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.

Josh Perez
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What You Need to Know About Mortgages and Parental Leave

By Josh Perez • July 8, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.
Suburban two-story house with a front porch, two-car garage, and a large tree-lined lawn.

Gifted Down Payment in Ontario? Don't Skip This Step

By Josh Perz • July 7, 2026
Using a gifted down payment to buy a home in Ontario? Learn exactly what lenders require — and the common mistakes that can delay or derail your approval.