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EPISODE 17: CANADIAN INVESTOR AND REALTOR MARK LOEFFLER

EPISODE 17 CANADIAN INVESTOR AND REALTOR MARK LOEFFLER
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Table of Contents - EPISODE 17: CANADIAN INVESTOR AND REALTOR MARK LOEFFLER

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Sandy MacKay [00:00:00] Breakthrough Real Estate Investing Podcast, Episode 17.

Rob Break [00:00:23] Hello and welcome to the Breakthrough Real Estate Investing podcast, we put this show together to inspire you and help you break through to the life that you want to live through, the power of real estate investing. My name is Rob Brake, and here with me again is the face of Ontario property pro's Sandy MacKay. These are the

Sandy MacKay [00:00:45] things I don't know. Well, we got we got Katan there. Now, maybe she's better face than the.

Rob Break [00:00:52] Well, I agree with that.

Sandy MacKay [00:00:53] I mean, we do have probably more of the real face coming up later on in the show.

Rob Break [00:00:58] Well, our interviewee you're talking about. Yeah, yeah, yeah, maybe. I guess. But for now, it's. You OK

Sandy MacKay [00:01:07] with it? Yeah, pretty excited for this one interviewing. Yeah, I see a bit too often, I think, but maybe not. It's a good thing he's got some good stuff coming up. Of course, we're talking about a Mark Loffler and yeah, we've got a great interview with him coming up here at a couple minutes.

Rob Break [00:01:31] But first, I guess we're going to talk about the free gift that we're giving away on our website, the seven freedom activators that you can trigger in your property starting right now. If you just go to break through r.i podcasts, you can download that for free. So helpful report that everyone should check out. Just some helpful tips on on just really making your get getting more freedom out of your investments. I guess not not making it a full time job, managing all of your properties and and just how to deal with different things when they come up recently.

Sandy MacKay [00:02:07] Yeah, it's a really great report. And the other great thing about setting up and getting that for your part is you get on our email list and when you do that, you're going to get emails every time a new episode comes out. So you never miss one. I think that's pretty good. I mean, some people are subscribing and stuff to the show and everything, but then you you know, you get caught up in a lot of different things online, sign up for the emails and you won't miss a thing when it comes out.

Rob Break [00:02:34] And as well, go over to iTunes and write and review the show, if you like it, let us know and let everybody else know that there is a show out there like this. It helps us get the show out there to as many people as possible, so just want to say thanks to everyone who has done that. We really appreciate it.

Sandy MacKay [00:02:54] Yeah, you know, I've had a few conversations over the last couple of months of people that have been recommended to listen to this show or that I've heard about it for the first time. And they're actually really grateful to do that and to hear about it, because a lot of people out there are looking for something like this. That's Canadian. Right. And there's a lot of American material like this out there, but a lot of that doesn't apply right to Canada. There's different laws and regulations. And so, you know, you're really helping a lot of other people by spreading the word and letting them know that there's some free content like this out there for them to listen to and learn with us.

Rob Break [00:03:34] Yeah, yeah. And I mean, you know what? There's a lot of good American podcasts out there that you can definitely learn a lot from. But there is some differences. The information on this side, I mean, isn't as freely like I'm talking about building lists and generating leads and that kind of thing. It's a lot tougher on this side of the border when when you're trying to do that kind of thing. So the advice that we give here is is really valuable. I mean, just go back and listen to I think it's episode, what, 14? I think it is. How do I identify a deal that the one

Sandy MacKay [00:04:15] that would be Episode seven tips to identifying a great deal? Yeah. That's number fourteen. Yeah.

Rob Break [00:04:21] Yeah. So I mean, go back and listen to that. I think that's one that's really helpful and there's a lot of good information on there for everyone. So if you haven't heard it, go back and download that one and then listen to all the rest of them as well. Yeah, they're all pretty important. And we have great guests, I mean, I want to say thank you to everybody that's come on the show and you know, Quentin D'Souza, who was our first guest and helped us get off the ground, really appreciate that. And Jeff Woods and your brother. And we've just had a bunch of really, really, really cool people on here, just sharing everything, you know, not holding back.

