Investing in oil and gas can build your wealth AND reduce your taxes! One of the most significant tax deductions is the intangible drilling cost deduction, which allows investors to use drilling and development costs to be deducted against your active income, including that in your business or W-2! This deduction can mean significant tax savings, especially in the early project years. Investing in oil and gas can provide a steady stream of income, and diversify investment portfolios. So why aren’t more of our clients taking advantage of this? Most people simply do not understand how it works! Luckily I will be holding a webinar with 2 experts in this field to help educate us and break down the numbers of investing in oil and gas. Join me with Stuart Turley, President and CEO of Sandstone Group and founder of the Crude Truth Podcast, and Rey Trevino “RT”, Director of Operations at Pecos Country Energy Inc and the Energy News Beat Podcast. as we do a deep dive of the tax savings, profit and cashflow you will receive when you invest in Oil and Gas.
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Mark Perlberg: All right. Welcome, everybody. I’m joined here by Ray Travino and Stew Turley. They are gonna help us
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Mark Perlberg: learn more about oil and gas and the tax advantages of investing in it
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Mark Perlberg: and the cash flow it can create.
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Mark Perlberg: This is going to be really helpful for a lot of our real estate investor clients who maybe can’t find deals, or they still want to do stuff with their cash that’s going to reduce their taxable income and create cash, flow similar to real estate. But this is going to be legitimately passive income
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Mark Perlberg: where you’re actually not going to have to do anything, and you’re not going to have to evict tenants, and these toilet goals to generate cash, flow.
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Mark Perlberg: So this is a topic we’ve been. I’ve been really really e to talk about this with experts for a very long time.
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Mark Perlberg: because we wanted to explain this to our clients. We saw the opportunities for our clients, but we didn’t have enough data and insight to help them make as good educated, informed decisions. Well, now is the time.
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Mark Perlberg: So i’m going to introduce you guys, and we’re going to jump into it. So Ray Travino. welcome and thanks for joining us. Can you give us a little bit about your background in 60 s or less.
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Rey Trevino III: Absolutely. Hello, everyone. My name’s Ray Travina the Third. I am a director of operations at Bay Coast Country, operating, and I’m. A. By a senior vice President of Pay Coast country energy. We are a family owned and operated
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Rey Trevino III: Oil and Gas Company. We are an expiration of Production Company, and we also then operate our own wells that we we drill or recomplete.
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Rey Trevino III: and we also
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Rey Trevino III: are in the mineral side of things, and in every now and then we like to invest in what are called minerals or royalties, which then also allow additional monthly revenue to come in, and just add that additional stream. So again, my name is R. Travino, the third second generation Oil and Gansa
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here in full war. Texas. Hello, everyone awesome! It’s, too.
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Stu Turley: you bet. Hey? Thanks, Mark, for having us on. I just absolutely enjoyed our podcast that you are on Mark, and my name is Stu Turley present. CEO, the sandstone group, and I just have the pleasure of being a podcast host on the Energy News beat podcast.
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Stu Turley: and I work with oil and gas firms in the emp space. But I also work in the financial sector, taking a look as a global market perspective
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Stu Turley: and helping guide em p operators through the pricing models. taking a look at their their land, their royalties
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Stu Turley: checking out the prices, and then getting in, and really taking a look at the real estate market. And we’ve got a real estate little side of the business at Sandstone. We help people with thought leadership.
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and it’s about the podcast. And mark your podcast. It’s pretty darn cool that your folks are out there.
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Stu Turley: Hats off to you for stepping up to the podcast, and our t and I are actually on 2 podcasts, or or excuse me, he and I are on 1. 3 podcasters walk into a bar, and we talk about the energy space. It is a hoot. But then Rt. Has his
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Stu Turley: branded podcast the crude truth. He’s got some great great guests on it as well. So thank you for having us on. We love being a resource for the oil and gas base.
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Mark Perlberg: awesome.
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Mark Perlberg: what I want to do here
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before we jump into things.
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Mark Perlberg: let’s talk about at a very high level.
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What? What? This is in the tax advantages? Right? So you and
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Mark Perlberg: and what’s interesting here is
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Mark Perlberg: you, you, You obviously we’ve heard about solar energy and solar tax credits and some changes in the
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Mark Perlberg: And obviously there are incentives here to encourage environmentally environmental. environmentally friendly things to take place here in our economy. But there’s also tax incentives
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Mark Perlberg: to generate energy and supply energy to our country.
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Mark Perlberg: So you so, even though you wouldn’t think so, there’s still a strong demand and need an incentive
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Mark Perlberg: incentives from the Government to encourage energy energy production locally. And this is why we have this. So
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Mark Perlberg: to my understanding, and you guys can help refine and correct this as we go along. But at high level here, what’s taking place is
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Mark Perlberg: you invest as a partner
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Mark Perlberg: into an oil and gas fund, you 90 cents approximately of every dollar you that that you put in as a capital contribution into the partnership
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Mark Perlberg: it’s deducted in year, one as in tangible drilling costs. and then
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Mark Perlberg: those losses are treated as non-pass, and they can offset your W 2 in code
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Mark Perlberg: or Other sources of active income.
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Mark Perlberg: unlike other sources of passive income, such as you know. Like if you invest in a syndication, and Don’t have real, say, professional tax status.
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Mark Perlberg: Or if you have long-term rentals without real estate, professional tax status, or you don’t materially participate.
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Mark Perlberg: Those laws are usually suspended.
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Mark Perlberg: but these you can deduct
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Mark Perlberg: these losses against your active income. But I want you guys to tell me, you know, with you
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Mark Perlberg: I want you to help me refine and confirm, and maybe add a little more details to how this works with investing in oil, and G.
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Stu Turley: You bet. Hey, our team go ahead and and go, and I can address the more global market on the solar or the other stuff I, as you mentioned in the beginning. But Rt is the oil and gas expert on that one.
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Rey Trevino III: Oh, man, what? Yeah, no, You know, there’s so many different tax advantages, and that that come with investing in oil and gas. And more importantly.
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Rey Trevino III: you’re investing in the energy of the United States, and that’s a great way to put it. You know that’s actually how we got into the business in the late eighties.
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Rey Trevino III: And I say we my father, was that he was basically writing custom software for accounting departments of oil and gas companies.
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Rey Trevino III: And
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Rey Trevino III: as he began to continue to write code and software. He began to understand a little bit more. Then finally, one day one of the only gas companies invited him out to the field.
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Rey Trevino III: and they even went into more explanation on why they they, They drew loyal wells, and by the time they got back by that go. So basically you’re telling me I can throw my money in the ground and not give it to Uncle Sam.
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Rey Trevino III: And that was when he was hooked. It was like, okay, how can I do this and get this guys at that time? Not anymore. Okay, disclaimer, Not anymore. But back. Then it was actually a 2 for one.
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Rey Trevino III: On investing in oil and gas on your taxes, get your capital gains, or any ancillary. You know all your additional revenue that you have. I can’t say those words very well, sorry, and
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Rey Trevino III: but what we have noticed is
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Rey Trevino III: as as we’ve continued to drill, and every now and then we do an invite individuals to be a part of a project that they’ve been able to ride off a large portion of
their investment against our capital gains, or a a a additional income every year, and not to mention that doesn’t even include the 15% deduction in depreciation or depletion, as we call it every year as well on your actual income that you get no different things.
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I’m not thinking real estate is that correct? Mark.
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Rey Trevino III: you do get that 15% every year.
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Mark Perlberg: Sorry I got a little. The 15% Are you talking about cap games for 15%? Yes, yeah, every year. Yeah. So I mean. So there’s more to it than that. All on the capital games, right?
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Rey Trevino III: Okay, then
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Rey Trevino III: I got you.
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Rey Trevino III: But but what? What else is very unique is that as we’ve continued to grow, our our baskets have obviously also grown, and and we’ve got into real estate, and as a smaller operator and emp company, we never don’t really have the wow. We never have the opportunity to really
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Rey Trevino III: invest in the big West Texas. Deep oil wells the 10,000 foot wells with a 20,000 foot lateral one, because the leases are so expensive into those drills are so expensive.
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Rey Trevino III: But what we’ve been able to do, like many other people is invest in the minerals of these leases, and then we can sell whatever real estate we have and roll that capital gains right back into these minerals that are income, producing
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Rey Trevino III: with additional growth, with the the benefits of more growth on these leases, that, as also add to our monthly revenue to where, even though don’t give me wrong, we still have some rental properties. But we don’t have the tnt as much as we used to, and I call tnt tenants and toilets.
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Rey Trevino III: So yeah, so we actually we had a client
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Mark Perlberg: who did a 1031 exchange
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Mark Perlberg: into a land with with with mineral rights. And so this is a great opportunity for clients who have cap game event.
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Mark Perlberg: and maybe you know, maybe they don’t want. They can’t find the replacement deal. You know. Some other things that we’ve looked at with clients are obviously qualified opportunities to these zones. Delaware Statutory Trust
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Mark Perlberg: might work for some clients, but this is an additional strategy here for for for deferring capital gains indefinitely with a 1031 it’s a Great idea.
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Mark Perlberg: Okay, cool. So
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Mark Perlberg: what I so
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Mark Perlberg: we have the tangible drilling cost and and 90 cents per dollars about right right? Once you add everything up basically the the intangible journey costs. Usually you could ride off 80% of that on a working interest project. I mean, you’re investing in a drilling
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Rey Trevino III: a drilling project, and so usually you can write off 80 if it’s actually an investment that may be only a 100,000 999,999dollars, and 99 cents.
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Rey Trevino III: you could probably even write off the whole $100,000 investment
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Rey Trevino III: in the first year. Anything above that, it’s the 80%. But then also you got to include the 15% and appreciation.
