Owning mineral rights can be quite lucrative. By leasing the rights to the hydrocarbons underneath the surface of the earth to operators wanting to drill wells, you can enjoy significant earnings, without the risk associated with having a working interest in an oil or natural gas well.
The average landowner typically lacks the knowledge and experience to turn their real estate into lucrative mineral rights leases. The chances that you own a large amount of acreage in a desirable area (such as the STACK or SCOOP Plays) are very slim. Yet, investments in mineral rights can be a tempting endeavor for investors looking to create cash flow and build wealth without all the financial risks and commitments that come with working interest projects. That is where mineral funds, like Redhawk's Minerals Fund II, come into play. By allowing multiple investors to participate in the project, acquiring and managing large amounts of mineral rights can lead to significant profits, for all involved. Here is how one can profit from investments in minerals funds.
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Oil and gas investments are often associated in investors' minds almost entirely with wealth, and not just with creating it. Investors often believe that a significant amount of wealth is required just to gain entrance into these fields.
In particular, mineral rights investments, which involve purchasing the rights to the minerals below the surface of the earth, and then leasing those rights to companies who wish to obtain those minerals, is often thought to be reserved for investors with high levels of wealth and with many millions of dollars in assets. However, if you are interested in investing in minerals (and there are many good reasons to consider this course of action) but feel that doing so is out of your reach, you may want to think again. A new opportunity through Redhawk is making mineral rights investments available to accredited investors who are not super rich. Here is how. Investing in minerals through Redhawk is available to accredited investors. At Redhawk, our Minerals Fund II project is open to any accredited investor. This means that anyone who meets Regulation D requirements for income or assets can participate in our minerals fund project. These requirements are fairly low, allowing investors who do not have many millions of dollars to spend to still enjoy the wealth generating advantages of investing in minerals. Instead of requiring huge assets, Regulation D requirements require that individuals have a certain level of income ($200,000 for an individual investor or $300,000 if investing as a couple) over the course of two years or possess a net worth (excluding private residence equity) greater than $1,000,000. These requirements, and Redhawk's ability to offer investment opportunities to individuals who meet them, open the door to investing in minerals to people who may never have considered themselves wealthy enough to pursue oil and gas investments. Determining whether or not you meet these requirements is accomplished by means of a simple accreditation process. Thanks to the fact that our mineral rights project is available to investors who have been approved through this process, even individuals who are not super wealthy have the chance to invest in minerals. If you think you may meet the requirements for accreditation, do not hesitate to reach out to Redhawk. With many years of experience in the oil and energy field, we can guide you through the accreditation process and help you become part of our new and exciting Minerals Fund II project. Investing in minerals through Redhawk only requires a small investment. Many mineral rights investment opportunities require a starting investment of at least $500,000. For investors who are not extremely wealthy, this level of commitment can be out of reach, limiting their access to these projects and leaving mineral rights investments only in the hands of those who have significant capital. However, mineral rights investments through Redhawk require a much smaller minimum investment, making them far more accessible to individuals who are not super rich but who want to enjoy access to the low risk environment, potential wealth creation, and other advantages these opportunities offer. For example, at Redhawk, a full investment unit in our new Minerals Fund II project is only $50,000, a tenth that of many similar projects. In addition, for a limited time, we are also offering a quarter-unit investment minimum of $12,500. These minimums mean that accredited investors have the opportunity to participate in these projects. Investing in minerals with Redhawk does not require technical expertise. The world of oil and gas investments can seem overwhelming to inexperienced or new investors. Grasping the lingo, understanding the risks, figuring out the right time to invest, finding the right opportunities, and so forth can feel like it requires learning a whole new language and navigating a confusing maze of information. For many investors, the amount of technical expertise required to understand and profitably engage in oil and gas investments can make them feel out of reach. However, investing in minerals with Redhawk does not require technical expertise, complicated calculations or understanding lots of data. Instead, investing in minerals can be a wise choice for non technical investors looking for an opportunity that is straightforward, profitable, and easily accessed. In fact, if you want to learn more about mineral rights investments, here are some of the most important facts you need to know. Investing in minerals is not out of reach for most accredited investors. Instead, it can be an accessible, low-cost, and easy to understand method of entering the world of oil and gas investments. Redhawk's new Minerals Fund II project is open to accredited investors who may not have unlimited capital to spend. Low minimum investments are available, including a quarter-unit investment minimum available for a limited time. With a minimal amount of technical expertise required, the project offers accredited investors an exciting opportunity to enter the world of oil and gas investments. It can allow you to enjoy access to a project that has a similar potential for success as our Minerals Fund I project, making it a good choice for any investor looking for a way to build their wealth with oil and gas. If you have any questions about the new project, or wish to become a part of it, do not hesitate to reach out to us. We have many hard-earned years' of experience in oil and gas investments and a strong track record of success. That success includes our Redhawk Minerals Fund I project, which is now exceeding expectations with 50 wells already producing from minerals the fund owns and pre drilling permit activity on 62 units where the partnership owns minerals. That is what you call “traction” after only a little over a year from its closing. We have the ability to help you build wealth through mineral investments, as well as the ability to make these investments accessible. Mineral rights with Redhawk are not out of reach. 