Robert Nikolovski suffered an "uncontrollable feudal bloodlust" towards Darko Janceski, who he believed had killed his brother, a court has heard.
The Cordeaux Heights man is accused of soliciting Mr Janceski's April 2012 murder, and was yesterday refused bail in Wollongong Local Court.
He has entered a plea of not guilty and now plans to apply for NSW Supreme Court bail.
Nikolovski, 38, believed Mr Janceski had killed his brother, Goran Nikolovski, and days later Mr Janceski had set fire to his own home to destroy any evidence, police will allege.
Rather than assist police, Nikolovski carried out his own investigation into his brother's suspicious disappearance on October 31, 2011, the court heard.
In phone conversations with friends intercepted by police, Nikolovski allegedly expressed a desire to kill Mr Janceski, according to facts before the court.
"I'm gonna kill him with my bare hands ... I can't deal with this any more," he allegedly said during a call on November 9, 2011.
Mr Janceski, 32, was gunned down outside his parents' Gannet Avenue home on April 14 last year, five months after Goran Nikolovski's disappearance.
Opposing bail, police prosecutor Sergeant Shannon Ryan said Nikolovski had suffered an "uncontrollable feudal bloodlust" towards Mr Janceski over the suspected murder of his brother.
He told the court Nikolovski refused to assist police after his brother's disappearance, instead leading his own investigation.
Sgt Ryan said Nikolovski had associations with criminal organisations and could be a flight risk, if granted bail.
"Having access to that network, there are significant fears of flight," Sgt Ryan said.
There was also a need to protect the community and a number of witnesses, he said.
Defence solicitor Aaron Kernaghan, acting for Nikolovski, said the police facts for the case were based purely on suspicion and contained no solid evidence his client had approached anyone to murder Mr Janceski.
"There's a reason the word suspected has been used, because that's as high as it goes," he said.
Mr Kernaghan said his client's conversations had occurred following his brother's disappearance "in circumstances that are extreme and emotionally tumultuous".
He said Nikolovski's investigations amounted to little more than "schoolyard gossiping".
"It's just been a whole lot of big talk from some tough guys."
Mr Kernaghan said Nikolovski was prepared to hand over his passport, abide by a curfew, report to police and stay away from any witnesses.
Nikolovski's mother was also prepared to offer her home as a surety, he said.
A second man, Christopher Madden, 25, of Horsley, was also refused bail yesterday.
He is accused of buying the motorbike ridden by the alleged gunman, who shot and killed Mr Janceski. Madden has been charged with being an accessory to murder and participating in a criminal group, and yesterday entered a plea of not guilty.
Magistrate Geraldine Beattie adjourned both men's matters to March 27.
Meanwhile, a 27-year-old man, from Horsley, is expected to attend Wollongong Local Court today. There, he is expected to face charges of being an accessory to murder, participating in a criminal group and steroid possession.