The first of his family to own property, Eddie Dilleen’s upbringing in rentals and housing commission properties spurred on his urge to succeed through residential investment.
Motivated by personal circumstances to grow wealth through residential real estate, Sydney’s Eddie Dilleen built a 10 property portfolio to the value of $2.1m by the age of 25. Growing up in rentals and housing commission properties, Eddie remembers hearing his school mates talk about the houses they’d inherit one day from their parents. Eddie knew that his path would be different - that if he wanted to build wealth, he’d have to do it on his own.
“I realised I wasn’t going to be left anything,” he says. “Life wasn’t going to be like that for me.”
Eddie set out to buy his first property by the time he turned 18. After two years of saving everything he earned (while finishing his HSC), he was able to fund a $20k deposit on a NSW Central Coast residential investment.
“Even though it wasn’t a nice area where I was living, property was still expensive,” Eddie says. “I bought near Wyong which was in pretty close proximity to Sydney, but a lot cheaper.”
It was another two years before Eddie purchased again. He’d taken time out to enjoy himself by socialising and going to parties, but he hadn’t been able to shake his interest in real estate. When he started reading about other young investors owning multiple properties, he realised that people didn’t just stop at one - they kept going.
“I wanted what they had,” he says. “I came from a poor background and I wanted more and more. I wanted to grow my portfolio and wasn’t done yet.”
Eddie immersed himself in property, soaking in knowledge from books, magazines (including Australian Property Investor), podcasts, Facebook groups and more. He talked to real estate agents, brokers and other investors, spending hours looking at property listings online, building his portfolio along the way.
When lenders put the brakes on Eddie after his fourth property, tighter policy dictated by the Australian Prudential Regulatory Authority left him unable to borrow for six months. He took a second job to increase his borrowing capacity and refinanced his existing portfolio but still couldn’t get anywhere. Fed up with waiting for his broker to give him the go-ahead to buy, Eddie tried another approach.
“I finally got so fed up that I went directly to my bank instead,” he says. “My equity was released later that day.”
The biggest sting was the good deals he’d seen - and missed out on - during that time, but it gave Eddie some much-needed clarity. “I learnt not to take ‘no’ for an answer.”
With a purchasing strategy focussed on existing property, Eddie prefers at least 7.5% rental yields which he’s predominately found in key areas throughout Brisbane, the Gold Coast and Adelaide. He looks for listings under market value by working closely with real estate agents, undertaking extensive research into local pricing and seeking out bank repossessions.
“You have to network so agents know who you are and that you’re in the position to buy,” Eddie says. “Out of every 12 agents, you may find one that calls you with a golden gem every 12 months or so.”
Whilst still the only one in his family to own property, Eddie says his brother and sister are both in the process of saving, inspired by his success. He’s planning to help them purchase, as he’s now started doing for others through his own buyers agency.
“I still work full time, then do this on top,” he says. “I’m always addicted to talking to people about property and mentoring them.”
With his sights now set on a passive income goal of $100-200k per annum by the time he’s 30, Eddie has come a long way. He aims to hold his properties indefinitely and says investors have to be in the property game for the long-term.
“Find a way to hold your portfolio for as long as you can and pass it on to your kids and family, he says. “That’s where the wealth is created.”
See full article here: http://www.apimagazine.com.au/property-investment/investor-in-focus-eddie-dilleen