Property Guru declares himself bankrupt

[redwing]

Reading this had me thinking of another thread here on the forum

Self-styled property guru and investment adviser Dean Letfus has declared himself bankrupt after the collapse of his business and property investment empire.

Letfus set up Massive Action Ltd and NZ Property Gurus Ltd, both of which have been put into liquidation, with little likelihood that their creditors will be paid.

Massive Action charged people $1500 to attend seminars where Letfus would share his money-making secrets, such as: How to enjoy the capital gains on 10 or 20 or 50 houses that you haven't paid for; and how to get in and out of money-making deals with no money.

"The bigger the deal the less money you need, the less competition you face and the bigger the cheque, and with my systems you get paid instantly," he said.

The company's website said some people who had purchased Letfus's training programmes had made huge profits almost immediately.

"Some graduates made hundreds of thousands of dollars within one week of learning what I'll teach you," it said.

It also said Letfus's programmes could help investors avoid risk.

"Dean has never lost money on a single trade ever. He will teach you to do this," it said.

However, the liquidator's reports into his company collapses tell a different story.

They said Massive Action's assets were comprised mainly of goodwill, and the company was unable to pay its bills. It was unlikely that unsecured creditors would receive any money.

Property Gurus had no assets, and was also unable to pay its creditors.

It is not just the seminar companies that have gone belly up. Although Letfus held himself out as a property investment guru and charged investors $300 an hour for individual advice, several of his own property investment companies have also gone broke, leaving creditors in the lurch.

Jeremiah 29 Ltd and Ivon Road Ltd, both of which were owned by Letfus and his wife Raewyn, owned a substantial portfolio of residential investment properties, but both were put into liquidation earlier this month.

The liquidator's reports for the firms said all of the properties they owned had been sold at prices which were insufficient to repay their mortgages, and there was no money available for unsecured creditors.

Some of the properties appear to have been sold to interests associated with Raewyn Letfus under her maiden name of Squires.

Liquidator Grant Reynolds, of Reynolds & Associates, said he would be investigating the transactions to ensure fair value was paid for the assets.

Letfus blamed his financial difficulties on events he said were beyond his control, such as the global financial crisis, and what he described as the dishonest actions of others.
Cont...

Source

 

[redwing]

Also from the land of the great white cloud more troubles for a Property King

Don Ha faces more court action

The Public Trust has gained a summary judgement against self-proclaimed property king Don Ha for a debt of more than $1.6 million.

Ha did not appear at the High Court at Auckland this morning after withdrawing his opposition to the judgement just two days ago.

The debt is the latest in a series of financial woes for the Auckland investor and property mentor. His firm Don Ha Real Estate was placed into receivership in March last year.

Including costs and disbursements Ha personally owes $1,683,502 to the Public Trust, the country's largest trustee organisation.

Asked what the debt was for and whether he had the capacity to repay it, Ha said he had no comment to make.

Though receivers are still dealing with Ha's company which owed about $7m to Kiwibank, he was back in the driving seat by May last year.

Top One Real Estate, an entity owned by his family and friends, purchased the business for $1.35m. Ha is the sole director of Top One.

The most recent receivers' report said Kiwibank was unlikely to be repaid in full and unsecured creditors would not get anything back.

Ha also ran wealth creation seminars through his Don Ha Academy for a fee of $25,000 a year, but today he told BusinessDay he was focussing on rebuilding his real estate business

Source

 

[willair]

http://www.ollynewland.co.nz/the-mood-of-the-market-2012-column/1755/

This Man has been around a long time,in NZ and Australia he has his fingers on what happening,gurus come and go you only have to look at this site over the last 9 years so many came in and where are they now,and how many did they take with them.

 

[oc1]

Reading this had me thinking of another thread here on the forum



Source

I'm under the assumption this guy has been buying up properties in the U.S. for a while now.
Interesting......

 

[cu@thetop]

http://www.ollynewland.co.nz/the-mood-of-the-market-2012-column/1755/

This Man has been around a long time,in NZ and Australia he has his fingers on what happening,gurus come and go you only have to look at this site over the last 9 years so many came in and where are they now,and how many did they take with them.

Interesting link thank you.

 

[Dazz]

Olly sounds like a top bloke....

No doubt tree-hugging, muesli-chewing, sandal-wearing socialists will read this and sigh “tut-tut”, but these are the facts and being squeamish about them will not help.