Sandy MacKay [00:05:00] So that's good. It's been awesome. And we're not even you know, we're just getting started. I think with this show, we're not even. What are we in 10 months? Barely. Yeah, 10 months. Yeah. There's a lot more a lot more. Great stuff to come. I think we're just kind of just getting going here,

Rob Break [00:05:18] so we're just scratching the surface.

Sandy MacKay [00:05:21] That's the words I'm looking for. I think we're going to have some awesome guests coming up in 2015 and beyond. So really excited about where the show is going.

Rob Break [00:05:29] OK, so we have another Michael MINUTE with our friend Michael Domínguez is put together a short segment for us. You can also find them on YouTube. Michael Domínguez, Durham Home. And here's another Michael Minute for you.

Michael Dominguez [00:05:52] Twice a year, the fire safety people were changing the batteries in smoke detectors used around the time, the clocks are changing as a real estate investor. It's your responsibility to ensure that smoke detectors and the carbon monoxide detectors are in good working order. Most of us put that responsibility onto the tenet within the lease. But there is a fire in. The batteries are not there. The city will look to the owner of the building, regardless of the tenants here, to cover your butt and create a fire safety log for each building you own and record every time you check the batteries and ensure that you're in proper working order. But there is an upside to this task. It allows you to enter your investment property twice a year and allows you to make sure that the place hasn't fallen apart since the last time you were in there. And if there is a problem, it allows you the chance to fix it while you're at it. This is a chance to change the first filter to a water meter check on you of any minor maintenance tasks. Remember, these are your assets and you need to protect them for more episodes. You can check my Web site at home gutsier. This is Michael to Vegas with another Michael.

Rob Break [00:07:04] So we've had a lot of challenges, Sandy, with this property that you and I have just joint ventured on last month and today we made the tough decision to fire one of somebody who is one of our one of our members of the of our renovation team. And that's kind of tough when stuff like that happens. It's never fun. And I certainly wasn't looking forward to, you know, facing that head on. But when so we had a plumber who. Who really wasn't holding up their end of the bargain, they he knew how to he really didn't know what he was doing. That's my opinion. I think that he knew exactly what he was doing, but he just wasn't really motivated to do anything. So that's where that's where the real issue came up. And, you know, it was holding up the entire job. We've got walls opened up and, you know, there's only so much there's only so much hurry up and waiting that we can do before we've got everybody else on our on our team and on our crew saying, you know, what's going on, we need to get back in there or we're holding them up from other jobs that they're trying to go to, that kind of thing. And so we made the tough decision today to let somebody go. And, you know, that's never fun, but it's part of what we do, right.

Sandy MacKay [00:08:31] Everyone's got to hold up their end of the bargain. At the end of the day, it takes a team to put these types of deals together properly. And if one link is holding everything up, then it's a business, right? You can't put up with it.

Rob Break [00:08:46] You know, it's not an easy thing to do either, because, I mean, I called him and so, you know, I knew it had to be done. And it's not the first time I've done that. But it's still a tough thing to do. So the good thing about this time is he really didn't seem too upset about the whole thing. And so that took a little bit of the pressure off me, I guess. But so, you know, but I mean, it's again, now we have to go and find the right people to take his place and

Sandy MacKay [00:09:18] and pretty quickly.

Rob Break [00:09:21] Yeah, exactly. So it's a learning thing. And I mean, this whole this whole renovation project is definitely a bit of a challenge. This has been by far the most complex of anything that I've done so far. But we sort of knew that we were going to hit challenges and we prepared for them, which is great. But we didn't just we didn't know what they were going to be. So as they come up, we're learning. And it's really interesting. We had to do a waterproofing exterior dig. And so that was that was something we had sort of anticipated from the beginning. We thought it might need to be done. We were hoping it didn't. But we looked into we thought it was a plumbing issue. Turns out there was a plumbing issue, but there was also a leak coming in through the blocked foundation. So we had to make the decision to do that. And that wasn't easy either. But so a lot of these challenges are coming up. And we're we're pushing through them, I guess, but. It's interesting to do stuff like this, right?

