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Hosted By Tyrone Shum

Positive Cashflow Investment with Eddie's Property Buyers Agency

Updated 22/08/2017

Young property investor and founder of Property Investment Buyers Agency, Eddie Dileen will share how he broke into the often harsh market and emerge victoriously - all before he turned 25! Beginning his journey at 19, Dileen will share his empowering story of growing up without a house to his family name and how now, at 25, that has driven him to create a portfolio worth $2 million.

Follow Dileen at the inception of his property journey, as he worked at McDonald’s to save his first property. He’ll reveal the heart-wrenching reason behind his drive as an investor and explain how learning about finance completely transformed the way he looked at the property.

'Anyone saying you should do this, you should do that, but just you know thinking logically and knowing that something had to be done.'

Eddie Dilee

Although relatively new to the property investing game, Dileen has already amassed nine properties.

My name is Eddie Dileen Dilleen, you know I’ve been property investing for probably about 5 or 6 years now and I started when I was 19. Bought my first property and since then I’ve just turned 25. I’m still 25 and I’m almost at 10 properties at the moment. 

At a time when most young adults in Australia are still renting, he has certainly gone above and beyond the norm.

I think it’s just you know having a mindset, having a goal you know, a plan in place and just being committed to it and going all out.

At 25 Dileen isn’t quite ready to retire on his portfolio, but amidst his full-time job, he finds the time to constantly hunt for his next property deal.

I currently work full time so I work probably about 50 hours a week and my current job which is just in sales and you know when I’m not doing that I’m always you know doing countless amounts of research. I’m very active with calling up real estate agents, keep my eyes on what markets are doing what particular time. So whether it be the New South Wales coins in and South Australia 3 main property markets that lookout very indepthly and follow closely and yeah just countless amounts of research going through properties calling up agents and you know finding what is the best deal out there and what I can get my hands on that’s going to help me move forward.

But it’s not all work and no play! A good work/life balance is the best way to progress in your property journey, as he knows.

On the weekends, hang out with friends, play basketball most of the time, hang out with my fiancé just you know enjoy life as it comes as well, you know preparing for the future is one thing with property investing but you got to find time to enjoy yourself as well along the way alongside hustling and all that kind of stuff.

As a property investor, Dileen is determined to succeed, no matter what challenges he faces.

In terms of a property investor, I’d probably describe myself as very intense. Very passionate and I go full out in property investing. Basically from a young age got started and still doing that and just very determined I guess in a short way.

Growing up in housing commission with a single mother and two siblings, Dilleen was always determined to succeed in order to help his family.

I grew up in Western Sydney, in a suburb called Mount Druitt which a lot of people probably have heard about, not really the flashiest place, but I grew up with a single mother who was on a pension on housing commission as well. So it was pretty much at least to say humble beginnings and I suppose for me that is a huge driving factor in building my portfolio and creating wealth over time, you know just to help my family.

Eddie Dileen Property Buyers

So that’s what I was thinking about when I was 16, 17 when I was first getting interested in investing in the property if I do this now by the time I’m 25, 30, 35 you know I can do whatever I want and live wherever I want and you know travel wherever I want. So it's building this in the background that’s going to help myself and my family and you know help others replicate that.

Without a house to his family name as a child, he attributes his interest in property investing to his desire to improve on his childhood circumstances.

Always just been interested really, I get it was the fact that not, back then having a house to live in, not knowing that your parent owns that house or that you one day get that house which a lot of people I guess have that luxury. But not knowing that if I don’t do something now, I’m going to end up in the exact same position as well. So there wasn’t really anyone saying you should do this, you should do that, but just you know thinking logically and knowing that something had to be done.

Before becoming a property investor, Dilleen started work at the place that so many young Australians begin with - McDonald’s.

Trial and error really, I didn’t really, I eventually worked for real estate agents only after I actually owned my first property but before that, prior to that I was just working at McDonald's a long time while doing my HSC and going to school. So I started working when I was probably 14, 15 and just started saving up little bits at a time, and my goal was back then when I was 15, 16 when I was 18 I would have enough to buy the first property. It was just that working on the side at McDonald's and then going to you know an office job in administration but yeah always very low incomes. So no one really told me about how to work or deal with banks or how to get finance so I just had to figure that all out for myself and do as much research as I could to learn and that kind of thing.

From there he researched all he could on property investing before confidently taking the first step in his journey.

Probably pretty much as soon as I had a deposit really like I felt comfortable probably before I was 18. That I knew it was something I was going to do, got to know that I was going to purchase property and I was researching and reading various books and all that kind of thing and when I was 17. It was just having enough deposit. It was just getting the right knowledge and taking action really and just doing our accounts research, trying to find the right property in the right area, that was in my budget because it wasn’t a lot back then of course.

Working at McDonald’s for $11 an hour, it took Dileen several years to save up $20,000 for his first deposit.

At the time I had a very low borrowing capacity. I was making under about 30 000 as an 18-year-old, you know working full time because you get paid a lot less being 18 compared to when you over 21 of course. But yes it was just under that amount, I had about 20 000 so I was looking for a properties around $150,000 mark. Back then, of course, prices weren’t quite as high, and you know so I found my first property which was a property on the Central Coast of New South Wales about an hour and 15 minutes north of Sydney, and that was a 2 bedroom unit that I picked up for $138,000.

Now working in a completely different field, he still finds the time to put effort into his greatest passion.
A totally different type of sales job at the moment, I’m out of the whole real estate industry.  At the moment I work for a company that sells industrial tools throughout all of basically Australia, so whether it be tools for construction sites that build houses; big things; small things; all different types of industrial-type tools, that kind of thing. 

That’s going to provide the cash, that’s going to you know give me the boost that I need to build my portfolio and you know shouldn’t be too long and I won’t have to do it anymore. So it's fun and I enjoy it along the way, but that’s what I do at the moment. 

I was only ever in real estate for a very short time when I was like I became a real estate agent out in the western suburbs of Sydney, but I didn’t really enjoy it either. But it was more about investing that I you know found and became very fond of and you know, being a real estate agent it totally different from investing. A lot of real estate agents common misconception is real estate agents know a lot about investing when in fact that usually they might not even own property themselves so it.

Purchasing his first property at only 18 years old, it’s unsurprising that Dilleen found the entire experience slightly terrifying.

The first one was very nerve-wracking of course you know it’s the first one and exciting one as well at the same time.  I remember I was working in an office job and I was just before I turned 19 so I was still 18. I was constantly looking online for properties within my budget because I went through many, went to different, many different finance lenders and you know some would say you can’t borrow. 

You can but you learn to take that with a grain of salt and you know just keep pushing forward and finding out who would do the finance. And once I actually had a budget around the $140,000 mark which is still not much at all back then, you know I started looking around the local area, looking at rents and what they were doing as well, you know what kind of rental return I would get, something that would just look after itself and pay the associated costs with the mortgage repayments and accounts and rates and water rates and all that kind of stuff. 

So I came across a 2 bedroom unit on the central coast, that’s where my family used to holiday, a few years back and you know someplace that I kind of knew that was within the budget and nowhere else was roughly that cheap. And I basically just called up the agent one day, drove into it; organised an inspection; went up there; drove up there on the weekend. And did the inspection and you know at the first glance the place seemed a little bit shady and that kind of thing but it had a little bit of graffiti outside which can scare off a lot of people. But you know, of course, coming from the area I live in, it was something I was accustomed to; I wasn’t too scared about making that decision.

This confidence paid off, with the first property providing healthy cash flow.

And then I finally negotiated the property on $138,000 and that was renting for about $220 a week at the time, that was a good 7% or 8% rental yield so I thought that was pretty amazing.

From there he made sure to do even more research and enjoy his young adulthood at the same time.

I took a little bit of a break after that because as you can imagine, you know a lot of people do is you go and party, when you are 19 and that was my original goal, just getting the first property and I have done that. So it was unfortunately about a year and a half almost 2 years later before I finally purchased the next one, and I was 21 and I was doing a lot of research.

I was making a little bit more money than I was with the first property, so I had roughly the same amount of savings and deposit that I originally started with, round the $20 000 mark and I was looking for something around the same price because that was my comfort zone back then. You know nothing around the Sydney area was around that price so I looked in another state which actually my dad lives in which is Adelaide, so whenever I would go every now and then to visit him I would notice the high rental yields in Adelaide, the very low entry prices. 

And I picked up a 3 bedroom house about 30 minutes north of Adelaide and that was I pick that up, it was actually a bank repossession, so that was actually off the market, was a bank repossession, from doing a lot of research and networking with real estate agents and that kind of thing. Picked that up for $130,000 and that was renting for about $220 a week at the same time as well.

This was a great prize, with surrounding properties going for up to $30,000 more.

If it wasn’t bank repossessed, I think compromisable sales were going for about $150,000, $155,000, maybe $160,000 at the most. So it was a good probably 20% under the actual what I believe you know the true market value of the property, yeah so it had the upside for growth area as well, only half an hour from a CBD as well.

After that, Dilleen again looked interstate as a way to balance out his growing portfolio.

The second property was probably about another year after that, I was towards 22, 23 and I started looking at other states, you know I wanted to diversify a little bit. Sydney was rising in price, still out of the price range a little bit but I wanted to keep investing within my budget and ensuring I got those high rental yields that would you know take care of the portfolio in case I lost my job or anything happened, it would be looking after itself.

So I came across Queensland as a state and as an area and I purchased a property, once again this was about 25 minutes out of Brisbane CBD and that was a 1 bedroom unit. Comparable sales at the time when I was researching there were around $130,000 mark, was very very cheap, rented out for $220 a week as well. I think it was about $210 if I remember correctly but I picked up this another 1 bedroom unit within that Brisbane radius, 25 minutes out for $105,000 so that was a very good buy, very cheap and below market value.

Then he continued to buy below market properties and add their cash flow to his portfolio.

So after going after the first 3 properties, I purchased another one in Queensland, that was another 1 bedroom unit in the heart of Surfers Paradise, in the heart of the Gold Coast that was picked up for $169,000 after strong negotiations and everything. When I could see other ones going for around $190 - $200,000 so that rented out for about $280 a week. So that was about 9% rental yield as well and that was for permanent rental, none of the holiday let, or accommodation or that kind of thing. Because I always like touching on permanent residential properties, townhouses and units, yeah so that was the 4th one.

Dilleen also used his increasing property knowledge to make better use of his portfolio.

Following that I purchased the 5th one, I actually went back to Adelaide and purchased another property that was quite similar to my 2nd purchase. That was even less at $125,000, that was a property on a 600m2 block, that was a semi-detached house, that rented out for $190 a week, but I knew at the time it had you know the potential to have the rent put up to about 220, 230 so it's knowing and identifying that as well, so that was the 5th one.

He quickly made his portfolio self-funding; this meant he no longer had to surrender his hard-earned cash.

Given the terms of cash flow and how the portfolio worked at that rate, it was totally funding itself. So all the yield that I was purchasing at 7 or 8% you know at that point I had 5 and it was you know a couple of years into my investing every property. For example, you know there would be a potential to put the rent up by say $20 a week and times that by 5 it was $100 a week extra in cash flow. So your yields are going up from 7 to 9 to 10 you know 11% as you increase your rent so it was always positive gearing.

For Dilleen, the passive income and security of property investing and his long-held desire to own a home were the main factors for wealth creation.

Eddie Dileen Property Buyers

I saw it was more of a safer option compared to other things like shares and businesses right away. And there was just houses for me when I was growing up was something that I had that emotional attachment with. So I wanted to have a lot of them; given the fact that I didn’t have a house, you know basically that my family owned or even relatives never owned or friends or family. I was growing up with at the time that didn’t have any houses that they owned either, they only rented or you know housing commissioner or that kind of thing. So I suppose they had a big impact as well and why I wanted to own a lot in compensate for that.

At 24 he set himself a challenge: to own 10 properties before he turned 26 years old. Now at 25, he is already at 9 properties and his portfolio worth is in the millions.

I’m currently on the way to 10 I don’t have 10 quite yet, I’ve got 9, I’m negotiating the 9th one at the moment, but it’s just around the $2,000,000 mark.

It would probably be, in terms of net equity gain I’ve had, would probably be around the $1.4 or 1.35 million marks or something like that. Given that I’ve purchased the properties very low under market value and then they grown as well as the market shifted and moved.

One of the major issues that Dileen came across was dealing with finance lenders.

There has been a lot of you know ups and downs of course throughout you know building a portfolio where you are going to 10 or 20 properties or whatever it is or even less. But probably after say about the 5th property, I believe it was about the 5th property, there came a time where I was trying to actually release equity from a fair few of my properties. So that in big chunks, so that I could go and you know put that into more deposits and purchase and really ramp things up a little bit.

But one of the things I learned is finance is a good 50, 60% of property investing in part of that journey, so it's dealing with the set back from banks. So I went to countless different banks and countless different brokers and you know what kind of thing trying to get finance, trying to be able to release my equity but given the position and the job I was in and the income and that kind of stuff, that’s where stuff you know tends to get a little bit more hard as you progress and as you build your portfolio.

It’s making sure you’ve got the right team of finance lenders and on your side, that would actually be able to deal and work with investors because a lot of other financiers if you go to some 2nd tiers or 3rd tier lenders, they are not quite accustomed to dealing with people that have that amount of properties and that amount of rental income coming in. And how they use that rental income to kind of service a debt and get that loan approved for you basically so yeah, finance is a huge thing. I was on my 5th property trying to purchase 6 and 7 and I was stuck for about 4 or 5 maybe even 6 months trying to get finance across the line and you know doing what I can and countless setbacks so that was a huge thing.

However, he refused to give up on his journey and through some serious determination, overcame his obstacles.

One word pretty much - persistence. Just start really, kept trying, kept trying different avenues. You know how you go to different banks and lenders is a huge thing as well, like how you present yourself and how you can show that you know that you are operating these properties like a business and the generating income and using that to put towards your income whatever you are doing at the moment. So it just keeps trying, you know you can’t take no for an answer, what I’ve learnt and I’m sure you know that as well.

Property investment is a complicated business, but once Dilleen learnt the secrets to finance his property journey was instantly enhanced.

I got a few different ones, but one stands out in particular, I think after the 2nd property and I was working with a finance broker at the time and I was trying to learn as much as possible about how the banks look at properties and people when they are actually going for investment loans. And how all the different ratios, LVRs and rental income, serviceability, you know how they take that into account, how they can use that to get a loan in your favour.

It was probably a big thing about just learning about finance after this 2nd or 3rd property and if I really dedicated a lot of my time to understand how the finance industry worked. How the whole process of purchasing a property and how you can use your equity to leverage off, mixed with strong cash flow properties, to continue moving forward and building an asset base for the future so.

With this knowledge of finance, he quickly learnt that the most important part of property is not taking ‘no’ for an answer.

In terms of finance its countless things, I suppose going back to not taking no for an answer. You could basically have 10 different banks and they will all tell you 10 different things. You could take one property to 10 different banks and 1 says it’s worth $200,000, the other bank says it’s worth $250,000, $280,000, $180,000, they value properties differently, there are different valuations. What I’ve learned as well as a huge impact if you go with the wrong bank and you know they are not doing it the right way or in your favour, it’s going to benefit the investor themselves then you are stuck. Different banks, also take into consideration different amounts of rental income that’s actually coming from your portfolio. So some may cap it at 6%, so may take an 80% of the total value, changes all the time but yeah just learning those 2 things about the service annuity and also about the valuation of finance.

The next thrilling instalment for him is reaching that goal of 10 properties before turning 25.

