Private Lending, Bridge Loans & Real Estate Development: Investment Opportunities for Canadians

In this episode of the Wisdom Lifestyle Money Show, host Scott Dillingham breaks down the investment opportunities available through his investor-focused mortgage brokerage, covering private lending, bridge financing, and real estate development partnerships. Scott explains why investor-backed private mortgage lending can be a compelling alternative to traditional fixed-income products like GICs, and how his brokerage structures these loans to protect lender capital through pre-arranged exit strategies and thorough underwriting.

Scott begins by outlining how private lending works within his brokerage model. Unlike traditional private mortgage brokers who may place investor funds into higher-risk borrower scenarios such as defaults or power-of-sale situations, Scott's approach focuses exclusively on investor clients who are actively turning over or improving properties. These borrowers typically need short-term capital for renovations, adding units, or bridging a gap before transitioning to conventional financing. Because the brokerage pre-approves borrowers and lines up their takeout financing before activating any private loan, the risk profile is significantly reduced. Scott notes that his brokerage targets investors with a minimum of $500,000 in available capital, as the complexity of tracking and deploying smaller amounts across multiple deals becomes impractical at scale.

The conversation then shifts to bridge loans for real estate investors in Canada. Scott shares a real-world example involving a multifamily property that was in the final stages of closing with CMHC-insured financing. During the title search, it was discovered that the property had one more unit than legally permitted, triggering a material change that required CMHC to restart the approval process from scratch. With CMHC processing timelines averaging four to six months, the buyer needed immediate bridge financing to keep the deal alive while the seller was unwilling to extend. This type of scenario highlights why bridge loan solutions are critical in Canadian multifamily investing, particularly when dealing with insured lending programs that come with longer bureaucratic timelines.

Scott also dives into real estate development projects his team is actively involved in, including a 35-unit conversion of a former recreation center into a multifamily residential property. He discusses other projects across Canada, including developments in Alberta and Ontario, with unit counts ranging from six to one hundred. For properties in the six-to-eight-unit range, Scott references the CMHC MLI Select program, which offers up to 95% loan-to-cost financing for qualifying multifamily properties that meet affordability, energy efficiency, and accessibility standards. This program has become a key tool for Canadian developers and investors looking to build purpose-built rental housing with favourable financing terms and longer amortization periods.

A significant portion of the episode focuses on the value of off-market real estate deals. Scott explains that the best investment opportunities rarely appear on public listing platforms. Instead, they come through established networks, relationships with builders and developers, and internal deal flow within investor-focused teams. He shares how local builders who traditionally focused on subdivision housing have pivoted to constructing six-to-eight-unit multifamily properties, creating new inventory that investors can acquire before it reaches the open market. These off-market opportunities allow buyers to access better pricing and terms compared to competing in open-market bidding scenarios.

For those interested in getting involved, Scott outlines multiple pathways: acting as a private lender on investor renovation projects, providing bridge loan capital for time-sensitive transactions, or partnering as an equity investor on development projects. He emphasizes the importance of conducting proper due diligence on any investment partner, citing past industry fraud as a reason to verify credentials and track records before committing capital. Some of these opportunities may require accredited investor status under Canadian securities regulations. Scott wraps up by encouraging listeners to book a discovery call, emphasizing that the best investments are tailored to individual goals, financial capacity, and risk tolerance.