EPISODE 227 - "Engagement Fees" vs "Fee for Services" vs "Report Fees"

In this episode, Minh sits down with Ian to discuss the typical fees that are possibly being charged for SDA investment advice. This can take the form of either a Fee to Engage, a Fee for Services or Report Fees. They go through in detail about their thoughts on such costs being charged to investors, and whether its fair value.Firstly, the guys talk about the 'Engagement Fees' concept floating around out there. This is where a company or consultant charges an upfront engagement fee before providing any advice and recommendations. This can vary quite significantly from a  amounts of $3,000 to $5,000, and even upwards to $70,000 or more.Minh & Ian discusses what is (or isn't) offered for such upfront fees, and what should be the tangible benefit to the investor. Too many SDA market players charge such fees, and offer nothing in return (rip off, one wonders???) They then talk about the Fee for Services offering which is a more understood concept in the market, being the fees charged on a monthly retainer,  or on an hourly rate, such as an accountant or lawyer would charge as a comparison.The third type of fees are those for reports to give the buyer more data to determine whether they wish to proceed down the track of an NDIS Property investment. This is know as 'Report Fees' and this is what we commonly do provide for clients who wish to get a report from out team.In summary, the point of this episode, is to notify our listeners to be vigilant of the fees being charged by "agents" (aka Fake Experts) - question everything! What is the service for which the payment is being made for, and what is the cooling off period, or refund policy. Don't be fooled, we say, and get everything in writing. We want investors to be mindful of what advice is being provided.----------------------------DIFFERENT TYPES OF PROFESSIONAL FEES"Fee for service" refers to a payment model where clients pay a set fee for each service or consultation provided by a professional, such as a lawyer, accountant, or financial advisor. This differs from other payment models, like hourly rates or retainer fees, where the cost may vary based on the time spent or ongoing relationship. An “Engagement Fee” is an upfront payment made by a client to secure the services of a professional advisor or consultant. It's typically a portion of the total fee for the services rendered and is often paid at the beginning of the engagement. This fee helps ensure the commitment of both parties to the project or consultation and may cover initial costs or preparations by the advisor. A “Retainer Fee” is a regular, recurring payment made by a client to retain the services of a professional, such as a lawyer, consultant, or freelancer, for a specific period. The client pays the retainer fee upfront to secure the availability of the professional's services as needed throughout the agreed-upon period. The professional then typically sets aside a certain amount of time or resources each month to attend to the client's needs, whether they require ongoing support, periodic consultations, or access to expertise on an as-needed basis.----------------------------LEAVE US A GOOGLE REVIEW!SDA RESEARCH REPORTShttps://ndis.property/reportsSDA MASTERCLASShttps://ndis.property/eventsSend us Fan MailNDIS PROPERTY AUSTRALIA:Our team conducts thorough research on Specialist Disability Accommodation (SDA) and provides appropriate technical advice through premium and strategy-based solutions. We also use complex feasibility calculation spreadsheets to help investors understand the expected annual income of an SDA dwelling, the timeline stages of construction of their property, as well as revealing the hidden costs. By staying up-to-date with the latest SDA data and pricing payments information, we help clients make better-informed decisions and achieve their investment goals.FOLLOW US:LinkedInInstagramFacebookCONTACT:Please feel free to call us on 1300 254 397 to talk to one of our friendly staff, otherwise,  just pop on over to our website to find out more.For any podcast related queries or suggestions, please contact our podcast team via [email protected]