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Rey Trevino III: So really, you’re looking at almost a 95% ride off on your initial investment. So for example, let’s just say, unfortunately, you’ve got a cash out $250,000 out of an out of a capital G out of out of a real estate deal, and you’ve just got to take the catch. So now you’ve got at least to say $250,000 worth of capital gains tax.
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Rey Trevino III: Well, if you were to invest just a 125,000 into a working interest drilling project, you would be able to ride off that full amount against your capital gains and not have to worry about paying taxes on
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Rey Trevino III: any amount with a great Cpa like more. Is that correct, mark?
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Mark Perlberg: Yeah. And you know also, not only that. But you get your principal back in these capital gains. Events, too, and that principle can be invested
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Mark Perlberg: as well to potentially offset your W. 2 or other sources of
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Mark Perlberg: as well. We have the access business loss limitations as of right now, that’s at 270,000 or $540,000 of a If you have business, lots, limitations, business losses, how much of that can offset maybe your W. To income.
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Mark Perlberg: But you can. You can, if you have business income, you can offset all of that business income with business losses.
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Mark Perlberg: So lots of cool things here. So so we have.
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Mark Perlberg: So the police. How long does it? So we have this, you said 15% depletion
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Mark Perlberg: like. So the where tear this lay in the wearing out that, and that’s totally separate deduction from in tangible drilling costs. Correct? Yes, sir, that is correct. Every year. What we offer our our clients is a. Is a K. 9
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Rey Trevino III: every year at the end of the year. It shows how much oil they’ve made, how much money they’ve made, and then they can then take that right to Mark, or whoever their Cpa is, and be able to go all right the stock off another 15 this year.
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Rey Trevino III: and they can use that against their capital gains as well, or their their income
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Mark Perlberg: cool. So, and then let’s so, you know. So obviously this is a great place to put your cash here. You get lots of right, and and you’re going to get these. Write offs in the first year. Correct?
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Rey Trevino III: Correct?
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Rey Trevino III: Yes, you can get the a lot of these right off to the first year, but also you can prolong them kind of spread them down about about a 7 year window, so you can use them sporadically against that 7 years you can help out if you don’t need them all in year. One
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Rey Trevino III: and you need a little bit more in your 2, or hey? If you know when you’re 3, you’re gonna do a bunch of stuff. Then, hey? You can, you know, Save a budget for year, 3 as well.
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Stu Turley: and mark just as a side note I I was able to work with several large investors, and on those investors they were also able to hammer out some things on multi faceted deals, and those kind of deals are.
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Stu Turley: If you do, a 100% royalty on one side. But then your passive income is coming in. You can then roll money into the Emp side, so the emp operator will. Very. Our Rt. Has that ability
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Stu Turley: to take a look and work with you. The the Cpa can understand the difference between the 2, and as profits roll in from one, or depending on how your profits are. It really makes a difference on those.
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Stu Turley: So a. And those kind of things roll back in. Did I articulate that correctly?
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Rey Trevino III: Rt: Make sure I you got a fact. Check me, Rt: No, no, that sounds excellent. That’s exactly what you can do. Because again, with the minerals it is a passive income more than anything else.
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Rey Trevino III: you, you know, just that monthly revenue you get. And then, with the working interest it’s really a a great way to put it is like, hey? That money is really working for you. That’s where the real big tax right offs can come in. That’s also where you’re gonna see the larger returns. As Mark mentioned, we when it comes to a drilling project with working interest.
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Rey Trevino III: It’s very often, and you’ll see it very often that you’re gonna see that initial investment back in the first 12 months, and then you still got another 29 years worth of revenue stream coming in from that initial investment.
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Rey Trevino III: and then you can then reinvest your whatever it is that you started with, or you can just reapply to somewhere else with the minerals. That one’s also very unique, because again, it may last even more than 30 years. For an example, let’s use West Texas
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Rey Trevino III: in the 19 fifties. If you bought minerals in the 1950 S. We were drill well that 5,000 feet or less, and you will probably own the minerals to the core of the earth. So then let’s ramp up to the eighties the late seventies early eighties, when we were drilling back at about 7,000 feet.
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Rey Trevino III: and then. Now we’re drilling 10,000 feet and horizontal and deeper. So that’s a that’s in the revenue stream that you’re getting basically every 1015 years. Another real big chunk of cash
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Rey Trevino III: flow starts coming again, and so that can add, You know. Goodness, there, there, there’s people that have been now getting revenue checks for 50 years out in in West Texas, on minerals and royalties. And so that’s another great thing right there
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Stu Turley: more a. X Rt. Excellent point. And here’s why my great uncle, my great great uncle bought royalties.
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Stu Turley: They’re still coming in
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Stu Turley: great great uncle. For about 80 years they did not get any leases, nothing. And then, all of a sudden the leases started coming in, and the passive incomes coming in.
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So that’s pretty cool. Rt: You just nailed that one right there, and I’ve I’ve got a real world example on that for my great uncle, as has been kind of a surprise
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Mark Perlberg: awesome. So I see some comes. Questions. Come in, and what you guys keep asking these questions
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Mark Perlberg: because we’re gonna go into bringing down the numbers and giving breaking into some scenarios that a little bit.
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Mark Perlberg: But yeah, these are these? These are all already. This is already like
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Mark Perlberg: some wonderful stuff that we wanted to.
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Mark Perlberg: So to illustrate the the profitability, cash flow and the the the tax savings here for for our clients and for just
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Mark Perlberg: general investors here.
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Mark Perlberg: Now.
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Mark Perlberg: the most common question I get on this when I mentioned this topic. and you probably can guess what that is.
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Rey Trevino III: What if there’s no oil in gas?
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Mark Perlberg: How do I know that we’re gonna get a return on investment here? How do I know that we’re not just gonna buy?
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Mark Perlberg: We have a piece of land
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Mark Perlberg: that just
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Mark Perlberg: it doesn’t produce anything, and it’s a total failure. How how do you respond to to someone who asks that type of question? Can I? Can I jump out on the first part of this, and and then i’ll turn it back over to you.
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Stu Turley: Mark. That is an absolutely wonderful question, and not all emp operators are
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Stu Turley: a and royalty operators are have the same deal, and that’s one of the assets that sandstone has been able to do is we have assets that we can look at all the offsetting wells.
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Stu Turley: The entire area. We have tools of being able to look at how far, how deep, what the expectations are. As Rt. Mentioned, some of those wells.
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Stu Turley: 1520,000,000 30 milliondollars in order to drill those. The other side of that is looking at emp operators that are already working existing wells.
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Stu Turley: They’re improving those wells. We can also look at those emp operators, and we can take a look at what is going on in the formations.
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I mean, you may have different formations that are like the San Andreas. You have the ones up in the
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Stu Turley: You take a look at the Dj. Up in Colorado, and where do you have also the regulations going on. So we know a lot of those kind of things going on. We turn away emp operators because we look at their land.
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Stu Turley: We are very careful at signing an nda, because we don’t want to sign an nda when we work with oil companies on their data rooms, because what happens if another emp operator comes up to us and says, oh, by the way, we want you to work in this field. But we’ve already got an nda with somebody else.
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Stu Turley: So even before we sign an nda, or we work with an emp operator to look at whether or not it’s got investment, whether or not it’s got the field play, whether or not it’s got oil, natural gas, how long the depletion curve is, and then we work with the investor
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Stu Turley: and the emp operator, and we’re very selective on the Mp. Operator
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Stu Turley: and in Sandstone’s case Pecos operating is one of those few that we work with because of the fields
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Stu Turley: and what we’ve seen with the Esg. As well as their history of being able to produce those things so very, very, not all emp and not all royalty deals Mark, are a good investment.
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Stu Turley: I think real estate has that same kind of thing, and that is location, location, location.
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Stu Turley: And then I think yesterday on Maria Bartolomo show I love Maria. And she said that I believe it was. And again, mark you’ll have to fact fact, check me
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Stu Turley: like 50. I’m throwing this number out. 50% of New York City and 50% of San Francisco office space is 50 is vacant.
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Stu Turley: and so we are also hearing from other investors. My 1031 exchange is going nuts with people asking those questions and it’s. It’s coming in from
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Stu Turley: office real estate. It’s coming in from, You know these kind of things. They’re wanting to get out of that.
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Stu Turley: and it’s for that very reason. So the best thing that we can can give advice is, it is about the field
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Stu Turley: it’s about the history. It’s about the formation, and it’s about 100%. More. Importantly, the emp operator, exploration and production operator. So Rt: I hope. I didn’t like step on your toes on that.
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Rey Trevino III: Well, no, no, thank you very much for the kind of words there’s to, you know. First and foremost we are again, like I already. and in an individuals on.
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Rey Trevino III: or a family company, and so we don’t make a dollar unless we’re producing oil. And so that is the number. One thing that we do we have to do that is, step. One is, is this going to be a product? It it will this be profitable for us?
00:32:34.330 –> 00:32:55.350
Rey Trevino III: And so, in order for it to be possible for us, then it obviously then, will be profitable for anybody else. That’s in the project with us. Because, hey, if you, if if you’re making a dollar with us, we’d like to thank you best. Another dollar. And so you know, first of all, first and foremost can. And can you find a well, or can you drill well with no
00:32:55.350 –> 00:32:57.090
Rey Trevino III: oil in it. Yes.
00:32:57.830 –> 00:33:10.810
Rey Trevino III: if that’s the case, then you get a 100 tax, write off on your investment towards your capital gains or ancillary benefits. Sometimes you literally have individuals that need just the tax right off
00:33:10.870 –> 00:33:26.160
Rey Trevino III: rather than the headache of adding more revenue every month, which you know it’s not really the headache of adding more revenue. It’s just now. You got more paperwork, and you’re going to pay Mark more money because he’s got to go ahead and find more ways to to to country taxes.
