Hello, I’m in the process of refinancing a 5-unit property following an extensive renovation and working with a mortgage broker on an application through the CMHC MLI Select program. I understand that many lenders are hesitant to take on small projects like this through MLI Select, but I’m curious to hear if anyone on here has experience completing a similar financing deal? Would love to hear about people’s experience with with process! Any tips or helpful information is also welcome! Thanks in advance!

Looking to connect with other local Atlantic Canadian's to talk business and investment opportunities. What province you living in currently?

Hello Realist community! I live in New Brunswick and I am starting a partnership with a friend to invest in small multifamily properties following the BRRRR model of real estate investing. I will be bringing 100% of the cash to the deal to finance/purchase the property, funding the renovations, and cover holding/closing costs. I also have 95% more experience in owning and managing rental properties and knowledge of the financial system so I will be providing the majority of the input to this side of the business venture. I have successfully executed a couple of BRRR deals myself in the past but currently have limited bandwidth due to other life responsibilities which has made it difficult for me to scale in the past 12-18 months, hence the consideration of bringing on a partner to help forge ahead. My friend has his own contracting business (although not his full time work, he has a full-time job as well, at the same company as me) and will be completing the renovation work partially with his own labour on evenings and weekends and partially with hired labour/subs. His expectation is to be paid a reduced rate below market value for his time and his subcontractors' time in exchange for a percentage of equity and future cash flows of the property once the refinancing is complete. He will also assist with the ongoing management and maintenance of the properties once the project is complete. I'm having a difficult time determining what is a fair distribution of shares in the company that ultimately will own the renovated building once the work is complete between my friend and I (yes, I have already asked Chat GPT). I would love to get others' takes on what is a fair distribution of equity in the building, future net cash flows, and ownership stake in the company in this situation. Understandably the answer here likely varied depending on the project/property, but any general thoughts/feedback is appreciated! Thanks in advance!