About Direct Lenders and Direct Lending
A direct lender such as Gala Resources can make short term real estate loans from its own resources. This permits rapid closings.
Real estate investors and builders are advised to be sure the lender they are working with is a direct lender and is able to fund their project immediately.
Some hard money lenders are not direct lenders. They are brokers who do not directly fund the loans they make. This can introduce delay while the lender you are working with presents a proposed loan to their funding sources for review and approval.
If the lender you are working with is not a direct lender and where time is truly "of the essence" the delay might cause you to lose a deal or a project. Working with a direct lender also reduces uncertainty. Consider the worst-case possibility that the lender's funding source doesn't agree on the merits of your real estate loan and the lender returns to you with revised terms (or with a "no" decision) and asks you to wait while they explore other funding sources.
Those delays and
doubts defeat the purpose of a hard
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