00:33:26.210 –> 00:33:36.020
Rey Trevino III: However, it is 2023, and science is there. It is not really more it’s not no longer about.
00:33:36.020 –> 00:34:04.600
Rey Trevino III: If this well is gonna produce it’s how it’s going to produce. We can drill in areas that we know that we have oil and we will sha be able to drill those wells. It’s about getting the oil out of the ground more this these days, major, than is is the oil in the ground. The shell boom of 2,008, and the fracking has really changed the game. And now we have so many different ways of of of producing oil. We’re literally now going into rock.
00:34:04.870 –> 00:34:24.739
Rey Trevino III: cracking open rock and extracting the hydrocarbons now from a rock, rather than hitting these pools of of oil down in the ground that that, you know have naturally been created, and naturally head the way up so so. No, yes, you can still get the right off, even if you
00:34:24.739 –> 00:34:39.780
Rey Trevino III: don’t hitting the oil. However, that’s not the goal, and that’s not the way we see things, and and a lot less dry holes these days, so to speak. Mark. So good question, Gotcha, would you? Would you ever be able to produce data?
00:34:39.860 –> 00:34:45.469
Mark Perlberg: This shows the probability. you know, in some sort of
21000:34:45.480 –> 00:34:48.350
Mark Perlberg: statistics showing the probability
00:34:49.850 –> 00:35:07.800
Mark Perlberg: and the like. The probability that you’re going to You’re going to hit the oil. Is there something that you can? You can, and it’s not like a. What we use is, we have our geologists. We have our geology on team, and basically we go out. We study the rocks. We may even do seismic.
00:35:07.800 –> 00:35:17.850
Rey Trevino III: and we’ll come back with what’s called permeability, and that’s Where? Okay are the rocks permeable enough to have the oil in there, and it it needs to be within a
00:35:17.850 –> 00:35:32.250
Rey Trevino III: a certain amount of permeability. And so in that way. Yes, there is data, and we do trust the data. Our geologist is found over a 1 billion oils, a bit of oil in his time, and that’s right. That’s where the beat
00:35:32.250 –> 00:35:45.650
Rey Trevino III: Now, Has he shown some other areas in this time absolutely. But if my father’s always said he’ll say, if I had all the money that I lost in all my investments, I wouldn’t have all the money that I have today.
00:35:45.850 –> 00:35:54.740
Rey Trevino III: so you know, even even the good ones get it wrong every now and then, however. Yes, so we do all our due diligence. We have well logs that we look at.
00:35:54.740 –> 00:36:11.470
Rey Trevino III: We have existing production in the area that we look at, to really analyze, to make sure that in the areas that we’re drilling and producing oil, we can produce it long term. Because, again, mark you, said it earlier, these wells, a single well can’t produce oil
00:36:11.490 –> 00:36:14.820
Rey Trevino III: for 30 years and the same. So
00:36:14.940 –> 00:36:26.510
Rey Trevino III: so for anybody out there that I know you all are. I don’t know exactly where everybody’s at. But you know, up in the Marcellus you have the Marcella shell, which is just one rock zone down at a certain level.
00:36:26.520 –> 00:36:46.240
Rey Trevino III: so that means that one level will be able to produce for 30 years in West Texas. As I mentioned, we had zones that produced it 1950 for 30 years zones at at 7,000 for 30 years. So that is the goal here, and that’s where the long term comes into play on any type of oil and gas investment
22000:36:46.620 –> 00:36:55.860
Mark Perlberg: awesome. And what do you say to a prospective investor here when they say, okay, I want to do this. What can I look at
00:36:56.240 –> 00:36:57.320
Mark Perlberg: to see
00:36:57.360 –> 00:36:59.350
Mark Perlberg: where my money is going to go.
00:36:59.400 –> 00:37:14.730
Mark Perlberg: and what I would expect, what what kind of so do you? What? I guess that you guys have for different investments. You have packages, and what kind of information do you probably provide to those prospective investors who probably know a lot less than you about all.
00:37:14.770 –> 00:37:19.770
Mark Perlberg: all the value in and all the data, and in in all the science.
00:37:20.100 –> 00:37:28.470
Rey Trevino III: Yes, no, every deal is different. First and foremost, every well is different. However, you know, if we put together a minerals package.
00:37:28.740 –> 00:37:57.030
Rey Trevino III: then that date is going to be different than a working interest package. But again, a lot of it still is also the same which is, hey, here the wells that are drilled in the area. Here’s what those wells are doing. This is what we anticipate these wells are going to do. And here’s our estimated monthly revenue that we’re going to go. And here’s our asleep. Our monthly estimated operational cost as well, because just like any type of a real estate, you do have to maintain and do maintenance every month.
00:37:58.020 –> 00:38:05.220
Mark Perlberg: Great. Okay. So let’s let’s dive into the numbers now, which is probably what a lot of my counting audiences
00:38:05.250 –> 00:38:07.880
Mark Perlberg: has been waiting for us to talk about here.
00:38:08.150 –> 00:38:09.710
Mark Perlberg: And so
23000:38:09.960 –> 00:38:18.050
Mark Perlberg: first. So we we talk about. Let’s first talk about with the the working interest here. Right? So this is where we get that.
00:38:18.110 –> 00:38:24.890
Mark Perlberg: This is probably the one that is the most shiny object per clients, because we’ll get that in tangible drilling costs deduction here.
00:38:25.140 –> 00:38:35.650
Mark Perlberg: So in year one, we let’s say, let’s say a 100,000 keep things simple Here, $100,000. Let’s use a 30% tax right here.
00:38:36.280 –> 00:38:41.030
Mark Perlberg: Put a $100,000 in right. It looks like we’ll we’ll like in year one
00:38:41.130 –> 00:38:45.180
Mark Perlberg: you’ll get the intangible drilling cost deduction of.
00:38:45.430 –> 00:38:50.350
Mark Perlberg: Let’s say, approx. I think we said, we can say approximately 80,000.
Give or take.
00:38:51.070 –> 00:38:57.700
Mark Perlberg: We get an $80,000 tax deduction, so that’s a $24,000 tax savings right
00:38:57.770 –> 00:38:58.480
Rey Trevino III: right
00:38:58.930 –> 00:39:05.900
Mark Perlberg: How long before the the investment starts to produce cash flow.
00:39:07.050 –> 00:39:13.370
Rey Trevino III: Well, that’s a great question. It depends, for an example of. We just have one
24000:39:13.460 –> 00:39:24.500
Rey Trevino III: project that we have, and we put in a actually a someone else that that Mark may know, and it we just package up something it’s already producing.
00:39:24.650 –> 00:39:39.580
Rey Trevino III: And we’re he’s on pace already just at current production levels for 25% return, and that doesn’t include, adding 10 more wells to this, to these leases. Yes, and
00:39:39.900 –> 00:39:58.700
Rey Trevino III: everyone is different. For an example, I’ve got another one right now. That hopefully will. Also, you know, we’ll also be at about an average 25% on a $100,000 investment itself. And then we’re gonna add even 4 more wealth to that. But these 4 more wells are going to produce
00:39:58.730 –> 00:40:13.040
Rey Trevino III: somewhere between 200 to 400 barrels of oil combined, and that third percentage. There they will see probably 100% investment back in the next 18 months. Then everything after that would be pure cash flow.
00:40:13.260 –> 00:40:17.790
Mark Perlberg: So what we’re what i’m wondering here now this is for the
00:40:17.930 –> 00:40:27.390
Mark Perlberg: there’s 2 types of investment. So we’re we’re talking about. We have the land with the mineral right, and then we have the company there doing the drilling
00:40:27.460 –> 00:40:41.900
Mark Perlberg: when we talk. I think that you were talking about earlier. These are the are. That’s the type of returns we get when we have the land with the mineral rights correct? No, no, this is on the working interest side. I’m sorry.
00:40:42.090 –> 00:40:49.840
Mark Perlberg: So these are fantastic returns. And what about return of the capital contribution, or is there.
00:40:49.920 –> 00:41:00.010
Mark Perlberg: you know. So I I how much of this cast it returns to the investors. It’s just a return of their capital contribution. How much of it is their share of profit?
00:41:00.510 –> 00:41:07.800
Rey Trevino III: Well, every everything is, you know. Again, every project is different, because you’re you’re awarded working interest.
25000:41:08.030 –> 00:41:20.340
Rey Trevino III: So if if i’m if i’m answering the question correctly, basically you know you, you write it. You write a check for a $100,000 you invest in in this drilling venture. That might be
00:41:20.340 –> 00:41:29.420
Rey Trevino III: 4 or 5 wells, and the plan is, and the idea is that you would get your $100,000 investment back in the first 12 months.
00:41:30.130 –> 00:41:49.180
Rey Trevino III: Okay? And then at the end of the year you get a K. 9. That shows how many barrels of oil was produced, what percentage of that was yours, and then how much money you made it, so that you can then do your your taxes to get your depletion a depreciation. And then, after that, everything else is just straight cash form.
00:41:49.420 –> 00:41:55.550
Mark Perlberg: and by what I think what you mean, here is the depletion of the the well correct, yes.
00:41:55.580 –> 00:41:56.990
00:41:57.420 –> 00:41:59.610
Mark Perlberg: And so what kind of
00:41:59.660 –> 00:42:03.780
Mark Perlberg: as far as a range here? What what do we see? As far as
00:42:03.960 –> 00:42:11.100
Mark Perlberg: so you know, it would be fantastic to get 100% of your your cash back in 12 months under the right investment vehicle.
