Investing in Bush

by Matt Romantech on July 10, 2017

I stayed up all night getting obsessed with this kaikohe property.

It seemed crazy at the time, and is of course a bad idea, and when I was talking about it at the family lunch everyone was more surprised than usual that I would be going on about more bits of land, though somewhat aware I had mentioned it facetiously. It made me feel a bit crazy, because they’re all like . . . but why???

They of course haven’t followed my batshit conclusions based on endless hours considering and writing, and I use the technique of allowing myself to make the most fiendish plans because then I start to see things more clearly, that goals are achievable in more frictionless ways that don’t involve exploitative strategies, and the really crazy stuff makes for a good story concept.

It’s about exploring true motivations. It’s about weighing things morally. It would suck not have a good idea because you were afraid to explore an idea that on the face was exploitative.

You have to harness people’s drives to get the society you want. The goals of the individual have to be aligned with the goals of society.

If you want to travel the world getting wasted and chasing girls all the time, then we need to find a way so that everyone benefits.

It is a functional, distributive exploitation.

It’s a concept based around not expecting anyone to do what they’re unwilling or incapable of, and them not having to suffer harsh discontent. The choice must be there for them.

I feel that we can farm people. That sounds exploitative on the surface. But I just have a blunt way of envisioning things, I don’t flinch from a metaphor that is harsh, if it helps me see something.

A whole bunch of poor people living in the most messed up boarding houses and in their cars is fucked up. Am I trying to save them?

They are there because of some rotten slumlord, and I am just delving into these ideas – the slumlord is weak, he is a desperate figure, desperate to squeeze the money out of ever more desperate people, he truly cannot afford the luxury of showing humanity.

This to me is an easy target to go after. once you offer people a better option you can begin to put pressure on these people, robbing them of their income.

We are also going to try and get their income because we have to be able to compete, and in order to compete you have to profit, in order to reinvest the profits into crushing the competition, that is, doing more of what you are already doing that is working. It’s how capitalism works, it just goes hard.

When I started looking, I was looking for this place. Where do you send anybody and everybody, because a family living in a car or some messed up guy living in a shabby boarding house is just going to be better out there doing some work or handing over most of their benefit. We are farming people.

We probably have our own shabby boarding house with bunked out rooms to draw the candidates in, and then slowly let the benefits of being at the rural location sink in.

So what you’re doing is starting your own slum house, which is better than the other slumhouse because vietnamese girls clean it, and the toilet and kitchen is clean and functional, and it’s cheaper because we are taking a loss, and they are supplied with some food and drink. We are continuing to try to funnel these people out to our rural location, where their board money is much less and they have their own space, a container to themselves.

At the people farm, there is more food and entertainment. Alcohol and weed are special rewards for hard workers. But you just send them there.

More sections, more factories, more blocks.

In the slum house it’s $150 a room, but at the people farm it’s $50 + 8 hours, or it’s still $150 if you can’t work, it has to be, the facts are if these people are ill or otherwise incapacitated we have to take extra care for them.

Now we introduce this kaikohe place. If I ever had 20 people paying $50, $1000 p/week on that property, it would be a huge ROI.

Of course that’s not the point. The point is you are renting buildings and attracting different people to come and live there with the hope they can be shipped off to another location, one of the many factories, sections and lifestyle blocks we are picking up for very little money. I was saying If I did download $75k that I paid tax on I could probably borrow $150k against my place, maybe I could raise $300k, but then we remembered that was to be for the coromandel purchase in over a year.

Then the following year 2019 we put up another $75k to borrow the money for the village section, the old factory and the small town section, maybe $320k.

Now the bank has lent me $350k+ but I have 4 properties and this is what I was saying, that will be enough because I won’t get there for 2 years. Then I will have built feminvest by running $20k+ pw off the account while still paying off my loans, which will grow over the year, but it has it’s own bills to pay.

What this means is that though in 2020 feminvest will probably be full set up, I personally will still be paying off those properties and have no way of generating more capital.

So the barrier land will be purchased with feminvest money and held in the trust. This doesn’t give me any capital, but it does make my next purchase available.

Put it this way. If you have $100k free and you want buy property you have $67k in NZ, $95k in vietname and $100k in uruguay.

In this model you have purchased every identified set up for property – the bush block, the lifestyle block near a dead town, a section in a decent town, or the old factory.

The “section in a decent town” is fundamental because this is your first exit in 2021 to sell this property to feminvest and continue to manage it.

What is stopping feminvest buy the properties and selling them to me? Especially as I can start on some work. I just couldn’t buy properties they sell to me that I then sell back, that’s too tricky and seems fishy. But I think in terms of large pieces of land that we don’t actually plant to develop with a permitted structure, this could work. This means the workfarms. The workfarms are full of messed up containers and makeshift dwellings. If the place gets cleared for whatever reason, we haven’t lost an investment on paper.

The factories are mine because it’s my personal interest, and the well located sections are mine because those are the one’s I will sell to feminvest, they should be on the books because owning residential properties fits with their mission – not an old factory or commune. But when it comes to bush blocks like barrier, this is simply landbanking, putting your investment into something like gold, something that has tangible value when everything else is failing.

But having set all that up, we re-examine the set up – which of our 4 set ups do we need when and which is best?

You said a coromandel bush block was best because you’re getting in early on a long term development and going big. But where is the easiest place to send people to?

Not the tiny section in te kuiti or masterton, it’s too far and there’s nothing on offer there without a house happening.

