How we find Off-Market Properties that are BELOW MARKET VALUE | Eddie Dilleen

Summary

Highlights

• Eddie Dilleen turns questions into insights on finding bargain off-market properties. 🏘️
• From zero to 30+ properties, Eddie shares his growth journey and investment strategy. 🚀
• Building relationships with agents leads to early access to off-market and distressed sales. 📞
• Inbuilt equity through under-market deals is Eddie's secret to compounding investments. 🔑
• Understanding your market allows for smarter purchasing decisions and opportunities. 🌍
• Persistent networking yields urgent sale leads, crucial for Eddie's strategy. 📉

Key Takeaways

• Building strong relationships with real estate agents is crucial to finding off-market deals. 🏡
• Buying properties below market value allows for immediate equity, facilitating further investments. 📈
• Understanding different markets thoroughly is essential, requiring time and dedication. ⏰
• Distressed and urgent sales often lead to the best below-market opportunities. 🔍
• Dilleen's approach is a full-time job, emphasizing the need for persistence and networking. 🤝

Overview

Chapters

• 00:00 - 00:30: Introduction and Personal Background Eddie Dilling addresses frequent questions about finding off-market and below-market value properties. He plans to explain the process, which has helped him grow his property portfolio to over 30 properties by age 29.
• 00:30 - 01:00: Early Property Investments and Strategies The speaker began with no financial backing and acquired properties off-market through strategic investment. They invested in various locations including the Central Coast of New South Wales, Brisbane, Sydney, Gold Coast, Adelaide, and Cairns.
• 01:00 - 02:00: Building Relationships in the Market The chapter, 'Building Relationships in the Market', discusses the author's experience in expanding their property portfolio, particularly from the third to the tenth property by the age of 25, and eventually adding another 20 properties over subsequent years. The author emphasizes the importance of building relationships with various individuals during these ventures, using their experiences in the Brisbane and Gold Coast Queensland markets around 2014-2015 as examples.
• 02:00 - 03:00: Identifying Off-Market Opportunities The chapter titled 'Identifying Off-Market Opportunities' discusses the challenges and strategies involved in identifying valuable real estate markets. The speaker emphasizes the importance of getting to know certain areas and pockets of the market that show potential for growth and good rental returns. This involves significant effort and dedication, which can be particularly challenging for individuals balancing full-time jobs and family responsibilities. The process is described as requiring full-time commitment to truly understand different market dynamics.
• 03:00 - 04:00: The Importance of Urgent Sales and Equity This chapter discusses the importance of engaging in urgent sales and understanding equity in the real estate market. The narrator shares personal experiences of building connections over a decade, exploring different areas, visiting numerous open homes, and contacting a vast number of real estate agents. The chapter highlights how these efforts allowed the narrator to acquire properties through auctions, particularly focusing on urgent sales and bankrupt possessions, illustrating a strategic approach to building a real estate portfolio.
• 04:00 - 05:00: Expanding Through Media Exposure and Big-Value Deals The chapter discusses the benefits and challenges of building a reputation in the real estate industry through media exposure and securing big-value deals. It highlights a personal journey of purchasing multiple properties, which involved significant effort and eventually led to strong relationships with real estate agents. The narrative provides insight into the real estate market dynamics and how reputation can influence access to opportunities in a highly competitive environment with numerous agencies.
• 05:00 - 07:00: Conclusion and Services Offered to Clients The chapter discusses the real estate market and the nature of property listings. It highlights the constant influx of properties coming onto the market, with real estate agents working tirelessly to secure these listings. Despite not being advertised yet on major platforms like realestate.com or Domain, many properties are already decided by sellers to be listed. This suggests a hidden volume of potential real estate opportunities that are yet to be publicly acknowledged.

How we find Off-Market Properties that are BELOW MARKET VALUE | Eddie Dilleen Transcription