00:42:11.120 –> 00:42:13.990
Mark Perlberg: What kind of what kind of rains
00:42:14.340 –> 00:42:17.360
Mark Perlberg: can investors expect to see here, as far
26000:42:17.430 –> 00:42:18.680
Mark Perlberg: as a
00:42:18.790 –> 00:42:22.680
what they’re going to get back. As for cash and cash out
00:42:23.130 –> 00:42:41.960
Rey Trevino III: right well of everybody that you know that that we’ve done projects with. They’ve all seen their initial invest in back. The timeframe just may may not be 12 months. It may be 8 months, or it may be 19 months. We, you know it just depends on on how the the the low wells do.
00:42:41.960 –> 00:43:01.520
Rey Trevino III: and and and go from there right now. We’re looking at with the the several projects that the most recent few projects that we did in 2,022, we average of just under a 50% annual return. Of that 22 2,020 we we’ve average just under a 50% return every year on that investment since 2,020.
00:43:02.630 –> 00:43:03.290
00:43:03.320 –> 00:43:17.820
Mark Perlberg: And so are we seeing similar roi’s from the land that rents the mineral rights to the companies as we are seeing from the work, investing in the working interest, where you get the and tangible drilling costs.
00:43:17.860 –> 00:43:22.740
Mark Perlberg: How how do you? How does the the cash flow. Compare between those 2 vehicles
00:43:23.060 –> 00:43:32.540
Rey Trevino III: Great question. The cash flow definitely. Still on a monthly basis. You get your revenue, check your your income, check every month. But no.
00:43:32.540 –> 00:43:45.020
Rey Trevino III: the minerals is not quite as aggressive as the working interest again in the working interest. Still, everyone you are the one that’s actually doing all the work.
00:43:45.020 –> 00:43:54.750
Rey Trevino III: So you get a bigger piece of the pot generally this day and age, working interest and landowners split 100%,
27000:43:54.950 –> 00:44:13.140
Rey Trevino III: However, 25% right off the top goes to the landowner, and then 75% goes towards the operator and their group that invests. So that means that 75% pays 100% of the operating costs, while the mineral owner.
00:44:13.140 –> 00:44:23.960
Rey Trevino III: who has 25% other than paying the normal state taxes has no additional additional monthly costs, but they also have no control over
00:44:24.040 –> 00:44:43.660
Rey Trevino III: how many wells are drilled, and so on, and that’s why, when we’re looking at minerals, we like to find minerals and invest in minerals that have a Pv. 6, you
know, hopefully at least some money back in 6 years or less at current production, but also has permits
00:44:43.660 –> 00:45:00.830
Rey Trevino III: and wells ready to be drilled for additional revenue. So, for an example, if one well, if one mineral lease is already Dr. Producing out of 5 wells, and it’s already doing 25% average return on your investment.
00:45:00.850 –> 00:45:06.060
Rey Trevino III: And it shows that they’re gonna drill 10 more. Wells over the next 10 months
00:45:06.080 –> 00:45:09.720
Rey Trevino III: you could see a large
00:45:09.750 –> 00:45:30.430
Rey Trevino III: increase in your production at the end of that 8, 8, 10 months. That then adds that revenue stream, and You’re not paying the drilling cost. You’re not paying to drill the well you’re not paying to for the guy to come there. You’re it’s as if you were just the one that gets that revenue check every month because they drill down into the minerals that you own.
00:45:31.000 –> 00:45:32.820
Mark Perlberg: Yeah, so we just
00:45:33.740 –> 00:45:37.850
Mark Perlberg: I mean, it really looks like the you know, fantastic
00:45:37.950 –> 00:45:40.680
Mark Perlberg: here. Now, what’s interesting here is.
28000:45:41.040 –> 00:45:50.680
Mark Perlberg: and while you don’t get the intangible drilling cost seduction when you invest in the land with the mineral rights. Do you own the lander to the mineral rights, or vote
00:45:50.810 –> 00:46:01.380
Rey Trevino III: you own just the minerals, you know. Here, you know, although great question. Mark the land. The surface can be owned by somebody else, and you can then own the minerals below that
00:46:01.440 –> 00:46:10.980
Mark Perlberg: Gotcha. Okay, great. So you own these the minerals to this plot of land.
Right? And what’s interesting here is, even though you don’t get those costs.
00:46:10.990 –> 00:46:13.490
Mark Perlberg: The the intangible drilling cost flowing
00:46:13.600 –> 00:46:15.240
your your personal return.
00:46:15.680 –> 00:46:17.410
Mark Perlberg: This is good. They’re gonna
00:46:17.970 –> 00:46:26.700
Mark Perlberg: They’re going to rent out more and more, these of these spaces and profitability should increase over time, right? So it’s going to increase in value as an asset like real estate
00:46:26.890 –> 00:46:30.690
Mark Perlberg: correct. If you decide to exit, you could sell at a profit
00:46:31.470 –> 00:46:46.330
Rey Trevino III: absolutely. If you decide to exit. You can sell it a profit. And so, for example, back to my, you know, drilling 10 additional wells. You buy it, and we’ll use a $100,000, or you buy that $100,000 with 5 wells producing.
00:46:46.330 –> 00:47:03.540
Rey Trevino III: and it’s now it’s now producing with 5 additional wells, and you go. You know what I want 300,000 for You’ve earned all this revenue monthly revenue during this timeframe. You sell it for 300,000, and those guys still have an upside of another 5 to 10 wells on it themselves.
29000:47:04.140 –> 00:47:11.560
Mark Perlberg: and you can invest with your retirement accounts as well. Invest with the Roth Ira. Pay no taxes on it. Right? Yes, yes, you can.
00:47:11.670 –> 00:47:15.560
Rey Trevino III: Yes, you you sure can I? I have not done any like that.
00:47:15.610 –> 00:47:26.540
Mark Perlberg: But but you sure can do that. Yes, sir. Yeah. So let’s talk about. So I’m going to go into the audience here that’s gonna help us with solidifying our understanding here.
00:47:28.080 –> 00:47:29.880
Mark Perlberg: So if you have
00:47:29.990 –> 00:47:32.710
Mark Perlberg: a $200,000 of cash.
00:47:33.120 –> 00:47:38.020
Mark Perlberg: and which is, let’s say, your marginal tax rate here is
00:47:38.270 –> 00:47:39.970
00:47:40.550 –> 00:47:48.020
Mark Perlberg: So this means that you’re going to get an 808080800000f tax savings in year one.
00:47:48.190 –> 00:47:51.350
Mark Perlberg: and you have a remaining
00:47:51.360 –> 00:47:59.760
Mark Perlberg: the of $120,000 left that you’ve invested into an oil and got it working interest here.
30000:47:59.970 –> 00:48:02.950
Rey Trevino III: Okay. that was the question that
00:48:03.040 –> 00:48:03.960
Mark Perlberg: I guess
00:48:04.090 –> 00:48:17.900
Mark Perlberg: I guess you work. Can you confirm this, and then so you have 120,000. So okay, I see the question here. Sorry. So if I invest $200,000 in oil and gas, and I don’t have to.
00:48:18.370 –> 00:48:36.150
Mark Perlberg: I don’t have to pay $80,000 in taxes. You have the 80,000 savings. How do I get the remaining 120,000 of my capital contribution that I has not generated. Tax. You know. Net of tax savings. How does that come back to me, and I believe the answer here is going to be
00:48:36.150 –> 00:48:38.410
Mark Perlberg: in the form of the cash flow of the investment.
00:48:39.380 –> 00:48:49.750
Rey Trevino III: Yes, that’s correct. So you would get in the form of the the cash flow and the investment. So then, and then let’s talk that so? Yes, that’d be $80,000 that you could ride off.
00:48:50.130 –> 00:48:58.550
Rey Trevino III: and then, let’s say, just for easy argument. Sakes, you get your full 200,000 back in the first 12 months.
00:48:58.590 –> 00:49:09.040
Rey Trevino III: and it’s a perfect January and February. So then you can then take another 15. So that would be another $30,000. Is that correct?
00:49:09.290 –> 00:49:11.180
Rey Trevino III: 15% of 200,000,
00:49:12.340 –> 00:49:22.230
Rey Trevino III: and so then that you’re at 110,000 that you can write off. So now you only have to worry about 90,000. But again
31000:49:22.730 –> 00:49:24.020
Rey Trevino III: your
00:49:24.490 –> 00:49:31.990
Rey Trevino III: your cash flow is already back to you. So really, now you’re looking at less than a 100,000 that you would have to
00:49:32.070 –> 00:49:34.440
Rey Trevino III: do with with the Cpa and deal with.
00:49:34.640 –> 00:49:44.090
Mark Perlberg: Okay, so i’m going to get out. So i’m trying to read the questions and talk to you at the same time. Here I have my cell sheet out some calculations here. So
00:49:44.130 –> 00:49:46.650
Mark Perlberg: $200,000 here to invest.
00:49:47.380 –> 00:49:48.160
00:49:48.420 –> 00:49:49.330
Mark Perlberg: and
00:49:49.990 –> 00:49:59.520
Mark Perlberg: let’s say, 80% is our intangible drilling cost. So we get a deduction here of a $160,000 deduction.
00:50:00.110 –> 00:50:04.040
Mark Perlberg: And let’s say we’re at the 40%.
00:50:04.120 –> 00:50:09.530
Mark Perlberg: See in Federal net of combined tax right here so a lot.
32000:50:10.640 –> 00:50:15.320
Mark Perlberg: So yeah. So some of our clients and audiences make a decent amount of money here.
00:50:15.390 –> 00:50:24.520
Mark Perlberg: So we get 64,000 coming back to us in year, one in the form of tax savings. So that remains
00:50:24.830 –> 00:50:28.840
Mark Perlberg: disregarding cash flow. We have
00:50:31.240 –> 00:50:36.760
Mark Perlberg: after taxes we really only invested $136,000.
