If you’re thinking about flipping property or building out a trading arm to grow your portfolio, this video is a must-watch.

In the video below, Jim Dodd from Property-CEO shares a practical and honest look at the key risks involved in property trading in New Zealand and what you can do to avoid the most common (and costly) mistakes.

This article breaks down the key lessons from Jim’s video so you can take the right steps, avoid the pitfalls, and trade with confidence.

Why Property Trading is Still Worth It

Jim opens the video by explaining why flipping property in NZ remains a powerful strategy. It’s not just about a quick return. It’s about building cash pots that you can use to:

• Pay down debt faster
• Fund long-term rental investments
• Improve your overall cash flow

The goal is financial freedom, not just property ownership. Trading is one way to speed that up.

Key Risks Covered in the Video

Throughout the video, Jim shares the three biggest risks property traders face. Each one can be avoided with the right approach, and he walks through how to do exactly that.

Risk 1: The Property Doesn’t Sell

Jim points out that one of the most common challenges is finishing a renovation and putting the property on the market, only for it to sit with no offers.

Why this happens:

• The market changed during your reno
• You didn’t define your target buyer early enough
• You designed the property for yourself, not for actual buyers

How to avoid this:

• Aim to complete and sell the property within 3 to 6 months
• Profile your ideal buyer before you even buy the house
• Renovate based on real demand in the market, not assumptions

Jim gives an example of developers building townhouses, only to find out two years later that the demand has shifted. By keeping your timeline short and your strategy buyer-focused, you reduce this risk significantly.

Risk 2: Going Over Budget

Another common issue Jim highlights is overcapitalisation. Many investors underestimate renovation costs or rely on vague estimates rather than confirmed quotes.

The biggest mistakes include:

• Guessing costs instead of quoting them
• Using charge-up trades with no spending cap
• Failing to define profit targets from the start

What Jim recommends:

• Get at least three quotes for every major task
• Know your end goal, then work backwards to calculate what you can spend
• Treat it like a business, not a gamble

Jim explains that assuming the market will rise enough to cover poor planning is not a reliable strategy. Profit comes from solving real problems, not wishful thinking.

Risk 3: Renovations Take Too Long

Time is one of your biggest costs. Every week your property sits, holding costs chip away at your profit and the market can move beneath your feet.

Why delays happen:

• Trying to do the work yourself
• Waiting too long to start the renovation
• Not having the right team locked in ahead of time

Jim’s key points:

• Avoid DIY. It costs more in lost time and missed deals
• Have your team ready before settlement
• Move quickly the moment you get the keys

In the video, Jim uses a clear example. If you save $30,000 by doing the work yourself, but it takes you six months instead of four weeks, you may lose out on multiple other deals. The opportunity cost is often far greater than the money saved.

Why You Should Add a Trading Arm to Your Strategy

Jim makes it clear that building a trading arm into your wider investment strategy can fast-track your financial goals. While buy-and-hold relies on external factors like market growth and interest rates, trading puts you in control.

With the right approach, you can:

• Build capital quickly and on your own terms
• Pay off your portfolio far earlier than expected
• Avoid relying solely on long-term gains or passive rental income

Jim explains that success doesn’t come from working harder. It comes from taking the right steps in the right order. Once the systems are in place, your job is to monitor and manage, not do everything yourself.

Final Takeaway

As Jim shares in the video, the biggest thing that holds people back is not the process or the property. It’s their belief around what’s possible. Once you understand the actions needed and follow through with clarity, trading becomes a structured and predictable way to build wealth.

Watch the Full Video Below

Everything covered in this article comes directly from Jim Dodd’s video, where he goes into more detail, shares real examples, and walks you through what works and what doesn’t. Press play below to watch the full breakdown.