Retirement income investments can help you expand your nest egg and enjoy a more comfortable retirement. Because you want to be sure those investments succeed, it is important to find investment channels that are low risk, high yield, and generally easy to understand.
To that end, individuals often choose to invest in real estate. Its perceived stability and relatively high return on investment make it appear to be a strong candidate for retirement income investments. What many people may not realize is that mineral rights ownership can provide significant cash flows at lower risk and can be a smart way to maximize your ROI (Return on Investment).
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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. 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. Due to new drilling technologies developed in the energy industry in recent years, investment opportunities in mineral funds are highly sought-after. Their higher yield and comparatively low risk makes mineral funds an excellent addition to a diverse portfolio. Access to investments in mineral funds is often restricted to Wall Street-level transactions with minimum investments of $500,000 or more, which locks out all but the super-rich private investor. Redhawk Investment Group is pleased to announce the opening of Redhawk Minerals Fund II at an affordable entry level as low as $12,500 (for a limited time). This mineral fund offering, open to accredited investors only, provides the independent-minded, non-technical, non-super-rich investor a unique opportunity to realize the cash flow and wealth generation capability in the mineral ownership sector of the oil and gas industry. What is Redhawk Minerals Fund II?A strategic partnership between Redhawk Investment Group and the Mitchell Group, Redhawk Minerals Fund II targets the mineral-rich Oklahoma STACK Play. The fund is projected to raise $30 million and is priced at $50,000 per unit, with a proposed 1/4 unit investment minimum ($12,500) available for a limited time. Similar investments are often limited to institutional investors, with average annual yields at a considerably lesser rate. This fund represents a promising investment consideration.
Redhawk Minerals Fund II acquires mineral rights from one to 36 months ahead of the drill bit, and exclusively in the Oklahoma STACK Play shale formation. This fund is a near mirror image of the previous Redhawk Minerals Fund I, which closed in February 2017 at $23.5 million. Fund I is outperforming our expectations, with more than 50 wells producing on its mineral acreage and pre-drill permitting on 62 units to date. What Makes Mineral Funds a Wise Investment?Often limited to ultra-wealthy investors only, mineral funds have become attractive investment vehicles for a number of individuals and institutions. This is not without valid reason. Owning stakes in mineral rights can generate revenue in a variety of ways. The initial revenue generated by ownership of mineral rights is the lease bonus, or the lucrative, upfront cash bonus paid per acre by the operator to the mineral owner for leasing him or her the rights to drill. Mineral owners then also negotiate a monthly royalty percentage, typically ranging from 12.5 percent to 25 percent of gross revenue generated by the well(s). As with any real property right, a mineral rights owner may also elect to sell his or her interests to a buyer and may will them as well. Many investors find these multiple streams of revenue particularly appealing. This is added to the fact that, unlike in drilling investments, mineral rights ownership requires no capital expenditure for drilling or operating. Mineral rights stakes also avoid the risk of "dry hole" costs incurred by drilling investments, and as real property rights, they never expire. If so desired, your investment in mineral rights can be handed down for generations to come. Although there is an inherent degree of risk in any investment, mineral rights can prove a low-risk energy investment when executed properly. Mineral rights investing avoids the costs associated with drilling operations, and because royalties are paid before any other deductions, oil prices would need to drop to near zero for revenue to cease. How to Choose a Good Mineral FundInvestment in mineral funds, when managed properly, is comparatively low-risk. When considering a potential mineral fund investment, we suggest that you evaluate it in three areas:
Choosing Where to Invest in Mineral FundsOf the two locations that we have identified, Redhawk Minerals Fund II deals exclusively with mineral properties located in the Oklahoma STACK Play. But what is the Oklahoma STACK Play? The Oklahoma STACK Play, located in Oklahoma's Anadarko Basin, is a large area of stacked shale zones that are incredibly rich in oil reserves and oil condensate. Drilling is far from new to this zone, but excitement has re-centered on this hot spot in recent years due to the continued success of newer horizontal drilling technologies. Areas with wells that were once thought depleted with the use of conventional drilling technologies are producing again with horizontal wells. In fact, in some cases, horizontal wells have produced 50 percent more oil than their vertical counterparts. With this renewed success, drilling operations in the STACK Play are expanding rapidly. The number of rigs is increasing almost daily, with more than 100 currently in operation. Adding to the fact that the STACK Play is located near the major oil storage facilities and trading hub in Cushing, OK, it becomes easy to see why investment in oil assets in the area is so profitable. Even when oil prices are low, the lower costs associated with these ventures results in a higher ROI. That's music to any investor's ears. How Do I Become an Accredited Investor?You can count on Redhawk to guide you through the accreditation process to become an accredited investor. It’s a secure and simple process. According to Regulation D rules, an individual qualifies as an accredited investor if he or she meets one of the following criteria:
As required by the SEC, it is incumbent upon the company with whom an investor elects to do business to verify their qualification as being accredited. Accredited status is warranted through a review of the investors' financial documentation. Documentation can include W-2s, bank or brokerage statements, tax returns or a simple form filled out by your licensed financial professional (CPA, attorney, broker-dealer, etc.). Redhawk will guide you through the process step-by-step. If you are interested in learning more about how to become an accredited investor — and in the access to otherwise limited investment opportunities it provides — we encourage you to contact us at our office at any time. Contact Redhawk Investment Group and Learn More about MIneral Fund II, LPIf you have been considering diversifying into mineral rights, we encourage you to evaluate Redhawk Minerals Fund II or get started investing. This institutional-quality investment opportunity is uniquely positioned to allow accredited investors access to true wealth generation at an affordable, entry-level price. An exceptional return on a good oil and gas project should not be the domain only of Wall Street's super-rich. Now it can be yours.
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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