Why Private Lending is a Game-Changer for Real Estate Investors
Josh Perez • March 27, 2025
"If you're only mortgaged through big banks and A lenders, you may not be accelerating your wealth-building plan as quickly as possible."
If you're a real estate investor who has only worked with big banks and A lenders, you may be limiting your potential for wealth building. While traditional financing works well for standard property purchases, some of the most lucrative real estate opportunities—such as distressed properties in need of significant renovations—require a different approach.
The Challenges of Traditional Lending
Investing in properties that need major improvements can be a powerful strategy to build wealth, but there are challenges that often deter investors:
- High Capital Requirements – Many of these deals require a substantial upfront investment for both the down payment and renovation costs.
- Strict Lending Criteria – Traditional lenders, including A and most B lenders, are hesitant to finance properties in poor condition.
- Limited Flexibility – Many banks have rigid lending structures that don’t accommodate unconventional investment strategies like fix-and-flips or BRRRR (Buy, Rehab, Rent, Refinance, Repeat).
The Power of Private Lending
This is where private lenders, like Calvert Home Financing, come into play. Unlike big banks, private lenders specialize in funding real estate investments that require creative financing solutions. They understand the value of distressed properties and offer more flexible loan structures tailored to investors looking to maximize their returns.
Some key benefits of working with private lenders include:
- Higher Loan-to-Value (LTV) Ratios – Private lenders can exceed 80% LTV for the right project, reducing the capital you need upfront.
- Access to Construction Funds – Many private lenders will fund renovation costs, making it easier to complete value-adding improvements.
- Fast and Flexible Approvals – Unlike traditional banks that take weeks to process applications, private lenders can approve and fund deals much quicker, allowing you to act on time-sensitive opportunities.
Learn How to Use Private Lending to Your Advantage
We’ve partnered with the experts at Calvert Home Financing to host a free webinar on Thursday, September 15th. This event will provide valuable insights into when and how borrowing privately makes sense for your investment strategy.
If you're looking to scale your real estate portfolio, optimize your financing strategy, and take advantage of opportunities that others pass up, this is a must-attend event.
Going Through a Separation? Here’s What You Need to Know About Your Mortgage Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward. Here’s what you need to know: You’re Still Responsible for Mortgage Payments Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure. If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track. Breaking or Changing Your Mortgage Comes With Costs Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage. Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement. Legal Status Affects Financing If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify. No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized. Qualifying on One Income Can Be Tougher Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own. A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs. Buying Out Your Partner? You May Have Extra Flexibility In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home. This option is especially useful for families looking to minimize disruption for children or maintain community ties. You Don’t Have to Figure It Out Alone Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals. Let’s talk through your situation and explore the best path forward. I’m here to help.
Mortgage rates in Canada have been falling for most of the past year—and while that sounds like great news, I always encourage clients to pause and look deeper. A quarter-point rate drop might sound huge in the headlines, but in reality, it only saves the average buyer less than $100 a month . Don’t get me wrong—every bit helps—but that small difference isn’t what’s going to change your financial future. “The strategy beats the rate every single time.” — Josh Perez What really matters is how your mortgage is structured—because that’s where the long-term wins happen. Here’s how I approach it with my clients: Focus on Affordability Don’t just chase the lowest rate on paper. The real goal is a monthly payment that fits your lifestyle today while still leaving room for savings, investments, and emergencies. That’s what keeps you comfortable, not stressed. Think Beyond the Mortgage Your mortgage can be more than a payment—it can be a wealth-building tool . Smart amortization choices, extra payments, or using equity strategically later on can make a massive impact on your financial growth. “The right mortgage choice depends on your long-term plan, not just today’s rate.” — Josh Perez Plan for Flexibility If you choose a fixed term, understand the penalties that come with breaking it early. If you prefer variable, be sure you’re comfortable with the payment swings and how they impact your principal over time. The truth is, the “best” mortgage isn’t the one with the lowest rate—it’s the one that’s aligned with your goals, timeline, and flexibility needs . So yes—let’s enjoy the benefits of lower rates, but don’t let the headlines distract you from the bigger picture. The structure of your mortgage—and how it fits into your overall financial plan—is what really moves the needle. If you want to see how this looks with your actual numbers, let’s build a custom strategy together. Schedule a call with me today and I’ll show you exactly how to make your mortgage work smarter for you.