 

[redwing]

I'm under the assumption this guy has been buying up properties in the U.S. for a while now.
Interesting......

I had thought so too, however it must all have fallen

Another NZ Guru was Phil JONES (Richmastery)

'Get rich' company in liquidation

Wealth creation business Richmastery has folded owing creditors more than $75,000. Richmastery, once headed by Phil Jones and David Hows, told people how to get rich in a prominent series of promotions and seminars.

But now Ralph Trading, previously called Richmastery, has been put into liquidation at Jones' behest. People have until July 10 to prove their debts or claims.

Liquidator Robert Willis of CST Nexia in Manukau has issued an initial report saying Richmastery traded in New Zealand by running seminars and offering advice on wealth creation through property.

Cont..

Source

And

MULTI-MILLIONAIRE UNDER ATTACK

Kiwi quacker faces critics.

When it comes to describing himself, New Zealander Phil Jones drains the dictionary of superlatives. According to Jones, he's successful, he's a multi-millionaire, he's an expert, he's an entrepreneur, he's an author, he's a man of integrity and he's a mentor.

Best of all, if you give Phil Jones $4,995 he'll also become a magician.

In his advertisements, Jones promises to turn your humble $4,995 into $150,000. At his seminars – which he holds on both sides of the Tasman – Phil Jones urges hopeful millionaires (those who want to be just like Phil) to get in quick. Yes, before they start asking some obvious questions.

Such as why doesn't Jones just turn his own $4,995 into $150,000 and then keep doing it at the same rate? He could turn $49,995 into $1.5 million. And then he could turn $499,500 into $15 million.

But why stop there?
Cont....

Source

Many of these promoters were cashflow investors, it would be interesting to see how it all went so wrong

 

[clark kent]

Whenever anyone calls themselves a property guru its time to quickly walk away in the opposite direction to them.

 

[Aaron_C]

Whenever anyone calls themselves a property guru its time to quickly walk away in the opposite direction to them.

Hm people need to make a living too. Educating other people doesn't always have to be treated like it's a con job...

 

[NedKelly]

Hm people need to make a living too. Educating other people doesn't always have to be treated like it's a con job...

There is nothing wrong with educating people, it's when the "gurus" charge $9,999 for a weekend course discounted to $5,995 if you sign up within the next 10 minutes that should give you cause to run away. Especially when you can get the same information in a $35 book.

 

[willair]

Try this place in West End in Brisbane,nothing over $15.00,just had to put up the link because like a lot of businesses in Qld,the Man whom i know is not going gangbusters..

http://www.bentbooks.com.au/

 

[dan c]

Hm people need to make a living too. Educating other people doesn't always have to be treated like it's a con job...

Sure, but when their 'living' is made selling $4995 seminars, spruiking that they have 'never lost on a property deal', then end up in liquidation, is that an honest living?

Unfortunately, the shonks have ruined the property seminar market for the one or two honest property 'gurus' out there.

 

[Dazz]

No-one has taken into account the pathetic Aussie trait of tall-poppy syndrome.

I can't remember the number of times I've stood at the back of seminars, listening to someone up the front who has very weighty experience in what they are talking about. As usual, they are shown no respect.....cos apparently in Australia we are all equal.

Meanwhile, you get some typical Aussie hero with 2 or 3 houses under their belt chipping in with the moronic "Yeah well, if she was any good, she'd be out making millions applying this **** out in the real world if it really worked, instead of trying to con us out of our hard earned. They're all a bunch of *******."

Of course, the obligatory nods and 'yeah mate, too right' follow.

Why would ya bother.

 

[redwing]

I'd always wondered about the term

Tall poppy syndrome (TPS) is a pejorative term primarily used in the UK, Canada, Australia, New Zealand and other Anglosphere nations to describe a social phenomenon in which people of genuine merit are resented, attacked, cut down, or criticised because their talents or achievements elevate them above or distinguish them from their peers.

The term originates from accounts in Herodotus' The Histories (Book 5, 92f), Aristotle's Politics (1284a), and Livy's History of Rome, Book I.
Herodotus, The Histories, Book 5, 92-f:

He (Periander) had sent a herald to Thrasybulus and inquired in what way he would best and most safely govern his city.

Thrasybulus led the man who had come from Periander outside the town, and entered into a sown field. As he walked through the corn, continually asking why the messenger had come to him from Cypselus, he kept cutting off all the tallest ears of wheat which he could see, and throwing them away, until he had destroyed the best and richest part of the crop. Then, after passing through the place and speaking no word of counsel, he sent the herald away.

