Watch out for these investment fees ‼️
In this short YouTube discussion, Speaker A and Bob Fraser expose the dangers of high upfront sales fees—often called "loads"—in private investment deals, particularly in the oil and gas sector. They explain that a 10% load means that only 90% of an investor’s capital is actually deployed, with the remainder paid immediately to brokers or salespeople regardless of asset performance. Fraser characterizes these fees as commissions that dramatically increase risk, labeling 10% fees as a major red flag. He argues that such steep fees are used to entice brokers to sell questionable or hard‑to‑raise deals, suggesting that higher fees often signal shadier or lower‑quality investments. The conversation warns investors to scrutinize fee structures, favor lower commissions (1‑2%), and view large upfront fees as warning signs of misaligned incentives and potentially poor deal quality.
