Wolves Disguised as Advisors.

professional profile

September 13, 2025

by a professional from Harvard University - Harvard Business School in Atlanta, GA, USA

Advisors should be independent. But far too many advisors are not. They have Conflicts of Interest with their Buyer client's interest and it's goes unchecked. Here’s what I’m seeing: Kickback Lenders: Some Brokers insist you use their “preferred lender.” Translation: a lender who pays them for the referral. Instead of getting you the best financing, they pocket a fee and saddle you with bogus terms. Rubber‑Stamp QoE: Debt advisors sometimes steer clients toward cheap quality‑of‑earnings (QoE) providers who do little more than rubber‑stamp deals—why else would they be selected? Deals close, advisors collect fees, and buyers are left holding the bag. Double‑Dipping Brokers: Brokers are creating “streamlined” deal platforms promising to make life easier for Buyers. But they’re contractually obligated to the Sellers. Conflict. These Broker are getting paid by both sides. "Broker vetted deals" (Sure....) "Broker recommended & cheap QoE advisors" (Sure, they're the best!) When Brokers play both sides, Who wins? Not the Buyer! These aren’t isolated incidents; they’re systemic conflicts that hurt buyers. Refuse to play by these rigged rules. Know what independence looks like and demand it. What other conflicts do you see? Let’s name them in the comments.
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commentor profile
Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA
Certainly good points to raise ^redacted‌, and even I appreciate the occasional hyperbole in the post. Depending on the state, there are at least five possible (and sometimes state-mandated) types of agency. Buyers should know exactly what agency role any broker they are talking with is fulfilling (in alpha order): buyer's, designated dual agency, dual agency, seller's, and transaction agent. Each one, particularly if state-mandated, comes with prescribed duties, roles, and responsibilities to both parties. The broker should be disclosing their agency role up front. If a buyer is unclear, they should ask. Likewise, any potential referral from a lender should be disclosed upfront. We often receive a referral fee, but to my knowledge, it does not impact the rate or terms the borrower receives. When we refer a lender, it is a suggestion, not a requirement, and the buyer can and should talk with more than one lending source. At the same time, they should not automatically dismiss the lender recommended by the broker. These lenders have usually vetted the deal and understand it, and we have worked with that lender before and know they have the ability to get the ball over the finish line if they have done the prequal work.
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Reply by a professional
from Harvard University in Atlanta, GA, USA
^redacted‌ Hyperbole...not really. You & I live this every day. The pain of our clients is in our minds every day at work. I love Brokers and also speak truth about bad practices. Both can be true at the same time. Suggesting a lender is fine. Requiring that a Buyer use a "suggested lender" in order to see the deal or to get priority is a conflict of interest. Don't you agree?
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