hannes dreyer amazing formula for creating wealth

5/26/2018 Hannes Dreyer Amazing Formula for Creating Wealth

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The Amazing Formula for Wealth Creation

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The Amazing Formula For

Wealth CreationISBN 0-620-35348-1

How I made R 1 016 167 from a 79 centsHow I made R 1 016 167 from a 79 centsHow I made R 1 016 167 from a 79 centsHow I made R 1 016 167 from a 79 cents

investment in less than 40 weeksinvestment in less than 40 weeksinvestment in less than 40 weeksinvestment in less than 40 weeks

BY

Dr. Hannes DreyerDr. Hannes DreyerDr. Hannes DreyerDr. Hannes Dreyer


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Dear Wealth Seeker

The fact that you have ordered this e-book shows you are interested in makingmoney in abundance and at the same time want to have a fulfilling and balancedlife. Because of the aims we thus share I would like to work with you personally if

you will allow me to assist you to reach your financial and other goals.

I am Hannes Dreyer.

I am 48 years old and I am living my dream and my passion.

As I wrote this, my Wealth Creation Mentoring Course had been running for fortyweeks since its inception. This is based on the most amazing formula for wealthcreation in the world. I would like to share this Amazing Formula for WealthCreation only with those who have open minds and are willing to learn.

What is a Wealth Creator?

It is a person with the ability to let his money work for him instead of working forhis money to create, preserve and transfer their wealth.

The Wealth Creation Mentoring Course started off as a challenge you canread all about it on the websitewww.hannesdreyer.co.za. - to teach you how toempower yourself by accepting responsibility for your future by becoming aWealth Creator.

I am going to share the Amazing Formula For Wealth Creation with you in thehope that you will learn and apply what is necessary in order to live yourdream.

Although the Formula is simple, it is not easy to implement because you will needto take full responsibility and be willing to put in time and effort to make yourdreams come true.

I hope that this e-book will introduce you to a fascinating NEW way of life.

I challenge you: read this e-book, study and utilise it as a guide to help andmotivate you to accept the challenge to become a Wealth Creator yourself and toexperience a life of wonderful abundance.

As a final motivation to read and study this book, I have set up a simple (but not

so easy) challenge to see if you have the wherewithal to become a WealthCreator.

The underlying purpose of this e-book is to empower you and supply aframework to becoming a Wealth Creator without risk or spending any of yourmoney. It only requires a burning desire to take responsibility for your life andinvest the necessary time and effort to create your perfect life.


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Read the book and then face yourPERSONAL CHALLENGE in Chapter Two...

Your life will never be the same. This I promise.

Dont be misled by the simplicity of the formula it leads to spectacular results!

Enjoy the process.


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Free E-Book

The AMAZING FORMULA FOR WEALTH

CREATIONbyDr. Hannes Dreyer

Prologue

To share the insights in this book with as many people as possible, you haveHannes Dreyer's permission to pass it on to others provided you do not alter ormodify it in any way. You can under no circumstances sell the book in any form.

This book consists of four chapters. The first chapter contains a basic overviewof the Amazing Formula for Wealth Creation. The author used this formula toconvert 79 cents into more than ONE MILLION RAND in less than 40 weeks.

In the second chapter the author sets out a complete system and strategy thatcan help you become a Wealth Creator yourself without taking financial risks.

In the third chapter the author retells some of the successes his students sharedwith him. These letters are the testimonials of the radical results the applicationof the Amazing Formula For Wealth Creation has had in peoples lives.

The fourth chapter contains details about the author and his background.

Hannes has a passion to teach. He wants to provide knowledge, tools andstrategies to willing people to become Wealth Creators. His thesis for his mastersdegree was Residential Property as an Investment Instrument and his doctoralthesis Applying the Formula For Wealth Creation to develop successfulentrepreneurs and investors

Hannes is a non-practicing Certified Financial Planner

This e-book is the direct result of a challenge he accepted in December 2004 toprove that it is easy to make money on condition that you know and apply the

Formula for Wealth Creation. In the process he disproved the adage that youmust have money to make money.

This book was written by:Dr Hannes DreyerPublished by the Wealth Creation Trust, Pretoria, South AfricaISBN 0-620-35348-1


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Disclaimer and/or legal notice

While every attempt was made to verify the information provided in this e-book,neither the author nor the publisher or their partners and business entitiesassume any responsibility for any errors, inaccuracies or omissions.

The information contained in this e-book is intended to give you a broad overviewof key principles of the Amazing Formula For Wealth Creation. It is not intendedas a substitute for sound financial, legal, accounting and tax planning. Alwaysseek specialist financial, legal and tax advice.

Although the material published in this manual and the information given in theaccompanying Mentoring Course is designed to provide accurate andauthoritative information with regard to the subject matter covered, this e-book isgiven to you with the understanding that the publishers and author are notengaged in rendering legal, financial, tax, accounting or any other professionalservice.

The author and publisher disclaim any personal liability, loss or risk incurred as aresult of the use of any information contained in this e-book. Unless you know theFormula for Wealth Creation and how to apply the Amazing Formula for WealthCreation as explained in the Wealth Creation Mentoring Course the publisherand author do not guarantee that the reader of this e-book will make any profitfrom its contents.

All case studies of success are based on facts and were supplied withpermission to publish them. We did not materially alter the copy we received and very little grammar! Whilst we did not verify the validity of the contents we atthe same time have no reason to doubt any of it.

Dedication

This book is dedicated to my wife, business partner and best friend, Tanja, forher 23 years of love, trust and support.

My thanks go to Karla and Lara my two beautiful daughters who add excitementand meaning to my life.

Most of all I want to praise and thank God our only real WEALTH CREATOR -for the wonderful gifts and opportunities He has given me.


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Table of Contents

CHAPTER ONE

How I made R 1 016 167 from a investment of 79 cents in less than 40weeks by applying the Amazing Formula For Wealth Creation

CHAPTER TWOHow to become a Wealth Creator yourself without taking any risks

CHAPTER THREEThe real stories behind the story

CHAPTER FOURHannes Dreyers CV


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CHAPTER ONE

THE AMAZING FORMULA FORWEALTH CREATION


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. I was a bit skeptical at firstdue to my two personal golden rulesfor investments (and life, for thatmatter)1. There is no such thing as a free

lunch, and2. If something sounds too good to betrue, it usually is.

Your advert violated both these rulesbut I decided to go and listen anyway.Ive attended timeshare promotionsbefore and if I could walk out of therewithout opening my wallet, I was sureI could do the same to you!

......At his seminar I had anEureka! moment as I realized that

Hannes was addressing the needsand wants that I had had inside of mefor so long and some others which Idid not even know I had. It was afeeling of enlightenment when itdawned on me that I had been lookingfor this man bearing this message ofhope and guidance for the previoustwo years.

What I like the most aboutHannes approach is that he is notselling quick fixes unlike many othermentors - but rather teaches you

how to do the mending so that youcan effect the repairs yourself!

Introduction

Talent develops itself in solitude, character in life's stream.Goethe

My passion is to teach willing people how to become Wealth Creators.

The past four years I have concentrated on teaching people how to invest in realestate, because in learning HOW to invest in property you will automatically beintroduced to some of the Fundamental Principles of the Formula For Wealth

Creation.

I was the first person in South Africa toteach others how to use a proven system toinvest successfully in property.

Since then I have addressed more than fiftythousand people, teaching them whyproperty can be either a good or a badinvestment and how to use a proven systemto determine the risk and growth potential inany property.

It still amazes me to see how little peopleknow about Property Investments and howmuch I can contribute to helping others byshowing them within a day how to use mysystem, called the Property Pro Program.

Let me sketch the background of how Idiscovered the Amazing Formula for WealthCreation.

The Birth Of The Formula

Just don't give up trying to do what you really

want to do. Where there is love andinspiration, I don't think you can go wrong.

Ella Fitzgerald

In 1987 I was a professional financialplanner with Volkskas Bank in South Africa.

I was one of their top insurance brokers.

