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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