Are all loans more expensive when using a broker?

Great question James, while direct lenders are often seen as the most straightforward option, brokers can sometimes secure more competitive pricing, particularly from institutional brokerages. However, these instances are not common.

Where brokers truly shine is in navigating complex or "rough-around-the-edges" deals. These are properties or situations that might not fit neatly into a direct lender's standard criteria, making it harder to find financing. A skilled broker can leverage their network and expertise to find solutions where others might not.

However, for a typical fix-and-flip investor, whose deals are often more conventional and less complex, using a broker may indeed add unnecessary costs. If your deals are straightforward and easily financed through direct lenders, the added layer of a broker's fee might not be justified.

In essence, the value a broker provides often depends on the complexity of the deal. For standard, clean transactions, going direct might be more cost-effective for a flipper. But for those unique or challenging situations, a broker can be an invaluable asset.