The great thing about the rent to buy option is that buyers can always have the opportunity to upgrade. People love to upgrade and super size to an instalment contract, and then if they’re really, really good, you can move them to a second mortgage.
Sydney, Australia (PRWEB) April 24, 2013
‘How to Buy a House for a Dollar’ author, Rick Otton, has unveiled to a Creative Real Estate iTunes audience the secrets behind non-traditional real estate investing strategies such as rent to buy lease options and installment contracts.
During the in-depth session, Mr Otton explained to property investors that transacting a rent to buy deal was a safer option for testing buyers with “questionable credit" or people who found themselves bankrupt or in debt through external circumstances beyond their control.
“The great thing about the rent to buy option is that buyers can always have the opportunity to upgrade. People love to upgrade and super size to an installment contract, and then if they’re really, really good, you can move them to a second mortgage,” he said.
Mr Otton said renting to buy was a real estate investing strategy that was faster and easier to use because it involved less paper work and legal costs in the early stages.
Alternative ways to build a property portfolio
In the past decade, Mr Otton has inspired tens of thousands of people around the globe on how to purchase multiple properties and maintain positive cash flow from day one without a deposit, banking finance or any real estate experience.
He said while installment contracts required a simple licence (usually managed by a contract manager), they were a fantastic way to create wealth because “people make the emotional commitment to the ownership of this property from day one”.
“Installment contract people will give you more money upfront because they’re making the commitment now to buy,” he said.
“On a rent to buy, people don’t make a psychological decision to buy for another year or two, so they’re less likely to give you money upfront. Then they’ll decide it’s too big, too small, too purple, too yellow, not near the shops, too far away from the bus or whatever, and may not decide they want to buy at all.
“When it comes to deciding whether to go for rent to buy or installment contracts, ask yourself what is it you want to do with the property. At the end of the day, both strategies work.“
To hear this, and other free podcasts from Rick Otton visit CreativeRealEstate.com.au. Phone enquiries in Australia can be made on 1300 888 450.
About Rick Otton
Rick Otton has spent decades making money by snapping up inexpensive real estate and putting it to work building wealth, and teaching others to do the same.
He is the founder and CEO of We Buy Houses, which operates in the US, UK, Australia and New Zealand, and through this business he puts his strategies to work every day.
Mr Otton received his start in alternative real estate investment in 1991 in the US, and within a year acquired 76 properties. In subsequent years, he made a fortune using his low-risk, high-reward strategies to inexpensively acquire real estate. He continues to do so.
As well Mr Otton travels between his home in Australia, and the UK, sharing his wisdom and teaching others how to buy and sell real estate, free from the constraints imposed by traditional lenders.
In 2013 Rick is celebrating the 10 year anniversary of introducing his property option strategies to real estate investors in the United Kingdom – the first person to reveal these ground-breaking strategies. In 2008 he created the first of his ‘Houses for a Pound’ strategies, upon which he grows as markets and laws evolve.
Mr Otton has been featured in a variety of television programs and magazines and in 2013 he published ‘How To Buy A House For A Dollar’ for the Australian market. This book has been named in the list of the Top 10 Most Popular Finance Titles for 2013, as voted by Money Magazine and Dymocks Book stores. A UK version is on the drawing board.
For full details of Mr Otton’s open-to-the-public free one day seminars visit HowToBuyAHouseForADollar.com.au or phone, in Australia 1300 888 450