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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