$18m Fine - Rick Otton & We Buy Houses

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

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  1. euro73

    euro73 Well-Known Member Business Member

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    euro73, 27th Nov, 2018
    #61
  2. geoffw

    geoffw Moderator Staff Member

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    Can I buy his house for $1?
     
    geoffw, 27th Nov, 2018
    #62
    Simon Hampel, BuyersAgent, hammer and 4 others like this.
  3. gty12

    gty12 Well-Known Member

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    No because I raise you $1.10
     
    gty12, 27th Nov, 2018
    #63
  4. geoffw

    geoffw Moderator Staff Member

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    I fold

    I didn't realise it was an auction. I've reached my limit.

    I'm surprised that he had it in his own name. The bankrupt who owed me money rented his house and vehicle, and his business was transferred into his wife's name (in a way which avoided the bankruptcy provisions).
     
    geoffw, 27th Nov, 2018
    #64
  5. gty12

    gty12 Well-Known Member

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    Surely it must be within the accountant's code of ethics to realise what said person is trying to do & maybe question his current business plans if he needs to go to these lengths.

    I am thinking that Rick Otton would be doing similar right now=sitting down with an accountant trying to work out how to give as little as possible back=the ethics here...
     
    gty12, 27th Nov, 2018
    #65
  6. Terry_w

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

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    Just because the property is in his name doesn't necessarily mean he is the beneficial owner. He could be holding it as trustee.
    There may also be registered and unregistered mortgages over the property too - perhaps there is no equity.
     
    Terry_w, 27th Nov, 2018
    #66
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I would think he would discuss that with a lawyer. Its not a matter an accountant can give advice on.

    A matter may not be a ethical concern if it complies with law. If a person is not owner of a asset but has some form of beneficial use etc it may be outside the scope of a court and that of a bankruptcy trustee. Aiding a client to break a law is a concern (perhaps even a crime) but early intervention to asset protect 10 years ago may be quite legit. Assumptions are easily wrong.
     
    Last edited: 27th Nov, 2018
    Paul@PAS, 27th Nov, 2018
    #67
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  8. geoffw

    geoffw Moderator Staff Member

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    I'd have thought that he would only be selling right now if there was equity which he could access. He bought in 2007 for $1.7M. He's probably made a lot of repayments - though he may have well drawn down further equity.

    Unlike the person who bought my business, Rick probably didn't set up his business structures with the explicit possibility of going bankrupt.
     
    geoffw, 27th Nov, 2018
    #68
  9. Terry_w

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

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    The mortgagee is possibly a related entity which 'holds' the equtiy.
     
    Terry_w, 27th Nov, 2018
    #69
  10. Spiderman

    Spiderman Well-Known Member

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    As recently as November 16 (ie after this thread started) videos on buying houses with low or no deposit were being uploaded to his YouTube channel Eg:



    And, from last month:



    The above wasn't his first foray into YouTube; he posted a video on negotiating under a slightly different user name in 2013



    And other channels have been uploading stuff quite recently on him, eg

     
    Last edited: 27th Nov, 2018
    Spiderman, 27th Nov, 2018
    #70
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  11. gty12

    gty12 Well-Known Member

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    But everyone looks so happy in the videos...
     
    gty12, 27th Nov, 2018
    #71
  12. consumerrights

    consumerrights Member

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    "The ACCC noted Mr Otton’s interest in a property at Bondi Beach, Sydney and his apparent association with a group of entities including companies, a property trust, a family trust, a commercial trust and a limited partnership." More in the penalty decision .
     
    consumerrights, 28th Nov, 2018
    #72
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