Upfront Due Diligence Fees Required…

When presenting professional services, articulating need for a retainer and other upfront due diligence fees, revisiting one’s organizational core values is necessary. For instance:

INTEGRITY: An overarching core value is in the philosophy of: “Placing our Principal, his organization and commercial project in the strongest financial position”. This philosophy is predicated on shared respect, resolve, resources and encompasses a collective decision-making process.

EXPERTISE: A specialized network of contacts include: lenders, advisory firms, consultants, law firms, title agencies and other investor underwriting groups. These having specialized knowledge and unique relationships are included. An ability to find, reference and recommend strategically is a premium skill set. Still, because of potential return on investment (ROI), mitigation of unacceptable risk (instead the acceptable), with an understanding of “burden rate” or the time value of money; due to the worth of leveraged networks, Principals engage our services.

MUTUAL TRUST: Project analysis routinely requires access, review and controlled distribution of personal identifiable information (PII), financial records, bank statements and intellectual property; as in proprietary or confidential business plans, proforma etc. Documents originating from Principals or other third-party entities need be prompt and in “good faith”. This good faith includes a belief documents are true and correct representations of due diligence. Still, Principals should have reasonable expectation(s) of privileged conversation, information and document security.

DEVELOPMENT AND MARKETING: LUCEV Finance & Investment Group is a boutique commercial mortgage brokerage and consulting firm. Commercial funding demands range from difficult to more difficult. Because of challenging lending dynamics, to encourage a favorable lending decision; with an understanding of what certain specialty lenders need see, read and hear, LUCEV Finance is often tasked to re-develop business plans, executive summaries, proforma; ease third part interaction(s), negotiate terms and “sell merits” of a funding ask to an interested investor, financier or bank.

Invariably, to initially assess a project, no upfront retainer or fee required. Yet, if Principals decide to engage brokered services, there need be expectation of a non-circumvention contract, origination fee agreement(s) and a non-refundable processing fee. Because of business analysis, labor, administrative expenses and other ancillary costs; due diligence associated with prompt project funding, a non-refundable processing fee addresses necessary expenditure.

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