Although I was doing exceptionally well I realised that unless I could let mymoney work for me I would continue to work for my money all my life. I searchedfor ways beyond the conventional to invest my surplus income.


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For me, success is about being on the edgeand experiencing life at full throttle. Itsabout doing what I always dreamed ofdoing and doing just that. Its what so

many of my friends talk about doing, butdont do. Success for me means the bloodpumping through my veins. When you arein the heart of Mother Nature, the ocean,and disappearing behind a curtain of water,surrounding you but not touching you, thisis when I am at my peak and the success isburning through my veins. This sensationyou will never know, unless you have beenthere yourself, like when I am travelling atgreat speed on snowy white ice surfaces

and the slightest twist or the wrong weightdistribution can mean the end of your ride.Its when you feel comfortable with tunnelvision and fear is the factor that keeps youalive. This is where calculated risks playthe most important role in the balancebetween survival and oblivion and createsthe greatest thrill for me on this planet.so today I am applying all of HannesDreyers methods to my own life. When Iam away on my film-shoots in Peru orMexico, surfing the planet's most beautiful

waves I know that every Friday I have anappointment with the Professor. Notalways easy to print out the lessons in thelittle Internet shops all over the world. ButI get my printouts and this is my day-to-day inspiration. My willpower to carry onand turn my biggest goals into reality.

The reason I did not consider the conventional or normal ways of investing wasbecause I could see that theprojected growth rate the financialinstitutions promised was inadequateif I wanted to retire some age

before I reached fifty. At that stage Iwas thirty years old and my goal wasto be financially free before the ageof fifty.

I calculated that if I followed thefinancial institutions' advice I wouldneed a lot of money in order to makeenough money to retire at the age of65. But I wanted to retire at 50 and Iknew that would be totallyimpossible. I felt then there had to be

another way.

Selling insurance policies in 1987was easy. My real job however in1987 was to find a better way, wheremy money would work for meinstead of me working for my money.

I looked at property as an option, butsoon ran into a problem. It wasalmost impossible to calculate the

real growth on my investment. Manypeople claimed they could calculatethe growth on their investments butthey were confused. What they didwas calculate the growth on theirproperty in other words how muchtheir property has appreciated over aperiod of time but they could notcalculate the growth on their

investment. I am one of those people that believe that problems createopportunities and I began working on a solution to the problem.

Unwittingly I had started the journey to discover the Formula for Riches

In order to calculate the growth on my surplus I developed the Property ProProgram. The original purpose was to determine the growth potential in anyspecific property investment.

Different kinds of property investments which one?


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.The lesson learned is keepon reviewing the information thatHannes gave us - and be patient.

Success is the result of good judgment, good judgment is a result of experience, andexperience is often the result of bad judgment.

TonyRobbins

There are different ways to invest in property and different classes of property.The two different classes of properties are residential and commercial. To make

things more complicated in each class ofproperty there are different ways to invest (orso I thought in 1987). You can buy and sell,develop, or buy property as a long-terminvestment. In 1987 I did not know which classof property would be the best and I also did not

know the best option in which to invest my money, time and effort

It was while experimenting with the results of the program that I figured out asystem to calculate the growth potential in any class or type of propertyinvestment and also accidentallydeveloped a system to determine the risk

potential in any property investment.

This was quite an eye-opener. Then for the first time I had a tool to determinethe risk and growth potential in any property.

Because of this I became aware that if I changed any one of the more thantwenty variables inherent in any property investment, both the risk and the growthpotential changed.

What was more fascinating was the fact that the results were mostly the directopposite of what I had been taught in my professional training. I was a qualifiedfinancial planner at that stage.

This was scary. I suspected the methodology behind the Property Pro Programwas incorrect. How on earth was it possible that I could lower the risk andsimultaneously increase the growth on my investment by applying well knownstrategies like gearing or negotiations?

This was contrary to what I had been trained to believe.

At university and during my studies to become a financial planner I was taughtthat the higher the risk of any investment the higher the growth will be.

Now I had proof that this theory of the higher the risk the higher thegrowth was simply not true. In fact the basic truth was so simple and obviousthat I could not believe I had overlooked it.

I think the reason why I did not see the obvious was because I was conditionedto be an expert as a Certified Financial Planner.


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Ignorance will keep us poor even if we make a lot of money.

"Money is in some respects like fire; it is a very excellent servant, but a terriblemaster."

P.T. Barnum

Sometimes the TRUTH is so obvious that we tend to overlook it. Let me tell youwhat brought about this revelation.

In my negotiations on a property transaction I calculated that I simply could notafford a property based on the asking price. The only way I could buy theproperty was if the owner was prepared to take a lot less than the asking price.

I told the Estate Agent I wanted to offer less, but he immediately advised me thathe knew the seller who would not accept a lesser offer.

About a month later the property was still on the market. I approached the EstateAgent again but this time I said that I had decided to make an offer to purchase.

He filled out the offer to purchase and wrote in the original asking price. I said itwas not the price I was willing to pay. The offer I was putting forward would infact even be lower than the previous price we had discussed as I had decided todeduct all the costs of the transaction as well.

The estate agent was not pleased or impressed but I stuck to my offer saying Isimply could not afford to pay more.

He reluctantly presented the offer to the seller who phoned and asked me toincrease my offer by R20 000 and I would have a deal. I told my offer was finalas I could not afford a cent more.

The day the offer expired the seller accepted it.

I had bought a fabulous property and in the process saved myself a lot of money.

My first financial lesson the lower the risk the higher the growth.

A little security is sometimes worse than no security at all.David T. Chase

That evening I realized I had lowered my risk because I had paid less. At thesame time I had increased the growth of my investment because I had boughtthe property below the perceived market value.

In other words the lower the risk the higher the growth on your investment.This is directly the opposite of what we are taught. Yet it is so logical that most


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people overlook this truth, mostly because we are so conditioned to believe andnever question what financial institutions teach us.

Let me explain this truth by using an example.

The first thing is to determine the real value of the property as there is morethan one value to any investment.

Do you know what the market value is asopposed to the real value (intrinsic value) ofany investment? I will explain this a little later.Most investors do not know this.

Let us assume the intrinsic value is R1 millionbut the seller wants R1.3 million (market value)

If I offer him R1.3 million and I have to resellthe property immediately for whatever reasonand only get the intrinsic value of R 1 million.

I have lost R300 000.

This loss is a real risk. To me losing capital is risk.

If however I can get the property for R700 000 and the intrinsic value is R1million which I can get on a quick resale, I would have made a profit of R 300000.

It is therefore better and a lot less risky (exactly R600 000 less risky!) to buy theproperty for R700 000 than for R1 300 000.

I also change a loss of R300 000 into a profit of R300 000.

By paying R600 000 less I will increase my profit by only R300 000 if I sell atthe intrinsic value of the property - unless I can find someone else that is willingto pay me the R1 300 000, which is possible but may take more effort.

Lets take it one step further

If the seller wanted R1 million for the property and I paid R1 million then my riskand profit are R0 provided the value of the property is R1 million and I can get itwhen I sell.

If I buy it for R700 000 I save R300 000 in other words I Iower my risk by R300000. If I then sell the property for R1 million I of course make R300 000 profit.

The reason is that I DOwant to share with people what awonderful contribution you aremaking to educating and helpinganyone who is willing to learn andinvest in himself .. Meantime,it is so good to look forward toFridays, when I can download thenext lesson to work on, to hold

onto that helping hand tofinancial freedom and success


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..I read every bookI could about investments and thenread in the newspaper about aseminar presented by HannesDreyer and attended the course inJanuary 2004 to improve myknowledge. I then realized that thebest investment I have ever madewas the money invested in thecourse.In 2004 we bought 14properties.. We have built avery good passive income streamwith what we have learned fromHannes. ..I have sinceenrolled in the Mentor course andcant wait for Fridays to learnsomething new. Thank you for alife changing opportunity.

Thus if I can determine the intrinsic value I avoid a lot of risk because I am notgoing to pay more than the property is worth even if the perceived value, alsocalled the market value, may be more. Anything you pay more than the intrinsicvalue of an investment is financial suicide.

