McDonald’s employee turned 28-year-old real estate tycoon reveals he bought one house a month during COVID-19
A real estate mogul who came from humble beginnings has bought a home nearly every month since COVID-19 hit – pushing his portfolio to $ 8 million.
Eddie Dilleen, 28, from western Sydney, worked at McDonalds and lived in a ‘rough’ neighborhood when he bought his first property at the age of 18.
While real estate prices plummeted during the pandemic, the real estate guru seized the opportunity to expand his collection – which now stands at 25 investments.
‘I have bought a total of seven properties since the start of COVID. Six properties in Brisbane and one in Sydney, ”he said realestate.com.au.
Eddie Dilleen, 28, of western Sydney, has bought a house nearly every month since COVID-19 hit, bringing his 25-man investment portfolio to a whooping $ 8 million
Mr Dilleen said his six new properties in Queensland were a mix of houses, duplexes and townhouses, as well as one commercial offering.
“So since the inception of COVID-19, I have added nearly $ 2.5 million to my real estate portfolio, bringing the total value to nearly $ 8 million in real estate I own,” he added.
His latest acquisitions include a $ 135,000 Logan mansion purchased in March and two duplexes in Ipswich for $ 410,000 in April.
In May, he paid $ 133,000 for a two-bedroom Ipswich villa, before handing out $ 200,000 for a Logan commercial property in August.
This month, he added a two-bedroom apartment in Surfers Paradise to his portfolio, based on a $ 210,000 unconditional contract.
While COVID-19 is wreaking havoc on the real estate market, Mr. Dilleen said he was not worried it would affect his portfolio as he invests according to a strategic formula that ensures his income is always higher than expenses.
About $ 300,000 of its nearly $ 500,000 annual rental income is always set aside for emergencies, while $ 200,000 is spent on mortgage payments.
The real estate guru paid $ 410,000 for Ipswich duplexes in April (pictured)
Mr. Dilleen bought a two-bedroom Ipswich villa (pictured) in May for $ 133,000
Mr. Dilleen said the three characteristics he looks for in an investment are “good cash flow or high returns, capital appreciation and buying at a discounted price below market value.”
The self-made millionaire became ‘passionate’ about buying real estate during his teens to ensure he had a secure future.
“I grew up in western Sydney and came from a family where nobody really owned any property,” he told Daily Mail Australia earlier.
‘From very humble beginnings, in a pretty rough neighborhood, that was my motivation. I didn’t want to struggle and grow up like I did. ‘
He lived at home in Mt Druitt and bought a two-bedroom apartment just over an hour’s drive on the Central Coast, north of Sydney.
He rented out the $ 130,000 apartment for about $ 220 a week and earned about a seven percent rental income.
Mr Dilleen’s next investment property was in Adelaide, followed by Brisbane and then the Gold Coast.
Pictured is the Logan mansion (pictured) that Mr. Dilleen purchased for $ 135,000 in March
Mr. Dilleen added a commercial space (pictured) in Logan to his portfolio in August for $ 200,000
The investor recommends buying in urban areas as properties are cheaper.
His tips for building a portfolio are to start small, by buying something to gain a foothold and not be emotional about where you buy.
He said focusing on property rental income and buying properties below market value by looking for people who want to sell quickly.
His fifth tip is to read real estate investment books and research to create a strategic buying plan.
“I worked out a formula and strategy, it amounted to a lot of research and I read a lot of different books on real estate investment, even though I hated to read it back then, I forced myself to learn a lot,” he said.
‘I built it up, I started small, with the small properties and gradually the equity has increased.
“Better to be in the market than to wait on the sidelines or say it’s too hard and not try at all, that’s not the best attitude you can have in life.”
THE FIVE TIPS FROM MR DILLEEN
1. Start small
2. Try not to get emotional about where you buy something
3. Focus on rental yield
Buy real estate below market value
Read books on investment property