The Advantage of Expert Brokers & Developers in Multi-Family Financing

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In this episode, Scott is joined by Jennifer Champion and Christine Traynor to discuss the critical advantages of working with experienced brokers who specialize in multi-family financing. The conversation highlights real-world examples of how the right expertise can save investors millions while avoiding costly mistakes that commonly occur when going direct to banks or working with inexperienced brokers.

Key Insights & Takeaways

Scott shares a compelling example of how broker expertise translates to substantial savings. An investor with a rehabbed 57-unit property initially went direct to his major bank, which offered a $13 million loan. However, when the bank discovered the property was leased to a single corporate tenant who then subletted the units, they withdrew their offer entirely.

Working with Scott's team of expert brokers resulted in:

• $16 million in financing (versus the original $13 million offer)
• Interest rates 1% lower than the bank's proposal
• Deal approval instead of complete rejection
• Proper structuring that satisfied both lenders and CMHC requirements

This single transaction demonstrates how the right broker expertise can mean the difference between a failed deal and a successful $3 million improvement in financing terms.

A shocking revelation from the episode involves a client with a large multi-family portfolio who repeatedly received conventional loans from his bank—despite the same bank offering CMHC multi-family insurance programs. The bank's conventional offerings included:

• 25-year amortization instead of 40-year options
• 75% loan-to-value instead of 85% available through CMHC
• Higher interest rates compared to CMHC-insured loans

Only when the client discovered CMHC programs through Scott's team and threatened to cancel did the bank admit they offered those products too. This raises serious questions about whether banks are taking the "easy path" rather than providing optimal solutions for their clients.

Both Jennifer and Christine are active investors themselves, providing them with firsthand understanding of portfolio growth strategies. This investor perspective offers several advantages:

Portfolio Strategy Integration: Rather than viewing each deal in isolation, they consider how each financing decision impacts the client's overall portfolio growth and cash flow optimization.

Long-term Vision: Understanding how current financing choices affect future investment opportunities and portfolio scaling potential.

CMHC Program Optimization: Strategic use of programs like MLI Select to maximize leverage and minimize costs across multiple properties.

From mid-June through the end of July 2025, Scott's team is offering a special incentive: clients who complete a pre-approval or portfolio review are entered into a raffle for a 7-8 day Caribbean cruise in February. This promotion provides an excellent opportunity for investors to get professional portfolio analysis while potentially winning a vacation.

Resources and Next Steps

• Strategy Call Booking: Book with Jennifer, Book with Christine, Book with Scott.
• Portfolio Review Services: Comprehensive analysis of c

Book A Strategy Call With An Expert On The Team

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Episode Transcript

Scott Dillingham (00:01):
Welcome back to the Wisdom Lifestyle Money
Show.
I'm your host, Scott Dillingham,and today we have Jennifer
Champion and Christine Trainorwith us today.
So welcome.

Christine (00:09):
etkka.

Scott Dillingham (00:10):
Hi.
So.
We wanted to talk to you todaybecause we see this all the
time.
Uh, obviously as lenders, we seeclients go direct to their
lender or we see them go directto a broker who lacks
experience.
And that causes a lot of issues.
So we really wanted to highlightin this episode is about the
benefits, and we're gonna listsome examples of why going with

(00:32):
the correct broker who's tappinginto your multifamily financing
and what that could look like.
You know, not only from afinancial standpoint, but just.
Ease of application and avoidingthese mistakes.
So I'm gonna start today with anexample.
So there is this investor whohas rehabbed the whole property

(00:52):
and now it's 57 units and herents it to a large tenant.
Now this client went direct tohis major bank where he gets his
banking from, and they offeredhim a$13 million loan

Jennifer Champion (01:04):
Okay.

Scott Dillingham (01:04):
at first.
Now, once they discovered thatit was one tenant.
It was a corporation that'srenting all 57 units and then
they rent them out.
Right?
They sublet them under that.
Once that was discovered, thislender said, no, that that won't
work.
Okay.
So they came to us and we got itall priced for the lenders and

(01:26):
everything, and it's lookinglike they should be able to get
around 1.6 million.
So$3 million more better ratesas well.
From what he's telling me, hewas saying, you know, mid fours
where we're.
Below, you know, 1% below that.
So that's a massive differenceas well.

Jennifer Champion (01:45):
Welcome

Scott Dillingham (01:46):
his property.

Jennifer Champion (01:47):
I

Scott Dillingham (01:47):
um, then come to find out they declined him
because of everything being onone lease where we had spoke to
the lenders and confirmed withCMHC, that all of that was fine.
And so the deal is working out.
So obviously there's still duediligence and documents and
different things like, likethat, that's, that's needed to,
to finalize this file.
But what a drastic difference,right?
Saving 1% in the rate, getting 3million more in lending And

(02:11):
going from a no event right to ayes.
So that's a massive, massivedifference that having that
expertise and additional lendersbring to the table.
And Christine and Jen, I'm gonnaturn it over to you guys, but I
know you have tons of exampleslike this, so I'd love to hear
from you.
It doesn't matter who's first,but let's, let's talk about some
of these challenges and, andwins that you guys have seen out

(02:32):
there.