Sandy MacKay [00:10:35] Well, I think yeah, I think we kind of figured that would be one of one of the two. Right. Plumbing or or foundational and being a bit of both. So, yeah. You know, but yeah, like you say, it's a challenge to work through it. At the end of the day, you know, like you always say, you could take a ten thousand dollar coaching program and and probably not learn as much as losing ten thousand dollars on the on a deal. Right. So not that we're going to lose that, but

Rob Break [00:11:03] no, we're we're going to do quite well on this. But yeah. But you know the preparation. Yeah I do. And it's the preparation really just anticipating what what might be what might become an issue and preparing for it ahead of time. Right. So luckily we did that. And I have to say that a lot of that was on your side. So a lot of people might be asking, how do you how do you not know if there's a week? And I mean, there was so many different factors. This is a bank owned property and there was no eavesdrops on the house when we got it. We also didn't see any water coming in. But we did know that there was a major plumbing issue when we bought the house. But the water was also off. So and we did know that there was rain coming in from a certain spot in the cold cellar where someone had put in a makeshift window. So we fixed that issue and the problem persisted. Not until we had a major rain did we see the real I mean, there was four or five different times when it rained pretty good, but we took one of those really bad rains for it to actually start coming in through the foundation. And that's when I mean, that was about a month into the project when we when we realized that we needed to get the thing done. Yes. Which was funny because you and I had spoken several times just about the whole water issue and thought we had it figured out, got a lot of testing around the foundation. And and, you know, these things just come up

Sandy MacKay [00:12:49] and that'll probably scare a lot of people away.

Rob Break [00:12:51] Waywardness, I would imagine so. I mean, it it doesn't scare me, but it sure for sure is frustrating. But, you know, there's always challenges and you just have to really be able to face them, just face them head on, take care of them and move on,

Sandy MacKay [00:13:09] keep going power through. And then before you know it, you're left there with a pretty nice investment, actually.

Rob Break [00:13:19] Yeah, I'm looking forward to seeing this one get rented out because, you know, we did quite well. I'm proud of it.

Sandy MacKay [00:13:26] Yeah. So coming up, we got our interview with Mark Loffler and he's going to discuss the importance of understanding the market that you're investing in. It's going to talk about the three most important steps a new investor should take to set themselves up for success. And he's going to talk about this 18 unit property that absolutely nobody wanted and how he was able to take that property and turn it into a great deal for him and everyone else involved. He's also going to give a little bit of free coaching at the end.

Rob Break [00:13:59] Yeah, so everyone stay tuned. Here's our interview with Mark Loffler, and we're really pleased to have Mark Loffler here with us tonight. And thank you for being on the show. I know you've been really busy lately, and so I'm glad you could find some time to get on here with us.

Mark Loeffler [00:14:19] No problem. Glad to be here, guys.

Rob Break [00:14:21] OK, so, Mark, can you tell us a little bit about yourself and your business?

Mark Loeffler [00:14:27] Sure, obviously, Mark Mark Loffler written two books on investing in properties when investing in rental properties, complete Canadian guy, the other fix and flip for Canadian real estate investors with which I did with the Zabo and I've been investing for 11 years now, real estate agents that specializes with investors and commercial properties. I have a team that also does a lot of investors investment properties with me. I'm a family man. I got three kids and that's what takes up all my time. Running a half marathon in December to

Rob Break [00:15:09] a half marathon, really? Yeah, so what is involved in that? Thirteen point one Miles, nice, no.

Mark Loeffler [00:15:18] Twenty one point one kilometers.

Rob Break [00:15:22] So this team you're building, you've got a couple of people that I might know on that team, right?

Mark Loeffler [00:15:27] Yeah, I don't know if I want to say their names, but I don't know if you're on very long list.

Rob Break [00:15:35] And he's been mentioning it and he's been talking about just the different sort of unique things that you guys are doing. And it's it sounds pretty cool.