The ART of investing is to be able to determine the intrinsic value of aninvestment. You must always pay less than the intrinsic value if you want to bean investor. If you pay less than the intrinsic value you create real value andyou lower the risk in any investment.

WHY do most people commit financial suicide?

"The difference between greatness and mediocrity is often how an individual views amistake."

Nelson Boswell

Right now the majority of so-called investors are walking on thin ice due to

financial ignorance as they do not know how to determine the intrinsic value of aproperty or any other investment themselves.

They listen to other people and base decisions on emotion.

This is only the tip of the proverbial iceberg.

As already explained, the market value is notthe real value of an investment. The marketvalue is what the average investor will pay fora specific property at a given time and under

certain conditions such as low interest rates.

Market value is influenced by the generalinvestor sentiment about a specific class ofinvestment at a given time.

In any investment there is a real value.Sometimes the market value can be more thanthe real value. In other words, the averageinvestor will pay more than the investment isworth. This is typical of what is happening atthe moment (Sept 2005) in the property market

in South Africa.

The opposite is also true. The market value can be less than the real value of aproperty.

The real value is called the intrinsic value If you want to become an investoryou must know how to determine the intrinsic value of any class of investment,otherwise you will not be able to determine your real risk in an investment.


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..I look forward eachFriday to the next lesson to follow, Ispend evenings in the week goingover and over previous lessonstrying to digest all the information.The material is simple down to earthcommon sense but the there is anunderlying thread, of, I want to usethe word goodness that makes justreading the material a class one

experience. You can feel that it isgood for you!The main thing that I have found thehardest to face is TakingResponsibility for oneself This is thebest piece of advice anyone can giveanother, and the words are easilysaid, but the action is hard.That is where I find you are helpingso much as mentoring is not abouttelling everyone what to do, butgiving the knowledge on how to doyourself.I know and can feel I am changing

slowly. I have started being moreaware of how to spend ones timeproductively, have a more enquiringmind to learn more about investing inthe property market, and all thesepositives have come from attendinga Hannes Dreyer seminar!

The discovery of the real value, real risk and real growth on any propertyinvestment.

"People of mediocre ability sometimes achieve outstanding success because they

don't know when to quit. Most men succeed because they are determined to.George E. Allen

I could determine the real growth and realrisk in any class of property investment in1987 because I had developed the PropertyPro Program

I had also found, contrary to what I hadbelieved about risk versus growth, that thelower the risk the higher the growth.

At that stage I felt I had discovered the

biggest treasure in the world. I immediatelystarted sharing this newfound wisdom withmy peers. Needless to say they were notnearly as excited as I was. In fact theyblatantly refused to discuss the topic with me.

To them this was not part of financialplanning and we as financial planners werenot allowed by contract to sell any otherproduct than those that the financialinstitutions allowed us to sell which weretheir own products.

With my new tool I discovered that therewas no correlation between the growth of aproperty (the area) and the growth on yourinvestment in the property.

Again, this did not make sense to me as Ihad been taught that there were only three

criteria to good property investment. You guessed right: Location, Location,Location.

By comparing literally hundreds of properties in different areas I quickly realizedthat location plays a very small part in the overall growth on your investment.

I could in fact prove that the better the area the higher the risk factor!

I also discovered about two dozen different techniques, strategies or managerialtechniques you can use to manage growth and risk in any long-term property


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........ - all of these "skills" taught byHannes are definitely very helpfuland indispensable during anyinvestment deal, but his DLMS isINDISPENSIBLE in your whole life!And what a turn-around this madeto my life! My WHOLE life! And Imresponsible for it!

Hannes, thanks for the wonderfulwork youre doing! Keep it up - nomatter WHAT some "self-proclaimed experts" might say!

investment. In applying these techniques you not only lower the risk but at thesame time increase the growth on your investment

I discovered yet another interesting phenomenon. By applying different strategiesand layeringthem on top of each other the results will increase exponentially. In

other words if I used only one strategy at a time there would be a change in therisk - and growth improved compared to not using the strategy - but the moment Istarted using more than one strategy on the same property the improvement inresults were spectacular, to say the least.

In my free Wealth Creation seminars (for more information visitwww.hannesdreyer.co.za) I demonstrate how to take a property and change thegrowth on your investment of just more than 13% into a growth of more than100% by applying only three of these strategies.

When I explained this to my financial colleagues in 1987 they thought I had lostmy mind and blatantly said so and added I should rather concentrate my energy

on selling insurance policies as time-proven secure and solid investments.

I ignored their remarks and experimented withproperty as investment. I bought my firstcommercial property in 1987; the results were,to say the least, spectacular. I had never in mylife thought that it was so easy to get the kindof return on any investment as I got from thatfirst commercial property.

My Property Pro Program incorporates the

Formula For Riches in a property investmentsystem. Using the system it is possible towithin minutes identify the risk and growthpotential in any kind of property investment,

anywhere in the world, and in any location. Once you have identified the risk andgrowth in the property you can apply different management techniques in orderto lower the risk and increase the growth on your investment in that specificproperty.

The next truth

"Enjoy the little things, for one day you may look back and realize they were the bigthings."- Robert Brault

Everything is not always as easy as it seems. Although my money began workingfor me I soon realized there were other factors playing very important roles ininvestment.


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..................my wife and I neededto be exposed to differentthinking and Hannes was justthe guy to do so. The Mercedesprinciple has been my missinglink. The workshop has inspiredme to look at a completelydifferent deal.................

I realised that the Formula For Riches and how to invest in property was only apart of the Formula for Wealth Creation

Although it is easy to make money with property if you know how, there is a farbetter way to build wealth which creates the opportunity to live happily and in

abundance. This way to achieve your goals is called the Amazing Formula forWealth Creation

What I want to do in this e-book is to introduce you to a formulaincorporating a few simple principles and strategies I have used over thelast 40 weeks to turn 79 cents into more than a R1 000 000 investment.

I believe that everyone, once they know the Amazing Formula associatedwith creating wealth, success, and happiness, can do the same if theyimplement it.

The number one reason why people are not financially successful is because

they are financially ignorant.

Let me explain. I have observed numerouspeople who nurture anxiety and discouragementbecause they dont understandhow to maketheir lives more prosperous. They do not knowthat there is a foolproof system called theDynamic Lifestyle Management System thatcan help them to the life they dream about.

Creating wealth is not about how hard you try, or

how intelligent and knowledgeable you are. It isabout being effective in doing the basics right consistently. It is thesefundamental principles I explain in my Wealth Creation Mentoring Course

What I teach my students is that by following a system anyone can learn to livehis life in freedom and not as a slave.

What is a Wealth Creator?

"It is the heart that makes a man rich. He is rich according to what he is, notaccording to what he has."

Henry Ward Beecher

It is the only profession in the world where you can learn to let your talents, timeand money work for you, to create, preserve and transfer wealth and have a lifeof great abundance.

Here is the hard part: although the Amazing Formula for Wealth Creation issimple it is not easy to follow.


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...Reviewing your lessons broughtme to a new realization and thatwas the necessity of building astrong foundation. I have beengrowing on a spiritual andemotional level, even if it did notyet show in my financial situation. Iwas indeed preparing myself forsuccess.I am grateful for havingfound a mentor, I am grateful forthis process.

Why? It is of no avail reading about something or knowing what to do. Thedifficult part is to actually apply what you know - and then to keep on doing it. Inother words, to be persistent until the application of an action becomes a habit. Increating wealth it is better to do a little bit regularly than a lot only once.

How do you eat an elephant? One bite at a time. This simple principle isapplicable to wealth creation. Do the right things consistently.

When I talk about wealth I refer to it in the bigger scheme of things. I includepeace of mind, happiness, fulfillment and success.

Personally, I think we all are our own worst enemies. We limit our thinking. Weallow others to influence us by telling us what we can and cannot do. We allowthem to control our thinking and our belief system when it comes to creatingwealth and money.