• 00:00 - 00:30 hey guys eddie dilling here so i get asked the question all the time how is it that you find off market properties and how is it that you get properties that are below market value and these bargain properties that you talk about eddie [Music] so i'm going to explain a little bit about it today but this is basically how over the last decade i've grown my personal property portfolio to 30 plus properties yes i'm only 29 years
• 00:30 - 01:00 old started with nothing as you may have seen from different media media sources etc but basically if i were to take it back and explain a little bit about the journey and how i'm able to pick up properties off market it's basically because when i was first starting out a little bit about it i bought properties in as an example the central coast of new south wales i bought properties in brisbane around the brisbane metro location in sydney western sydney uh gold coast adelaide even cairns i bought properties
• 01:00 - 01:30 around many different areas and as i was really growing my property portfolio quite aggressively from property 3 to property 10 and back then i was only 25 years old and since bought another 20 properties to that over the years i started developing a lot of relationships with different people so such as when i as an example when i was started to buy properties in brisbane and the gold coast queensland market that was probably about 2014 2015 by
• 01:30 - 02:00 memory as all i first for one thing i got to know certain areas certain pockets of that market that i was really looking in that i saw opportunity that i saw opportunities for opportunity for potential growth that i saw had really good rental returns and i got to know different markets extremely well and how did i do that i did the hard yards and this is what's extremely difficult for many people out there especially if you're working full-time you've got family you've got kids you've got you know things that you're doing in your life this is a full-time job
• 02:00 - 02:30 and it took me over a decade to do this basically but over the years i've built up the connection so when i was out there you know exploring areas driving around suburbs going to hundreds of thousands of open homes calling up tens of thousands of real estate agents calling up listings online on domain on realestate.com on real estate agents personal websites etc as i built my portfolio i picked up properties at auction that were urgent sales bankrupt possessions but a lot of those first
• 02:30 - 03:00 ones that i bought i had to do the hard yards but as i bought those long story short i basically got a reputation for buying a lot of property and with the agents that i was picking those properties up through at auction as an example there was seven or eight different agents in that particular office when they had other properties that were coming up and if you think about it and if you know a little bit about the real estate game there's hundreds of different real estate offices out there so if in your local aerial neighborhood you've got you know maybe a dozen real estate offices each office
• 03:00 - 03:30 might have five people work in that five agents working in that office and constantly their job is to get listings so get listings for sale so at that particular time i realized that there was a lot of properties that was always coming on the market so right now where wherever you live out there there's probably 20 to 50 you know could be more properties that aren't on realestate.com yet they're not on domain yet but the sellers have already made up their mind one way or another that they're going to
• 03:30 - 04:00 sell it so what do they do they approach a real estate agent sometimes if it's a bank in repossession property then basically the bank administrators will contact local agents in that area who they have a good relationship with so over time i built up my relationship with different agents and after a while they started bringing properties to myself and they'd say eddie you bought number 12 smith street around the corner this one's coming up and unfortunately it's a distressed sale
• 04:00 - 04:30 because the owners you know committed elsewhere financially they need to sell this property within the next 30 to 40 days and this is the price they're actually looking for so what i would do is i take that price i'd look at the comparable sales around it i look at what properties are online for sale and i do the property analysis on it so there's a thousand different things to look for when you're looking at property but to me the number one thing out of the three key strategies which is growth yield and buying under market to me the biggest and most important thing is getting a property that is of good value that you can
• 04:30 - 05:00 physically see it is below what other ones are selling for right now and what other ones are actually advertised right now so that you've got inbuilt equity so that you've got 10 15 20 25 of equity that you can go back extract and then redeploy and buy more properties using that equity and to me it's a foolproof strategy because you're not relying on capital growth as it will come and as it is happening but you're getting equity on the way into it right away so as from that time on basically i had all
• 05:00 - 05:30 these agents that were bringing me properties i was buying building my portfolio very aggressively and i realized that when i'm buying a property under market value i just simply go back to the bank six months or 12 months sometimes sooner order revaluation on the property that i picked up for 300 because i knew it was worth 350 before i even bought it because i got it as an off-market distressed sale bankrupt possession and even from going directly to getting properties from the real estate agents then i started getting properties directly from the bank and bank administrators and i had you know and then obviously when i was
• 05:30 - 06:00 appeared on tv channel 9 channel 7 sky news all that kind of stuff which i've been doing for the past five six years as well that my profile of course got even bigger and then i'd had more people bring me properties that were urgent sales bankruptions because they knew i'd be in a position potentially buy if it was of good value so the number one thing that i always look for is buying property that's an urgent sale whatever it is can be you know good reason bad reason but it's about picking up a property that's under what it's worth so long story short build up a lot of
• 06:00 - 06:30 connections in different markets sydney western sydney brisbane gold coast adelaide different states throughout australia that we source negotiate and pick up properties for our clients and that ultimately they're not going to get access to them on real estate or domain generally i'd say 90 of the properties that we source for our clients are off-market sales so they're generally off market or before before the professional photos have been taken you know sometimes i'll present a property to a client and that hasn't
• 06:30 - 07:00 had professional photos we've had literally a bunch of um like camera photos and things like that happen we've got obviously things like video walkthroughs um of the property that we can send them of the video if they're interstate and they're buying in another state and diversifying their portfolio that way but it's about building up the relationships and that is a full-time job and it's extremely hard for anyone out there like if you might be one of the person that yeah you're too busy or whatever it is and you might need a little bit of help that's what you know i essentially do from that
• 07:00 - 07:30 i help investors with sourcing negotiating and i present these properties that i've gone through hundreds of thousands of properties and narrowed it down to the true properties that are real investment grade so that's a little bit about it how we get properties that are off market how it built up the connections over the years and if you have any more questions send them through thanks for watching and i'll see you soon bye
• 07:30 - 08:00 you