Alternative Investment Opportunities: An Overview

​Traditional stocks and bonds have long been the go-to for investors looking for stable (or supposed-to-be-stable) channels through which to build their wealth. For accredited investors looking for near-term cash returns, high yields, and portfolio diversity, alternative investment opportunities can be an appealing choice.

While alternative investment opportunities can come with higher risk and less liquidity than do traditional investments, they also provide a number of strong advantages that may help accredited investors quickly build wealth. Opportunities such as those offered through Redhawk present a way for individuals to reach their investment goals quickly within a low to moderate risk environment. 

What are alternative investment opportunities?
As their name implies, alternative investment opportunities are investments other than stocks, bonds, cash, and other traditional investment channels. Thanks to their unique natures, they tend to perform differently from traditional stocks and bonds, and as a result, present a number of advantages for investors.

What are some examples of alternative investment opportunities?
There are many different types of alternative investment opportunities from which investors may choose. They range from liquid alternatives, such as mutual funds that act like hedge funds and other traditional investments; to real assets, such as rare coins or wine. In between are other types of alternative investment opportunities. What follows is a list of some of them:
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• Real Estate: This includes not only buying and selling properties but also participating in real estate trusts.
• Oil and Gas Investments: Any investment in oil and gas that goes beyond purchasing oil and gas stocks can be considered an alternative investment.
• Mineral Rights: The buying and leasing of mineral rights (the rights to the oil, gas, and other minerals under the surface of the ground) can be a lucrative and relatively low-risk alternative investment.
• Other Commodities: Other commodities can be considered alternative investments. Examples may include grain, precious metals, and agriculture.
• Private Equity: This can include direct investment in private companies.

Who can take advantage of alternative investment opportunities?
Not every qualified investor knows they can take advantage of alternative investment opportunities. A great number of individuals who could enjoy the advantages of these types of investments are not aware of their eligibility. They may believe that alternative investments are only for ultra-wealthy investors and require high minimum investment amounts.
 
These types of investment opportunities are not limited to the extremely rich. They are available to any accredited investor as well. Accredited investors are individuals who have earned $200,000 or more per year for the last two years, couples who have earned $300,000 or more for the last two years, or people have a net worth of $1,000,000 (excluding their primary residence). One can qualify as accredited by filling out the paperwork with a designated investment professional or a company such as Redhawk and obtain an accredited warranty. Alternative investment opportunities are accessible to a broad range of investors, some of whom may not even realize that these types of investments are well within their reach.
 
These types of investments may not require as large a minimum upfront investment as many people assume. For example, some of Redhawk's mineral funds projects require an initial commitment of only $25,000, but you can invest as much as makes sense for you.

What advantages do alternative investment opportunities offer investors?
Alternative investment opportunities offer a number of exciting advantages. Here are a few of them:
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• Portfolio Diversity: Diversity within a portfolio can help an investor and their assets weather volatility within their investments. Alternative investment opportunities make good candidates for adding diversity to a portfolio because they tend to perform differently from traditional stocks and bonds. For example, oil and gas investments often go up when the rest of the economy is experiencing a downturn. This type of performance can stabilize a portfolio and protect assets.
• High Yields: Yields from alternative investment opportunities tend to be higher than those obtainable through traditional investment channels. As an example, Redhawk's Mineral Funds produce an impressive ROI of 2.7 to 3.5 times the initial investment. These high yields can help investors to build wealth quickly.
• Tax Benefits: Certain tax benefits may be applicable to investors who take advantage of alternative investment opportunities. Consultation with tax professionals is a good step in determining your eligibility for these kinds of benefits.
• Lower Costs: The transaction costs of alternative investment opportunities tend to be lower than those for traditional investments because the turnover in these investment types is lower. As a result, investors can save money on expenses while earning greater returns for a solid, wealth-building ROI.

 
​How much risk is involved with alternative investment opportunities?
Sometimes investors shy away from alternative investment opportunities because of the mistaken belief that these investment channels are volatile and high risk. Oil and gas investments especially suffer from this misperception.
 
Many alternative investment opportunities, including oil and gas, have relatively low, or moderate risk factors. Redhawk's Mineral Funds carry a lower risk profile  because the mineral rights owner is not responsible for the performance of the well, does not need to pay capital expenses, and is not liable for accidents that happen during the operation of the well. In addition, they are paid an upfront lease bonus regardless of whether or not a productive well is ever drilled.
 
An experienced investment company, like Redhawk, can help you evaluate the risks of an alternative investment opportunity and provide you with accurate information regarding your risk and the volatility of the endeavor.
 
Here at Redhawk, we offer low to moderate risk alternative investments in oil and gas for accredited investors. Our investments build wealth, deliver near-term cash returns, and help to mitigate risk for our investors. Do not hesitate to reach out to learn more from us about the alternative investment opportunities we offer. 

​The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates.