Henry Kaye investment seminars - BEWARE!!



From: Anonymous

Last Sunday, Radio National presented a report on various investment schemes, including property investment.

The end of the report talked about a Henry K seminar at Darling Harbour and the techniques he and other investment gurus use to sell their products/seminars.

The main message is "beware of the so called investment gurus who can show you how to make BIG MONEY QUICKLY - they are not in the game of helping you to make money, they are making money out of you".

Below is the section of the transcript. The rest of the transcript can be found at

Stephen Skinner is the talk show host.

Stephen Skinner: Sydney's Darling Harbour on a quiet Tuesday night. Darling Harbour is the site for many conference centres, exhibition halls and auditoriums. In one, a man called Henry Kaye was conducting an investment seminar. Outside the seminar we picked up a sixteen page booklet promoting a follow-up four-day seminar. The booklet contains several errors in printing, spelling and grammar. But it's got some lovely photos of boats, beaches and BMW's. In it, Henry Kaye boasts how he can make investors very rich, very quickly. He says he'll reveal his secret strategies on how to 'create millions from thin air in less than two years.' Here's a sample reading.

Reader: It makes no difference if you're currently an employee, a struggling business owner or a CEO of a major corporation. If you want a stampede of new customers, if you want to explode your profits and personal income, if you want your results guaranteed. If you want to be seriously rich and you want to truly become a multi-millionaire in less than two years, you can't afford to miss this once in a lifetime event.

Stephen Skinner: Here's another claim from the booklet, which is quite topical in view of One-Tel's collapse.

Reader: You'll discover how those 'billionaire kids' really made their mammoth fortunes by selling their companies for insane prices to seasoned investors. Amazon, eBay, Yahoo!, Sausage, One-Tel, Davnet, some of these companies have not even made a profit. Henry will educate you on how you can massively profit by using the same simple strategies.

Details from one of Henry Kaye's brochures

Stephen Skinner: Lots of people will hope their boss hears this claim from Henry Kaye's booklet:

Reader: Learn how to incentivise and highly motivate your staff by purchasing them Porches (sic), Ferraris, Mercedes and sending them on five-star overseas trips without having to pay for it.

Stephen Skinner: Henry Kaye writes in the booklet that he has personally created more than $450 million in revenue and value for himself and his partners. We wanted to ask him to flesh out these sorts of claims, but he didn't return our phone calls.

The introductory session at the Darling Harbour auditorium went for three hours, to an audience which had paid seventy five dollars each to listen. From the corridor outside, through an open door, Background Briefing could hear that Mr Kaye was speaking very enthusiastically.

Henry Kaye: You must invest, you must invest in yourself.

Stephen Skinner: It's clear that one of Mr Kaye's key wealth-creating strategies is to use other people's money. For example, he says in the booklet that you'll learn how to get your suppliers to give you ninety days credit, even if they have a policy of cash on delivery.

And it's clear that Mr Kaye's main recommended area of investment is real estate.

Reader: You will become a property millionaire by owning your own business premises without spending any of your own money. Sounds too good to be true? You must come and see for yourself, even if it's just to hear Henry, a true 'investment wizard' teach this one incredible strategy. It could change your financial destiny forever!

Stephen Skinner: A few pages on, there's some more detail.

Reader: In 1999, Henry tested and developed a new wealth creation strategy that enabled him to purchase 210 investment properties, worth over eighty eight point two million just in only twelve months using virtually none of his own money, and receiving wholesale discounts of ten per cent to twenty per cent below market. Henry also created a 'Safe-Guard' all-encompassing Fast-Cash System, allowing him to trade virtually risk-free in the property market, and creating stunning and immediate profit returns, ranging from 750 per cent to 3,200 per cent on a monthly basis.

Stephen Skinner: Towards the end of the booklet, Henry Kaye says people who go to his four-day seminar will become a partner of one of his many companies, a company called Investmentsource. He says Investmentsource advisers will overview your business and create a unique plan for it. Investmentsource may even invest in your business if you want it to.

The Australian Consumers' Association is currently investigating these sorts of hard-sell seminars. Finance spokesperson, Louise Petschler has been to a couple herself. She says they reflect the growing appetite in the community for investment advice, but they're completely over the top.

Louise Petschler: We're concerned that we've got a situation where investment seminar gurus are engaging in evangelical-style selling of very, very overstated returns, promises of dramatic results for consumers. You can be a millionaire in three years, in fact you'll be a multi-millionaire in three years, you can be debt-free in five years, perhaps sometimes as soon as seven weeks, and you can have an investment portfolio that will rival that of Kerry Packer's, because these investment gurus can unlock the secret to wealth that have been held closely by rich people up until now, but are now being made accessible to the general population.

Our concern is there's no easy ticket to being rich. There's no easy ticket, aside from being born to money, that's going to guarantee you the sort of returns that we're hearing in these investment seminars.

Stephen Skinner: Louise Petschler says the seminars downplay risks, and their get-rich-quick investment strategies usually appear to rely on heavy borrowing.

Louise Petschler: Consumers are generally told that if you sign up for the next stage of this investment seminar, then you'll be able to get all the detailed information because up until now you've just had quite general information in terms of the great returns you can get, or there's types of strategies that you'll be taught. And the prices for these additional seminars can range between $500 and $7,000 on the basis of what we've seen in the market, and we're sure there are some which we haven't attended which will involve even higher prices for these additional costs, and there's a hard sell, where consumers are told 'You'll get a twenty per cent discount' or a fifty per cent discount, 'if you sign up, but you have to sign up tonight. Buy your key to financial freedom. Money back guarantee at the end if you don't like it, if you feel we didn't give you enough information, or you weren't satisfied.' And so people are encouraged on the basis of very limited information to put down twenty per cent deposits on very expensive courses that we're not convinced would offer consumers a better deal than seeking licensed financial advice through alternate means, through going and getting a plan done based on their own individual circumstances, and spending a bit of time investigating the market themselves.

