RSS Feed

How to build your B&H dream team

Tuesday, July 04, 2017

It is often said that real wealth with property comes with time.  You are more likely to succeed if you take the long-term approach to accumulate both cash flow and capital gain over time.  Which is why it is so important for any investor to build a strong investment team, not just for now, but for the long term.  The goal here is for all the elements of your team to come together like a well-oiled machine over successive properties.  By working out and almost duplicating the formula for successful properties, you eventually arrive at your ultimate investment goal. 

So, what makes a dream buy-and-hold team?  There are three crucial parts to consider:

1. Your Money Team 

Many newbie investors mistakenly assume the first step of property investing to be buying.  Hang on a sec.  Before you pour over TradeMe listings, get your access to finance sorted.  Beyond the obvious reason that you need to know how much you can afford to borrow, the last thing you want is to get the reputation as a tyre-kicker if it is shown that you cannot close deals.  Falling short at the last minute because you can't fund your promise to buy is a surefire way to get off your agent's roller deck.  You may as well kiss goodbye to future opportunities.  

So get your money sorted first.  There are two elements to your Money Team.  The first one is your banker/broker.  You got to be able to borrow the money.  So find a banker/broker who understands your goals and is willing to stand behind you for the long term.  You want someone who shares your vision for your future self and with their industry experience, map out how you get there.  This person will also know the delicate balance between when to push your ambitions forward and when to hold you back.  

The second important person on your Money Team is your accountant.  We often say to APIA members; you can scrimp and save on anything but don't ever cheap-out on an accountant.  A good accountant is worth his/her weight in gold.  You want to get yourself an accountant who not only specialises in property but also owns rentals themselves.  An accountant who is also an active property investor is more likely to see the bigger business goal you are trying to achieve and use his/her technical knowledge to advise you.  Your accountant should steer you towards the best asset structure for you to minimise tax, manage risk, and achieve steady growth.  If your accountant is only charging you to do your tax return, then we are here to tell you that you deserve better.

2. Your Buying Team

Now that you have your finance sorted let's go shopping.  Home in on a particular market you want to invest in (e.g. CBD apartments, South Auckland home and income etc) and get to know the top real estate agent operating in that market.  Take a drive around the neighbourhood and take note of the agent name that comes up on most of the for-sale signs.  You want to get onto that agent's call list and eventually become their first phone call when deals come onto the market.  Agents like serious repeat buyers who will not waste their time. Especially in this market, agents get a lot of phone calls and have no choice but to become good at weeding out time-wasters.  So how do you get taken seriously?  By having your money ready, research the market thoroughly, and taking decisive actions.  By being able to close deals efficiently, you will show yourself as a do-er, not a talker.

You also want an excellent lawyer/conveyancer on your side.   One who knows the lay of the land at the Council and is well-versed in navigating rules and regulations in a way that avoids unnecessary delays is indispensable on your team.  It may seem a small thing when you first get started, after all, simple conveyancing transactions are more procedural rather than technical.  But do consider that eventually your portfolio and ambition will likely grow to cover development or commercial type transactions where your lawyer's expertise will be necessary.  

3. Your Landlord Team

A lot of investors spend a disproportionately large amount of time on analysing deals and negotiating down to the final cent of the buy price.  What has often been forgotten is that the real profit of buy-and-hold comes from management.  The moment you fall short at your landlord duties is the moment you cut off your cash flow.  Why would anyone do that?  Management is the last piece of the puzzle that falls into place and arguably, the most important and also the most neglected.  

At the absolute minimum, your property manager (be it yourself or an actual property manager) needs to understand two things:

  1. How to seek out and fill rentals with tenants who understand that residential tenancy is a business rather than a transient and casual phase of their lives; and 
  2. The political dynamics of residential tenancy and ergo the importance of continuous education and industry update in order to minimise disruptions and maximise the return on your property. 


Your property manager is your front line support and response team for your tenant.  It is important to take your time to choose the best manager who is going to represent your business interest well.  

Related article: How to interview your next property manager?

You need a maintenance team who can respond to emergency and general maintenance calls.  You want to get to know your maintenance them; things like whether the services cover 24-hour emergency response, how the team satisfies their HSWA obligations, are their tradespeople in-house or contractors, do they specialise in residential rentals, and how many properties do they service.  You also want to put in place a turn-over team to minimise your property's stand-down period in-between tenancies.  We are talking about painters, handyman appliance repairers (dying industry by the way!), locksmith, cleaners, and electricians who gets sent into your properties during vacancies to restore your house back to its original condition.  Remember, every day your property stays empty and everytime your tenant is frustrated at the lack of service is a threat to your cash return.  

Ultimately your Landlord Team is responsible for achieving strong cash returns on your properties.  Your Money Team can then take that cash to get you access to better loan terms enabling you to boost the activities of your Buying Team.  See how the three elements work together to make you a strong reliable force to keep buying and growing?  

Recent Posts


CoreLogic reserve bank kiwibuild watercare off the plan investor mortgage Property (Relationships) Act Market report smoke alarm p lab anz buyer's agent tax property cycle debt enforcement property apprentice productivity auckland council robert kiyosaki data security finance khh fixed-term tenancy cgt bond property rent arrears beginner investor letting RBNZ building rta reform sale and purchas bond form yield airbnb education principal and interest CCC TCIT ird ocr banking tenant Guest blog trust speculator trespass early termination heating tenancy tribunal rental market auckland meth meth contamination interest rates shower dome HHGA rtaa2020 capital gain business letting fee Q&A interest only election2020 ask an expert gluckman report advice privacy rent increase rent winz cat termination worksafe opes partners television income Must knows short-term rental relationship renovation Investor story Editor's Choice equity bad tenant wealth creation trademe Holler rental wof cash-flow lvr nzpif How to Must know financial advisers act anti-social behaviour Landlording buying RTAA 2019 initio covid-19 buying rules barfoot and thompson personal growth government property maintenance scotney williams Case study minor dwelling tenancy issues HHS rta clnz warren buffett property management Sponsored post Kris Pedersen Mortgages and Insurance subdivision insulation Investment tip Jeff Bezos structure holiday house Gluckman extractor fan housing affordability Question and answer wins maintenance warm up new zealand DTI Standards New Zealand inspection ring-fencing investment strategy insurance will market housing bubble twg report return unitary plan asbestos tenancy services heater market rent damage parry v inglis landlord skill shortage management positive cash flow property value Tribunal case study commerce commission negotiation legal mindset first home buying house prices Level 4 sublease development partners HSWA water bill re agent ventilation LIM sale and purchase election 2017 recycling equity boarding house


Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 

Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited