Passion – the key to property investment success

According to the property investor: “I did use some equity here and there to expand and grow, but I did save a few genuine deposits recently as well. I think it’s a balance.”

After initially building an eight-property portfolio over a year ago, Eddie has already added three more assets to his portfolio and is currently in the middle of settling on his 12th investment property. His loan-to-value ratio remains sitting at around 70 per cent after some of his assets’ value increased.

He shared: “My first one … [was] revalued and that’s went up another $60,000 [to] $70,000. A few of the other ones I purchased [also increased by] $30,000 … $40,000 ... $50,000 there. When you’ve got [multiple properties], it makes an incredible difference.” he added.

While some of his properties have yet to see a remarkable growth in value, he plans to hold onto to them for a little longer to be able to enjoy maximised profit.

Eddie said: “That’s the name of the game – [the] more properties you hold for a lengthy period of time, the better your outcome’s going to be.”

Since he started young, the property investor is confident that regardless of how the markets move in the future, all of his properties are going to be paid off at a point in time within 20 years.

Working on property investment

Now that he has built a multiproperty portfolio, Eddie has decided to focus his time and energy on the wealth-creation business. He has let go of his jobs to become a full-time investor and establish his own buyers’ agency.

“I had a lot of people talking to me and wanting to find out ... how they could purchase property as well … We just started helping people for free, talking to them over the phone, but eventually, it just became too much so ... I pretty much just started my own property investment buyers’ agency to help other people,” according to him.

Eddie’s most important advice for his clients is also the simplest: Do research and understand the fundamentals of property. The property investor-turned-professional also stresses the importance of having a working knowledge of finance and portfolio management.

He said: “To realise how finance works, you have … to know how a broker works, [and know] what their processes are in place. You have to study all these things and kind of become a master at all trades in terms of how to structure your portfolio.”

“[You have to know] when not to cross-collateralise, what types of properties to purchase, when you’re going to have to focus on high yields, and when you can relax a little bit – there’s a lot of different facets to it,” Eddie added.

Property investment can be an overwhelming venture and anyone who wants to take part in it must be prepared to do the hard work necessary to achieve success. In Eddie’s case, the impressive rate at which his portfolio grew is a result of his passion for wealth-creation.

The property investor shared: “It's something I get excited for when I'm waking up in the morning.”

“I always thought that once I hit eight, 10, 11 properties and [when] I had more passive income … I just wouldn't do anything – just sit on my backside and watch TV all day … Unfortunately, once you get hooked, you get hooked, and you just can’t stop.

“My brain just doesn’t stop. It just keeps going. I live for property,” he concluded. 

Tune in to Eddie Dilleen’s episode on The Smart Property Investment Show to know more about why he branched out into different markets around Australia instead of sticking to his backyard, as well as the unexpected setbacks he faced along the way.