I suppose it’s probably hitting that number 10, you know at the end of the day it’s just a number. But to me it’s you know I’ve had it there for so long so it's getting to that number 10 I guess. And being in a position after that to purchase my dream house and have that portfolio say for example when the next 5 years, I'll be 30, or 10 years I'll be 35 and you know by that stage you know my portfolio will be year after year. If you look at property as an example, if you take the next 10 years they could well and truly go to $4 million. 10 years after that 8 million, 16 million, hits as you use that and continue growing your portfolio. It’s just that effect they can have if you do it safely and securely of course and have your insurances in place as well. But you know it’s just being at that stage where I can do what I want when I want, and you have a family, and my children and my partner will be able to do what they want as well, and one day leave a legacy for them and their children as well, where they will be in a better position than I was when I was growing up.

He also plans to soak up the Sydney sun once he purchases his dream house.

I do believe it will be in Sydney, I think it would be like I’m very fond of the beach and living by the beach and that maybe something. Or if not just having, owning my own house that has a lot of land on it and um you know that kind of thing.

Learn The Ropes: How To Buy & Hold Cash Flow Rich Properties with Eddie Dileen

Dileen says that a lack of influence from family and friends was what held him back from investing in property at the outset. He felt that he had to use outside resources in order to learn more.

I suppose to me what was initially holding me back was not being around other people who had actually invested in a property before. Going back to it, my mum had never owned a house of her own before we lived in a house that we didn’t own or anything and none of my family had ever invested in property or even relatives or friends. Nobody that I knew had ever invested so that was a huge thing for me. I had to find other ways of learning and teaching myself how to get the confidence and how to go out and pitch the first property.

Elaborating on his methods, it was all about reading and absorbing the information he needed to start out on his property investment path.

Initially, when I was about 17 or 18 - before I purchased a property - going back then, it was reading as many books as I could. Back then there was countless amounts of information on the internet which you could spend all year reading about.

Some videos here and there and some magazines as well, so you’ve got investment property magazines, all that kind of stuff, we could actually see people who had portfolios and what they looked like and how the portfolios were performing and that kind of stuff. So types of magazines and that kind of thing. I don’t really think they had any podcasts or anything back then, unfortunately. Just reading books and magazines and getting my head around everything.

Although he didn’t start out with any mentors to give him advice on property investing, he gradually began to learn more through more experienced investors and then supplementing that with his own research.

When I was purchasing the first few properties, I was just teaching myself that kind of thing and learning from other people. Along the way, after I heard about the three, four, five properties and hearing about people here and there that had more properties than me. Then I started talking to them and finding out what they had done, what they could have done better and how I could use the information; learning from people and also reading the books as well.

It was more so just doing the research, spending countless amounts of hours going and seeing properties as well and looking at what the markets were doing.

Dileen has also learned valuable information from leading property investor Nathan Birch, whose YouTube videos proved to be useful.

When I first started investing I watched a lot of his Youtube videos or anything like that, which was only one or two videos around at the time, but you get a lot of information by learning from other people what they’ve done and how they’ve done it. So it’s just another one of those inspiring stories that you can learn from and use that to grow your portfolio as well.

The best advice he has been given is that purchasing in a capital city is going to be beneficial in the long run, provided the properties are strong in cash-flow.

I’ve heard a lot of different advice and information. One thing I heard not too long ago - I can’t even remember what it was from - but if you take property investing, or just property in general. If you take it over the course of just ten or fifteen years, if you’ve actually spoken to someone that’s purchased in the capital city, say for example fifteen or twenty years ago. You would never hear them say it was a terrible choice. Maybe perhaps in something like a regional or mining town or something crazy like that which has high fluctuations and that kind of thing, but if you invest in property in a capital city like Sydney, Queensland, Adelaide, Victoria, whatever it is, it doesn’t rely on outside economic conditions. That is mainly generated by the structure going on in the city and population growth at the time, it’s the same thing years from now. It’s a long term thing and you’ve got to be in the game for the long run.

But if you can hold an amount of properties that are strong in cash-flow and will take care of themselves, over the course of twenty years, what could they possibly be worth then? What position would that put you in to live the life that you want?

At 24 Dilleen set himself the challenge to own 10 properties before he turned 26 years old. Now at 25, he is already at 9 properties, and his portfolio’s worth is in the millions.

I’m currently on the way to 10 I don’t have 10 quite yet, I’ve got 9, I’m negotiating the 9th one at the moment, but it’s just around the $2,000,000 mark.