In my journey of the past 40 weeks I wanted toprove to the skeptics that you do not needmoney to make money. That is why Istructured my investment in such a way that Icould invest less than R1 in fact only 79cents.

I see that people do not know the power of arand. Can you imagine what we could do if weall had the ability to take just one rand andconvert it into R1 000 000 in less than 40weeks? What do you think would happen to

our economy if each person in South Africa could learn to do the same? Wewould be living in paradise.

The good news is that it is possible. You do not need a brilliant mind to do it.

You do not need a lot of money. I set out on this journey with less than one randto prove that it is possible.

You do not need to take any risk. In fact I am one of the most conservativeinvestors you can find and you will shortly find out why I say this.

What I have done and what my mentoring students will confirm - is to applybasic universal principles to let one rand work for me.

Just to make sure you understand the last sentence I want to repeat it. I usedbasic universal principles to let the one rand WORK FOR ME.

AND THESE BASIC UNIVERSAL PRINCIPLES ARE INCORPORATED IN THEAMAZING FORMULA FOR WEALTH CREATION


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Two months ago I saw anadvertisement in the paper,"Wealth Creation - Free Seminar-Cape Town". Needless to say Iattended and got one hell of arude awakening. In front of mestood a self made man (he hasdiscipline), who is prepared toteach me his secrets (he is notselfish), who want to seeeverybody succeed financially,mentally and physically (he trulycares) and most of all he isgenuine. Why will I not invest insomebody like that to teach me hissecrets?

Thank you Hannes and your team

for giving me the opportunity tolive a life of abundance. Now Iknow what David Mc Nully meantwhen he said, Even Eagles needa push".

.The workshop was mind-blowing. It literally took me weeksto absorb all the information andpossibilitiesHannes, do youknow what is nice about thementoring program I no longerfeel alone anymore, there areother people just like me who arein the same boat, and the best partis that we are having the greatestmentor in the world giving usguidance to also be successful infuture.

We have been trained to work for our money.Is this not what we are doing when we go toschool or university? We learn how to becomeprofessional or we learn how to do a job. Why?In order to earn an income. In other words we

are trained to become the slaves of money.

We make a lot of money during our lives onlyto retire poor at the age of 65. WHY?Because we have never learnt HOW TO LETOUR MONEY WORK FOR US.

Now here is the golden rule about money. Wehave only two choices when it comes tomoney. Either money is your slave or you arethe slave of money.

If you work for your money then you are theslave of money.

If your money is working for you then moneyis your slave.

How do you tell which is which? Easy - if you have been working for more thanfive years and you cannot afford to stop and maintain your standard of living thenyou do not know how to let your money work for you. In other words you weretrained to be the slave of money.

In order to let our money work for us we must have some money. I call this asurplus. Unless you have some money to work for you it is not going to work.Why not? Because you will need that money in order to maintain your standardof living.

Let me quickly define what a surplus is. You take your income minus livingexpenses. If there is something left after you have deducted your living expensesfrom your income we call it a surplus.

If there is not enough to pay for everything we call it a shortfall. In other wordsmost people cannot begin the process to become an investor simply because

they do not have a surplus to start off with. They take money they cannot reallyafford and invest it, but before the investment begins to work for them theywithdraw the investment (principal) or the gains on the principal. In general,people do not give their investment a chance to become productive.

Perhaps I must explain a bit more. As a financial planner I saw that people willinvest in some kind of a savings plan BUT at the same time they have a personalbank overdraft. What they are doing is not investing or saving because as far as I


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Maybe the best way for me todescribe it is that if a picture is wortha 1000 words, then your lecturing isworth at least a 1000 pictures

Hannes, thank you so far forwhat you have given me. Amongstother things, you have taught mehow to start implementing my vision.It is true that it is more important togive than to receive. You have alsomade me think of what I am giving toother people. This is an area in mylife that I need to work on, but I havestarted with this journey, and I amenjoying it everyday of my life.

am concerned they do not have a surplus tobegin with. They live in a fools paradise. It islike borrowing from Peter to pay Paul.

You cannot begin to invest unless you

have a surplus.

In order to become a Wealth Creator you musthave a surplus to begin the process of WealthCreation. There are two ways to create asurplus. One is to learn how to become anentrepreneur.

Two ways to create a surplus

"There are only two options regarding

commitment; you're either in or you're out.

There's no such thing as life in-between."Pat Riley

Entrepreneur

Become an entrepreneur that is someone who has the ability to take anintangible such as an idea and turn that into money, or

Investor

Become an investor. The only way to become an investor is to learn what aninvestor is.

An investor does not need to be an entrepreneur. To become an investor youonly need to have a surplus. In other words anyone can become a WealthCreator. As long as your income is greater than your living expenses you canbecome a Wealth Creator.

By becoming a Wealth Creator you will be able to apply one or even both ofthese methods to live a life of abundance.

The reason I teach people to become entrepreneurs is because there are waysto increase your surplus without taking the risk of losing your money. The more

surplus money you have the easier it will be to start the process. But as you mayhave realised by now, the amount is not the criteria. All you need is a surplus inorder to initiate the process.

Another reason why the people do not believe that money can work for them isbecause they do not understand how to do it. Most people will hand over theirmoney to financial institutions with the idea that the financial institution can growtheir investment.


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If they do that - how on earth can they expect their money to work for them? Theinstitutions have total control over the money. They let your money work forthem. How can you say your money is working for you if it is not under yourcontrol?

If perhaps you did not grasp what I have just said then I urge you to go back tothe previous section and reread it until you understand what happens withinvestment money. The moment you hand your money over to any financialinstitution your money cannot work for you any more. Money is the slave of onlyone master. Money works for the person who is in control.

Once you have a surplus you can start on your road to financial success. For thenext step you need a simple system you can follow to invest in assets with thepotential to work for you. The harder these assets work the wealthier you willbecome.

In order to become super rich you must learn how to TURBO BOOST yoursurplus. You cannot turbo boost your surplus unless you can manage the riskand growth on your investment. In other words you must take full responsibilityfor your investment.

By taking small steps in the right direction you will be amazed at the incredibledifference it can make to the amount of wealth that you accumulate in yourlifetime. At the same time you will experience the benefits in the life of yourfamily.

You will truly experience what it means when I say that money is your slave. Itcan make life a lot more enjoyable.

Free your mind, and your imagination and enjoy feeling what it would be like tohave a million rand! Thats right R1, 000,000 - 40 weeks from now - starting withonly 79 cents.

The question then remains. How is it possible to invest 79 cents and turnthat into R1 000 000, 00 in less than 40 weeks?

"There are no great people in this world, only great challenges which ordinarypeople rise to meet.

William Frederick Halsey, Jr.

Lets Begin

"It sometimes seems that intense desire creates not only its own opportunities, butits own talents."

Eric Hoofer

The Amazing Formula for Wealth Creation is based on four pillars


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Thank you for the opportunity thatyou have given to all your students.I am an accountant and a certified

financial Planner. I attended aworkshop at Monte casino afterseeing your advertisement in theSunday Times. Once I startedseeing your presentation of IRR andother, I knew instantly that mysearch for sound investment withminimal risk was over. In myaccounting and CFP studies I havealways known about IRR,compound interest and all the otherwonderful financial terms. Myproblem had always been HOW toinvest using IRR, eliminating the risk

and extending the asset base.

After attending the workshop I took1 week off to reflect on how this newknowledge should change my life

The Eight Universal Laws.

The Formula for Riches

The Mercedes Principle

The Accelerator Principle

By applying the different strategies in relation to one another in a proven systemeveryone can become successful. In order to manage it you need to know thatthere are only three elements you can manage. Those are:

Yourself talents, gifts, skills and opportunities

Your time and

Your money

People differ and therefore reach different outcomes even if they apply the samesystem. The main difference is the individual talents and gifts you have receivedfrom God. By developing your gifts and talents and applying them to the AmazingFormula for Wealth Creation you keep your individuality.

The First Pillar The Eight Laws

"In the confrontation between the stream and

the rock, the stream always wins... not throughstrength, but through persistence."

The Eight Laws of a SuccessfulEntrepreneur are about educating andimproving yourself. Unless you know andapply these laws your chances of becomingsuccessful in life are very slim.

Before you can become a Wealth Creator youmust want to be one. Unless you want tochange, these laws will have no impact onyou. Once you have made up your mind the

journey can begin. And it always begins withyou, with your mindset, your attitude, youremotions. It is about how you manageyourself, your time and your money.

The problem with not having a system is thatyour money, time and attitudes will bemanaging you. The moment that something


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or someone else is managing you you will never be able to live a life ofabundance and happiness. You will never reach your destiny because you arenot in control and you cannot manage the process.

I share all my knowledge and experience of the past 24 years with my students.

You could say Im teaching them their PhD in life which will not take a lifetime.

People in general are uninformed when it comes to financial planning, mainlybecause they were trained to think that it is very difficult. Financial planning iseasy if you do it the right way, and incomprehensible if you do it the expert way.The reason the experts keep it as difficult as possible is because its the only waythey can keep financial control over us. We then have no control over ourfinancial destiny.

The First Law states that we must first invest in ourselves before we investa cent in any investment.

Most people do not grasp this basic law. They think they can use an expert tohelp them. The problem with this is the fact that when it comes to your moneythere is no one more qualified to look after it than you yourself. It is your moneyand you need to take full responsibility.

The moment you hand your money over to an expert what are you doing? Youabandon the Formula for Riches.

The Formula for Riches says that if you have a surplus you must be able tocalculate the risk and the growth on your investment in order to manage boththese variables. But, if you hand over your investment (surplus) you immediately

keep all the risk. Add to that the fact that you can do nothing to decrease the riskor increase the growth, and you will understand why most people stay poor.

Let me take it one step further. Most people are confused when they hear theword investment. They think that if they invest money with a financial institutionthey become investors. This is simply not true. What you are doing is you aresaving your investment through the financial institution.

To become an investor requires you to actively manage and control yourinvestment. The only way to do that is to minimize the risk and at the same timeto increase the growth. This is directly opposite to what we were taught by the

educational system and in our professions.


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My husband did the PropertyInvestment course in Oct 2004. Hewalked out of there saying we mustinvest in ourselves. .I cannot placevalue on this information we receiveweekly.

It has given us insight into who weare and how unproductive we havemanaged our time and money.

..Joining the mentoringcourse was the best investment wecould have made and it is really a lifechanging experience for us. We findby setting goals , helps us to copewith our current job stress , as weknow that we have a plan in placeand what direction we are moving.Thanks Hannes for teaching us andequipping us with this knowledge,just think how fortunate our childrenare, to be part of this process fromsuch a young age.

My application of the first law.

"If you are not generous with a meager income, you will never be generous withabundance."

Harold Nye

The only reason I could accept this WealthCreation Challenge was that I know theAmazing Formula For Wealth Creation. Ihave seriously invested in myself and myfinancial education during the last twenty-three years.

In this specific investment I had two risks.The first was the risk of losing myinvestment which was 79 cents. The other

risk was R100. In other words themaximum I could have lost if it didnt workout was R100.

But here is another interesting fact. Themoment I can calculate the risk and knowhow to manage it, RISK DISSAPEARS. Inother words because of the first law investin yourself, I can eliminate the major risksthat life can throw at me. If however I donot know how to manage risk, the risk willmanage me. This is a very importantreason why people stay poor.

The most difficult thing to do in the Amazing Formula For Wealth Creation is toinvest in yourself. It takes time and effort. There are no short cuts. These factsalso show in the formula for riches. Time and effort is part of the formula.

It gets more complicated because by now, you know that the financialinstitutions ways will not work. Ignorance will keep you poor. If you do not wantto invest in yourself and learn how to do it, you will ask advice from an expert.Who teaches the experts? Can it be the financial institutions? What do they teachthe experts? How to sell their products??? Is this not a recipe for disaster?

Let us take a quick look at the training system. The worlds economy is based onan outdated and false system that is based on a SCARCITY MENTALITY, yetthis is what most people believe. What am I talking about? Let me explain whatthe scarcity theory is and where it originated.

According to theory that there are limited recourses and it has it's origin withTomas Malthus, an English economist in the early 1800s.


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My wife and two sons now get to seea lot more of me because I have putsome of your lifestyle suggestions inplace.Hannes, I thankyou greatly for making yourselfavailable to help people like myself,and the many others who haveinvested in themselves by being partof the mentorship program.My Fridays are not the sameanymore as I wait in anticipation forthe update.

"He believed that natural rates of human reproduction, when unchecked,would lead to geometric increases in population: population would grow ina ratio of 2, 4, 8, 16, 32, 64 and so on.

However, he believed that food production increased only in arithmeticprogression: 2, 4, 6, 8, and 10. It seemed obvious to him that something

had to keep the population in check to prevent wholesale starvation.He said that there were two general kinds of checks that limited populationgrowth: preventative checks and positive checks.

Preventative checks reduced the birth rate;

Positive checks increased the death rate.

Moral restraint, vice and birth control were the primary preventativechecks. Moral restraint was the means by which the higher ranks ofhumans limited their family size in order not to dissipate their wealthamong larger numbers of heirs.

For the lower ranks of humans (thePOOR as we know them), vice andbirth control were the means by whichtheir numbers could be limited - butMalthus believed that these wereinsufficient to limit the vast numbers ofthe poor.

The positive checks were famine,misery, plague and war; becausepreventative checks had not limitedthe numbers of the poor, Malthus

thought that positive checks wereessential to do that job.

If positive checks were unsuccessful, then inevitably (he said), faminewould be the resulting way of keeping the population down. Beforestarvation set in, Malthus advised that steps be taken to help the positivechecks to do their work. He wrote:

It is an evident truth that, whatever may be the rate of increase in themeans of subsistence, the increase in population must be limited by it, atleast after the food has been divided into the smallest shares that willsupport life.

All the children born, beyond what would be required to keep up thepopulation to this level, must necessarily perish, unless room is made forthem by the deaths of grown persons. ...

To act consistently, therefore, we should facilitate, instead of foolishly andvainly endeavoring to impede, the operation of nature in producing thismortality, and if we dread the too frequent visitation of the horrid form offamine, we should sedulously encourage the other forms of destruction,which we compel nature to use.


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Instead of recommending cleanlinessto the poor, we should encouragecontrary habits. In our towns weshould make the streets narrower,crowd more people into the houses,

and court the return of the plague. Inthe country we should build ourvillages near stagnant pools, andparticularly encourage settlements inall marshy and unwholesomesituations.

But above all, we should reprobatespecific remedies for ravagingdiseases: and those benevolent, butmuch mistaken men, who havethought they were doing a service to

mankind by projecting schemes for the total extirpation of particulardisorders. If by these and similar means the annual mortality wereincreased ... we might probably every one of us marry at the age ofpuberty and yet few be absolutely starved.

In Malthus' opinion, the masses were incapable of exercising moral restraint,which would have been the only real remedy for the population problem.

They (the poor) were therefore doomed to live always at bare subsistencelevel. If all income and wealth were distributed among them, it would betotally wasted within one generation because of profligate behavior andpopulation growth, and they would be as poor and destitute as ever.

Paternalistic attempts to help the poor were therefore highly likely to fail.Also, they were a positive evil because they drained wealth and incomefrom the higher (and therefore more moral) ranks of society (The rich).

These people were responsible - either in person or through patronage - for allthe great achievements of society: art, music, philosophy, literature and so onowed their existence to the good taste and generosity of these people. Takingmoney from them to help the poor would deprive the world of culture.

Malthus studied the quantities of natural resources and then compared them tothe world population. Based on this limited information he concluded that therewere too many people for the limited resources.

He then defined economics as the allocation of scarce resources.

Today most of the western world still accepts this concept as the trutheven if it is an outdated module.

Can you see where all of these sayings and belief systems have their origin?

