How the Wealthy Build Multimillion-Dollar Real Estate Portfolios with 95% Financing

In this episode of the Close More Deals Podcast, host Scott Dillingham sits down with Rhys Trenhaille from the Vanguard Team at Manor Realty to reveal how everyday investors can own multimillion-dollar real estate properties using surprisingly little of their own capital. The conversation dismantles the myth that large-scale multifamily investing is only for the ultra-wealthy, showcasing government-backed financing programs that are revolutionizing apartment building acquisition across Canada.

Scott and Rhys dive deep into the mechanics of construction financing that covers up to 95% of project costs, combined with amortization periods extending to 50 years. This powerful combination dramatically improves monthly cash flow and makes previously unattainable deals financially viable. The discussion highlights how investors can develop properties, hold them briefly for appreciation, then refinance to extract their original capital while maintaining ownership and ongoing income streams. This strategy essentially allows investors to control valuable real estate assets with minimal long-term capital commitment.

The episode addresses the critical gap in Canadian housing known as the missing middle, specifically buildings with six to twelve units that few developers are building despite overwhelming demand. Rhys shares his experience developing eight-unit projects through creative conversions of older commercial properties, including transforming a century-old law office into modern residential units with live-work spaces. The conversation explores how municipalities are streamlining approval processes through digital submissions and development assistance coordinators, dramatically reducing the bureaucratic delays that historically plagued mid-scale development projects.

A significant portion of the discussion focuses on prefabricated construction methods that are disrupting traditional building economics. Rhys reveals that innovative prefab manufacturers in Ontario are now delivering complete six-plex assemblies at approximately $224 per square foot, substantially below traditional construction costs. The conversation outlines strategies for combining prefab construction with basement development to maximize unit counts on single lots, potentially creating eight-unit properties that qualify for favorable commercial financing terms.

Scott explains the opportunity for investors who want exposure to larger projects without hands-on development experience through syndication models and fractional ownership structures. LendCity is actively seeking capital partners for new development projects ranging from eight to ninety-four units across multiple Canadian markets. These partnerships offer permanent equity positions with the goal of returning investor capital through refinancing while maintaining ongoing ownership stakes.

The episode concludes with actionable advice for investors at every level, from first-time buyers considering house-plus-additional-dwelling-unit strategies to experienced developers ready to tackle larger multifamily projects. Both experts emphasize that building new construction provides superior control over outcomes compared to purchasing existing properties, particularly when leveraging programs designed for affordability, energy efficiency, and accessibility requirements.