00:50:37.130 –> 00:50:44.480
Mark Perlberg: So now what we want to see here is, we want to see at least $136,000 coming back to us, and if we can get
00:50:44.520 –> 00:50:47.080
Mark Perlberg: all $200,000 coming back.
00:50:47.530 –> 00:50:50.300
Mark Perlberg: then we have a nice little win there.
00:50:50.400 –> 00:50:51.500
Rey Trevino III: Correct
00:50:51.580 –> 00:51:00.010
Rey Trevino III: A, and that’s where my father saw it years ago was so you’re telling me I can write this off, and even with a dry whole.
00:51:00.210 –> 00:51:04.910
Rey Trevino III: i’m still winning against my capital gains in my taxes at the end of the year.
33000:51:05.200 –> 00:51:17.880
Rey Trevino III: And so that’s where again you get a lot of individuals with high net worth going. Yeah. Oh, especially in the go in in the October November season going. I’ve got a lot of taxes.
00:51:17.880 –> 00:51:36.210
Rey Trevino III: I need to go invest in some, some some oil and gas, so I can bring that down at the end of the year. Then boom! It’s in the next year they’ve made. You know their money back, and they got to do it again. And but no, that’s exactly Mark. Why, why we do it. And what more importantly, why my father got into it was like, hey.
00:51:36.210 –> 00:51:43.620
Rey Trevino III: there are so many benefits just for the tax savings alone to to go ahead and invest in American interview.
00:51:44.030 –> 00:51:55.700
Mark Perlberg: and and also some of that cash flow is going to be offset by the the depletion deduction, I believe, or there’s other paper losses that potentially can
00:51:56.560 –> 00:52:15.500
Mark Perlberg: or incorrect me if i’m wrong. But to my understanding. There are also deductions that will offset some of this cash flow. Yes, that’s right. Out of that 136 we are. We didn’t even take into account the 15%, the the the appreciation as well that he could that that they can to do with that 200,000
00:52:16.940 –> 00:52:18.650
Mark Perlberg: awesome. Now
00:52:18.980 –> 00:52:23.710
Mark Perlberg: I believe that investors have to be accredited in this situation, correct
00:52:23.760 –> 00:52:31.900
Rey Trevino III: in most cases absolutely. We definitely recommend that, however, you can invest.
00:52:31.920 –> 00:52:36.910
Rey Trevino III: and with as being a non accredited investor, you just have to basically
00:52:37.000 –> 00:52:50.730
Mark Perlberg: sign a lot of paperwork that says, hey, this is not my life savings, and I will not go broke If I make this investment.
34000:52:50.760 –> 00:52:52.520
Mark Perlberg: Can I make you a live guess?
00:52:55.570 –> 00:52:57.140
Mark Perlberg: I’m going to see if we can.
00:52:57.240 –> 00:53:04.340
Stu Turley: because we’re getting lots of questions here. Yeah, John’s really asking some good questions. By the way, John, I want to give you a shout out.
00:53:05.140 –> 00:53:06.000
00:53:06.220 –> 00:53:10.690
Mark Perlberg: here we go. I’m gonna put John on, see if he can talk to us.
00:53:10.710 –> 00:53:11.740
John Drawdy: Can you hear me?
00:53:11.880 –> 00:53:17.230
John Drawdy: Yeah. Okay. So yeah, I got good questions because I want to mark Cpa:
00:53:17.440 –> 00:53:30.820
John Drawdy: Yeah, I I don’t really do taxes anymore, but my, my, my team does them. But I, you know I have a little bit of background in it. And so, you know these are the questions that most Cpas would be asking. I know
00:53:30.960 –> 00:53:33.660
John Drawdy: Marcus had covered some of these
00:53:33.850 –> 00:53:38.680
John Drawdy: that I had asked. I asked before he had covered him. But
35000:53:39.010 –> 00:53:39.890
John Drawdy: so
00:53:40.220 –> 00:53:45.090
John Drawdy: always, you know, credit investor, that was one up. What’s the minimum investment
00:53:46.120 –> 00:54:02.000
Rey Trevino III: we usually for us? We usually like to try to stay at that $100,000 mark or more. We have made exceptions in the past, especially to get the some individuals toes. What if if if you will.
00:54:02.050 –> 00:54:14.060
Rey Trevino III: But i’d like to think, maybe with those individuals with Mark. Maybe they can vouch that, hey? You know everything’s. hey? Okay, cause cause we normally don’t do something
00:54:14.130 –> 00:54:18.310
Rey Trevino III: I like that. But so usually a 100,000. John, is what we like to try to start with.
00:54:18.690 –> 00:54:22.940
John Drawdy: and and and John, if I may excuse me, interrupt. There is a reason
00:54:22.970 –> 00:54:42.520
Stu Turley: that our ray has to do that, and that is because in a non and credited and Rt. Fact check me, always need that global fact check. And that is, there’s I think it’s a Scc. Regulation of only 38
00:54:42.520 –> 00:54:56.200
Stu Turley: non accredited investors and some kind of investment. There is a certain number, but there you can do a lot more in credited investors, and I’ve seen that in some of the larger fields
00:54:56.200 –> 00:55:08.310
Stu Turley: that it is a brutal process. So the answer Rt. Gave was absolutely, or Ray absolutely Ray, if you want to. Fact, check me.
00:55:09.880 –> 00:55:20.490
Rey Trevino III: But yeah, so we usually try to like to get people start out with a 100,000 plus. You really kind of could see, you know where your money is going, and you can really see a good
36000:55:20.510 –> 00:55:27.000
Rey Trevino III: return on your investment and good against your capital gains that didn’t deal with your taxes.
00:55:27.300 –> 00:55:27.900
00:55:28.920 –> 00:55:32.280
John Drawdy: yeah it. I I do know there is some type of
00:55:33.500 –> 00:55:45.930
John Drawdy: maximum number of investors. I I’ve done some conservation Eastern in the past. I know they have that limitation. Sometimes I get a big influx of broker money, though at one time, and and they’ll be able to take smaller
00:55:46.050 –> 00:55:54.320
John Drawdy: chunks for for other people because of those huge numbers. So you just ask another question about conservation. These mess.
00:55:54.570 –> 00:55:59.340
John Drawdy: you know. That’s always been a very, you know a lot about it, but Irs hates them.
00:55:59.380 –> 00:56:16.000
John Drawdy: and they try to come after people, and I I’ve been doing them, and I’m just sitting. I just put a little bit of extra money in the bank account in case I want to pay some taxes, but with oil and gas is this is this something that the Irs targets in any way, or doesn’t like, or scrutinizes.
00:56:18.890 –> 00:56:20.190
Rey Trevino III: Yes.
00:56:20.480 –> 00:56:29.240
Rey Trevino III: the the the I. DC. The intent was running costs. I know President Biden talked about it just several months ago.
00:56:29.440 –> 00:56:41.000
Rey Trevino III: taking it away again. It used to be 2 for one. So. But if they do that, then they’re gonna have to. Then look at ways to do this for other
37000:56:41.240 –> 00:56:54.620
Rey Trevino III: ways of energy as well. So it’s not going to go anywhere that would really mess up a lot of his donors taxes at the end of the year as Well, so it’s not going to go away.
00:56:55.290 –> 00:57:03.450
John Drawdy: Yeah, it is a good talk. It’s a good talking point until enough Congressmen and senators from Texas and all has starts talking with the lobby. Right?
00:57:03.480 –> 00:57:21.560
Rey Trevino III: Correct. In fact, John, I don’t know where you’re at, but here in a house mil 20. I’m looking something up here in Texas we’re working on a new house bill called 2056, and it’s called re-stimulation of marginal wells.
00:57:21.660 –> 00:57:26.370
Rey Trevino III: and we’re working on a way now to where you can get tax deductions
00:57:26.370 –> 00:57:46.960
Rey Trevino III: on going back to existing wells, and instead of just the new well here in Texas to work on that, and we’re helping put that across. We’ll see if it gets there. Maybe not the first one. But I do think it’s something that’ll help stimulate economies of the smaller cities where a lot of older wells still produce today.
00:57:47.480 –> 00:57:48.210
John Drawdy: Cool.
00:57:48.840 –> 00:57:51.760
John Drawdy: alright, the last thing I had
00:57:51.880 –> 00:58:08.510
John Drawdy: I just assume that the the income that the monthly dividends going forward, is it’s going to be passive income? And I’ll? I’ll say that that’s probably pretty good for real estate investors, because they probably have a lot of passive losses from depreciation and things. So even when they get that monthly cash flow.
00:58:08.510 –> 00:58:18.270
John Drawdy: it’s just going to be offset by this passive losses. They may have been building up over the years, so they might not to pay taxes. So if I correct it’s massive. Yes, that is correct. It is passive.
00:58:18.460 –> 00:58:19.250
John Drawdy: Cool.
38000:58:20.260 –> 00:58:21.530
John Drawdy: that’s all my questions.
00:58:21.700 –> 00:58:26.340
Mark Perlberg: Awesome. Yeah, John, thanks for giving us your questions here.
00:58:26.410 –> 00:58:28.770
Mark Perlberg: So in your your curiosity. Now
00:58:28.830 –> 00:58:32.050
Mark Perlberg: this is because here’s an awesome idea, for let’s say
00:58:32.260 –> 00:58:38.330
Mark Perlberg: we. You know we’re always looking for ways to reduce our clients taxes, and if you’re a W 2
00:58:38.380 –> 00:58:44.320
Mark Perlberg: and you don’t have real estate professional tax status. The only thing you can do is the short term males to reduce your taxes.
