$18m Fine - Rick Otton & We Buy Houses

Discussion in 'Property Experts' started by RPI, 15th Nov, 2018.

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  1. gty12

    gty12 Well-Known Member

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    Maybe he will be like Jordan Belfort and promise to pay it back with interest over time?

    Complete the sentence: His new scheme to pay back this money shall be called...
     
    gty12, 19th Nov, 2018
    #41
  2. Perky29

    Perky29 Well-Known Member

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    Yeah, or he could go the N*vra way, and become a phoenix spruiking to another generation of unsuspecting property investors.....
     
    Perky29, 19th Nov, 2018
    #42
  3. willair

    willair Well-Known Member Premium Member

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    If this happened in the USA ,this gentleman would be doing hard time in a small cell
     
    Last edited by a moderator: 19th Nov, 2018
    willair, 19th Nov, 2018
    #43
  4. geoffw

    geoffw Moderator Staff Member

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    Rick Otton learnt his vendor finance techniques from the US.
     
    geoffw, 19th Nov, 2018
    #44
  5. willair

    willair Well-Known Member Premium Member

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    Then he may be very lucky he never had a Green Card and sold the idea in the USA ,as the same many people said to unbribable are just too expensive..
     
    willair, 19th Nov, 2018
    #45
  6. geoffw

    geoffw Moderator Staff Member

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    I believe that he was an American. I seem to remember that he successfully used techniques in the US before bringing them here.

    Even in Australia, it took maybe 15 years before it got to this stage - and even then, the techniques weren't judged to be illegal (although some states brought in legislation to restrict vendor finance) - it was the promises associated with the techniques which brought him down.

    Australia has some strong consumer protection laws. I suspect that some of the laws regarding finance were stronger that the US, and the US is in the process of deregulating rather than tightening consumer protection laws.
     
    geoffw, 19th Nov, 2018
    #46
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  7. willair

    willair Well-Known Member Premium Member

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    Would be interesting to see what passport this gentleman has and which country is stamped on the passport..
    Because if it's Australian ,to gain entry in the USA there are several question to tick yes or no on the visa ---one covering the term ""EVER BEEN CONVICTED ECT""and you tick yes once then you would have zero chance of getting back into Trumpsoberland..
     
    willair, 19th Nov, 2018
    #47
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I think he aussie who learntlit over in usa. Has he been convicted of an offense ?
     
    Terry_w, 19th Nov, 2018
    #48
  9. geoffw

    geoffw Moderator Staff Member

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    According to New Rick Otton Real Estate Book Exposes Creative Strategies for Property Investing he first began investing in property in the US in the 1980s.

    However, he was not a citizen - according to Rick Otton's Massive Passive Pack » Rent To Own Lease Options he was broke in the USA without a green card. I have a vague memory that perhaps his wife is from the USA.

    He's been fined $18M for breaking consumer law, but there's no statement that I can see about a conviction having been recorded.
     
    geoffw, 19th Nov, 2018
    #49
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Ah yes I think the wife is an American.

    I met him about 2000 or so, at a Steve McKnight course. I think we all elected him to be the first president of the vendor finance association then.
     
    Terry_w, 19th Nov, 2018
    #50
  11. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I met Rick and his wife a few times between 2000 and 2002. I'm fairly sure that his wife is from the USA, Rick is Australian.

    He wasn't promoting buying houses for $1 back then. It was all about vendor finance boot camps, so I guess it was the beginning of an evolution. Whilst exciting and interesting at the time, I quickly came to the realisation that this sort of strategy isn't for me. The truth is, there are very, very few people that are actually successful with these strategies.
     
    Last edited: 19th Nov, 2018
    Peter_Tersteeg, 19th Nov, 2018
    #51
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  12. MWI

    MWI Well-Known Member

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    Saw him at some seminar presentation and I too decided it wasn't for me....quite few years back!
     
    MWI, 19th Nov, 2018
    #52
  13. DeJ

    DeJ Well-Known Member

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    I read about the big fine him and the company got.
    Do you reckon he will ever pay it back?
     
    DeJ, 20th Nov, 2018
    #53
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no
     
    Terry_w, 20th Nov, 2018
    #54
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  15. DeJ

    DeJ Well-Known Member

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    Thanks for the comprehensive reply...
     
    DeJ, 20th Nov, 2018
    #55
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  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    See above for details.
     
    Terry_w, 20th Nov, 2018
    #56
  17. consumerrights

    consumerrights Member

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    I don't think that's right! If you read the decision you'll see that the judge found there was *no* property investment.
     
    consumerrights, 22nd Nov, 2018
    #57
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  18. consumerrights

    consumerrights Member

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    Given Otton couldn't show the court that he'd made money from any of these deals in Australia (despite claiming that he had) I think you have to take the claim of "US success" with a grain of salt.
     
    consumerrights, 22nd Nov, 2018
    #58
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  19. DeJ

    DeJ Well-Known Member

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    ROtton enterprises?
     
    DeJ, 22nd Nov, 2018
    #59
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  20. gty12

    gty12 Well-Known Member

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    Very good, your pun skills are pundeniably good, some would say you have a punchant for it.
     
    gty12, 22nd Nov, 2018
    #60
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