Stephen Skinner: Louise Petschler from the Australian Consumers' Association. The government regulator ASIC shares her concerns about get-rich-quick investment seminars. And it also warns potential investors about international phone calls and emails they may receive out of the blue, offering returns on investments that sound too good to be true. ASIC's Peter Kell says that if returns sound too good to be true, they probably are.

Peter Kell: People should exercise a degree of caution or even cynicism about what's being offered in some of these areas, because at ASIC we've seen frankly too many people that have got burned by believing the hype and not taking ordinary precautions.

Stephen Skinner: Peter Kell, from the Australian Securities and Investments Commission. Mr Kell has one last piece of advice:

Peter Kell: Well you've got to remember that the smarter salesmen will use a whole range of clever techniques to get you into an investment, and we have heard reports of people who have actually been flown interstate, or sometimes even overseas, to look at investments, which sounds like a very attractive proposition, a free flight, but the reports have alleged that once they've got there, if they don't end up putting their money in, they're suddenly informed that it was a one-way ticket. So again, it underlines the fact that there's no such thing as a free lunch in the investment area.
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Reply: 1
From: Eric Snow

Anyone stupid enough to pay thousands of dollars to get information they could get for free or a token amount deserves to get ripped off by these seminar sharks.

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Reply: 1.1
From: Rasputin .

easiest way to make money is to sell ideas on how to make money quick !!!!
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Reply: 1.1.1
From: Dave :)

Almost sounds that easy, doesn't it? Got any ideas you could sell
Rasputin? :)


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From: Rasputin .

yes i do .. send me $10,000 and i will teach you one on one how to make moeny easily ....
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From: Brent H.

Sounds like something I once heard.

Send me $10,000 and I'll teach you why you should always do your due dillegence on a deal.
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Reply: 2
From: Sam Coster

Having read all the criticism of Henry Kaye and his Seminars, I have to admit to having been one of those so called "suckers".
But on the other hand I would not have realised what my potential was.
Having been given a freeby for the introductory offer I sat enthralled to hear about Deposit Bonds, Bank Guarantees and buying off the plan, I was so taken in that 10 days later I secured $1.2mill of D bonds for an off the plan IP ready in 3yr.
I was then stupid enough to go to the 5 day event, where I learnt about Put and Call Options and that it is possible to create a PI group myself and get free support when I need it.
We have just secured our first property worth $2m with Bank guarantees, 4%discount with a potential of at least 7% appreciation within 7mnths.
I accept that Henry goes over the top at times but if thats what it took to get me off my backside, good on him.
Perhaps more people should try it, but on the other hand they probably would feel that Rich Dad, Poor Dad was just paying for advice they could get from there accountant, but never did.
This is not a paid advertisement for Henry, just my appreciation for somebody who motivated me to get of my butt and do it, instead of talking about it.

Enjoy the journey, its half the fun.
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Reply: 2.1
From: Felicity W.

Good for you, Sam!
Mind you, I think the criticism has not necessarily been of HK or his methods, but more that he charges a huge amount of money (comparatively) to teach information that you can learn from other sources much more cheaply. In the end he has a very effective marketing plan and is reaping the rewards.
Keep smiling
Felicity :cool:
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Reply: 2.1.1
From: Karl Walter

Hello all,

It had been interesting following the general discussion surrounding various seminars and their costs, in particular Henry Kaye's'. What I find amazing is the "poverty mentality" that appears to be present. It is interesting that people seem to baulk at spending around 5% of the cost of a quite modest property portfolio on furthering their knowledge. Personally for every $100,000 I have invested in property I invest at least $5000 in advancing and furthering my education, both formally and informally, from people and organizations with proven successes. Much information is shared via this site, much of it correct, some of it shall I say, less correct, most of it second hand and opinionated. If Henry Kaye or anyone else for that matter claims to know something you do not perhaps It would be wise to investigate thoroughly yourself, rather than rely on hearsay. For many years I let my ego stand in the way of learning from people who knew more than I (I was sure I knew everything). I am going to learn from Mr Henry Kaye this month, and I will decide first hand just what he can or cannot teach me and if it is value for money.

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From: Dave :)

This discussion has happened so many times before, it's not funny.

Fact: It is wise to invest in your investment education.

Fact: It is wise to speak to and spend time with others who have succeeded before you.

Fact: HK and Investment Source are brilliant marketers with some very good wealth building strategies.

Where we all differ is whether we'd be willing to spend that amount of money to learn from HK. Personally, I wouldn't. I picked up and apply many of his strategies by talking to as many people as I could. However, if the only way you're ever going to be motivated to get off your butt is by attending his courses, then do it by all means!

HK realise now, more than ever, that there is a tremendous opportunity in making money by running seminars that cater to those that are unlikely to go and learn themselves, or those that are fooled into thinking that only a select few on Earth hold the keys to the mystical vault of IP wisdom. Good for them, I reckon.

Just on HK, though. Watch for a change in their seminar spiels. They've been out hunting for properties in suburbs as far as 40km outside of Melbourne. Seems they're finding it impossible now to "Buy at 20% discount in high growth suburbs from 3-12km from the CBD". The amount of boot-camp seminar graduates racing around with a fistfull of deposit bonds and bank guarantees begging to buy "multiple properties with no money down" has prompted what I think is a change in their property selection criteria. They just can't meet demand! They're also looking at CBD carparks and commercial office space now.
For those that have recent;y attended his seminars, has he mentioned any of this? If not, his seminar script writers may be finally getting some work soon.


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