00:58:44.360 –> 00:58:46.960
Mark Perlberg: I mean you can. You can take advantage of
00:58:47.610 –> 00:58:55.040
Mark Perlberg: if you make between 100, and you make under $150,000. You could use some long-term rail to offset your taxes.
00:58:55.160 –> 00:59:05.350
Mark Perlberg: Short term Rentals are booming, because all these dentists and doctors are catching on and buying these cabins. But now they’re finding that they don’t like to work that much.
00:59:05.360 –> 00:59:14.120
Mark Perlberg: This is a lot of work every time the toilet is clogged or toasters are working, or the Internet is down there calling you, and they’re getting exhausted.
39000:59:14.230 –> 00:59:16.350
Mark Perlberg: and you have to materially participate.
00:59:16.400 –> 00:59:34.910
Mark Perlberg: So while so now a lot of people, maybe they’re not finding any new deals, or they don’t have capacity to take on more deals. They have full time jobs, and they ask, how else can we reduce our taxes? Or maybe they want to move into some long-term investes like real estate syndications, and those are going to run cost segregation studies.
00:59:35.160 –> 00:59:38.690
Mark Perlberg: And if you Don’t, have real, say, professional tax, that you have all of these
00:59:38.720 –> 00:59:45.640
Mark Perlberg: massive losses from the cost settings rolling onto your 1040, you being completely unused
00:59:45.850 –> 01:00:04.070
Mark Perlberg: for some time, I mean it may offset future capital gains of real estate. But you want, if you really want to see the benefits well while we go and generate a pig
passive income generator, and this is a great source of a pig where you can have that passive income, and then the losses from the cost. Sags are going to eat up
01:00:04.070 –> 01:00:16.580
Mark Perlberg: all of this passive income that is coming in from the oil and gas. So it’s a great way that we can combine 2 different strategies, and this strategy is is really wonderful, for our clients that are kind of
01:00:16.780 –> 01:00:32.630
Mark Perlberg: need. A little bit of a breaker they can’t take on any more investing. We add this to the portfolio to drive some cash flow, create some tax savings, and utilize the tax advantages that may not be able to utilize otherwise from long term rentals.
01:00:34.950 –> 01:00:50.950
Mark Perlberg: So lots of cool stuff. And this Why, that’s why I really wanted to get you guys on here. Because, you know, while we most of our clients are involved in real scene messing in some in some way, if the way I see it is, if there’s an opportunity there that we can’t bring to our clients.
01:00:50.950 –> 01:01:00.960
Mark Perlberg: it’s a disservice. If we don’t show them all the different ways that we can help them really achieve their goals of finding financial freedom and reducing their taxes. So yeah, that’s a great point as well.
01:01:03.340 –> 01:01:17.050
Stu Turley: But a and and I I I just real quick. There’s a lot of questions in the markets. And, mark, I I just appreciate getting to know you and and being able to ask a Cpa questions is important.
40001:01:17.080 –> 01:01:29.500
Stu Turley: but also, mark, use us as a a resource because I talked to people around the world on the future of oil and gas. Rt. Is very, very involved with
01:01:29.520 –> 01:01:42.540
Stu Turley: the Oil and Gas Workers Association, who’s involved with the legislation, and very involved in these things. So we can articulate where the overall view of the market is going.
01:01:42.540 –> 01:01:50.900
Stu Turley: So you know again, just relying on each other to help articulate things is very important. We appreciate you more
01:01:51.050 –> 01:01:56.140
Mark Perlberg: wonderful. Yeah, I mean, there’s there’s still I I don’t even think I have enough time. It looks like there’s
01:01:56.650 –> 01:02:01.980
Mark Perlberg: There’s quite a variety, I think, when we’re trying to to sum up what the numbers are looking like here.
01:02:02.000 –> 01:02:08.480
Mark Perlberg: It looks like you’re going to get your capital contribution, whether it’s into middle into the mineral rights.
01:02:08.560 –> 01:02:17.620
Mark Perlberg: or whether it’s into the working interest, into these oil and gas mining into the oil. I’m not gonna. I’m not going to call them mining. Well, I go zoom that last time.
01:02:17.650 –> 01:02:33.130
Mark Perlberg: It’s at least drilling projects here right into the partnerships either way. It looks like your cash is going to come back to you pretty quickly in the form of cash flow from revenue, which it looks like the margins are really good.
01:02:33.190 –> 01:02:42.400
Mark Perlberg: really high cash flow, and also in the form. If you invest in the working interest, you’re going to get that intangible drilling cost giving you that year one
01:02:42.460 –> 01:02:44.130
Mark Perlberg: tax deduction of
41001:02:44.240 –> 01:02:50.190
Mark Perlberg: around 80% of your capital contribution or money that goes into the partnership.
01:02:50.430 –> 01:02:58.530
Mark Perlberg: And then, year after year. You’re going to see continued benefits of this when you, even though you don’t get the intended tangible drilling costs
01:02:58.640 –> 01:03:01.440
Mark Perlberg: deduction. When you buy the mineral rights.
01:03:01.860 –> 01:03:10.960
Mark Perlberg: The this is gonna be a project. This is going to be an asset that grows in value and increases in revenue over time, and could be sold at a profit.
01:03:11.580 –> 01:03:14.480
Mark Perlberg: However, the when you invest in the interest
01:03:14.710 –> 01:03:29.440
Mark Perlberg: you’re going to have that wonderful tax savings, You’re also going to have great sources of cash flow. I think one of the disadvantages here is that there’s no exit at a profit. You. This is a project that I eventually is going to run his course, and you can’t sell for a property.
01:03:29.450 –> 01:03:40.720
Rey Trevino III: Is that a correct statement? There, I don’t think so. I mean you figure again in the same thing, Same scenario, if you, if you’re cash flowing 100,000 a year
01:03:40.720 –> 01:03:52.050
Rey Trevino III: on your investment. That, hypothetically, was a $100,000. First of all, why would you get rid of it? But but if if you just had to, I mean you’d be like, hey, give you 500 grand, or
01:03:52.050 –> 01:04:01.860
Rey Trevino III: you know, you know, and you’ve already gotten years worth of production, and you’re still doing something with it, you know, and if nothing else, you should be able to least sell for what you got it for if you’re producing more than what you started with.
01:04:02.280 –> 01:04:08.060
Mark Perlberg: Okay, wonderful. But but to my understanding also, some of these partices would run their course for like
42001:04:08.100 –> 01:04:13.650
Mark Perlberg: 5, 10, or 30 years. Eventually it would be dissolved, and
01:04:13.750 –> 01:04:15.700
Mark Perlberg: the project would be ended. Right?
01:04:15.710 –> 01:04:32.880
Mark Perlberg: Correct? Yes, yes, No, the drilling, the drilling, you know, drilling all wells. It is more of a finite thing than the minerals. And so yes, you are right about that. So eventually this partnership, I mean. Obviously, you get your cash fl back. You know all this this cash flow. But eventually.
01:04:32.880 –> 01:04:35.750
Mark Perlberg: at some point the plan would be that this
01:04:35.980 –> 01:04:42.580
Mark Perlberg: partnership, with just end at some point when the project is done and the different projects have different links of time.
01:04:42.690 –> 01:04:58.450
Mark Perlberg: So when you value when you sell it, for you know, maybe some have another 5 years, some have another 30, 50 years, so it depending on the project, will tell you how much cash flow is expected to continue from the working interest. Right?
01:04:58.530 –> 01:05:02.460
Mark Perlberg: But the the mineral rights are going to have a longer shelf life.
01:05:02.650 –> 01:05:18.000
Rey Trevino III: a little more longevity. Correct? Yes, yeah, Once the the those are something the same thing with the working interest, but that that is something that you definitely passed down to somebody else, saying, hey, this is part of a portfolio that you guys are part of down the road. Yes, all right. Wonderful.
01:05:19.370 –> 01:05:39.280
Mark Perlberg: So the last question here is. So we have an audience that’s really interested in this stuff here. And what is the first step they go in finding out what’s in, what’s on the market out. What? What kind of projects are out there? I have some. I have $500,000 a cash
01:05:39.280 –> 01:05:46.530
Mark Perlberg: for my high paying w to, and I don’t. I don’t want to put in the stock market. I want to do something that’s gonna drive down my taxes.
43001:05:46.560 –> 01:05:54.040
Mark Perlberg: And what’s the first step I go in evaluating what to put my money in as far as these. These oil and
01:05:54.120 –> 01:05:54.960
01:05:55.450 –> 01:06:03.950
Rey Trevino III: I think cash flow is the first thing you gotta look at in anything it’s like is this already? Is is this already, you know, is my investment. Are you gonna get me cash flow on day one.
01:06:04.270 –> 01:06:12.770
Rey Trevino III: and if not, how quickly is it going to get me? You know. Cash flow day one. That’s another thing my father has taught me over the years is, hey?
01:06:12.810 –> 01:06:16.220
Rey Trevino III: You know you don’t sit on people’s money.
01:06:16.510 –> 01:06:36.440
Rey Trevino III: and what we do is it’s like, hey? We want to be able to go. We need to drill and in and get that cash flow, going as quickly as possible. It’s a bre if it’s a brand new drill, and if it if it’s something like we put Patrick into that’s already producing. That’s even better, because then it’s already producing with
01:06:36.440 –> 01:06:48.360
Rey Trevino III: ways of more income to come down. You know. Let’s let’s make that money work for you as quickly as possible, and I guess that’s really the question when you’re looking at it is my money working for.