Now why do people not query this limited resources belief. One reason is that wehave been trained to believe the experts - the professors and doctors andchartered accountants and financial planners who advise us, and are considered

.. At the free seminar Iwas instantly impressed with yourconfidence and passion, nononsense attitude, the discretiontowards negativity, your oratory skillsand especially your concept ofrichness the life of abundance in abalanced spectrum, not purelyfinancially .Your courses andmentoring have had definitechanging effects on my life and ourfamily dynamics I havent mademillions yet, but I am surely buildinga basis to live a life of abundances abundance in all aspects. Pleasekeep up the great work!


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.With your MentorCourse, I could define my enddestination the one thing that make

all my goal settings, a reality. I coulddetermine my motivation, the drivefor my goals. The vehicle to reach myend destination will follow, as I getmore matured in the way of thinkingas an entrepreneur

by most people as experts We were trained to never question the right orwrong, we just accept it as the truth.

We do not know how to ask the right questions.

"Before everything else, getting ready is the secret of success."Henry Ford

Add to this the fact that we do not know how to ask the right questions and youwill quickly understand why we have to invest so much time and effort ineducating ourselves. We must break this limited belief system first before we canbegin to really learn about the economy, money and finances.

Unless we take action nothing will happen.Why then do the majority of people not takeaction?

I think one of the main reasons is that theydo not know how to ask the right questions.They have never been taught how to ask theright questions.

Another reason is the limited beliefs peoplehave. We all know where these ridiculousideas originates: There is not enough or

money does not grow on trees or It is difficult to make money

At the same time our belief systems flourish on inaccurate information like: If youreally love me you would do or No one cares about my needs and soforth.

People are sometimes so afraid to make mistakes or to be rejected. They areafraid that they will look stupid. They will never admit that they do not knowsomething and therefore they will not ask questions.

I have seen in my workshops that professionals will keep a low profile and willnot ask questions in front of the class they are afraid to appear ignorant. Butunless we ask the right questions how can we learn?

Another reason why people dont ask questions is a result a low self esteem.

The last reason why we dont pose questions is pride. We dont want anybody tothink we dont have all the answers. Truth is we do not have all the answers. Wenever stop learning and we cannot learn unless we ask questions.

In other words we need to put some serious effort into re-educating ourselves,to negate our limited belief systems and achieve our full potential.

In order to help you I want to reveal a couple of traits of successful people.

They invest in themselves diligently.


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The story I submit today is actually atribute to you as I can never inmonetary terms repay you and evenif I could I do not think that this will

have an effect on you at all, howeverI think you deserve to know howyour unselfish act of sharing yoursuccess, you Formula for WealthCreation, and the path you walk dailywith us, affects other peoples lives..There are so manyaspects of your teachings that I canrelate to, and I love the logic of it all.The one thing that made me jump forjoy and change my life forever isPASSIVE INCOME! Wow!! I nevernew it can be so simple PassiveIncome gave me a new lease on

life.. Thank you for giving ushope God bless!

They are persistent.

They believe in themselves.

They are willing to start small.

They are willing to do something.

Be careful of wanting to know and plan for everything in the smallest detail beforeyou start. Do I have a surprise for you? You will never begin if this is yourattitude.

In real life we learn as we do. When I startedthis challenge 40 weeks ago I had no ideawhat and how I would do it. I JUST DID IT.Or as the Nike slogan says Just Do It.

Another false doctrine or is it?

"Don't be afraid to give your best to whatseemingly are small jobs. Every time you

conquer one it makes you that much stronger.If you do the little jobs well, the big ones tend

to take care of themselves."Dale Carnegie

The educational system teaches us thatpeople are the most valuable assets andinvestments of any organization. And

perhaps that is true for the corporate worldbut from an entrepreneur's point of view I amnot so sure about this statement. Why do Isay this?

As an entrepreneur I have spent many hours and much effort training people tobecome extraordinary. BUT as soon as they have learned the necessary skillswhat do they do? They become demanding and this can cost money, timeand resources. Many times someone else (organizations head hunters) willoffer them a better deal and your investment is gone. In other words people arenot always an asset.

I have also experienced from a professional point of view that you can trainpeople, share trade secrets and as soon as they start to become successful, theygo on their own. Again your investment is down the drain.

So in this challenge I decided to concentrate my time and efforts on buildingstrong business and investment systems. Why did I do it?


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We live in a fast changing worldwhere outdated formulas simply donot work any more. Hannes, you andyour team augments technology andtake us to places we did not evenknow exist without joining you inthe helicopter! You possess a raretalent of discovering and sharinginvigorating ideas in a simple,understandable way. Thank you forsharing it with us!

Because through systems an ordinary person can become an extraordinaryperson. An average salesman can become a super salesman and a goodcompany can become a great company.

I have learnt that one extraordinary person is

worth a lot more than 1000 mediocre people.

I know that software programs (SYSTEMS)are the solution to people problems. But Ihave also experienced that there are twosystems. The normal system and normaldoes not work for a great business - andintelligent systems.

If you can develop an intelligent system youcan train ordinary people how to use thesystem. Here is the catch an intelligent

system in the hand of an ordinary person will always produce intelligent - andtherefore extraordinary results. Why is this so important?

Because all you have to do is train a person how to operate an intelligent systemthe moment you have one, you have a business. In order to grow the businessyou expand the system or duplicate the system. You can literally explode yourbusiness into a phenomenal business and become financially free in a very shortperiod of time.

Most entrepreneurs build a business around themselves. The business dependson them. If they are not there the business will not survive. These entrepreneurs

are snowed under with work. The workload totally consumes them and thebusiness RUNS THEIR LIFE. They do not run their business the business runsthem. These entrepreneurs are not free. They are the slaves of their business.

To make things worse if you are an ordinary entrepreneur there is a businessfactor that will always work against you to keep you a slave. I call it the CEILINGOF COMPLEXITY. What do I mean by this?

My experience is that entrepreneurs are normally excellent at what they do. Theyare focused and because they are good at what they do they excel. BUT theycan only do so much. There are only so many hours in the day. Once you havereached that point you have reached the ceiling of performance.

There are different ways to increase your ceiling of performance but eventuallyyou will reach an optimum point. You cannot perform any better no matter howhard you try. The only way to break this ceiling is to increase your fee or toappoint more people in order to help you.


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By appointing more people you can overcome the problem of performance, butyou can create a new problem. If you do not make provision for it you will runinto the ceiling of complexity.

We create our own problems. The ceiling of complexity is no exception. How

does it happen? In a nutshell like this:

You appoint people. Over a period of time your focus shifts and before you knowit you are a manager and you invest your time, effort and money in managingpeople. One day you wake up and find you are appointing people to managepeople and then you appoint more people to manage the managers.

This is a natural transformation in a business but also a dangerous time, as it isnormally at this stage that you come up against the ceiling of complexity. Nowhere is another truth. If you experience this you will know for sure that thebusiness is now running you. You are no longer running the business.

Ask yourself: Does it feel as if you are the only one who really cares about thebusiness and that the people working for you are doing less than you expect ofthem?

If your answer to that question is yes then warning lights should go on.

How can entrepreneurs avoid this problem? You need to create a life, a businessAND investments that work for you.

The only way you can create a life that works is if you escape from doing theroutine work that is keeping you from experiencing the abundance of life. You

must build intelligent systems to eliminate the routine and keep busy stuff inyour business. You escape that by creating an intelligent system that takes careof the tyranny of routine and gives the freedom that effectively saves you fromhaving to manage the drudgery.

Everything runs on a system. Life is a system. The universe is a system. An atomis a system. Our body is a system. The relationship were having right here is asystem

I run all my ventures on systems. Because the systems work I am free. But atthe same time I know what is going on in any of my businesses on a daily basis

I am lucky that I have the best partners when it comes to building intelligentsystems. I am happy with what we have achieved so far in the 40 weeks. I knowthat we can do a lot better and I am glad to say that I see that everyone on theteam is doing more than is expected of them to make the Wealth CreationMentoring Course the best mentoring course in the world.

