Global Star Capital - "Endless Funding Possibilities" - Rich Cocovich, CEO/Founder
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12/11/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O
"Success Again---Never Forget Where You Came From"
I have decided to post this Blog today based on the recent travelings I have completed consulting new clients. The message is "Never Forget Where You Came From".
The "Success Again" portion of the title above is there for a reason. I have successfully administered services for two additional new clients. One is located in Cambodia and the other in North Carolina, USA. The difference in cultures is obvious, however the real difference is in the complete project specific comparisons and the principals involved.
First the Cambodia project. It is a large real estate deal with many complex sectors and individuals involved, not to mention a Government that can change at the drop of a hat. The CEO and major principal of this project is a pleasurable person, however he is deeply devoted to "delegating" and living a "high life". His only concern is making money and supporting his lifestyle. He realizes my capabilities and how I shoot from the hip, so it will be no shock for him to read this. I took the project on because I knew that I could propel it into the right hands to close. This project and the CEO chased many avenues over the course of a year to which all failed or disappeared. After a long process of explanation, he met with me in person and the rest fell into place.
Second, the North Carolina project. It is a simple "Mom and Pop" store situation that wanted to expand to more locations. After meeting in person, I was hired on as a full consultant to get their paperwork up to speed and then find an investor. I spent four days in their small town in Eastern North Carolina USA. I lived and breathed their project. I had a conversation with the "Mom and Pop" principal about the large Cambodian project and the difficult time frames working with the CEO because of his practices etc. To my astonishment, the "Mom and Pop" principal said, "He forgot where he came from".
Correct. "He forgot where he came from". This hit me like a ton of bricks. I thought about the small town in Pennsylvania USA where I was raised. I thought about the actor Jimmy Stewart who was from my town and donated major money for our well being. I thought about shaking Jimmy's hand when I was 11 and wanting to be just like him. I thought about how the community where I lived relied on each other and hired one another professionally to gain success in building their dreams. I thought about all of the people who helped me achieve my own success from this small home town and smiled knowing that I have not forgotten my roots.
I watched the "Mom and Pop" principal shake everyone's hand and say hello as we traveled in his area. He obviously knows where he came from and how to make it work for him.
As most of you who know me realize, I have been extremely fortunate in my profession to meet people from all around the world based on my hard work. To those who are high powered CEO's or have a large project in the multi-millions of dollars, I cannot stress that the small projects are just as important as yours because of one aspect---success---it is critical to everyone's survival. "Never forgetting where you came from" is the base of the success model we all need.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
11/25/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O
"Can You or Your 'Broker' Really Acquire Funding or An Equity Partner?"
It has been nearly a month since my last blog post. The reason why is simple. I have been experiencing the most productive stretch in my entire career that has been in place since 1991. When banks fail or cannot lend, private money is paramount.
There is plenty of money available in the private sector. From new trust funds that have $3.8 Billion to lend, to existing sources that have stepped up their lending sums of $300 Million per month, the whole way to Private Individuals who will lend at ridiculously low interest rates---sometimes 1.625% interest. Again, read carefully, the money is there for your project and I work with these avenues daily.
Now, the question is: Can you or your "broker" really acquire funding or an equity partner? More than likely, the answer is DEFINITELY NOT. The reason is because you or your "broker" do not have any relationships in place with the "powers that be" who literally control this money. In addition, your documentation and approach are not up to speed which will get you nowhere. On top of the listed above, you may have your hand out for free services. All of these factors will deter you from finding true funding and speaking with real sources and decision makers. Trust me, I have seen it all in my career.
Ask yourself these questions: 1. Is the business plan for your project in the acceptable style for a decision maker? 2. Do you really know what "acceptable style" the decision makers want in terms of documentation? 3. Do you have direct relationships with decision makers? 4. Do you understand that the only projects that get accepted by decision makers who control the money are actually presented by high end professionals? 5. Do you understand that real due diligence is performed ONLY after you speak directly to the source and in order to get to that phase, you must have the decision makers accept your project? 6. Do you understand that 99% of the time your attorney or staff legal adviser will deter you from real funding? 7. Do you understand that there are over 15 pieces of true documentation that need completed as requirements for decision makers on your project? 8. Do you know what those documents are? I could go on and on and on.