Mark Loeffler [00:15:45] Yeah. Yeah. We I mean, we do a number of different things from running investment meetings to educate people to running property tours. And really, it's all about educating the public so they can become more informed investors and to have them. I mean, the more money we make them, the more money we make typically, which is nice in real estate, nobody feels like they're getting ripped off because everybody's making money.

Sandy MacKay [00:16:15] So it's all about. Yeah.

Rob Break [00:16:17] So then now you talked about your first investment property. So then as an investor, what made you decide to jump onto the other side and become a realtor?

Mark Loeffler [00:16:29] Well, I was doing a lot of rent to own properties. Obviously, I wrote the book and I was involved with a company that I sold. But I was and I was still doing them after that. And I was looking at it and I was basically feeding realtor deals and I was doing 90 percent of the work for the realtors, and yet they were getting paid more than I was on my rent own deals. So I looked at that and said, well, I could just become a real estate agent and double my pay and not do any more work, really, maybe 10 percent more work. So that's what I did. And it kind of snowballed from there. Once people found out I had my license, they understood that I was an investor and I knew what I was doing. They asked me to start helping them invest in different places, Hamilton being the primary one and kind of just went from there.

Sandy MacKay [00:17:23] And did it help you as an investor then being a realtor?

Rob Break [00:17:28] Yeah, well, definitely,

Mark Loeffler [00:17:30] I mean, one thing it did, and I tell everybody this, so I don't know if I'm off out of turn. Everybody comes to me. So why would I use you as an agent? You're going to take all the best deals for yourself. And I always tell them, no, I give you the deal first. I take the deals you don't want. And I've ended up buying, obviously, an 18 unit apartment building that was totally vacant. People, even some of my best customers said, you're nuts for taking this on. Yet we bought it, spent a million dollars, then refinanced and pulled out all our money and just over two years. And we have this great cash flowing asset now that we have no money. You know, I bought Waterhouses, I bought bank sale properties, that we had to basically be firm that day and nobody was willing to do it. So I said, OK, I'll.

Rob Break [00:18:20] You're finding the hidden gems, basically the ones that don't like the ones that to the untrained eyes don't really look like they're they're much or they require a lot more work than the average investor wants to put into it.

Mark Loeffler [00:18:32] Yeah, the. They have bought leaning properties about how they buy stuff.

Sandy MacKay [00:18:40] What are some of the basic numbers on that 18 unit look like?

Mark Loeffler [00:18:45] Some of the basic numbers we bought it for six forty were in just about a million dollars in renovations, our gross rents are right around. I mean, we're right around eighteen to nineteen thousand dollars a month on that. We just got a financing package put on there for about one point eight from CMHC, like two point six one percent or something silly like that. And the best part about it is we when we did the renovations, people were nice enough to remove all the radiators for us. So we had to put a new supply of heat in. And we so we were able to take our tenants, pay their own heat, hydrogen water. So our only expenses are taxes, insurance and maintenance. And we have a great little thing on top of the building called Rogers Towers, and they pay basically our taxes for us.

Sandy MacKay [00:19:44] How did you get that worked in the Rogers

Mark Loeffler [00:19:48] or was it was just there and it was just and and I've explored how to get it on other buildings, and it's kind of just a crapshoot.

Rob Break [00:20:00] OK, Mark, if you could recommend, like what are what are three things maybe that a new investor could do to set themselves up for success?

Mark Loeffler [00:20:10] No one is pretty qualified to talk to a mortgage broker who understands investment properties and can help you help you determine what the best path will be for you. I mean, help you set your goals, really, if you're going to buy one or 10 or 20 properties, whatever that looks like, they can set you down the right financing path in the beginning and help you understand that it's not all about rate. Sometimes it's about who who you're with and what you can get next time and what the terms are as well. Number two, as I was definitely talked to, an investment real estate agent or someone who owns investments and understands it and obviously is on the market for themselves and they're always looking for the best deals and can help you source those deals. And number three, just get out there and do it. The best time to buy real estate was 50 years ago. And second best time is today. The only person, the only only way you lose money in real estate is short term. So don't go with the short term attitude, long term attitude, you'll never lose money in real estate.

