Investor Agent Profile:
Dean Horo - Dunedin

Welcome to our new series, where Nick interviews the property investment specialists who make up our team. Find out more about people who work in property hunting deals fulltime, what they enjoy about property, what is a challenge and their own long-term goals!

This week Nick is talking to Dean Horo, who is our specialist in the Dunedin, Invercargill and Queenstown markets. 

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What led you to get into property investing?

Well, my parents owned a few investment properties over the years. I remember being dragged around to the properties to help paint a fence or the likes when I was young. Hated it at the time. Had to have my transistor radio (no air pods back then) and some snacks to get me through. My parents used investment properties as a way to hold cash as they didn’t trust banks so not really true investing as such.

Later in life it was a couple of mates who were dabbling in property that encouraged us to take the plunge and have a go.

I am so glad we did.

Describe your first deal. 

First deal in 2003 was a 3yr old negatively geared 3-year-old house on the Te Atatu Peninsula. I had heard the Peninsula was going to be the next best thing with the new motorway going to be not too far away.  We owned it for 10yrs. Learned how to work with tenants and what this investment property gig was all about.

It did well over the years but it wasn’t all smooth sailing. Had a shower leak that caused major issues and had to be replaced. Moved to Dunedin in 2004 from Auckland so managed the property from a distance for a while until handing it over to a property manager. Had a pretty positive first experience and I believe that is critical to enjoying and staying the course with property investing. 

How did you feel at the time as you made the leap?

Pretty nervous and confused with all of the paperwork etc but really excited. Maybe also a bit of self-doubt crept in too. I had read a few books but I still didn’t really understand it all. Took a while to understand the leverage thing . So appreciate what a big deal purchasing property is whether as a home or investment property. It’s a big deal for people. I never take that lightly when working with clients. Putting pen to paper on a sale and purchase agreement is quite the commitment.

What was the most challenging deal you have done to date?

That one's easy... it was one of mine. I think over time you can get a little lax with your attitude to property and property deals.

I went to an auction on a rundown property in Caversham in Dunedin that was due to fall over on a small medium density site having done little due diligence on the property and also having only had one development under my belt.

I knew I could achieve dual access which was good. What I didn’t know was that the site had been used in the past by the owner to fix old cars so it was a HAIL site. Look that up if you like. Its not great.

While it all turned out in the end and the two duplex houses look good, and I now know a heap about HAIL sites, it was pretty stressful at times.

I think I also forgot to mention that I went to the auction without letting my broker know. He was a little grumpy with me and he had to work very hard to get the funding when I required it.

Lessons, always get your due diligence right and keep your broker informed of your cunning plans…

What was the most satisfying deal you have done to date?

Hmm. I think my very first deal as a licenses Buyers Agent for iFindProperty was the most satisfying deal. I didn’t realise what a buzz it would be helping others to find and assess a property, help work through the buying process, provide moral support and finally receiving the email from the client that the property has now settled.

That was cool and very rewarding especially as my first client was a newbie residential property investor. The education and support for clients along the way came quite naturally having been a teacher in a previous life but my knowledge of the real estate industry having only just completed the real estate qualification was pretty basic at best. Anyway, it is still a buzz helping people try and make a better life for themselves and their families through property investing.

 What do you enjoy the most about property investment?

 Of course I would say it is a great vehicle to get ahead in life financially. A close second is meeting new people along the way although most often I don’t get to meet my clients face to face as they tend to be from out of town or from overseas. 

My clients have been great though. No two clients are the same which makes it interesting and while their long term goals for investing may be similar, their financial position, propensity for risk and knowledge and understanding of property investing are wide and varied.

I also like meeting and working with other agents including my iFindproperty colleagues. I continue to learn from these guys. Lastly I also enjoy working with property managers and contractors.

What do you least enjoy about property investment?

Auctions. I dislike auctions in relation to investment properties. It is frustrating when a client spends a lot of cash on due diligence and is not successful in purchasing the property.

I often choose not to direct clients to properties that are initially for sale by auction. I will keep an eye on the auction and the result of the auction of course but don’t tend to partake in auctions on behalf of a client. Just a personal pet hate I suppose even though an auction is a pretty exciting way to buy. 

If you could go back and give yourself one piece of advice at the start, what would it be (besides buying lots more!)?

Man, that’s a hard one but it would probably be to really understand the basics of investing and chatting to people about that prior to pulling the trigger on your first investment purchase. Would we have purchased our first deal shared above if I had a better depth of knowledge of investing? We possibly could have purchased more of a reno as we had the time pre-kids to do that. Maybe?

Having said that, I also come across people who have a lot of knowldge about property investing after using multiple mentors and attending many investment courses but end up with paralysis by analysis and don’t end up investing at all. Anyway, a basic understanding of the fundamentals of investing is important. 

If you had to start again today with the knowledge you have, what would you do?

Hmm, Not sure. I enjoy the property game in particular working with buyers. I don’t think I could be a traditional vendor agent.

I think maybe I could and should have become a Buyers Agent sooner.

I have really enjoyed working in other jobs and industries as well so that it is not all about property for me.

In regard to our investment journey, I would have most likely started to get into property development earlier than we did, knowing what I know now.

Have your goals and approach to property changed since you began your property journey?

I don’t think my goals have changed. It was always about giving ourselves options in our mid to late 50’s onwards.

We like working so to be able to pick and choose how, when and how much to work or volunteer our time is what we are striving for.

Approach-wise, yes that has changed over time mainly because we didn’t really have a strategy at the start. We were just happy to be able to buy an investment property or two while bringing up a young family. Having said that, multi-income properties were definitely the preference early on.

It has all been a little organic really. I suppose we have been open over the years to branch out and be prepared to consider any properties rather than being really strict on our investment rules. I think you grow a level of confidence and a close group of advisors and confidants over time which help you stay on track.

Nick Gentle
Business Owner & Operations Manager
nick@ifindproperty.co.nz
027 358 3855