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From: Mike .
Unlimited Wealth (Henry Kaye) seminar summary
From: Bill
Date: 4/16/00
Time: 11:43:04 AM
Hi friends
I promised you a summary of the Unlimited Wealth seminar with Henry Kaye. It’s quite a long one, but I wanted to cover all key points. Hope you find it interesting and useful!
I spent my $47 and went along to the 4 hour seminar to hear a 31 yo multimillionaire talk about how he achieved his success. Run by New Life Corporation (a company started by another young millionaire), the seminar had 1000 people in attendance. All I can say is that the seminar delivered on its promise of giving you some real insights into how you can achieve success through IP, delivered passionately by someone who has done it well and truly!
The key speaker was a guy named Henry Kaye. He was a millionaire by 24, having started an IT company and taken it to $45m in 5 years. He entered property development and three years ago got burnt with some bad deals, and faced bankruptcy. He knew nothing about property and figured he needed to find out all about IP to get himself out of the hole. He interviewed 530 investors / fin planners / accountants/ real estate agents, etc, all in a period of 6 mths. (He wasn’t working full time at this point given his wealth generation and subsequent ‘silent investor’ entry into property devt). The result is a system he has developed that has allowed him to purchase 121 IP’s over the last 14 mths, worth more than $50m, using virtually none of his own money!! (This got my interest!!) He always purchases 20%+ below market wholesale and receives an average nett rent return of 8.5% on all of his cash positive properties!!
Henry spent 2 1/2 hours talking about investment, retirement planning basics and then gave some of his strategies for success. In summary they are :
1. Always buy new places, off the plan, within 7-10k of the CBD in a major city. (Greater depreciation and capital appreciation if in the right areas) 3 bedroom townhouses in good locations – high quality on small, low maintenance blocks.
2. Always settle up to 12 months + out. Buy off plan and get property revalued before settlement and leverage equity to borrow to max capacity. Get the bank to finance you to 90% of contract price or valuation – whichever is higher.
3. Always IO fixed loans. Borrow the whole amount. Do not use any of your own money; if you do, make it minimal.
4. Never give a deposit – use a bank guarantee / deposit (costs you $500-$2500, but frees your cash – little known & used strategy)
5. Never buy at auction as you are paying in excess of reserve, which is deemed as the market price. As such you are paying too much. Always go private, or negotiate directly with developers.
6. Henry trades property very successfully for ‘fast cash’. Buy in the right area, at wholesale and value add. ‘Sell’ the rental yourself for an hour to a prospective tenant. Never leave it to an agent. He doesn’t list with agents. He approaches all agents in the area and gives them the opportunity to refer prospects to him, and he handles the inspection. If the prospect is successful the agent is paid $1000. Gives great incentive for the agent to seek and refer the ‘right’ tenant. (SOUNDS LABOUR INTENSIVE?)
7. Henry negotiates with developers directly and purchases in multiples. He has strategies that teach you to gain 3 times the finance the bank would other wise lend you. He can teach how (at no cost?) to get AA rating for your rent up to $100,000 for a 10 year period – no risk of rent loss.
8. THE CLINCHER – Never ever sell – just refinance. This was worth the value of the ticket alone. Henry illustrated how you can generate $2-$4k per week TAX FREE passive income in 10 yrs by purchasing one $300k IP every year for 10 years. (He teaches how to get the finance, and cash positive IP’s make affordability a non issue). In brief, assume you purchase an IP for $300k and borrow the full amount (forgetting costs for this example). Property @ avge 7%+ cap growth doubles in value every 10 yrs. By Yr 11 your $300k IP is worth $600k. Go to the bank and refinance to 90%, being $540k. You have a consistent debt you are refinancing of $300k, meaning you have just released $240k equity (540-300) as totally TAX FREE income.
This is your lifestyle money! Because you never sell you aren’t charged CGT and it technically isn’t income, so you don’t pay tax on it! You do this every year and release the equity. By yr 21 in this example you refinance your now $1.2m property to 90%, being $1080k. Your new equity release is $540k as you refinanced in Yr 11 to $540k and capital growth has driven your equity exponentially.
OK, where to from here? The seminar was an intro into a 3 ½ day (45 hours!) seminar with Henry where he teaches you the details of all of his specific strategies. In addition success psychology is covered by Adam Hudson, who runs New Life Corporation. Cost? Around $4k for 3 ½ days. Can be paid as $349 down with $99 charged every month for 35 months. (Sounds a lot, but you could make this amount incrementally by employing some of these specific strategies in no time I would think – it’s all education – and tax deductible!)
Only concern I have (which is holding me back from signing up) is whether the focus on trading as well as investment means that you have to devote serious time to pursuing these strategies to make them work. I’d love to pursue IP’s all day however like most people have a busy job that makes it difficult to do this. I’d love to hear from someone who has attended one of these Unlimited Wealth seminars and get an insight into this issue and whether attendance was worthwhile.
I hope this summary has been helpful. It really was worth attending. I’ve developed a spreadsheet model to test the ‘buy and never sell’ refinance theory that Henry preached, and it does work. I’m more than happy to send anyone who is interested a copy of the model. Just drop me a line at [email protected]
Love to hear some feedback on whether you found this useful, additional thoughts, etc.