Global Star Capital was built on relationships with the entities that can actually accomplish your goal. Lately, there have been projects resurfacing from potential clients. Their projects are being submitted into our system or through truly trained brokers despite already having the opportunity to work with me personally at some point in the past. I just shake my head when I see these projects resurface. So much time and energy is wasted because people are either cheap and have their hand out for free services, or they just do not comprehend that the true way to actually accomplish the final goal takes professionalism and proper representation. Did you ever order a Big Mac at McDonald's and tell the cashier that you were going to eat it without paying? If you have tried that example---did it work?
I urge you to be a part of our process if you desire true results.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
10/27/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O
"The Decline and Fall of Venture Capital and Hedge Funds"
I know the title of today's blog seems like a Roman History book that a professor would require as a reading assignment. However it was the best title that I could think of in explaining what is happening out there in the "world of investment money".
As I have said to many of you on the telephone in the past, the VC and Hedge fund plays would hit a stand still or dry up completely. One of the lead stories today as I type this around the web and on some financial television shows is the decline in VC and Hedge fund investing to a point of almost non-existence.
One of my best sources was a Fund located near Tarpon Springs, Florida. They were a great avenue for many different types of deals. Then, last November---poof! They disappeared and closed their doors. The manager called me personally to express his gratitude for the many solvent projects I had presented to his fund. He then proceeded to explain that they saw a trend coming in the "next year" where there would be trouble in the USA markets which would have ramifications all over the world (credit, mortgages etc.). Then at the end of the call........he asked me for a job!
Here is some more good information: I am also fortunate in being able to eat lunch with a retired executive of a multi-billion dollar corporation when I am not traveling. I eat with him daily on Hilton Head Island, SC. He is 72 years old and I honestly think he knows everything that can be imagined, he is that sharp. His son is one of the top level executives of a large financial firm in New York City (I can't name the firm---the initials are M.S. though). I get my valuable information from these lunches on the state of Hedge Funds and their problems that are almost impossible to overcome. From trying to short sell stocks for repaying their investors that want out to the complete mismanagement of funds etc., it is an awful seen.
The shoot from the hip truth is that the VC's and Hedge Funds that are still alive will not look at your project unless presented properly in the first place. If you think just shopping your business plan etc. around through novice entities is going to work, you are mistaken to the point of utter possible embarrassment which will taint your entire project. In addition, the private investors that had money in the funds or backing the VC's are now out on their own looking for solvent and safe investments through professionals. Shopping your project without properly planning and utilizing professional services would be like letting a chiropractor perform brain surgery on you.
With all the above said, "The Decline and Fall of Venture Capital and Hedge Funds" has happened. Furthermore, when taking into context and applying the VC or Fund management philosophies plus billionaire's demand to knowing the solvency of individual projects, not even Caesar could resurrect the money through these avenues at this point to inject.
As I always state though, the money IS out there through the right avenues. You need a constructive plan and the proper professional to work hard for you.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
10/22/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O
"The Old 'Gate Keeper' Scam is Back"
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
10/17/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O
"The Old 'Due Diligence' Scam is Back"
I wanted to alert you of a good old funding scam that has resurfaced here in the USA over the last 3 months. It's the "Due Diligence Scam" that was created 10 years ago by companies such as Remington---I can name them because it is highly documented in several publications. I have had at least 10 inquiries in the last two weeks from people and projects who have either fallen victim to this scam or almost did (I saved them).
10/15/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O.
"The Project Shopping Blues"
Have you been searching many months or years for funding? The answer more than likely is "yes". Did you ever ask yourself this question: "Why is it so hard to find real people and real funding?". The answer is simple: the professional you hire to tell your story and represent your project correctly is the key to your success.
Let me lay the facts out on the table clearly:
1. There are many scam artists and empty suits out there who will feast on your wallet. Therefore, you need to understand what services set professionals like myself apart from the novice representatives and scam-artists. As an example: when I take a client on and I am engaged, the client understands that I work with and for them full circle under the terms of the agreement. I bring their documents up to speed, I coach them on how to speak to underwriters/lenders who I bring to the table, I coordinate all facets of finding true funding sources, I live and breathe their project as if it was MY OWN etc. The bottom-line is that trust, credibility and professionalism set me apart from almost everyone in this industry. I base that comment on my 17 years of experience. It is not a cocky statement, it is one of confidence. I am not in the business to charge someone a fee just to introduce them to an underwriter or "a source". I am not a "no man" like most attorneys out there. I am a "yes man". You should WANT a professional to have a passion for your project, not just a novice "broker" or person sitting in a cubical that answers to a disgruntled supervisor. I am an entrepreneur like you who has reach success by living and breathing a dream. Why sell yourself short? Your project is your dream and passion, so quit shopping it to everyone who will do nothing for you while ruining your project's reputation.
