#16 Oct 31, 21

How To Buy Unlimited Rental Properties: Lender Strategies

In this episode of The Wisdom, Lifestyle, Money Show, host Scott Dillingham reveals strategies for investor clients to finance unlimited rental properties in Canada, emphasizing calculated leverage where returns exceed costs. He categorizes lenders: A-lenders (major banks/credit unions/trusts, using 50% rent income, capping at 5-12 properties with 44% debt ratios); B-lenders (higher 3-4% rates, 1-1.5% fees, for maxed ratios/credit issues); commercial (property-cash-flow focused, 95% asset/5% borrower, low-2% rates post-2025 BoC cuts to 2.25%, no stress test, 1-1.5% fees); and MICs/privates (5-8%/10-12% rates, prefer MICs over individuals for stability, 1.5-3% fees).

Scott stresses lender order: Start with caps (5 regardless of ownership), then unlimited A (80-100% rent for better qualification), commercial for scaling (e.g., saved 15% down on $800K 4-plex vs. 40% at banks), saving B/privates as last resort. Amid 2025's market (CMHC forecasts modest dips with averages ~$600K in Windsor, tightening vacancies ~2-3% driving rents up 4-6% YoY per Rentals.ca, post-BoC easing aiding growth), he advises ambitions like early retirement/supplemental income via cash flow, avoiding overleveraging. This episode equips investors with tools for 2025's recovery (suburban demand, hospital/border reopenings boosting Windsor), motivating action with custom plans—contact LendCity for pre-approvals and scaling amid affordability boosts.

Host Bio
Scott Dillingham is the founder and CEO of LendCity Mortgages, a premier online mortgage brokerage specializing in financing for real estate investors across Canada and the USA. As host of The Wisdom, Lifestyle, Money Show, Scott draws from his own journey—from sales excellence at Future Shop to building a multi-property investment portfolio—to educate listeners on mortgages, investing, and personal growth. Based in Windsor, Ontario, he has achieved top national rankings in mortgage sales and now leads a team helping Canadians secure creative financing solutions. Connect with Scott on Facebook at facebook.com/scott.dillingham or visit lendcity.ca for mortgage advice and resources.

Key Takeaways

Categorize lenders: A (50% rent, 5-12 caps, 44% ratios); B (3-4% rates for maxed files); commercial (low-2% rates, property-focused, no stress test); MICs/privates (5-12% for high-risk, prefer MICs for stability).
Order matters: Start with capped A-lenders, then unlimited A (80-100% rent), commercial for scaling—maximizes borrowing amid 2025 BoC cuts (2.25%).
Avoid privates early: Individuals risky (life events recall funds); MICs cheaper (5-8%) with billions under management.
Commercial perks: 95% asset/5% borrower focus, lower DSR (1.0 vs. 1.3 at banks), saved 15% down on $800K example post-2025 easing.
Ambitions vary: Early retirement via cash flow, income supplements, travel—tailor to goals in 2025's tightening vacancies (~2-3% per CMHC).
Fees/rates: A (none/low); B (1-1.5%); commercial (1-1.5%); privates (1.5-3%)—factor into profits post-rents up 4-6% YoY (Rentals.ca).
Roadmap: Custom plans via experts—contact LendCity for unlimited growth in 2025's recovery.
Mindset: Overleveraging erodes profits—focus calculated strategies for sustainable scaling.

(00:08) - Introduction to Unlimited Properties
(08:07) - Leveraging Lenders for Success
(17:05) - Exploring Commercial Opportunities

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