Sandy MacKay [00:21:17] So they should start their finances before looking at properties, you're saying

Rob Break [00:21:22] definitely, definitely

Mark Loeffler [00:21:23] saw your finances. If we're looking at properties,

Rob Break [00:21:26] period, directing that at Sandy.

Sandy MacKay [00:21:29] Just people in general.

Rob Break [00:21:33] OK, well, so which one of your investments has been your favorite and why?

Mark Loeffler [00:21:41] My favorite. Oh, property. The properties are just kind of like a hobby for me. I just keep collecting them. I don't know if I really have a favorite. I mean, my favorite ones, probably my cottage, because, you know, obviously and it does provide some rental income yet not so much my favorite rental property. I mean, obviously the 18 unit, just for the fact that, I mean, we have no money and then it's providing a great cash flow. And a lot of people said a lot of people told me I was nuts when I bought it.

Rob Break [00:22:20] And yeah, just making that work and and getting everything up and going and

Mark Loeffler [00:22:24] just having the vision, which I didn't think was very much of a vision. There was 18 units there to begin with. You just had to rebuild them, so. I guess to some people, that's vision.

Rob Break [00:22:38] So, I mean, a regular 18 year building would be roughly two million dollars, I know it depends, but I mean,

Mark Loeffler [00:22:45] it depends in Hamilton, you can buy something from anywhere from, say, one point four million to whatever to twenty two point two million. I've got to think our valuations probably around two point sixty two point eight on our building based on like a six, six and a quarter cap, which I think we'd get on our new newer property. So.

Sandy MacKay [00:23:06] Tell us about a challenge or any challenges that you've had during your career as an investor and how you've overcome them. Challenges and some challenges with that property there,

Mark Loeffler [00:23:19] some of the other challenges without property yet, I mean, I don't think most of the challenges come from impatient money or so impatient joint venture partners. That's the one thing in real estate is it's a patient's game. A lot of times and my biggest frustration in real estate investment is, is is at some of my partners. And I've because of that, I've moved on from some of them from my early career. I don't really work with them anymore. And yet I've had some partners for 11 years and we work great together because we're both we're all patients around it. And I'd rather take the long term approach in and keep equity in and and build something.

Sandy MacKay [00:24:08] So going from that, if you're obviously you've learned something from that and how you choose your partners, how would you recommend someone goes about doing that for themselves if they're looking to be with someone?

Mark Loeffler [00:24:20] So I guess I mean, a lot of it is my fault at the beginning, because I was I was telling people to expect return of capital within two years. And now I tell them we're doing a longer term play and I mean, look to look to have your capital back in five to seven years, maybe seven to 10 years, depending on the on the project. Hey, and if you get it back quicker, all the better yet. Don't count on that on that. So I just said it's more about me setting the expectations than than my partners. I mean, some of the partners wouldn't have been my partners then. Yeah. I mean, that's OK.

Sandy MacKay [00:24:58] How do you find your partners?

Mark Loeffler [00:25:03] Networking events a lot I get a lot of people refer to me, a lot of people come to me as JV partners and I just turn them into straight clients because it's just not like it wouldn't work for us. I mean, as there's obviously, you know, different personalities work well together. And I need I work with some different personalities better than others, but I need to find them. I just I just network and just talk to people, to be honest with you. And I turn most of my JV partners into clients now.

Sandy MacKay [00:25:40] So but you'd probably recommend that partnering up and jamming with people is a pretty good strategy to build your wealth, right?

Mark Loeffler [00:25:48] Well, I mean, let's look at that. You know. On an 18 unit building I put in to start with fifty thousand dollars and fifty thousand dollars in two years turned into probably about two hundred and fifty thousand dollars. I mean, so in two years, I mean, I got two hundred and fifty percent per year because I took the time, energy to put the deal together. And I still had a construction partner who I gave twenty five percent of the deal to, to run the day two days of doing that. And I didn't even get involved in that. I just put together the package. So I mean that was a pretty good investment. So, you know, being the expert always gets you. It's higher, higher return. I mean, use your time and it's your ability to put the deal together. Then you get paid for.