2. 99% of the people you shop your project too have no funding sources. They will try and bounce your project off of other brokers and novice people. You will waste a ton of time unless you have a true professional. To combat the scam-artist and novice broker avenues, I opened a training course for serious and dedicated individuals who will represent clients the right way as true intermediaries. I give them access to our real funding avenues. To make sure you have a professional speaking with you, simply ask them what their plan of attack would be for your project. I guarantee the answer will be shallow unless you are speaking to someone I have trained. Again, not cocky, just confident with 17 years under my belt.
3. Do not get trapped into "believing the last person you speak with" in terms of dealing with a representative who claims they can get your project funded. My explanation of services has not changed since I opened my doors. If you have had the chance to speak with me and subsequently receive an engagement offer, you know how passionate I am. If you have not acted on the engagement offer, I can bet you are spinning your wheels trying to find somebody equivalent to my services or an easy way out--something for free. I would seriously re-think the engagement offer as time is ticking for you in finding the funding you desperately need. The only true shot you have is a professional approach. It is highly comical to me when someone says that they have spent $10K on their business plan, but will not engage me for warranted services. Without funding, your business plan is toilet paper---never forget that. In addition, never forget that when your plan was put together, you had no idea what the underwriters and people you need to impress actually want and need inside that precious plan. Again, just another example of why you need a professional and why I am here for you.
4. Finally, I have seen it all in the last 17 years. The basic concept of any project is the same---to make a profit. The brick walls you have come across in finding funding are there because you have not had a true professional represent you, your documents are not up to speed along with everything else I wrote in my last blog (see below). The most thrill I get in my career is actually having a former successful client of mine, who I was instrumental in professionally helping, actually FUND a new client as the lender. That is success for me in my world.
To sum up the Project Shopping Blues.........make it easy and have the proper professional representation who will live and breathe your project equally as you do.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
10/07/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O.
"The Top 10 Reasons Funding is NOT Obtained for Projects and Principals"
As the credit and banking crisis in the United States has now touched every corner of the world, private funding is back to being "King". Therefore, Global Star Capital has seen it's highest demand for services in 10 years.
As you can tell from our website (www.globalstarcapital.com), we are extremely serious and not a fly by night operation. I am personally passionate in helping my clients achieve the success level of actually receiving funding.
In order to help the entire cause within this industry, I have made the "The Top 10 Reasons Funding is NOT Obtained for Projects and Principals" list. Rest assured, that if you do not have a professional intermediary such as myself working many hard hours for you, your project will not be funded. That is 17+ years of experience speaking to you. Below is the list:
"The Top 10 Reasons Funding is NOT Obtained for Projects and Principals"
10. Your Project is not solvent or capable of making money. If I would tell you how many projects we see where the principal or team think that their concept is the best idea since sliced bread, yet have no idea how they would make an investor money or be able to pay back a lender, shock waves would hit you. Literally hundreds a year. Rule #1: Make sure your idea or project can actually work and make everyone money. This starts with proper planning, market research etc.
9. Your documentation is not well prepared. Assuming you have a great idea that can actually make money for all parties involved, your formal documentation (business plan, pro-forma etc.) needs to be perfect. Global Star Capital is in such high demand for our services because we present perfect, solvent projects to the decision making sources and back them up with our reputation and dedication. Rule #2: Have great looking and highly informative documentation. Please remove the idea form your head that an executive summary is all that you will need. Part of the engagement process of Global Star Capital is arranging your documentation properly.
8. You have broadcasted your Project around the internet too much. The worst thing you can do is broadcast your project around the internet to whoever will see it. Hear me loud and clear---there are only a handful of true lending sources outside of traditional banks (which have dried up) that will entertain your project. The underwriters at these sources do not want to see the same project brought to them by multiple people---that is a big red flag in their minds. These underwriters rely on a high end professional to entertain them with the project. Rule #3: Do not broadcast or "shotgun" your project around the internet. A high end professional with services like Global Star Capital's is your only real chance. I am not speaking about any broker you will sign a non-exclusive agreement with either.
