The Importance of Honesty and Ethics in Private Money Lending
As a private money broker, I am in business to earn a living, but profit should never come at the expense of honesty and integrity. A core part of my mission is to remain open, honest, and ethical in all my dealings. Being client-centric means putting the interests of my clients first, even if it means walking away from a deal that could have been funded but wasn’t in their best interest.
Unfortunately, some unethical lenders take advantage of borrowers, funding deals with the hope that the borrower will fail to repay, allowing the lender to foreclose and profit from the property themselves. This approach undermines the trust that should exist in a lending relationship. These lenders essentially take the profits that rightfully belong to their clients—a practice that is not only unethical but destructive to the industry as a whole.
The reality is there are plenty of good deals in the market. It’s entirely possible to operate with integrity, provide real value, and still earn a strong income. When money clouds decisions, ethics are often the first casualty. This slippery slope leads to practices that harm clients, damage reputations, and erode the foundation of trust that’s essential in the real estate investment industry.
As brokers and lenders, we should celebrate the success of our clients. Their victories reflect well on us and reinforce the value we bring to the table. A good name is the most precious asset in business—one that cannot be bought or replaced once lost. The story of American Money Loan Service is a cautionary tale. Their unethical actions have tarnished their reputation, driving borrowers away and jeopardizing their future. It wouldn’t be surprising if they were forced to close their doors entirely.
I’ve also heard horror stories about lenders backing out of deals at the last minute, leaving clients with significant financial losses and lost opportunities. Such behavior is unacceptable and should be called out. Even brokers in a rush to make quick money sometimes partner with unethical lenders, further perpetuating these issues.
In real estate investment, we are all part of a larger team. Brokers, lenders, and investors must work together with mutual respect and a shared commitment to ethical practices. It’s our responsibility to protect each other from harm and uphold the values that build trust and success.
Unethical practices not only hurt individual clients but damage the reputation of our entire industry. By staying true to honesty and integrity, we can ensure that private money lending remains a powerful and reliable resource for real estate investors. My commitment is to always act with transparency, respect, and the highest ethical standards—because in the end, nothing is more valuable than a good name.