Rob Break [00:26:46] So of your joint venture partners who want to know how many of them have saw that money sitting there on the table and one wanted at it before, say, the two or three years?

Mark Loeffler [00:26:59] Well, the funny thing about that is most of the time,

Rob Break [00:27:05] 90 percent of the time, when you

Mark Loeffler [00:27:07] come back to them with that check

Rob Break [00:27:08] or whatever, they actually tell you that

Mark Loeffler [00:27:11] they don't even want it. They say, no, no, no,

Rob Break [00:27:14] go find another property. Right.

Mark Loeffler [00:27:17] So it's just it's the expectation that I had set up from the beginning that I didn't set the right expectations.

Rob Break [00:27:24] Well, I mean, I think it's that those those people aren't looking for that kind of investment, I guess. And they don't really understand maybe what they're that they don't understand the idea of the the longer term money and and the wealth building aspect of it, I guess.

Mark Loeffler [00:27:43] Well, and they do, yeah. Some sometimes they were just too impatient. Here's the one piece of advice is never takes up a never invest with somebody with the last fifty thousand dollars or there are only fifty thousand dollars because they're going to call you every day. And worry about that fifty thousand dollars, or if it's if that's five percent of their portfolio, you're going to get your quarterly call with them, have your update. OK, we're good. And move on. So, OK, so you are diversified as well. I've met some very, very wealthy individuals and. They the is not always who you think they are. They don't just sit out like I have ten million dollars in the bank. They said out there, you don't know who they are.

Rob Break [00:28:35] They're not in the corner on a throne.

Mark Loeffler [00:28:39] So you get out there, you talk to people, you just start develop relationships with people, and then you get introduced to different people. It's taking other people out to coffee, you meet somebody at a networking event. What do you do? OK, why don't we grab a coffee and just chat about, you know, maybe talking about something and it's kind of just talking to everybody, you know, about real estate, everyday conversations, real estate, a becomes boring of. Some people will turn off of that, yet

Rob Break [00:29:08] some people will be attracted to that. So what's next for you then?

Mark Loeffler [00:29:15] What's next? Obviously, we're building the team, and actually I, I really want to buy some land and build and build build an apartment building, that's that's kind of what I've been looking at right now, is just building a new apartment building somewhere in Hamilton.

Rob Break [00:29:33] So from the from the ground up, find the land and

Mark Loeffler [00:29:38] do it, especially now in Ontario, where you can build a six storey stick built so wood frame so you can build it a lot cheaper.

Sandy MacKay [00:29:51] What attracts you to Hamilton?

Mark Loeffler [00:29:54] What attracts me to Hamilton

Sandy MacKay [00:29:56] or obviously up that way?

Mark Loeffler [00:29:59] You know what it did. Yet here's the here's the thing, I mean, this blind luck and blind luck. I mean, I've been here about Hamilton for a long time. And, you know, I had my own misgivings about it, Steeltown, blah, blah, blah, where the reality of the fact is the number one employer in Hamilton is health sciences. And they're building like two or three more health science things. I mean, McMaster's building new like sick kids out there. There's a new teaching hospital going up on Main Street, you know, all all these different things. And number number two is actually education with McMaster and Mohawk, which obviously leads a lot of renters. Hamilton as one of the lowest unemployment rates, if not the lowest unemployment rate in Hamilton, Ontario. And their economic development office brings in jobs. That's what they're out there looking for companies to come work, to come to, least there. I mean, and they have a plan for the future right now. I mean, their industrial vacancy rate is like two point five percent, which is unheard of. And they have that plan for future development, for industry and light commercial and medium commercial in different areas, which they have that growth. So they they have that planned out into the future. And at some point they might even get some plant with some some rail transit, some LRT gold trains going there. Twenty fifteen that stations are already being built. They're already building the extension line out to Stoney Creek and then Grimsby in the egg or later. So I mean, there's a lot of stuff happening out there, a lot of good things and

Rob Break [00:31:37] there's a lot of growth in just southern Ontario in general. I think I find even over on this one, there's there's a lot going on. So it seems like just all of southern Ontario is just a great place to be right now.