7. You have signed non-exclusive agreements with many "brokers". There are only a small percentage of "brokers" or intermediaries that can get a project closed. Never forget that. In fact, we formed a training program at Global Star Capital for serious and non-scam artist brokers to properly vett a project and submit to our avenues. I am speaking to you point blank---the funding sources in the private funding world rely on underwriters from professional firms to find them projects. Unless you have a professional intermediary such as myself, you will never be able to have your project's "story" be told right to those underwriters. Rule #4: Do not sign multiple non-exclusive broker agreements, it will hurt your chances of success.
6. You are paying an attorney for advice on who to hire for professional intermediary services. "My attorney tells me never to pay fees". I hear that every day. My questions are simple in return: "How much money are you paying your attorney to give that advice?" "How many projects has your attorney funded on their own?" and, "Why is your attorney not the instrumental source in finding your funding?". I can tell you point blank, I am a paid professional on the equivalent scale of a high end corporate attorney or CPA. I get results, therefore I am paid accordingly. I do not spend my own money to be reimbursed. Rule #5: Never let an attorney stand in your way of working with other warranted professionals.
5. You are cheap and have your hand out for everything that is "free". I literally have had potential clients send their business plans via a non-overnight service just to "save money". I have also had many potential clients use the term "Angel investor" as they believe "Angels" exist and have no closing costs. In addition, I have had many potential clients say that they will only pay fees after the loan has closed and they want the fees embedded in their loan. Rule #6: If you are cheap, have no collateral or money and believe that everything should be handed to you for free, quit now. You will never be funded if you are cheap and have those philosophies. "Angels" do not exist in the funding world. There are literally fees for every step with a lender etc. I make it clear to my clients that once we are engaged, we fight for you and represent you like the professional you need to lessen fees dramatically.
4. You refuse to provide the lender with additional documentation when requested. I have had clients who have been 10 days away from a closing who refuse to release requested documentation to the lender such as tax information (as an example) despite being coached properly and perfectly by me personally. Hear me loud and clear. If a lender wants to know the color of your underwear and they are willing to give you a rate, term and condition suitable to your needs---plus close the deal---you need to follow through. In today's market, there are hundreds of projects that can be entertained by the lenders. One big red flag is not supplying requested documentation. Rule #7: In order to close and receive funding, please know that the professionals working for you such as the underwriters and myself personally must provide the lender (he who has the money) with all of the requested documentation. All requests are 100% legitimate and realistic---just do it.
3. You have too many partners or principals on your team. A majority of rejections to projects I give result from too many people on the team looking for funding. On one call recently for a project in Charleston, SC there were 9 partners on the phone with me. Within 5 minutes I had them disagreeing and fighting over their own idea. In addition, I have had potential clients with a team of "advisers" on calls. These are usually attorneys or "brokers". I can assure you that the only people who should make decisions and speak to the professionals in the lending avenues are the head principals. Everyone else will screw up the project royalty and paste a black eye on your project. Rule #8: Make sure there is one deciding contact person on your project. Make sure that this one person has the ability to answer the major questions that will be asked on the project. Basically, your front man or woman should do most of the talking and dealing.
2. You cannot communicate in a timely fashion. I have a client right now that literally takes two days to return my call or write back to me. He also takes several days to gather information for the underwriters. He has put himself in a situation whereas we do not know if he seriously believes in his own project. I cannot stress the importance of communication. When lending avenues call or write, take the time to respond. After all, your project is what needs funded for your dream to become a reality. Rule #9: Communication is the key to success.
1. You are a "know it all" who's disposition irritates even the mildest mannered people. What irks me and all of the underwriters in this industry the most are people who try and tell us how to run our companies or business because they "know it all". Basically, "know it all" types really do not know anything when it gets right down to my profession. Whether they try and express how successful they have been or how I am to be compensated to where I should shop their project etc., nothing kills a project more than a "know it all". A "know it all" could also be in the form of an attorney giving you that overpriced paid advice. You must comprehend that if you actually knew how to acquire proper funding for your project, my professional services would not be needed. It is very comical to see projects come back around to my desk 6 months or more after I declined them because somebody was a "know it all". There is a project in Wyoming dealing with Oil Shale that has been floating around for 24 months. The principal is a "know it all". I achieve much enjoyment for myself by sending him e-mails alerting that a broker has tried to rekindle his project and has dumped it on my desk again. This man tried to tell me how to run my corporation on several occasions---he deserves it. Rule #10: You do not "know it all", so be prepared to follow the proven steps of the protocol.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
9/29/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O.