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. Large-scale mineral rights investments — and their often comfortable returns — are typically reserved for "big players" in oil and gas projects. Now, with Redhawk Minerals Fund II, LP opening to investments of as little as $12,500 to accredited investors, for a limited time, you may be considering joining our waitlist of over 500 people. Like them, you probably also have a few questions about the process of investing with Redhawk. Allow me to address those for you here. What Happens After I Decide to Look? After indicating interest in the Redhawk Minerals Fund II, we will provide prospective oil and gas mineral rights investors with three documents. Private Placement Memorandum (PPM) This extensive document contains all the applicable definitions, details and technical information involved with the fund. It discloses virtually everything an investor needs to know to make a responsible investment decision. Executive Summary This shorter, more digestible document provides a high-level overview of the company, its history and its partners. It also provides the most pertinent information regarding the fund itself, as well as information about mineral rights investment in general and return potential. Subscription Documents As with any investment, signatures are critical. The subscription documents allow potential investors to indicate their desired level of investment in units/dollar amount and sign on the dotted line, as it were. Investment is not finalized until after a short approval process. What Do I Do After Receiving the Documents? The investment process is relatively simple from here. Upon receipt, potential investors will complete the subscription documents with their desired level of investment and signature, then return by mail, email or fax, along with check or wire transfer information for the investment amount. Money will not be transferred or checks cashed until the investor is approved. Along with subscription documents, potential investors will also submit information to support their status as an accredited investor. There are two options for verifying accredited investor status. Option 1 is to complete the process yourself by using a CPA, CFP, attorney or anyone with a CRD (Central Registration Depository) number. This person will review various financial documents to verify in writing that a potential investor qualifies as an accredited investor. This verification is then submitted to Redhawk with the subscription documents. Option 2 is to have Redhawk complete the verification process for you. Along with the subscription documents, you will supply the personal financial documents, and Redhawk will verify your status as an accredited investor. Most people choose this option, as we make it simple and straightforward for investors. The paperwork typically used for this process would be a 2016 and 2017 Form 1040 showing an income of $200,000 per year as a single investor or $300,000 combined, if investing as a couple, plus a written statement that you anticipate earning the same or similar amount in 2018. OR you may provide bank and/or brokerage statements evidencing a net worth in excess of $1,000,000 exclusive of your residence. What Happens Once I'm Approved? After all paperwork is received and your status as an accredited investor is confirmed, Redhawk will complete the transfer of investment funds that were sent in the form of a check or wire transfer information. The documents will be executed with countersignatures and date of acceptance. You will then be an investor in a mineral rights partnership! As an investor, you will receive quarterly reports via email. We are keenly aware of the amount of email people receive these days and how easy it is to miss information. We therefore also utilize an online investor portal where all applicable information is always available. I am a firm believer that "no news is bad news," and so we pride ourselves on keeping investors informed — regardless of whether the news is good, bad, or neutral. When Will I Receive the First Check? Redhawk and its strategic partner, the Mitchell Group, will have their first closing once the raise for the fund reaches $2 million, rather than at the close of the fund itself at $30 million. For this reason, the earlier investors join, the earlier they see returns. It is reasonable, but not guaranteed, to anticipate a first check later in the same or following quarter after investing. Redhawk Minerals Fund II is unique in that it is investing "ahead of the drill bit.” This ensures that investors have access to the most lucrative first years of a well's operation, with a targeted IRR of 25+ percent. Over a project term of 5 years, investors can anticipate a 2.7-3.5 percent ROI, not including lease bonus payments or increased valuation of the rights purchased over time. There is no guaranteed deal out there, of course, but I have to say that investing in mineral rights in the Oklahoma STACK Play, as this fund does, is undoubtedly a strong portfolio move. With investments available for as little as $12,500 for a limited time to accredited investors, the revenue generation power of mineral rights investment is now available to more than just the super-rich or highly technical investor. If you would like to learn more about the Redhawk Minerals Fund II offering, feel free to contact our office at 844-952-7363 or click here to request offering documents. 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. |
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