Do Canadian lenders oppose BRRRR?

Question

I am three houses into my Brrrr method, but am now "maxed" and "borrowed out" I've met with/spoken with over 30 brokers/lenders, and everyone is looking at my monthly income. All of my houses are 2% rule, fantastic cash flow, 100k + in the bank ready to go, no debt (but 660 credit score and building), and am told I cannot legally acquire anymore properties because of my personal income. I make 55k a year at my job. No one in USA is encountering this. Is BRRR possible in Canada?

Huong Luu · Answer

@Noah Audette BRRRR is absolutely available in Canada and being done by many. The thing holding you back is your low credit score and your annual income. To get around that, there are a few things you can do:

1. partner up with a money source

2. creative financing (VTB, AFS, etc)

3. private lending or B lenders

4. get a higher paying 9-5

these are just a few ideas. Good luck.

Mike Mclane · Answer

@Noah Audette I feel your pain, I am the same always looking for funding based off equity and cash down payments and the bank wants proof of income and DTI   All you can do (in my limited experience) is find a good mortgage broker that deals with private lenders/hard money lenders.  Rates will quickly get into the 5%-8% range and there will likely be a fee at closing but thats the only solution I know of.  there is 1 lender in Canada I know that will lend with no income proof but requires 40% down payment.  Message me if you want the name

Melanie Dupuis · Answer

Hey @Noah Audette We utilize the BRRRR in every one of our deals! You might want to look at getting these assets into a corporation as opposed to holding them personally. Also do not try going to the major 5 banks, as they will not be able to help you. I think you should concentrate on using creative financing!