"Know-It-All Principals and Funding Seekers"
I felt it necessary to write a quick blog entry on the topic of "Know-It-All" funding seekers in this industry. I get a real kick out of listening to people try and tell me how to do my profession and run my company. Even better, I laugh when reading their demanding e-mails. Being the professional that I am with a crystal clear track record since 1991, I want to see people succeed. That is how I make a comfortable living while feeling good inside.
Here are examples of the "Know-It-All" scenarios I have had since my last blog entry 20 days ago.
There is a $150 Million project in Utah, USA. They have been seeking funding for over a year. The project came across my desk 3 times in the past year from several brokers. The brokers could never manage to line up the principals on a phone call at the same time. Finally, an independent broker succeeded to establish contact with all parties resulting in a conference call with me. I had already lined up a willing lender from New York City prior to the call.
I had a nice first call with the Utah crew. It seemed we were on the same page. I requested additional documentation which is standard. They agreed on the phone and thanked me many times. Then, two days later I received an e-mail stating that "until the funding source speaks with them personally, they will not release any of the documents requested". Huh? My company wasn't engaged yet, the source wanted to see more info to make a serious decision and they wanted to speak directly with the source to more than likely circumvent me? Sorry, that's not going to happen in the real world and better yet there is not a snowball's chance in hell it with happen in MY world.
So, to recap---because the funding source wanted to see just a site plan and a market study before speaking with them directly, I asked them on the first call.
However, since they "know-it-all", no documents were furnished and their "demands" were made. Instead of supplying the documentation and actually moving forward toward obtaining the funding that has eluded them for over a year, they tried to stiff arm everyone as if their project is the greatest thing since sliced bread. In the meantime they are $80 Million in debt with private investments and ready to go completely under. Oh well, their loss---plenty of other projects is my attitude, especially in today's market. Nobody is really lending. However, when you are in my position with actual lenders that have money who want solvent projects, times are good.
Next, we have the case of a resource exploration project in the Northeast USA. These "know-it-all" people will only furnish a 2 page executive summary. Yet, they want $40 Million! They refuse to send in more documentation until I align them with the source. Idiots to be honest. If I sent just an executive summary into a source and demanded a phone call, that would be the last time the source would deal with me. They disappeared when I asked them for a personal financial statement. I guess some people think that a lender will just give them $40 Million without worrying about anything at all. Well maybe those people exist---oh yes, they do.....Fannie Mae and Freddie Mac.
Contact Global Star Capital (www.globalstarcapital.com) if your are looking for funding on solvent projects and know how to follow directions from a professional who will help achieve your goal.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
9/9/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O.
"Novice Broker Syndrome"
Because of my hard work since 1991 plus the building of an educated intermediary/broker base through our renown training program
(see http://www.globalstarcapital.com/Intermediary_or_Brokers.html), I am extremely fortunate when it comes to seeing solvent and well prepared projects that make it to my desk for funding. However, there is not a day that passes where an incredible project is represented by a novice and unprepared intermediary or broker. Thus, I have coined the phrase, "Novice Broker Syndrome".
"Novice Broker Syndrome" is lethal and will kill a deal faster than a "Death and Taxes" attorney. What amazes me the most is how a highly educated client with years of experience in the type of project pieced together will let a novice entity represent them in finding funding.
Unfortunately, anyone can claim to be a "broker". Unless a "broker" is selling securities, there are no licenses and regulations. So, immediately, the principal on a project is exposed to a hoard of novice entities or unethical people etc.
Here are some secrets based on 17 years of experience.
1. Lenders or bona-fide facilitators for lenders do not like a daisy chain of brokers on the project. Trust me. Trust me twice.
2. Lenders or bona-fide facilitators for lenders will not pay brokers even remotely close to what is agreed upon in any preceding "broker agreements". So, when a novice broker says that they want anything more than 2% or 3% on a project, it is a big red flag.
3. Unless a broker is trained properly, I can assure you that the project details are not vetted properly. If your project is being presented in a novice way, you are going to be in a heap of trouble---whether it is additional fees, piggy backing of middle men on your file and/or lengthy due diligence time frames and/or fees.
4. Does your broker know your business? Can they answer basic questions on your project. I literally had a broker pushing a $200M land deal in Utah on me and he could not identify the surrounding areas of where the project is located.
