HENRY

How a corporate worker escaped the wage-slave cycle and found financial freedom

Henry should have been living the dream. He was a professional engineer who was earning more than $170,000 a year. But beneath the surface, he was living pay-cheque-to-pay-cheque, renting, and had amassed a credit card debt of $70,000.

After joining Dymphna Boholt’s program in 2016, Henry started to turn things around. In just two years he cleared his credit card debt, increased his equity by $350,000, and left ‘wage-slavery’ behind for a career as a full-time property investor.

Henry had ticked every box society had given him: he had a loving wife, beautiful children and a high-paying job. He should have been on top of the world but, deep down, he was struggling.

Henry travelled more than 220 nights a year, leaving him with very little family time. To make matters worse, he felt that he was becoming alienated from his young children.

Despite his high-paying job, Henry didn’t own a home and was barely getting by from one week to the next. Moreover, he had amassed $70,000 worth of credit card debt.

In 2016, Henry’s friends convinced him to join Dymphna Boholt’s Ultimate Program. A new world of possibilities opened up and he was keen to get started but didn’t know where to begin. Henry’s background as an engineer made him extremely analytical and cautious, and he suffered what Dymphna calls ‘analysis paralysis’.

“I was talking to my friends about Dymphna, and I said, ‘It’s just too good to be true, right? But they said, “No man, it’s actually all true.’ So I joined up.”

However, Henry’s first step soon became clear. Like many others, he’d followed his accountant’s advice and bought a negatively geared investment property. He decided to sell this, which gave him some capital to work with.

Henry bought a block of land for his principal place of residence (PPR), which created a large chunk of equity. This worked well, so he did it again in a neighbouring estate.

With some equity behind him, Henry went to America to land two cash-flow superstars, and then returned to Australia to put together two multiple townhouse developments, with another one currently in negotiation.

Henry had so much momentum behind him that he was able to complete his first marathon at the ripe old age of 41! Henry believes that his financial transformation has gone hand in hand with a personal transformation, thanks to the I Love Real Estate community.

Deal 1: A place to call home

With the capital freed up from the sale of his negatively geared investment property, Henry was able to secure a block of land at 20 per cent below market value for his principal place of residence. After refinancing, he was able to use the equity gain to fund the construction of his home.

Having purchased and built well, Henry’s home cost him less than $630,000 and has since been valued at $768,000 – an equity gain of $138,000.

Deal 2: Same deal, different estate

Following the success of their PPR build and with a fresh injection of equity to work with, Henry decided to repeat the process. He worked with the same developer and bought a second block of land in a near-by estate.

However, with a growing awareness of how the property game worked, he was able to negotiate some aggressive terms. He bought significantly under market value, with a five per cent deposit and a long 12-month settlement.

Building is currently in process, but Henry has already created more than $50,000 worth of equity in the land alone.

“I‘d done a house and land deal, and it had worked. So I wasn’t as afraid of that as some of the other stuff.”

Deal 3: A visit to cash flow country

After establishing a solid base, Henry set his sights on generating the cashflow he needed to pay off his debts. He headed to Florida, America, to visit family and looked into the American property market.

He found an attractive property for US$385,700. Henry was able to secure the deal on vendor finance and the owner allowed him to take over the loan. This created an easy point of access into the American credit market. After expenses, the property will be cashflow positive to the tune of US$7,100 a year.

Deal 4: Buying the seven dwarves

While in America, Henry decided to take his family to Disney World in Florida. They stayed in a special holiday rental, which is named Seven Dwarves Lane. When Henry found out the holiday rental right next door was for sale, he spoke to his brother and his wife about the possibility of entering into a joint venture.

His brother and his wife had seen the transformation that was unfolding in Henry’s life and were keen to know more. They also had direct access to the American credit market where they could secure fixed rate loans of two per cent. In America, a fixed rate loan can be fixed for the entire term of the loan – that’s 30 years!

Together, they purchased the villa for US$160,000. It rents for an average of about $40,000 a year, which after expenses creates $6,400 worth of positive cashflow.

Deal 5: Henry becomes a builder

Although the American deals had started to help with cashflow, Henry still felt he didn’t have enough equity behind him to get moving. With this in mind, he became a registered builder and started hunting for deals that would create a good chunk of equity.

Henry teamed up with another member of the I Love Real Estate community, became a partner in a building company and found a property with potential in the Melbourne suburb of Bayswater.
Henry knew he needed to move quickly, so he put down a deposit – the last $50,000 he had in his name – and trusted that he would find the partner joint venture he needed to make the deal happen.

Henry was able to negotiate some favourable terms: five per cent deposit, 12-month settlement, and early access. These terms meant that there was enough in the deal to attract the joint venture partner he needed. With a large pool of potential partners available through the ILRE community, he found who he was looking for and got the deal across the line.

As a one-into-three townhouse development, with a total cost of $2.2M, and a final sales price of $2.6M, Henry’s share of the profit comes to $360,000.

Deal 6: A development lands on his lap

By this stage, Henry gained a reputation as a ‘property fanatic’, and his friend introduced him to a property investor based in Singapore. The investor owned a run-down house in Melbourne with potential for development. He wanted to build townhouses but didn’t want to do any of the legwork. He offered to provide finance if Henry was willing to come on board as a ‘knowledge partner’.

With the owner looking to hold the three townhouses long term, Henry’s personal profit in the deal should come to $190,000.

The wage slave wins his freedom

Henry is close to closing the deal on a four-townhouse development in the Melbourne suburb of Kilsyth, which should create an expected profit of $442,000.

All in all, Henry has seen a remarkable turn-around in his finances, outlook and lifestyle. He has cleared his credit card debt, improved his cashflow position by almost $17,000 a year, and increased his equity by $370,000 – in just two years. Not only has this created a career that really gets him excited, it has brought him home to his family and his children couldn’t be happier.

These stories and the results in them were captured at a specific point in time. The real estate market and the investing strategies used to succeed are constantly changing. The achievements and results of these investors may have changed since these stories were recorded. Each of these investors engaged in in-depth training, coaching and mentoring to be able to achieve these results. Their results are not typical and should not be taken as a guarantee of the results you may achieve. Your personal results will be in-line with the training, education and hard work that you personally conduct.

Not only has this created a career that really gets Henry excited, it has brought him home to his family and his children couldn’t be happier.

RESULTS

Pre-Dymphna
Credit card debt: $70,000
Passive cashflow: -$3000PA
Equity: -$20,000
Active project portfolio: $0

Post-Dymphna
Credit card debt: $0
Passive cashflow: $13,500PA
Equity: $350,000+
Active project portfolio: $6,950,000