01:06:48.920 –> 01:06:57.510
Mark Perlberg: So what is so? What is? What is it? A prospective investor? Do they contact you directly, and you send them some estimates and the timeline, or
01:06:57.740 –> 01:07:11.140
Rey Trevino III: How does that process work? Oh, yes, absolutely. If If somebody reach out to to, to, to stew, or myself, you know, we would definitely be able to tell them about everything that we got going on. And yet a lot we do have a perspective
01:07:11.140 –> 01:07:19.190
Rey Trevino III: of a current great project that we have right now, and we could definitely send that out, and, you know, discuss it with them in more detail.
44001:07:20.130 –> 01:07:32.300
Mark Perlberg: Another thing I was curious about here. Was is there ever something like a mutual fund that invest in multiple different projects at the same time. And you can just deploy your cash, or is is that possible? Or you just have to pick.
01:07:32.360 –> 01:07:41.250
Mark Perlberg: If you really want to hedge your risk, or whatever, or just have a variety of sources, you would just have to buy different shares of different stuff.
01:07:42.840 –> 01:07:45.390
Stu Turley: Yes, the answer is yes.
01:07:45.440 –> 01:07:59.910
Stu Turley: So you just have to be very careful on how you do that. Some emp operators have multiple Wells multiple items on it. Some of the royalty have multiple locations
01:07:59.910 –> 01:08:17.160
Stu Turley: like you have. Rt: may have multiple fields on multiple locations, so the answer is, it’s a combination of doing your due diligence and having somebody that will do work with you on the due diligence, on those things.
01:08:17.180 –> 01:08:30.160
Stu Turley: on the bigger family offices that we work with. There’s data rooms and the data rooms on the fields, and like on our T’s absolutely wonderful to work with, with his geologists
01:08:30.200 –> 01:08:46.290
Stu Turley: and and those kind of things so multi wells multi there’s a difference between a single bore well and a multi well and multi-location some. So the answer is, Yes, how’s that?
01:08:46.290 –> 01:08:51.840
Mark Perlberg: So for those of you guys who are interested in we’ll also talk to our clients
01:08:51.899 –> 01:08:53.040
Mark Perlberg: about this.
01:08:53.060 –> 01:08:56.220
Mark Perlberg: But basically, you know, you reach out to you guys.
45001:08:56.470 –> 01:09:03.540
Mark Perlberg: and we can get a perspective. We’ll get an estimate of what we expect. The cash flow in the the
01:09:03.580 –> 01:09:12.010
Mark Perlberg: the after tax savings to be here. Well, the the tax impact, and what the deductions are going to be from the intangible drilling costs.
01:09:12.040 –> 01:09:18.550
Mark Perlberg: And we’re going to get an understanding of, maybe, how long the project is going to be if it’s working interest.
01:09:18.870 –> 01:09:19.870
Mark Perlberg: and
01:09:20.290 –> 01:09:25.290
Mark Perlberg: we can take all this information and evaluate it just like any investment just like real estate.
01:09:25.529 –> 01:09:30.240
Mark Perlberg: and then you would, you know. Obviously you you.
01:09:30.350 –> 01:09:37.020
Mark Perlberg: you know you put your capital contribution in, and you get to work, and you just, and you sit back. Actually, you don’t get to work.
01:09:37.120 –> 01:09:56.820
Mark Perlberg: You sit back and you relax, and you enjoy the cash flow generated by your investments. You have your money working for you passively, legitimately, passively building well saving taxes. You see this compounding effect by which you’re reducing your taxes and investing your taxing back into more and more cash, flowing vehicles
01:09:57.860 –> 01:10:12.700
Rey Trevino III: absolutely. That is absolutely correct, and they’ll get me wrong if they want to come out to the all filled up. They’re more than welcome to come out, You know. I I know that is one thing that people like to do. They like to touch what they invest in, so they’re more than welcome to come out. It’s kind of get them a hard hat.
01:10:13.290 –> 01:10:19.530
Mark Perlberg: you know. Our our clients investing in short term rails and vacation homes are probably more inclined to touch those items.
46001:10:19.600 –> 01:10:27.340
Mark Perlberg: Then to go out there in the oil fields. It’s good to know. It’s good to know that’s a possibility
01:10:28.510 –> 01:10:39.100
Mark Perlberg: All right. Wonderful? Well, I don’t have any other questions at the moment. If anyone in the audience i’m going to check the Q. A. One time to see if there’s anything it looks like we’re good.
01:10:39.390 –> 01:10:40.610
Mark Perlberg: So
01:10:40.870 –> 01:10:54.970
Mark Perlberg: last thing for anybody who wants to get a hold of you tell us about your podcast, or any other resources you provide, or any ask of the audience, i’ll let you go first, Ray, and just as your parting words and and thank you so much for your time.
01:10:55.110 –> 01:11:10.010
Rey Trevino III: Well, well again, thank you guys, you know. But again my name’s Rachel and the third you can definitely find me on linkedin by email address. It’s Rt: that’s Rango Tango, or Rachel vino at pay goes country energy.
01:11:10.140 –> 01:11:23.930
Rey Trevino III: Dot com. You can also find me on the crude truth.com. That is the the name of my podcast. We specialize in talking to individuals about the only gas industry, but also entrepreneurs.
01:11:23.930 –> 01:11:41.900
Rey Trevino III: because without them the United States would not be what it is today. They’ve all done great things for the country, and I do think we will continue to do great things in the country. I want to thank John very much for the questions, and again I I just want to open it up. If anybody has any other questions. I am.
01:11:41.900 –> 01:11:59.010
Rey Trevino III: you know. Stew got me talking more, you know I I had great opportunity to talk with Mark before this, and at least to kind of open up and and and talk more detail about the tax benefits. So again, I just want to reiterate one more time. If anybody has any other questions.
01:11:59.010 –> 01:12:08.680
Rey Trevino III: Please ask us right now or again reach out to me, and it’s my my company website is PC. operating.com that’s for Pecos country operating
01:12:10.210 –> 01:12:12.100
awesome it’s due.
47001:12:12.250 –> 01:12:22.420
Stu Turley: Oh, you bet, Mark, Thank you so much. I just really appreciate you as a podcast host, and I had an absolute blast with you and Ray.
01:12:22.590 –> 01:12:34.390
Stu Turley: You can find me at energy newsbeat, dot calm. And that is my news site. My podcast is energy newsbeat.
01:12:34.400 –> 01:12:47.900
Stu Turley: and it looks like we’re gonna be hitting the about the 1 million dollars. A 1 million downloads for 2023 coming up by the end of the summer Our t’s podcast is going nuts as well, too.
01:12:47.940 –> 01:12:56.290
Stu Turley: You can also find me at my email address is s turly to You are ley
01:12:56.310 –> 01:13:01.520
Stu Turley: at Sandstone Group. Hi.
01:13:01.540 –> 01:13:17.140
Stu Turley: the sandstone, hyphen hyphen group.com. Don’t even know my own email address. That’s terrible. And Mark, as always, they can reach out to you and shoot us your email, and we wanna stay in touch and answer any
01:13:17.140 –> 01:13:28.980
Stu Turley: also global market, geopolitical oil and gas as well as individual questions. All the way down. I do a lot of market research and just love talking energy if you can’t film
01:13:29.310 –> 01:13:38.240
Mark Perlberg: how wonderful! Yeah, and I I was a guess on your podcast, and we were riffing more on the tax side, because these things can be used as we talked about
01:13:38.250 –> 01:13:46.450
Mark Perlberg: for offsetting ordinary income, capital gains, income, passive income, generating passive income to user passive losses.
01:13:46.460 –> 01:14:06.270
Mark Perlberg: all sorts of cool stuff. You could do this, and we were ripping for a while on that, so you can check that out as well. So you know again. Thank you so much. I think this is a really wonderful opportunity that I’ve been dying to share and expose to my audience on all the cool things you can do here. So i’m really excited to share this with with you.
48001:14:06.270 –> 01:14:08.300
Mark Perlberg: our audience, and
01:14:08.320 –> 01:14:15.900
Mark Perlberg: we will. I’ll send anybody your way if they’re interested. And I hope you guys got a lot of out of this and keep
01:14:16.090 –> 01:14:18.680
Mark Perlberg: stay tuned for the next great episode
01:14:18.790 –> 01:14:20.650
Mark Perlberg: here with Mark pro over Cpa.
01:14:22.310 –> 01:14:23.560
Rey Trevino III: Thank you. Guys
01:14:23.840 –> 01:14:25.070
01:14:25.590 –> 01:14:27.070
Mark Perlberg: All right. I’m going to.
01:14:27.320 –> 01:14:30.650
Mark Perlberg: Well, I’m going to pause the recording. I think we’re good to go.
01:14:30.730 –> 01:14:38.730
Mark Perlberg: I think that you guys definitely provide a lot of wonderful value to to the audience. And well, thank you. It was all Rt. And John
01:14:38.800 –> 01:14:43.960
Rey Trevino III: John Fantastic questions. If you’re still on.
49001:14:44.160 –> 01:14:45.120
John Drawdy: appreciate it.
01:14:45.380 –> 01:14:51.100
Stu Turley: And, Mark, we’ve got some more things coming down the pike, and I want to throw them at you. So thank you so much.
01:14:51.160 –> 01:14:57.900
Mark Perlberg: Yes, yeah, be excited to to check this out, and hopefully, we get some of our clients to invest in this stuff, because we do have clients that are
01:14:58.100 –> 01:15:00.450
Mark Perlberg: who have cash. They don’t know what to do with it.
01:15:00.640 –> 01:15:08.470
Mark Perlberg: you know, and like I said, they’re getting, you know they’re running.
They’re reaching their capacity to buy new rentals and do costs.
01:15:08.490 –> 01:15:18.680
Stu Turley: you know, families to raise and jobs to. So i’m seeing huge things. Mark the way my website is. I I get
01:15:18.970 –> 01:15:30.460
Stu Turley: on average 35,000 users a day on my website, and it the feedback I’m getting is real estate is really in trouble, especially commercial.
