When it comes to hard money, speed and certainty are everything. But if you’re new to private lending—or even a seasoned investor—you’ve probably asked:

Should I work with a direct lender or go through a broker?

There’s no one-size-fits-all answer. Both paths can get you funded. But how you choose affects your timeline, fees, communication, and overall experience.

In this guide, we’ll walk you through the real pros and cons of the direct lender vs broker debate—so you can make smarter decisions when choosing a hard money lender. We’ll also show where Lending Bee fits in (hint: we’re a direct lender who plays fair with brokers too).

What’s the Difference Between a Broker and a Direct Lender?

✅ Direct Hard Money Lender

This is the source of the funds. A direct lender like uses its own capital—or manages a private fund—to make loans directly to borrowers. We at Lending Bee manage own funds and we:

  • Handle underwriting in-house
  • Issue our own terms
  • Work directly with you from start to finish

✅ Hard Money Broker

A broker doesn’t lend their own money. Instead, they act as a middleman who:

  • Collects your loan information
  • Shops your deal around to lenders
  • Takes a fee for connecting you with funding

Pros and Cons of Working with a Direct Lender

✅ Pros:

1. Faster Closings
Direct lenders control the capital and decisions. No waiting on third-party approvals.

2. Clear Communication
You talk to the underwriters and closers—no back-and-forth between layers.

3. Transparent Terms
You see the actual loan structure from the beginning. No surprise markups later.

4. Streamlined Process
From submission to funding, everything happens under one roof. This reduces delays, errors, and stress.

❌ Cons:

1. Limited Product Options
Some direct lenders only offer a narrow set of programs. If your deal doesn’t fit, you’ll need to look elsewhere.

2. You’ll Need to Do More Homework
If you’re new to hard money, it’s on you to compare lenders and vet reputations directly.

Pros and Cons of Using a Broker

✅ Pros:

1. More Options
Brokers often work with multiple lenders. They can help find the best match if your deal is unique.

2. Less Legwork (Sometimes)
A good broker knows which lender fits your property type, credit situation, or timeline—so you’re not guessing.

3. Negotiation Help
Some brokers can negotiate better terms or help package your deal to get it approved.

❌ Cons:

1. Higher Costs
Brokers add fees—sometimes disclosed, sometimes not. These can increase your APR or closing costs without adding value.

2. Slower Process
You’re working through a middle layer. That often means more email threads, longer response times, and delays when changes are needed.

3. Less Transparency
If the broker isn’t clear, you may not know which lender you’re dealing with—or what you’re really paying.

Why Many Investors Prefer Direct Lenders

As investors scale up, they often shift toward direct relationships with lenders. Why?

  • They want speed: Working directly cuts days off the process
  • They want control: No surprises at closing
  • They want clarity: Knowing who holds the pen matters when things get tight

In short: Direct lenders give serious investors more leverage, more trust, and fewer headaches.

Choosing a Hard Money Lender: What to Look For

Whether you’re going direct or using a broker, here are 5 things you should always evaluate:

1. Speed

Ask: How long do they typically take to close? At Lending Bee, we regularly fund in 5–7 days.

2. Transparency

Will they share all fees up front? Do they explain what you’re signing? Watch out for vague answers.

3. Flexibility

Do they lend on your property type? What’s their LTV cap? Can they work around title, credit, or timing issues?

4. Reputation

Check reviews. Talk to other investors. A good lender won’t mind being vetted.

5. Broker Protection

If you’re working with a broker, make sure the lender respects that relationship—and doesn’t go behind your back. At Lending Bee, we protect broker commissions 100%.

Where Lending Bee Fits In

We’re a California-based direct hard money lender. That means:

  • You’re talking to the decision-makers
  • We control the capital
  • Our underwriting happens in-house
  • Our timelines are real—not padded with third-party delays

We also partner with brokers—and treat them right. Whether you’re a borrower or a broker, we believe in clear terms, fast communication, and zero games.

It’s Not Either-Or—It’s About Trust

At the end of the day, choosing a hard money lender is about more than structure. It’s about trust.

You can find great brokers and great direct lenders. And you can find bad ones too. What matters is working with people who communicate clearly, move quickly, and protect your interests.

Lending Bee is proud to be a trusted lender for California investors—and a partner brokers can count on.

Want a Quote?
We’ll review your deal and send real terms—no runaround, no delay. Reach out.