It would probably be in terms of net equity gain I’ve had, would probably be around the $1.4 or 1.35million mark or something like that. Given that I’ve purchased the properties very low under market value and then they grown as well as the market shifted and moved so.

One of the major issues that Dilleen came across in his property investment journey was dealing with finance lenders.

There has been a lot of you know ups and downs of course throughout you know building a portfolio where you are going to 10 or 20 properties or whatever it is or even less. But probably after say about the 5th property, I believe it was about the 5th property, there came a time where I was trying to actually release equity from a fair few of my properties. So that in big chunks, so that I could go and you know put that into more deposits and purchase and really ramp things up a little bit.

But one of the things I learned is finance is a good 50, 60% of property investing in part of that journey, so it's dealing with the set back from banks. So I went to countless different banks and countless different brokers and you know what kind of thing trying to get finance, trying to be able to release my equity but given the position and the job I was in and the income and that kind of stuff, that’s where stuff you know tends to get a little bit more hard as you progress and as you build your portfolio.

It’s making sure you’ve got the right team of finance lenders and on your side, that would actually be able to deal and work with investors because a lot of other financiers if you go to some 2nd tiers or 3rd tier lenders, they are not quite accustomed to dealing with people that have that amount of properties and that amount of rental income coming in. And how they use that rental income to kind of service a debt and get that loan approved for you basically so yeah, finance is a huge thing. 

Eddie Dileen Property Buyers

I was on my 5th property trying to purchase 6 and 7 and I was stuck for about 4 or 5 maybe even 6 months trying to get finance across the line and you know doing what I can and countless setbacks so that was a huge thing.

However, he refused to give up on his journey. And through some serious determination, he overcame his obstacles.

One word was pretty much persistence. Just start really, kept trying, kept trying different avenues. You know how you go to different banks and lenders is a huge thing as well, like how you present yourself and how you can show that you know that you are operating these properties like a business and the generating income and using that to put towards your income whatever you are doing at the moment. So it just keeps trying, you know you can’t take no for an answer, what I’ve learnt and I’m sure you know that as well.

Property investment is a complicated business, but once he learnt the secrets to finance, his property journey was instantly enhanced.

I got a few different ones, but one stands out in particular, I think after the 2nd property and I was working with a finance broker at the time and I was trying to learn as much as possible about how the banks look at properties and people when they are actually going for investment loans. And how all the different ratios, LVRs and rental income, serviceability, you know how they take that into account, how they can use that to get a loan in your favour.

It was probably a big thing about just learning about finance after this 2nd or 3rd property and if I really dedicated a lot of my time to understand how the finance industry worked. How the whole process of purchasing a property and how you can use your equity to leverage off, mixed with strong cash flow properties, to continue moving forward and building an asset base for the future so.

With this knowledge of finance, he quickly learnt that the most important part of property is not taking ‘no’ for an answer.

In terms of finance its countless things, I suppose going back to not taking no for an answer. You could basically have 10 different banks and they will all tell you 10 different things. You could take one property to 10 different banks and 1 says it’s worth $200,000, the other bank says it’s worth $250,000, $280,000, $180,000, they value properties differently, there are different valuations. What I’ve learned as well as a huge impact if you go with the wrong bank and you know they are not doing it the right way or in your favour, it’s going to benefit the investor themselves then you are stuck. Different banks, also take into consideration different amounts of rental income that’s actually coming from your portfolio. So some may cap it at 6%, so may take an 80% of the total value, changes all the time but yeah just learning those 2 things about the service annuity and also about the valuation of finance.

Eddie Dileen Property Buyers

Dileen’s tried and tested strategy is to buy and hold his properties and to ensure that they have a high rental yield.

For me, it’s a long-term thing. A lot of people do buying, flipping, selling, renovations and that kind of thing and for me, it’s not to say I wouldn’t do something like that in future, but I see more benefits from holding and acquiring long-term that is rich in cash-flow and that continues and compounds year after year as well as equity. So it’s definitely a buy and hold strategy for me all the way until I get to that huge asset base where I can then go and do other things. But it’s purchasing properties with a very high rental yield. I always aim for properties that are within a half an hour radius, or about 45 minutes, the furthest one being away from the city is central coast but all the other ones are within half an hour, twenty minutes of a metro area.