01:15:30.600 –> 01:15:31.560
Stu Turley: So
01:15:31.630 –> 01:15:40.890
Mark Perlberg: it takes a while you sell you sell out your cash. It takes a while before that cash comes back. You know you, you you know, even with what a decent
01:15:40.990 –> 01:15:50.880
Mark Perlberg: you know, Roi here, I mean, it takes a while. Your cash has left your pocket. With this you get your cash back much faster, the velocity of casual way better.
50001:15:50.930 –> 01:16:01.610
Stu Turley: Oh, and and I want to stress again the importance of working with the Mp. Operators like Ray, and absolutely
01:16:01.920 –> 01:16:07.520
Stu Turley: not. All oil and gas investments are the same.
01:16:08.090 –> 01:16:23.550
Stu Turley: So I just want to share that with you. If you tell any of your clients to do due diligence, and Rt. Does a fantastic job doing his homework ahead of time. And
01:16:23.560 –> 01:16:42.090
Stu Turley: I’ve just. I’ve thoroughly enjoyed getting to work with him, because not because I get to do his due diligence. But I he’s one of the few that I have selected to work with. Yeah, thank you. No, Marco. Right now is a great time. We have at least 18 more months of a high high dollar or high dollar oil.
01:16:42.100 –> 01:16:50.760
Rey Trevino III: and even if a a Republican gets an office, I think we will probably still stay at the $75 that we’re at today.
01:16:50.940 –> 01:17:03.560
Rey Trevino III: and so we we’ve got a lot we’ve got a lot to do. We’ve got a lot of ground to cover. We’re really excited. We’re trying to punch as many holes as we can in the next 18 months, and then, if all goes down.
01:17:03.560 –> 01:17:19.480
Rey Trevino III: we’re going to punch even more holes, because then all the costs have gone down and get ready for it to go back up. You know. That was one thing we did in 2,020. We were able to pick up several leases in the first 6 months of 2020. After that tumble people wanted out.
01:17:19.480 –> 01:17:24.380
Rey Trevino III: and those have been some of the best performers that we’ve had, so far as
01:17:25.780 –> 01:17:27.700
01:17:27.850 –> 01:17:38.670
Rey Trevino III: Yeah, some play opportunity out there. Huh? Yeah, there’s plenty of opportunity out there. There are a lot of wells that need to be drilled out of that. We can also go back in and rework.
51001:17:38.700 –> 01:17:45.530
Rey Trevino III: which won’t cost as much. Just like with the Rehab home. It’s like, hey, what can we do to to make this thing look beautiful.
01:17:46.050 –> 01:17:54.750
Stu Turley: hey? I I just had a crazy idea, and i’m, I’m gonna see about how I can implement this. But I want to put a thing out there for preferred Cpa
01:17:54.880 –> 01:18:05.710
Stu Turley: folks. I’ve got a few others as well, too, so I can get you on our site and that kind of stuff. If you can email me your logo.
01:18:06.010 –> 01:18:08.950
Stu Turley: That would be phenomenal.
01:18:10.250 –> 01:18:10.930
Rey Trevino III: Yeah.
01:18:11.570 –> 01:18:17.140
Stu Turley: I can’t hear you. Are you there? Did I? Just? I gotta go that you as well.
01:18:17.200 –> 01:18:26.460
Mark Perlberg: We keep in touch. And, John, i’ll send you their information if you’re interested in connecting your clients with with Ray.
01:18:26.530 –> 01:18:45.150
Mark Perlberg: you know, and or yourself investing lot of cool self. And you could do so. Yeah, we we could definitely do that, John. Us to also has a zoom account that we can set up and and discuss like that. And and, John, please take this as a joke. But you look fabulous on that picture.
01:18:46.620 –> 01:19:01.480
John Drawdy: Oh, that’s one of my managers. Yeah, I don’t. I don’t do any work. So she has the zoom account. There you go. That was a joke, I hope. I didn’t. Have you? Alright. Bye, guys? Thank you guys very much. Thank you all.
01:19:01.650 –> 01:19:02.510
John Drawdy: But
52001:19:08.990 –> 01:19:11.680
John Drawdy: hey, mark you, there.
01:19:11.900 –> 01:19:15.090
John Drawdy: that was pretty cool, man. I really appreciate you inviting me to that.
01:19:15.110 –> 01:19:18.780
Mark Perlberg: Oh, yeah, man, i’m glad you got you enjoyed it, you know. I I think this is.
01:19:18.850 –> 01:19:23.290
Mark Perlberg: you know, like I said, this is one of the coolest things, and no one’s really
01:19:23.310 –> 01:19:26.310
Mark Perlberg: talking about it much in in the tax strategy world.
01:19:26.450 –> 01:19:30.630
Mark Perlberg: Right? Everybody like, I think 400 oneks are so freaking, boring.
01:19:30.840 –> 01:19:38.300
Mark Perlberg: and iras, and you can’t touch the money until you’re 60. We don’t. You don’t even know if these people are going to learn live to 60, some of them.
01:19:38.450 –> 01:19:43.420
John Drawdy: Yeah, exactly. It’s money you can’t touch, but this thing keeps going. It sounds like
01:19:44.560 –> 01:19:49.960
John Drawdy: It’d be interesting to see what kind of prospectus they have and things like that. I I look forward to looking at those. So
01:19:50.110 –> 01:20:06.970
Mark Perlberg: yeah, I’m: curious to. And what kind of data we can pull from our, you know, to do our own analysis. I mean some of the numbers they were telling us we’re we’re we’re we’re we’re we’re, we’re, we’re we’re we’re we’re we’re we’re we’re we’re we’re we’re we’re we’re we’re we’re
53001:20:07.170 –> 01:20:08.050
John Drawdy: yeah.
01:20:08.120 –> 01:20:21.200
John Drawdy: I mean. So that means like $100,000 in 12. I mean even 18 months.
What’s that pulling per month? That’s like $6,000 a month or something like that, right?
And then it just keeps going after.
01:20:22.060 –> 01:20:27.620
John Drawdy: Yeah, that’s that’s huge. That’s huge.
01:20:27.900 –> 01:20:29.260
Mark Perlberg: and you know
01:20:29.470 –> 01:20:42.100
John Drawdy: the naysayers will say, oh, gas is going out of style. Everybody is buying Tesla. They just don’t know what they’re talking about. I agree, man. All I can see is light in my house on fire trying to charge something like that. You know
01:20:42.510 –> 01:20:44.060
Mark Perlberg: technology is not there yet. I
01:20:44.080 –> 01:20:51.520
Mark Perlberg: i’m not. No, i’m not buying an electric car because I don’t. I know I I’ll get strained when my frigate battery dies.
01:20:51.610 –> 01:20:53.380
John Drawdy: Yeah, remember to plug it in.
01:20:54.060 –> 01:21:00.320
John Drawdy: Yeah, I’m: i’m gas only for long as I can be yeah.
01:21:00.780 –> 01:21:10.810
John Drawdy: all right. I got you ready for my team meeting with my my team here. So yeah, was again. Thanks a bunch. And you going to San Diego and me.
54001:21:11.010 –> 01:21:18.960
Mark Perlberg: I i’m taking this one off. I’m a little bit traveled out. but i’ll be in November.
I don’t know. Do we know where we’re going to be in November.
01:21:19.030 –> 01:21:20.160
John Drawdy: Kansas City.
01:21:20.730 –> 01:21:23.500
Mark Perlberg: Kansas City. I know. Man.
01:21:25.380 –> 01:21:28.100
John Drawdy: Yeah, those. Oh, top of my travel list.
01:21:28.330 –> 01:21:32.670
Mark Perlberg: Whatever Kansas City I might know someone.
01:21:32.890 –> 01:21:33.770
John Drawdy: Yeah.
01:21:34.110 –> 01:21:38.860
John Drawdy: all right. Well, thanks again, Mark, we’ll talk again sometime soon.
01:21:38.960 –> 01:21:40.180
John Drawdy: Bye bye.
01:22:24.280 –> 01:22:30.950
Mark Perlberg: What’s up, guys? We just got done having an incredible talk. Hmm.
01:22:33.240 –> 01:22:36.210
Mark Perlberg: Readings. Everybody hold on, let’s do it.
55001:22:37.240 –> 01:22:45.070
Mark Perlberg: How’s it going, everyone? We just got done with a fantastic conversation with Ray, Travino and Stewart Turley
01:22:45.220 –> 01:22:48.140
Mark Perlberg: talking about investing in oil and gas.
01:22:48.210 –> 01:22:52.130
Mark Perlberg: and all of the tax advantages that you can use for this.
01:22:52.660 –> 01:22:57.760
Mark Perlberg: This is a conversation I’ve been yearning to have for a very, very long time.
01:22:57.850 –> 01:23:10.080
Mark Perlberg: and it should be very, very valuable to some of you who want to see the same types of tax benefits that you see from real estate, especially especially you short-term rental investors out there.
01:23:10.160 –> 01:23:18.020
Mark Perlberg: struggling to find deals and looking for ways to offset your active income and the cash flow that you can get
01:23:18.050 –> 01:23:23.090
Mark Perlberg: is going to be just incredible on some of these deals that they they’ve illustrated.
01:23:23.280 –> 01:23:32.710
Mark Perlberg: So I want you guys to listen and let me know your thoughts. This is going to be a really great episode. Stay tuned lots of really valuable insight that should help you
01:23:32.720 –> 01:23:42.640
Mark Perlberg: think about incorporating, investing in oil and gas and pairing it with your real estate, investing to help build wealth and reduce your taxes.
01:23:42.780 –> 01:23:43.770
Mark Perlberg: Hope you enjoy.