full guide as to how each transaction should be set up. There is a step by step guide to speaking with agents and vendors and a full script for the telephone conversations that need to be made with confidence and also extract the information to make this business a success.

3. There are a couple of Dvds which help the students experience the ideas and concepts from a difference stimulus, which is great as it gives a whole new understanding as some of the content on video is a workshop and it discusses basic terminology of the no money down strategies.

4. The successful sandwich lease options guide is a handy 40 something page booklet which I found to a be a go to guide today actually whilst trying to get an agent to sell my concept to his client.

5. There are two audio cds from two of guys living and breathing the business just like Rick. One of them is Martin from Cairns who makes a Million Dollars per year from This business and the other is Chris who is a Dancer in Tasmania. Chris is a normal family guy who has to buy properties cheap or for no money in it to get his business going. These are eye and ear opening as getting started is hard with a few blunt NO’s from agents etc.

6. There is every state in Australia and New Zealand’s paperwork and all the legal requirements have been listed by Lawyers in those areas. This is great if like me you live on the border of two states and do business in both!

The Massive property Pack will no doubt create so much attention in the real estate industry, that rick will be busy aging making more and more copies to make sure there is enough to ensure our business keeps growing and growing. As the Martin the Cairns Guy says. ‘Just back yourself and go for it‘ and ‘We offer a superb, superb alternative to the banking system this is going to be more and more common’.

Get a copy of the system from this link. Massive Property Pack Rick even offers a 5 times the price guarantee, so if you follow his system for a year and do not make more than 5 times the cost of his program, he will refund the cost of the Massive property Pack.

Don Christie

Picture This

1. A friend of yours wants a loan from you.
2. You ask them to insure your money against the risk of you not being able to return it or pay it back.
3. They don’t repay the loan.
4. You claim your insurance on the funds you lent them and the insurance company pays you the cash.

That is what mortgage lenders do everyday to ensure their money is lent ‘Fully Insured’. They get to make money, fully insured, sounds like a great business! Read the Rest.

Earlier this month the reserve bank increased official interest rates which caused many investors and homeowners to re-consider their mortgages. This poses two great questions.

1. What will the cost of changing loans be?
2. When will the costs of changing loans be paid off?

Read the Rest.

The idea of coming up for deposits every time you buy is a real worry for most investors, and it is in fact why most are not able to buy more than 2-3 properties over their investing career.

I have found an investor who is very willing to sell the house he has had as an investment for a number of years. He only needs 80% of the sale price, and wants to go into another deal of a commercial nature. He only listed the property at the higher price because he thought that he would get close to what the agent said he would sell it for. The property has performed well for him and has increased over 40% in the past few years.

He needs the cash to get into another transaction, I want the property so we are all getting what we want. Read the Rest.

Imagine for a minute you find a vendor or seller who desperately needs to sell their house today, for whatever price (yes whatever!, more later).

You know you are able to afford the repayments on the house, but might not get the approval fast enough to secure it, TODAY. What are you left to do? Well unfortunately, you will miss out on this property, just like everyone else the vendor has called or asked to buy it.

May I suggest a strategy I have used to get things done when the banks say NO? Read the Rest.

Choosing the right mortgage is not just important for your needs, but could make the difference of thousands of dollars in the long term. There are so many products from so many financial institutions, all with differing interest rates and a huge range of features and fees.

Below are things to consider-

The Purpose of the Loan
Most home owners who plan to buy one home only, but possibly may like to sell and go to another house, require just a basic no frills loan. Some people may like to go out and get a loan with features like Read the Rest.

How to sell your house fast!

Now I know the ideal plan is to have 1000 houses that you never sell EVER, but can I let you in on a secret that 99% of investors do not know…

Secret
Equity gets LAZY

Make sure it is working harder then bank rates

Read the Rest.

When buying property hopefully all investors know that they are up for closing costs or fees attached to buying property. The exception is that some things off the plan are eligible for a concession. The rule of thumb is usually around 5-7% of the purchase price is run up in fees, duties and charges, all of which need to be paid for at, or just after, settlement.

One of the biggest things to overcome is the stamp or transfer duty, which is the state tax related to both the purchase and registration of the property. It was introduced to obviously create revenue, but if you do not pay it you will not be able to register yourself as the title holder or new property owner.

Now when stamp duty is tallied up over the life of an investor buying multiple properties, you could run into the hundred of thousands of dollars. So, why not ask someone else to pay? Let’s ask the vendor. I did and was very surprised that they agreed to pay. Read the Rest.

Did you know that 95% of people have more than enough money to start building a very happy life, but only 5% get it!

In the pursuit of happiness and wealth, people have known for generations that spending less is a successful way of getting further down the road to being wealthy.

Delayed gratification is nothing new and, interesting enough people have been advocating it for years as a way of slowing down unnecessary spending to create wealth.

Many people belonging to wealth creation forums agree and, in fact, would go to the extreme in the pursuit of wealth.

Delayed Gratification goes like this: Read the Rest.

It seems everyone I speak with about property has trouble finding great deals, but after a few weeks or months in the market, people always seem to be able to find a bargain. The next problem people have is finding the money, both with the deposit and the finances to complete the purchase. With what’s happening in the marketplace in regards to loans and lending I suspect that the emphasis will be on bigger deposits to mitigate risk for the lenders.

I have always found the first $10,000 -15,000 of any deposit savings plan is the hardest goal to get past. Once you get past this point the interest really adds up per month and your money compounds really fast.

Below are some tips I have used in the past to save money, these can be used for a deposit or anything worth saving for:

• Write a budget and stick to it. There are some awesome ones for free online.
• You will surprised at the value of your unused items. Sporting gear, surfboards, skis, bikes and other stuff can be sold to a second hand shop or EBay.
• Cash in or sell your unproductive assets, shares, bonds, bank deposits.
• Move your savings online and get a massive 6.8% with online banks, e.g., Bankwest or ING Bank.
• Really simple things like eating at home more, buying a jar of coffee for the office rather than a caffe latte on the way to work each day.
• Make your lunch before work or the night before, instead of going to the sandwich bar each day. This one alone saves a minimum of $1500 if you are spending $7 per lunch on Sandwiches.
• If you can realistically work from home, ask your boss if you can do so , maybe only staying at home for a day per week. This will cut down transport costs and time involved with getting into the office each day.
• I know people who are confident at teaching something they are passionate about, being paid to do it as a form of pocket money. You may be able to do this too in your chosen field.
• Get a “Pay as you Go” mobile phone plan rather than a contracted plan over 48 months.
• Use shopper dockets when you go out, if you need to go out for birthdays and celebrations.

Use direct debits to take money directly from your salary each and every week or month. I have been doing this for years and after a while you don’t see it therefore you are less likely to spend it.

Make getting a house a priority and have faith that you will get there.

Don Christie