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Stop in /usr.
bash-4.2# make pkgsrc-create-repo 
If problems occur you may have to rm -rf pkgsrc and try again.

mkdir -p /usr/pkgsrc
cd /usr/pkgsrc && git init
Reinitialized existing Git repository in /usr/pkgsrc/.git/
cd /usr/pkgsrc &&  git remote add origin 
git://git.dragonflybsd.org/pkgsrcv2.git
fatal: remote origin already exists.
*** Error code 128

Stop in /usr.
bash-4.2# make pkgsrc-update
cd /usr/pkgsrc && git pull