Cheers, Bill
Unlimited Wealth (Henry Kaye) seminar summary
From: Bill
Date: 4/16/00
Time: 11:43:04 AM
Hi friends
I promised you a summary of the Unlimited Wealth seminar with Henry Kaye. It’s quite a long one, but I wanted to cover all key points. Hope you find it interesting and useful!
I spent my $47 and went along to the 4 hour seminar to hear a 31 yo multimillionaire talk about how he achieved his success. Run by New Life Corporation (a company started by another young millionaire), the seminar had 1000 people in attendance. All I can say is that the seminar delivered on its promise of giving you some real insights into how you can achieve success through IP, delivered passionately by someone who has done it well and truly!
The key speaker was a guy named Henry Kaye. He was a millionaire by 24, having started an IT company and taken it to $45m in 5 years. He entered property development and three years ago got burnt with some bad deals, and faced bankruptcy. He knew nothing about property and figured he needed to find out all about IP to get himself out of the hole. He interviewed 530 investors / fin planners / accountants/ real estate agents, etc, all in a period of 6 mths. (He wasn’t working full time at this point given his wealth generation and subsequent ‘silent investor’ entry into property devt). The result is a system he has developed that has allowed him to purchase 121 IP’s over the last 14 mths, worth more than $50m, using virtually none of his own money!! (This got my interest!!) He always purchases 20%+ below market wholesale and receives an average nett rent return of 8.5% on all of his cash positive properties!!
Henry spent 2 1/2 hours talking about investment, retirement planning basics and then gave some of his strategies for success. In summary they are :
1. Always buy new places, off the plan, within 7-10k of the CBD in a major city. (Greater depreciation and capital appreciation if in the right areas) 3 bedroom townhouses in good locations – high quality on small, low maintenance blocks.
2. Always settle up to 12 months + out. Buy off plan and get property revalued before settlement and leverage equity to borrow to max capacity. Get the bank to finance you to 90% of contract price or valuation – whichever is higher.
3. Always IO fixed loans. Borrow the whole amount. Do not use any of your own money; if you do, make it minimal.
4. Never give a deposit – use a bank guarantee / deposit (costs you $500-$2500, but frees your cash – little known & used strategy)
5. Never buy at auction as you are paying in excess of reserve, which is deemed as the market price. As such you are paying too much. Always go private, or negotiate directly with developers.
6. Henry trades property very successfully for ‘fast cash’. Buy in the right area, at wholesale and value add. ‘Sell’ the rental yourself for an hour to a prospective tenant. Never leave it to an agent. He doesn’t list with agents. He approaches all agents in the area and gives them the opportunity to refer prospects to him, and he handles the inspection. If the prospect is successful the agent is paid $1000. Gives great incentive for the agent to seek and refer the ‘right’ tenant. (SOUNDS LABOUR INTENSIVE?)
7. Henry negotiates with developers directly and purchases in multiples. He has strategies that teach you to gain 3 times the finance the bank would other wise lend you. He can teach how (at no cost?) to get AA rating for your rent up to $100,000 for a 10 year period – no risk of rent loss.
8. THE CLINCHER – Never ever sell – just refinance. This was worth the value of the ticket alone. Henry illustrated how you can generate $2-$4k per week TAX FREE passive income in 10 yrs by purchasing one $300k IP every year for 10 years. (He teaches how to get the finance, and cash positive IP’s make affordability a non issue). In brief, assume you purchase an IP for $300k and borrow the full amount (forgetting costs for this example). Property @ avge 7%+ cap growth doubles in value every 10 yrs. By Yr 11 your $300k IP is worth $600k. Go to the bank and refinance to 90%, being $540k. You have a consistent debt you are refinancing of $300k, meaning you have just released $240k equity (540-300) as totally TAX FREE income.
This is your lifestyle money! Because you never sell you aren’t charged CGT and it technically isn’t income, so you don’t pay tax on it! You do this every year and release the equity. By yr 21 in this example you refinance your now $1.2m property to 90%, being $1080k. Your new equity release is $540k as you refinanced in Yr 11 to $540k and capital growth has driven your equity exponentially.
OK, where to from here? The seminar was an intro into a 3 ½ day (45 hours!) seminar with Henry where he teaches you the details of all of his specific strategies. In addition success psychology is covered by Adam Hudson, who runs New Life Corporation. Cost? Around $4k for 3 ½ days. Can be paid as $349 down with $99 charged every month for 35 months. (Sounds a lot, but you could make this amount incrementally by employing some of these specific strategies in no time I would think – it’s all education – and tax deductible!)
Only concern I have (which is holding me back from signing up) is whether the focus on trading as well as investment means that you have to devote serious time to pursuing these strategies to make them work. I’d love to pursue IP’s all day however like most people have a busy job that makes it difficult to do this. I’d love to hear from someone who has attended one of these Unlimited Wealth seminars and get an insight into this issue and whether attendance was worthwhile.
I hope this summary has been helpful. It really was worth attending. I’ve developed a spreadsheet model to test the ‘buy and never sell’ refinance theory that Henry preached, and it does work. I’m more than happy to send anyone who is interested a copy of the model. Just drop me a line at [email protected]
Love to hear some feedback on whether you found this useful, additional thoughts, etc.
Cheers, Bill
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