Mark Loeffler [00:31:50] I agree. I agree. The one thing, obviously, why Hamilton, too, is the price points, a third of Toronto and you're an hour away. So, you know, I know people commute from Barry and other places. You just don't get the same atmosphere very like downtown, very compared to, say, downtown Hamilton, which is reviving is just Hamilton as this great art scene that you just don't get in other places. It is a pretty major city. And, you know, that's going to attract a lot of people. So I kind of look at Hamilton like Toronto was 15 years ago. I moved into the junction ten years ago, and it really does remind me of that. And if I could buy more properties ten years ago in a junction, I would buy them all.

Sandy MacKay [00:32:36] Yeah, you'd be doing good. Yeah. Health is not the only place to invest and what other markets and how do you really select a market?

Mark Loeffler [00:32:48] So I started in Newmarket and I selected that again on Price Point is two hundred thousand dollar bungalows with a basement suite and I was getting twenty three hundred dollars a month in rent. So that was good cash flow and really well. And I could buy some properties that needed a bit of work and add value after that. Obviously I was buying a little bit in Toronto because I lived there and the rents to purchase price were pretty decent back then and we felt we were going to get a lot of appreciation, which we did. And I was out in Cornwall as well, and that was just a pure cash flow play. Dontari had recently left the area and property prices were probably as low as they've been in 15 years, maybe not 50 years, but close. And we were just buying cash flow out there and we were buying fourplex for sixty seven thousand dollars that had gross rents of thirty two hundred dollars. Yeah. And then what happened was without even us knowing it, you know, because of the proximity in the high French speaking population, call centers started coming in the proximity to all the major highways and major metropolitan areas like New York's not like maybe six hours away, Montreal, Ottawa, Toronto aren't like a great almost in the middle. It became a distribution hub. So Walmart had their distribution hub. Their Amazon has a big one there, I believe Costco. So they have a major distribution hub.

Rob Break [00:34:25] What is da dum da

Mark Loeffler [00:34:28] dum da is a a pulp and paper mill. OK, so then they, they took that down, which is kind of like steel town in Hamilton to our left, a lot of jobs left. But what it did was it also took away the big stink over the city. People were like, wow, it's nice here on the river. It's, it's close to the US, close to Montreal for a lot of people who who work in Montreal, actually live in Cornwall because taxes are cheaper.

Rob Break [00:35:00] So do you still own all of your investment or do all of your investments, or do you like transition in and out of different properties as you move along?

Mark Loeffler [00:35:10] I transition out of dogs or things that annoy me. Yeah, yeah. I mean, if it's if it's not doing what we want it to do or it's too much of a management headache or we're just see too much turnover, we'll be rid of it.

Rob Break [00:35:28] And you don't have any regrets about that ever.

Mark Loeffler [00:35:31] I sold one property that I kind of regret. I had finished renovating it. I was refinancing. I took a bunch of prospective investors through and they wanted to buy that one. I gave them a ridiculous price on it. They said, sure, and they bought it. And I still want to have that one back, huh?

Rob Break [00:35:51] Well, that's what I hear a lot of investors say the you know, the only mistakes they've made is selling any of their any of their investments. Yeah.

Mark Loeffler [00:35:59] And I mean, there's different reasons to sell. Yeah. I mean, it served its purpose then and it helped me move forward. Mm hmm.

Sandy MacKay [00:36:14] Mark, you have had a big a ha moment or like what was something that. Or even like got you started, what was the AHA to get you into investing or real estate?