5. If you want your project funded, you need a true and professional approach by a company, not an individual. Global Star Capital has been successful because of the team that is created for you. We get results and represent our clients professionally. We also train brokers to be a part of our system. Therefore, a broker will know exactly why your project can have a great chance of being funded and have an avenue that accomplishes that goal.
Whether you are Republican or Democrat, support Obama or McCain, love or hate President Bush, the American Dollar will make it's way back. Your project, no matter where it is located in the world, will be affected by the American Dollar. Having a novice broker or representative could be the deciding factor if your project is accepted or passed up by the true lending sources in today's market. Do not deter yourself or your project with Novice people on your team. Contact Global Star Capital www.globalstarcapital.com.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
9/8/08 Global Star Capital Blog posted by Rich Cocovich, C.E.O.
Defining "Upfront Fees"
I want to briefly cover the topic and definition of "Upfront Fees" in the commercial funding arena. If you have a project that is serious and you are solvent (worthwhile of being funded), then is a must read. I felt it necessary to write this blog due to the multitude of attention people have been giving to fees in general when trying to find a funding source during 2008.
Before you read below, I want to express that I have been a successful entrepreneur since 1991. I have worked with many individuals, companies and private groups/entities in almost every aspect of business with clients in over 100 countries collectively within my companies. I have expressed this only to lay the ground work of credibility.
Let me clearly explain that an "Upfront Fee" means exactly what the term suggests. "Upfront Fee" means money is paid before the first conversation on a project or any work done on a project such as the reviewing of documents etc. If we use an example of my company Global Star Capital and our process (found at the OUR PROCESS section of our website www.globalstarcapital.com): "Upfront Fee" we would literally mean that we would charge you a fee before receiving your first documentation e-mail, reviewing the contents and speaking with you. Meaning, "upfront" dollars would be flowing into my company before we knew what your project entailed, who you were and if we could do anything for you. Of course, we do not (and would not) charge these types of fees. If you run into a company or person that does truly charge the exact definition of an "Upfront Fee", do not do business with them.
However, be sure to note that all reputable businesses that can actually accomplish something positive for you have a fee somewhere in their process. If you cannot comprehend this fact or are getting advice from a non-funding entity (such as a paid consultant or attorney) that advises you otherwise, you will have a very long road to finding the funding that you desperately need.
I consider myself an educated and hard working man who built his entire success from scratch since 1991. I literally cringe when I hear someone say to me, "You don't charge upfront fees do you?". It shows shallowness in my mind from the potential client's camp when I hear that flowing from their mouth. Think about the situation. A project Principal has me on the phone and I have already spent hours reviewing their entire file. I have made the time to arrange a conference call based on the material I have reviewed which includes specifics that the funding sources require---then I hear, "You don't charge upfront fees do you?". I want to say, "Of course we do not charge upfront fees you freakin' knucklehead or else you wouldn't be speaking to me". However I am very nice and explain the process in full---usually multiple times.
The reason the phrase "Upfront Fees" exists is because of the unethical scam artists who exist and charge fees for absolutely no reason. These people are not funding sources nor can they find a true funding source. Or, they string a client out with whatever due diligence they are performing and then disappear. In addition, novice "brokers" etc. hear from clients that they refuse to pay any "upfront fees". What is really meant by the client is that they will not pay fees until closing because of two reasons: 1. 99% of the time, the client does not have any money to pay fees and are not qualified for funding in the first place...2. Clients usually think people work for free to obtain what they want while having their hand out.
If you are looking for capital to fund your project, you need to understand that there are fees involved. If you buy a boat, a house, a car an I-phone, whatever, there are fees involved. All funding sources have some type of fee---application, due diligence etc. I have worked painstakingly since 1991 in building Global Star Capital to it's high success level by explaining everything thoroughly and transparently to our clients while completely minimizing the fees involved. Our clients trust us and see that we help them immensely.
In addition to the stated above, if you have a novice broker, you are probably being led down the wrong path. Unethical people feast on novice individuals, especially untrained brokers. Please contact my company if you want honesty, integrity, transparency and experience. We also have a broker training program that educates individuals correctly when dealing in the world of Private Funding. You can read more in the INTERMEDIARY/BROKER Section of our web site www.globalstarcapital.com.
You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (www.globalstarcapital.com).