My software team is extraordinary, and some of the behind the scenes enginesthey have developed are the most sophisticated engines available. Not only is


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I sat there, speechless, listeningto Joes lifes story. (I must admit,

I wasnt geared emotionally forthis experience.) I really felt sorryfor Joe and was touched by hisstory. Then out of the blue Iremembered one of the firstthings Hannes taught me. Neverget emotionally involved.

By then I knew that I wouldnt beable to help Joe to get out of hispredicament. On paper it lookedlike a great deal but in reality the

SUM did not work.

From the conversation we had itwas evident that Joe was in thedark as to what is really busyhappening to him. To the best ofmy ability and with the help of mybrother Deon, we explained theprocess to him. This in itself wasa good experience as we couldsee that Joe was feeling betterknowing whats going on.

the Mentoring process unique but we have also developed some very uniquesystems during the last 40 weeks.

Because of one of the systems wedeveloped to overcome a problem a new

opportunity presented itself. You willexperience this for yourself if you subscribeto the referral website. By subscribing to thereferral website you will have started a

journey on one of the most fascinatingmarketing strategies in the world, if you wantto become a wealth creator.

Will you believe me if I make the statementthat you are actually earning an income justbecause you are reading this e-book?

Did I get your attention? I will explaineverything in the chapter two of this e-book.

Back to the challenge.

In the Wealth Creation Mentoring Course Iteach my students many new truths andprove that the educational system is used tokeep us poor. Unless you take fullresponsibility for your personal NEWeducation and expend the time and effort to

absorb this new information over time, youwill not become able to do what I am doing.

Here are some the strategies I have used in the Challenge that you will acquaintyourself with in the Wealth Creation Mentoring Course

On top of that you will have to learn how to set and achieve your goals with theDynamic Goal Setting System

You will learn how to use Personal Motivation to take you to the next level.

Get more done in less time and learn how to manage your time and money soyou have all the time in the world to truly enjoy your wealth. There is no sense inmaking a lot of money if you cannot enjoy it. That is why we are Wealth Creators:to enjoy the things money can buy.

Most people do not know what personal money management is. Instead ofmanaging their money, their money manages and most of the time cripples them.


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You will also learn how to use different financial entities including CloseCorporations, Private Companies and Trusts.

The only way to safeguard you and your assets is by using trusts. As evenexperts - Chartered Accountants, Attorneys, Financial Planners and the like -

clearly do not really understand the application and benefits of trusts and how touse them to create wealth I include a course on trusts, tax loopholes of the richand estate planning as well.

As a Wealth Creator you are a person who has the ability to allow your money towork for you instead of working for your money. In order to create, preserveand transfer your wealth, the only entity that can give you the protection that isneeded, is a trust.

Unfortunately with a TRUST - as with so many other things in life you mustknow HOW it works; otherwise you can burn your fingers.

I will share the techniques I used as an insurance salesman and broker thathelped me to be in the Top Of The Table in the world a level only 0.1% of allinsurance salesmen and brokers in the world achieve.accolade)

I will also share my marketing secrets on how to use the internet and media. I willshow you how I created an ad in less than 30 minutes that has made me morethan R15 million.

These are a few of the strategies you will learn during the course that has helpedme to achieve the results I have in the Wealth Challenge

What about the future Can I predict it?

"You can have everything you want if you help others get what they want"Zig Ziglar.

I cannot predict the future. I believe no one can - but I also believe that God hasgiven us a wonderful gift the ability to make decisions. We are free moralagents. We can choose.

If we choose the right actions and have the right system to guide us we canmake life a lot easier. If we want to become Wealth Creators the same truth willapply. We must make the decision and then start the process of becomingWealth Creators ourselves.

As I follow a proven system I want to tell you what I am planning to do next in theWealth Creation Challenge.

Last month my PASSIVE monthly income was just more than R112 000. Not badif you take into account I started only 40 weeks ago with 79 cents. But in order for


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me to reach my goal the next step will be to at least double my income per monthover the next four months.

In week 40 I identified the next business opportunity. I am teaching my studentsHOW to evaluate a business. I believe that I will double my Passive Income by

following the Amazing Wealth Creation Formula within the next 20 weeks.

Why dont you follow my progress over the next 20 weeks to see what willhappen?

As I have said, if you are willing to take the responsibility and spend the time andeffort to understand the eight laws you are on your way to becoming a WealthCreator, provided you know and understand the second pillar of the AmazingFormula For Wealth Creation and that is:

The Second Pillar The Formula For Riches

"Be such a man, and live such a life, that if every man were such as you, and everylife a life like yours, this earth would be God's Paradise."

Phillips Brooks

Unless you can apply this formula in any investment or business neither will ever giveyou the return and results that you want. Unfortunately I had to discover this formula thehard way.

Where:$ = Want to become wealthy and stay wealthyS = SurplusG = Growth on your surplusRi = Risk involved in the investment or businessRe = Responsibility to manage the growth and risknm = Time and personal effort

Interpretation of the Formula for Wealth Creation

"If you want to succeed, you must make your own opportunities as you go."John B. Gough

$ = Want to become wealthy and stay wealthy.


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"This nation was built by men who took risks; pioneers who were not afraid of thewilderness, business men who were not afraid of failure, scientists who were not

afraid of the truth, thinkers who were not afraid of progress, dreamers who were notafraid of action."Brooks Atkinson

The greatest gift that we have received is the ability to take a decision. Unlessyou make up your mind that you want to do something, nothing will happen. Itbegins with an idea. And only if you decide to become happy, successful or richnothing will happen.

The same applies to becoming and staying wealthy. Unless you decide tobecome wealthy you will not. But a decision alone will not help you achieve yourgoal. You must act. You must do.

It is the same with Wealth Creation.

Most people have no plan or strategy or a way to reach their goals. The reason

why I developed the formula for wealth creation is to give you a guideline to helpyou achieve this specific goal. There is a proviso, however: I cannot help youunless you want to become wealthy.

If this want or need is strong enough you will do the impossible. For most peopleit is impossible to become wealthy. This is backed by statistics. So what you as awealth creator want to achieve will be impossible for the majority of people.

Once you have made up your mind to become wealthy, you can continue. Theonly way to become wealthy is to follow the formula and to act. Without action anidea will stay only that. In the Wealth Creation Mentor Course you will learn

how to make your wealth creation ideas fly.

S = Surplus

"We are what we repeatedly do. Excellence, then, is not an act, but a habit."Aristotle

What is a surplus?It is excess money you have left over after you have paid your living expenses. Itis money that can help you build your wealth.

There are two kinds of surpluses:

Income: If your income is more than your expenses the differencebetween the income and expense is an income surplus.

Capital: Normally when you do not need the surplus income it will becomea capital surplus. In order to become capital the income must vest in your


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name or in the name of the financial entity in which you plan to utilize it asa surplus.

Before the income can vest as capital all taxes must be paid. There are differentforms of taxes and the tax laws of the different countries will dictate how much of

your income or capital will become or stay capital. After all applicable taxes havebeen paid on the surplus income the remainder becomes capital. By using theappropriate financial structures and entities it is possible to create moresurpluses.

The right tax plan (international tax planning) makes it possible to create a biggersurplus even if your income and living expenses stays unchanged because youare paying less tax on your total income.

We can therefore also say that a surplus has two faces, the first being incomeand the second capital.

The formula does not state what the nature of the income must be. It can beeither capital or income or even a combination of the two.

The formula also does not stipulate how much surplus you must have to launchyour personal Wealth Creation. This contradicts popular belief that one musthave money (surplus) to make money. This is not what the Formula for WealthCreation says as you will see this shortly.

What is the function of the surplus?The fist and main reason you need a surplus is to offset the risk that you mayhave in any business or investment.

The second is to determine the pace of growth. Usually in a business orinvestments if you grow too fast in relation to the surplus that you have availableyou will grow yourself or your business or investment into a position wherechanges in market conditions could cause you to lose everything you have builtup or created.

By managing the surplus against the growth and risk you will find the optimumpace at which you can grow your investment or venture. Each individual orfinancial entity has its own optimum growth rate. This growth rate will begoverned by the availability of income and capital surplus.