The factory in marton is a house but it is so far away. The whole idea of the factory is being able to scale big, fast, a team of at least 4 guys ready to hit it.

Now you’ve just got the hard comparison of $225k for the coromandel bush block and let’s have our newest competitor step to the line.

we have 4.5 acres just outside of whangarei. We have 10 acres of pine in mangataruto about 80 minutes from auckland. These guys are closer to $170k.

The question of course is where will we get people to go.

The surprise answer is the 4.5 acres for $185k. It’s close to somewhere, somewhere we can set up a HQ. It’s closer to the beach. It is basically in whangarei which means of course you’d put a house on it. and by late 2020 you’d be able to make the sale. You need not buy another section unless it’s really a smart move. If it’s simply like that $18k number in martin leave it for feminvest. In 2019 I begin transferring the money over so in late 2019, they can buy bush.

But in late 2018 we opened the first depot and bought the 2nd out location on top of my place. Filling all those spots won’t be easy especially with honey pie going too, so we are scheduled to buy bush in late 2019. Now I am waiting for pressure from the depot and the 2 out locations to push toward the factory, but ohinewai is already the natural selection. 18 months from now, on it. This again asks why we even need this damn factory at this point, we are simply poised to fill 4 properties before I leave again.

You can be confident, but let’s plan – we simply don’t need the factory then, stepping back in late 2019, feminvest is ready for bush, and again we only need the factory, we only get the factory if the depot, and the 3 out locations are creating pressure for that.

So you can see our next purchase is a big deal, and with ohinewai there, the obvious question, why don’t we make this location closer to our matrix?

the 4.5 acres in whangarei, or pay $20k more for 3 acres in waihou. I just think the answer is obvious, waihou is only a few k’s from te aroha, it’s still tightly in our circle. Can we use it for what we want to put our temporary house there? Yes. Temporary house and relocatable house.

Now we see a familiar face. 2.3 acres up in tahuna. It is over twice as far but we add a bit more property. It is a hard call.

It’s still the 2.3 that is the king, because it is so close to my base, and it’s never going to be bad that I’ve got close locations to do my thing. It’s also way more private than the other property and appears to have bush all around it, better for using to grow weed.

This is a year away. I go back to my watch list and I see a depot I had saved from 2 years ago is still there. $33k a year. But then with the kiev girls behind us we could be ready to fill up ohinewai straight away. But then we’re coming in with the purchase, and just as the kiev girls get ramping they are filling these locations.

I’m already hitting $20k p/week, I can easily pull down $70k to raise half the deposit with my $50k savings, and borrow $80k. 2019 feminvest starts kicking off, I am paying back the $80k. When the depot and ohinewai and my place and the new section are all full of like 20 guys, then we are buying an old factory, or something like the school that we saw. That means in the time I got back in october, to march maybe, we got 20 guys, I don’t think I will have time and maybe 20 guys in that short a time is too much on top of honey pie and we should just keep things cool.

When I get back, feminvest is ready for bush, so we have bush and factory options, but it’s really what works based who we have ready to push out.

It’s still another year before feminvest can purchase the other property I have already started work on. But they can buy bush, and it’s likely I have my 2 properties mostly paid off and I am able to borrow from the bank against them if a factory or section became available.

What I am seeing is that it is all working out, it just might take awhile and we can’t buy anything and everything we like that fits the criteria for a few years.

What matters is that we manage our money and keep the trading pumping so that late next year I can buy my first larger section to develop. In order to do that I need to download $5k p/week from about this time then, where I’m projecting to be earning $12-16k pweek. This would usually be pretty hard but I am hoping by then we would be building at a slower pace and have allowed a lot of equity to flow back which we can draw down. But even then, imagine you were drawing down $1500 right now. It would be hard to progress and earn more and a little sketchy, but you’d pull it off and the thought is that you are at this point cruising toward $25k where you can really start dropping the anchor.

You might do $5k pw over september, and then $10k pw over october. Perfect.

It seems there is a wait on.

Coromandel was pretty slim pickings but I did find a paparoa property for $295k that was 40 acres – now that totally would challenge me on coromandel – paparoa and coromandel are probably a similar distance. Don’t forget there was a 60 acre number there for $169k too but that was way way north another 40km from kaikohe. 3.5 hours. That would have to be the furthest reaches, that is is the most land for the cheapest price I’ve seen, and it was way north, not way south, vietnamese and ukrainian alike will find the weather fine. Ukrainians will love it.

The reason that feminvest will invest into bush is because bush will never be developed as such.

When I put a relocatable house and do a bunch of work on a place I want to realise the capital gain. When I buy a lifestyle block near a shitty town, I am hoping in 10 years the town will boom and I will subdivide the blocks. When I buy an old factory I want to do what I like with it. I don’t want to have to come up with some convincing concept as to why an investment firm dedicated to women’s welfare would buy an old factory in a smalltown. Maybe they should start a new company just for this purpose. Mannerbund holdings.

I want to access the feminvest capital but I don’t want my favourite properties being interfered with later on when feminvest is run by a full board of directors, and I am perhaps not involved in such things. We don’t want suspicious horseplay, we just want to use the feminvest money to buy some land patches . . . NO – feminvest will pay a dividend to the trust which it uses to purchase in coromandel and barrier.

That is, my share in feminvest, all barrier land and coromandel and all bush blocks are held in this trust for my descendents.

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