When the herald returned to Cypselus, Periander desired to hear what counsel he brought, but the man said that Thrasybulus had given him none. The herald added that it was a strange man to whom he had been sent, a madman and a destroyer of his own possessions, telling Periander what he had seen Thrasybulus do.

Periander, however, understood what had been done, and perceived that Thrasybulus had counselled him to slay those of his townsmen who were outstanding in influence or ability; with that he began to deal with his citizens in an evil manner

Wiki

You may like this one though Dazz from the kiwis where comments are that its more prevalent in NZ than OZ

 

[Player]

Don't forget the crabs...........

And, with a somewhat more marine analogy...........

The term “crab mentality” is used to describe a kind of selfish, short-sighted thinking which runs along the lines of “if I can't have it, neither can you.” This term is especially widely used among Filipinos, who use it specifically to refer to people who pull other people down, denigrating them rather than letting them get ahead or pursue their dreams. As a general rule, an accusation of having a crab mentality is a poor reflection on someone's personality.

This concept references an interesting phenomenon which occurs in buckets of crabs. If one crab attempts to escape from a bucket of live crabs, the other crabs will pull it back down, rather than allowing it to get free. Sometimes, the crabs seem almost malicious, waiting until the crab has almost escaped before yanking it back into the pot. All of the crabs are undoubtedly aware of the fact that their fate is probably not going to be very pleasurable, so people are led to wonder why they pull each other back into the bucket, instead of congratulating the clever escape artist.

When someone has a crab mentality, it means that they are unwilling to allow someone to get out of a situation, or to get ahead. In a classic example of crab mentality, people who are attempting to get out of bad life situations often find themselves foiled by friends and family members who keep sucking them back in. For example, a Latina immigrant in the United States who decides to pursue a college education in the hopes of securing a good career may find herself discouraged by family members who do not approve of education, or fear that she will become distanced from her family after going to college.

The crab mentality can strike at all levels of life. Some charitable organizations are sometimes accused of a crab mentality, with members of the organization failing to think ahead or refusing to support certain initiatives in a way which ultimately drags the whole charity down. In office environments, the crab mentality can be particularly devastating, as coworkers snipe at each other to bring each other down, rather than congratulating someone who earns a promotion.

The crab mentality is a reflection of the famous saying “we all like to see our friends get ahead, but not too far ahead.” Learning to recognize the crab mentality in yourself is a very good idea, especially if you work or live in a highly competitive environment.

From here:

http://www.wisegeek.com/what-is-the-crab-mentality.htm

 

[StefanA]

Of course, the obligatory nods and 'yeah mate, too right' follow.

Why would ya bother.

Not everything tall is a poppy. Check the managed funds at Excela, then contrast that with the current SBS tv ad campaign by the manager.

 

[redwing]

I only read this recently about another NZ Property Guru, Chris was apparently up to 33 properties and roaring along at one stage

It would be nice to know more about what changed and brought about another bankruptcy

Property scheme 'recipe for disaster' for vulnerable Kiwis

The promoter of a property scheme in which vulnerable kiwis were tricked into thinking they were buying properties when they were not, has been sentenced in the Auckland District Court.

Christopher Mark Ashenden, director of the Home Finance Company and Meguro Limited, was found guilty of breaching the Fair Trading Act, fined more than $200,000 and ordered to pay reparation of more than $40,000 by the courts.

The court heard investor companies purchased residential properties in South Auckland using the property investment model promoted by Ashenden.

Those people who signed up to the scheme were then granted the right to occupy the property under a 30-year instalment agreement, while making payments of principal, interest, rates and insurance to the owners.

However Ashenden did not make it clear to these occupiers that their agreements did not give them legal ownership of their property until the end of the 30-year period.

Judge L H Moore said Ashenden's offending contained strong elements of cynicism and the calculated exploitation of people.

Cont...

 

[cu@thetop]

Tall poppy syndrome strikes again eh Dazz?

This guy was doing wraps. Wraps commonly seem to be "sold" to poorly educated types who don't understand the transaction.

Many property gurus make their $ with this (or "options") so yes I would be the Aussie battler up the back hanging crap on such a speaker/entrepeneur.

Glad the judge saw it for what it was.

 

[buggyguy]

Who knows what they are talking about?

Be interesting to get a list of who is reputable and who's seminars are worth going to? I guess a who not to might get legal action....