Christine (02:32):
Okay, thanks Scott.
I'll jump in with a coupleexamples here from this end.
So one of the things that we seequite often is Erilaisilla
lenteillä on erilaisia tyyliäerilaisilla aikoilla
markkinoilla erilaisillatyyliöillä.
että me emme tee tällaisialentejä nyt, mutta meillä on
muita lentejä, jotka voivat.
Joten jos sinä menet tuohonlenteeseen he eivät ole

(02:53):
kiinnostuneita tekemäänrakennuslenttä esimerkiksi he
voivat sanoa että emme tee tätäratkaisua mutta työskentelemällä
brokerilla, joka saa tilannettamonille lenteille, voit tehdä

Jennifer Champion (03:03):
Um

Christine (03:04):
esimerkki jonka näemme.
On Paikkoja.
Jotkut laittajat eivät ainakiinnostuneita laittamaan
miljoonaa paikkoa eri paikkoihintai vaikka miljoonaa paikkoa
ylipäätään se voisi olla liianvähäinen.
Mutta meillä on paljonlaittajia, joilla voidaan
Luulen, että meillä on niinpaljon

Jennifer Champion (03:22):
Thanks for watching

Christine (03:23):
on tilanne monimutkaisiin laittajiin.
Toinen asia on, A lot of lendersthat we have access to don't
work direct with consumers, soyou can't actually access that
lending period if you don't

Jennifer Champion (03:35):
please subscribe and hit that like
button....
I think

Christine (03:47):
especially in the commercial space.

Scott Dillingham (03:49):
I.
Yeah.
Yeah.
So thanks for sharing that.
Uh, Christine Jennifer, uh,what, um, what are some examples
you have?

Jennifer Champion (03:59):
just in terms of like working with um, an
investor focus broker, you know,like Christine and I are both
investors ourselves, just havinglike that lens on looking at,
you know, refinancing yourportfolio or new purchases
moving forward and being verystrategic with the lenders
you're using, um, the approachyou're taking, conventional

(04:20):
CMHC, MLI Select, and just sortof like working with a broker
who has that overarching goal inmind for your portfolio instead
of, you know, let's get this onedeal done and then move on to
the next and not sort of havethat like forward vision.
So,

Scott Dillingham (04:38):
No, I agree.
I agree.
And people don't always.
No, what's not there?
So what I, what I think is, ifyou're somebody who's listening
to this and your gut instinct islike, let's go to the bank,
right?
I have all my banking there.
They know the product.
Just give us a call.
Like it's just literally astrategy call.
And I, I, I'll give anotherexample, right?

(04:59):
So I know before the call we'retalking about this, this, this
client of ours who he has alarge multi-family commercial
property, you know, portfolio.
And he kept going to the bank.
Now he's not anymore, but thebank offers CMHC, right?
Multifamily insurance.
So he could have got a 40 yearamortization, 85% loan to value,

(05:22):
all that good stuff.
But what, what the bank wasgiving him was just conventional
loans.
And they weren't even doing it.
And the bank offers this, likethe bank that he went to offers
CMHC.
So once he discovered that thisis the thing and he can move
forward with it, he got soexcited.
So he told his bank, you knowwhat I'm canceling, I'm, I want
to do like the, the CMHCapplications with Scott.
I don't want to do theseconventional deals.

(05:44):
It doesn't make sense.
And they're like, oh, we dothose too.
And so like I was dumbfounded,like, why would you not offer
that to the client?
I.
From day one when he is buildinghis portfolio, right?
Why would you put him in thesethings with 25 year ams at 75
LTVs, which is exactly what hegot on all of his properties
when he could've got way more,right?

(06:05):
He'd have more funds in hisaccount so he could leverage,
better purchase additionalproperties, stronger cash flow
without 40 year amortization.

Jennifer Champion (06:13):
that are in the, in the caveat are.

Scott Dillingham (06:13):
And it just doesn't make sense.
So like even the banks thatoffer this, this program.
I think they're taking the easypath, right?
And they're not, they're notgoing down this, this, this
pathway and it, it costs theclient who knows, you know, how
much an interest too, becauseconventional loans are much
higher and, and interest expensethan CMHC loans.

(06:35):
I.
I think it's always good tospeak to an expert.
So we are going to put the linksin the bottom of the, uh, show
notes.
So if anybody wants to book acall with Christine, Jen,
myself, doesn't matter book thatcall, we'll help you out, even
if it's literally just aconversation.
And right now it's the middle ofJune.

(06:55):
So I also want you to know thatfrom now until the end of July
of 2025, we're actually having araffle.
So by doing a.
Pre-approval or portfolio reviewwith us.
Uh, you're gonna be entered intowin a, a cruise in February.
It's a Caribbean cruise.
Uh, I think it's seven days.
Maybe it's eight days actually.
I forget, but it's, yeah,literally in February we're,

(07:17):
we're giving it away.
So get in your pre-approvals,let's get you into, enter the
contest and let's, let's helpbuild your portfolio the right
way.
Now before we go and sign offfor the day, Jen and Christine,
do you have any other examplesor things that you want to touch
on?
No.
Okay,

Jennifer Champion (07:35):
Hello.

Scott Dillingham (07:35):
that's it then.
So everybody have a great day.
Tune in next week.
We're gonna have a lot more goodcontent for you guys, and we'll
see you soon.