At the heart of every creative strategy is the concept of vendor finance. This is simply an arrangement which allows the buyer to make the payments within a certain period, but the seller gets a slightly higher price for his property in exchange.
(PRWEB) October 18, 2013
Rick Otton, the pioneering mind behind creative property solutions, explains why more people are seeking creative and non-traditional ways when buying property.
A recent study by the Australian Prudential Regulation Authority has revealed that major banks are slowly being overtaken by small lenders. The data, published by the Property Observer last 14 October 2013, shows that one in every six residential home loans in Australia are financed by non-major lenders.
“After the global financial crisis, the big banks have less money to lend to home buyers across the country, and as a result, a lot of home buyers were rejected when they applied for a loan. Aside from that, interest rates have gone up very fast in the past few years, buyers end up spending more than the actual price of the house they bought,” Mr. Otton explained in a recent interview for his Newscastle property event.
“With a stack of problems like this waiting for them with the traditional process, it’s not a surprise that more and more home buyers are looking for ways to buy real estate without the need for bank financing,” he shared.
During the interview, Mr. Otton shared the distinct difference of his investment property strategies from the traditional process, and how it has helped a lot of home buyers and property investors across the country.
“At the heart of every creative strategy is the concept of vendor finance. This is simply an arrangement which allows the buyer to make the payments within a certain period, but the seller gets a slightly higher price for his property in exchange,” Mr. Otton clarified.
“A popular strategy to pair this with is the Sandwich lease option. In this process, buyers don’t have to apply for a new home loan, because they can use the old debts which the sellers have on their property. Buyers simply replace the sellers in with the help of few paperwork,” he explained.
If you want to learn more about investment property tips from Rick Otton, join him in his at Newcastle on the 29 October 2013.
About Rick Otton
For over 23 years, property millionaire Rick Otton has built an impressive real estate portfolio using innovative strategies that he has developed - strategies in which transactions are made without the need for traditional bank-type loans. He constantly refines his techniques as he buys and sells properties through his We Buy Houses business which operates in Australia, New Zealand and the UK.
A gifted speaker and educator, Mr Otton conducts regular one-day free seminars across Australia, which build on the the concepts he shares in his 2012 book 'How To Buy A House For A Dollar', voted by Money Magazine and Dymocks Book stores as one of the Top 10 Most Popular Finance Titles for 2013.
He regularly records and publishes iTunes podcasts via his channel Creative Real Estate.
His innovative low-risk, high-reward approach to Australian real estate investing has been featured in a variety of television programs and magazines, including Today Tonight, Hot Property and Australian Property Investor.
To register for one of Mr Otton’s free Australian one day seminars visit HowToBuyAHouseForADollar.com.au or phone, in Australia, 1300 888 450.