Mark Loeffler [00:36:26] I'd seen his family do it and be pretty successful at it and just do property price appreciation and whatnot. I mean, they've done very well with that and. And and then as I tried to buy my first prop in 19 and then I got in and I read that part out, I read off the roofs and I started to learn more about the numbers side of it. I love numbers. So that appealed to me. And it's just seen, to be honest with you, an easy way to to invest, to make money because of leveraging the bank's money. And it was something that I bought something at two hundred thousand, even if I did nothing for twenty five years other than collect some rent and made a hundred dollars a month. And after twenty five years, somebody else paid off that mortgage for me. I had a two hundred thousand dollar asset and I was twenty five at the time. Twenty five years. I bought one of those for five years by fifty five hundred million dollars of assets paying me whatever per month. Right. So that's kind of what I looked at that just started collecting things.

Rob Break [00:37:34] So then we'll the next question here is, is about is about books that you'd recommend to the listeners. So I noticed that you said rich that poor double. What was the other one you mentioned there?

Mark Loeffler [00:37:44] Druss real estate riches. He was the first real estate or rich dad, real estate advisor. Dr. Ruth, he's from New Zealand, actually a pretty interesting guy. And other books I would recommend, I mean, obviously, Don Campbell's real estate investing in Canada is a great starting book. It gives you some good numbers, a little bit out dated right now with interest rates the way they are, but still pretty good other books. I mean, definitely get my books fixed and flip for investors and pay their rent to own four K real estate investors. What else is on my bookshelves here? Richest man in Babylon. That's an awesome book.

Sandy MacKay [00:38:32] Is that Ogg's, whatever Oji Mandina or something

Mark Loeffler [00:38:37] of Mannino, yeah, or is that different? That's a great salesman. Oh, that's OK. Yeah. Richest men, Babylon. I forget who the author is on that. Oh, jeez. What else? Oh, there's so many books out there. Gurvich, while you sleep. I gather that that's a good selection for now.

Rob Break [00:38:58] Yeah, it is, and you can get a free audio book just like the ones mentioned here when you go to break through Ariah podcasts, slash audible free trial.

Mark Loeffler [00:39:11] There's still something about having a book in your hand, I don't know.

Rob Break [00:39:14] Yeah, I like it, too. But who has time for that? I don't. I drive. I drive all day long, though.

Mark Loeffler [00:39:19] So so, I mean, here's the thing. You don't have time because it's not in your schedule. That's true. It's not in your schedule because you're not making time for it.

Rob Break [00:39:29] Yeah but see right now I got someone else dictating me my schedule. I'm not I'm not free yet, so.

Mark Loeffler [00:39:35] Well, yes and no. There's always time. When I was when I worked, I used to go to grab tape to bring my lunch, go to Tim Horton's gravity and read or go to Starbucks and every. And that was just my downtime.

Rob Break [00:39:52] Well, I have to take that I have I do have both of your books and I have read them both. I like them there. They taught me a lot, especially the fix and flip one. I did read the other one. I haven't done any Renton investing, though, but it's still you know, I've learned a lot from all the books I've I've read and Quentin's books that are really good to just use his books. So there is a lot of good ones out there.

Sandy MacKay [00:40:21] There's a ton of good Canadian real estate investor books. Yeah.

Rob Break [00:40:26] OK, so, Mark, where can people learn more about you?

Mark Loeffler [00:40:30] I'm very Google Apple, just Google me, you'll find out about me, Mark Loffler, L.O. e f as in Frank LWR. You'll find my blog, you'll find probably three or four different websites about me. Yeah, yeah.

Sandy MacKay [00:40:48] Perfect is what the versatile investor

Mark Loeffler [00:40:52] or the versatile investor or Ontario property pros, I think I still have something to mark Loffler Dotcom. They're all out there, but Google me and you'll find you'll find the most up to date.

Sandy MacKay [00:41:07] Cool. All right, Rob, anything else?

Rob Break [00:41:09] I think that covers it.

Mark Loeffler [00:41:12] All right, well, thank you so much, gentlemen. You guys have a great evening.

Rob Break [00:41:16] Appreciate you coming on. Have a good night.

Mark Loeffler [00:41:19] Thanks, guys. Thanks.

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