So having that rental yield there is crucial whether it be using about 70%, 11%, 10% but a minimum 7%. If you’re looking at interests rates that are 5% or around that much and they fluctuate, 7% starting out it’s very easy to push to a 7% rental yield to an 8-9% rental yield in a year or two by increasing the rent in a metro area.

Educating himself was key to his leapfrogging strategy, as well as researching properties under market value and focusing on one particular area.

From leap-frogging each property and finding the actual property under the property value itself is... I suppose when I started understanding how banks work and how they value properties, that kind of shifted my mindset a bit and it’s something that takes a little bit of getting used to. Basically doing that kind of research and looking in Queensland for example within a half an hour radius.

If you put a dot right in the middle of the Brisbane area and go around a half an hour radius - so if you were looking to get a house to townhouse or a unit, you can see quite clearly in a PokeScope for example - or a few different suburbs that are quite close to each other. The average townhouse is selling for $200 000 or $250 000 even - say for example $220 000 - and you can actually manage to pick one up for $180 000 or $170 000 or something like that, that comes down to once again, working with real estate agents. They know first and foremost what’s selling in the area.

And you can use realestate.com or domain.com, but you’ve got to be focused on the area and find out what things are selling for so that when something does come up, whether it be actually talking to real estate agents or bank administrators or that kind of thing, you can actually jump on it quite quickly and usually the best properties go out the door quite quickly so you’ve got to be quick, but you’ve got to have the education to jump on it first.

Eddie Dileen Property Buyers

The bank valuations have aided him in his quest to purchase properties, saying that it allows him to draw out more equity.

So different banks for example, if you look at some third-tier lenders - and this is just going off my information and what’ I’ve learned at the time,  things do change of course. So if you look at a lot of third-tier lenders, the first one being the big four banks, then after that the smaller and third-tier lenders. So a lot of people try to go with them to try to get the lowest interests rates at the time to save on cash-flow, but not knowing that a lot of the things behind the scenes. Like if you go back to re-evaluating the property in twelve months time that they might re-evaluate the property through their re-evaluation system.

So what I mean by that is someone might force you through a full evaluation, depending on what LBR you borrowed at. So generally if you’re buying at a very high LBR, 90-95%, they’re always going to do a full evaluation and be very conservative when doing that whereas there’s different evaluations: drive-by evaluations, desk-top evaluations, lots of different ones - there are about four different kinds depending on what bank you go with. But some banks are only limited to one type that they do, depending on which one you go with.

If you go to ten different banks and you take one property from ten different banks and you say what’s it worth, or someone actually did that which is a lot of work to do (you wouldn’t do it but as an example) then ten different banks could give you ten different answers. So which one is going to help you more, that’s the question.

Dileen shares with us one of the personal habits which have contributed to his success.

I suppose I always try to be very competitive I guess... but I was very competitive even when I used to play sports when I was younger, in just my life and property investment, just want to be the best in everything I do.

He also reveals his go-to guide on property investment and personal finance.

One of the first and best books I ever read - it was when I was much younger of course - and it applied to a lot of things, not only real estate but I’m sure you might have even read it. Rich Dad, Poor Dad by Robert Kiyosaki is a huge personal finance educational book and that’s something that a lot of people have read and if you haven’t read it you should.

I always tell my friends and a lot of people who are interested in looking at doing something, you should definitely read that book first before you do anything and then other books of course. That helped me a lot, that book.

If you would like to connect with Dileen, or gain more insight into his success, you can get in touch with him through his Facebook page.

Check me out on Facebook, I’ve got a Facebook page where a lot of people message me and I put up lots of tips and tricks and all those kind of things. I’m always happy to talk to you about property investing, that’s something I’m really passionate about.

You don’t really get to talk to a lot of people that are involved in property, so look through Facebook definitely, which is [email protected].

This episode was produced by Alex Cooper with narrations and interviews conducted by Tyrone Shum.

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