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Yes, the IRS will let you exchange your real estate for Oil and Gas Royalties, if structured properly.
Oil and gas royalties are very different than speculating or "wildcatting" for oil. Here are the main differences:
Royalties receive revenues from the production of oil and gas from a well without paying the drilling or monthly operating expenses from the well.
Royalty investment allows investors to participate in a powerful industry while remaining protected from market fluctuation and operational factors of the business.
The risks associated with exploration, inactive wells, and unsuccessful drilling are eliminated because royalty investment is centered on proven oil & gas production numbers (past, present and projected). Investments and acquisitions are linked only to properties with existing equipment and adequately producing wells. Additionally, value is based on current production and estimates of proven reserves—not with the current price of oil & gas.
There is no speculation, no dry holes, and no costly equipment or possible damaging liability that is associated with the oil industry. Investing in private royalties gives access to properties with existing cash flow and documented stability and growth. These quality properties incur no monthly expense or liabilities related to additional development, making it easy to track their performance record and potential yield.
The result is attractive, risk-adjusted investment performance. Think oil is going down in price anytime soon? Go to the chart at the top right of this page and click on the year performance of oil prices. See the trend? Where will it be in 3 years?
The more you look at this investment, the more comfortable you'll feel with it. Call today for information.
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