G = Growth on your surplus

"All the flowers of all of the tomorrows are in the seeds of today."Chinese Proverb

Unless you can measure how hard your money is working, it is impossible foryou to know WHETHER it is really working for or even against you. Most people


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So now I am paying them a`salary` every month to subsidisethere pension and income. Thishas kick started me intoorganising my life, to makesomething of it, for me later to be

able to retire.

I have now joined the mentoringprogram and am looking forwardto changing my life for the better,in a more positive way.

do not know whether their money is working for them because they do not knowhow to calculate growth on investment. Most investment is based on emotion.People base the choice to buy cars, houses, insurance policies and shares onemotion.

For the past four years I have taught more than 6000 students how to invest inproperty. Before the onset of the course, less than one percent of all my studentscould point out a method to calculate the growth on a property investment andless than 5% of those who knew actually had a system to calculate the growth.This means that less than 0.05% of this group could calculate the growth on theirproperty investment.

The rest bought property based on emotion.

How can you avoid investing on emotion? You must find a system or program todetermine the growth of an investment or a business venture.

Measuring growth on surplus (personal investment)

This age will die not as a result of some evil, but from a lack of passion.Soren Kierkegaard

In order to measure an investment growth in an endowment, retirement annuity,unit trust investment or any fixed contribution saving instrument, one uses thecompound interest calculation (also known as future value).

This is a formula which calculates the percentage return you will receive.

The formula only works if there are these three variables: the contributions (the money you pay in) are fixed; the contributions are at regular intervals, and the cash-flow (inputs that is either capital and/or income) moves one

way: into the account and nothing is taken out.

So it assumes that you are going to payR1000 into the policy every month for a fixedperiod no irregular payments and nowithdrawals. The compound interest is thedifference between all the money you put in(over the entire period) and the final lumpsum that you get paid out, in other words,you put lots of little bits in, and you get onehuge chunk out at the end.

Problem with Compounded interest.

When any of the three above-mentioned variables change, the compoundinterest rate calculation is inadequate. One has to use another mechanism.


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As much as we did know, what

we learnt from you has beenamazing, and our daughters canbenefit from all of that!! ThankYou!!

Over and above all that we aretruly focused on creating the lifewe believe we were meant tohave happy and fulfilled, and itis a truly uplifting thought to knowthat you can be happy, no matterwhat curveballs life may choose

to throw.

One way to do this is to use the Internal Rate of Return. (IRR).

Internal Rate of Return. (IRR)

"If you want to succeed in your Life, remember this phrase: The Past does not equalThe Future. Because you failed yesterday; or all day today; or a moment ago; or forthe last six months; the last 16 years; or the last fifty years of Life, doesnt mean

anything...All that matters is: What are you going to do, RIGHT NOW!!?"(Anthony Robbins)

According to the help function in the Excel spreadsheet the IRR is the returns fora series of cash flows represented by the numbers in values. These cash flowsdo not have to be even, as they would be for an annuity. However, the cash flowsmust occur at regular intervals, such as monthly or annually.

The internal rate of return is the interest rate received for an investmentconsisting of payments (negative values) and income (positive values) that occurat regular periods.

Modified Internal Rate of Return. (MIRR)

Returns the modified internal rate of return for a series of periodic cash flows.MIRR considers both the cost of the investment and the interest received onreinvestment of cash according to the help function in the Excel spreadsheet.

My Usage of the IRR Function

I am using the IRR and not the MIRR. The

reason why I do this is because I want tocompare the return (growth) of myinvestment in property to that of any otherclass of investment.

Because retirement annuities, fixed deposits,unit trusts , pension funds, provident funds,endowment policies and others arecalculated using the compound interestmethod, I am using the IRR method ofcalculating the growth on any property or any

other class of investments.

Both the compound interest method and IRR calculate the growth of yourinvestment and therefore you can compare the two.


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Shortly afterwards, I saw anadvertisement for the HannesDreyer property course, and afterdiscovering that my new friendsuncle had attended the course, I

persuaded my new friend to joinme in attending it.

What an eye-opener and aculmination of all the seedsplanted throughout my journeythus far. I knew now what Iwanted to be financially freeand have my own propertyportfolio.

Best of all, I knew now too, howto achieve it. Spiritually, I hadcome to realize too, that we arenot placed here for our ownamusement, but for a purpose,and that God could use me andthe finances I have and generatefor His use.

I joined the Mentor course whenHannes started it, and havehungrily been going through hisweekly lessons. And of course,sharing my new-found ideas and

enthusiasm with my new friend,who happens now to be myfiance! God has been good tome, yet I know the best part stilllies ahead

So thank you, Hannes, forhelping me onto and guiding medown a path to a new mindset,new challenges and, ultimately,to financial freedom!

Property has at least twenty seven differentvariables with hundreds of thousands ofpermutations. The only logical way tocalculate growth is to determine the IRR.This cant be done in a property investment

unless you have a system that will take intoconsideration all the different permutationsrelating to the specific property.

Once you have determined the cash flow ona property it is possible to proceed tocalculate the IRR. Because a propertyinvestment can consist of either incomestreams or capital growth or a combination ofboth, it becomes important to find a methodthat can include both criteria.

Furthermore, some investors may wish touse their income as a pension and do notwant to reinvest their income back into theproperty.

Because the MIRR considers both the cost ofthe investment and the interest received onreinvestment of cash we cannot use thismethod to calculate the growth on propertyinvestments.

With the IRR the assumption is made that ifthere is income (positive cash flow) thatincome will be taken into considerationwithout reinvesting it back in the investment.

In property the IRR is directly influenced bythe cash flow and equity in the property at agiven moment (time intervals). In propertythe Cash flow (therefore the IRR) is mainlyinfluenced by the:

purchase price; market value; deposit; assessment fees; initiation fee; house owner's comprehensive Insurance; stamp duties;


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transfer duties; deed office levies; rental income; inflation linked or not; vacancy rate;

projected capital growth rate; projected inflation rate; bond interest rate; term of the bond; interest only or interest and capital repayments; property management fee; monthly expenses such as rates and taxes; special expenses; repair and maintenance; renovation costs;

tax rate; and type of entity which owns the property (Personal, CC, Pty (Ltd), Trust).

If any of the variables change, one cannot calculate the return by any meansother than the IRR. It remains the same valid measurement, because itmeasures everything that you put in and everything you took out, while thecompound rate assumes frequently in and once out.

The IRR can be used on any venture and any investment, so it is probably abetter way to determine the return of your investment in property than workingout the compound return. Because of the way the Property Pro Programmeasures the IRR it incorporates tax and all other variables related to property,the ultimate result is very accurate.

Why make it difficult when you can use a system?

The young do not know enough to be prudent, and therefore they attempt theimpossible and achieve it, generation after generation.

Pearl S. Buck, The Goddess Abides, 1972.

I am sure most of my students will agree that it is a lot easier using the PropertyPro Program as a system to calculate the cash flow on a property investmentover a period of time and then recalculate the answer to make provision for theIRR comparison rather than trying to figure out the mathematical way - especiallysince you have to do a series of calculations to arrive at an answer.

To find out more about the Property Pro Program or the one day PropertyInvestment Workshop visit www.propertyschool.co.za.

Ri = Risk involved in the investment or business


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The mentoring course works andwill be successful here andoverseas because it comes at theright time, it helps us to overcomethe crippling inertia, it gives us thetools to do the job for ourselves, itgives expertise and feedback andencouragement and hope. It doesone more very important thing forme - IT FORCES ME TO MAKE

TIME TO REALLY THINK ANDTHEN TO ACT!

My story is remarkable for mebecause I was fortunate to find theright source for the knowledge Ineeded. I am one of thoseprofessional people who are toobusy going to work to make money.Running an optometric practicerequires a hands on approachleaving too little time for family,friends and other interests and Iwanted more time.

Yes, you can be a dreamer and a doer too, if you will remove one word from yourvocabulary: impossible.

Robert Schuller

Unless you can measure or determine the risk in an investment

hannes dreyer amazing formula for creating wealth

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