He had reported his position as 2.5km north-east of Berghan Point, but was found outside the entrance to Doubtless Bay on the other side, Knuckle Point.
Coastguard Whangaroa was unable to help so a volunteer crew from Mangonui, including skipper Hamish Wilton, Simon Allan, Ben Nunn, Grant Webster and Constable Reynolds, set out aboard the Lilly Walker.
A former fisherman off the Isles of Scilly, off the Cornish coast, Constable Reynolds said the seas were among the roughest he had ever experienced, with 3m swells and 50-knot winds.
"These guys put their lives on the line to rescue someone else.
"It was atrocious conditions, although the wind did drop when he was being towed back in," he said.
"It was impossible to see where he was, so we got those in communication with him to [tell him to] let a flare off," he added.
The yachtie was duly found, and he tried to follow the rescue vessel, but had to be towed when the wind dropped off.
He anchored in Mill Bay at about 9.30pm, and docked the next morning when Customs cleared the vessel.
Constable Reynolds was impressed with Lilly Walker's ability to perform in rough conditions, but was less complimentary about Cosmos Explorer.
"She's an old wooden yacht that I wouldn't sail to Rangiputa," he said.
He said that her navigation system would be better suited to a car than for crossing Tasman Sea.