going WAY off topic here… and the mods can delete this at their pleasure… It’s just interesting.
15 or so of us have partnered up to purchase small working interests ( 1/4 of 1% ownership) in south texas oil wells. $25k goes in, about 6 months later the well is completed, oil starts coming out and checks start coming in. Payback is about 28 months, and after that it’s what I call “mailbox money.”
To date I’m receiving monthly checks from 14 wells on production, with another two currently drilling.
With oil at $107 today, this represents >15% return with no work on my part. Except doing the partnership tax return. With ACH I don’t even have to go to the bank to deposit a check.
A little off topic but we may be able to bring it back through real estate investing with oil wells on it. (If they boot us Ill PM you)
I sounded surprised but I have an aunt & uncle down by mammoth cave, ky who have several pumping oil wells on their property…and it is lucrative. McWagner what driller do you work with? Did you “find them” or did “they find you” with the investment proposal?
That is great Mark. Each person needs to find what form of investing works for them.
I like investing in real estate because I am in complete control of my investment. By investing in stocks or an oil well, though they may (or may not) be profitable, my future is in the hands of someone else - whether it’s the control of the company or investment, handling of the finances, whatever. I don’t like that. That is added risk.
By buying solid physical assets - such as a house that I own 100% debt free that was purchased at a spectacular bargain price AND by becoming an ACE at managing and leasing properties, while utilizing low-cost maintenance / repair processes - the sky is the limit. And I am guaranteed 20% to 50% returns each & every year. And those returns do not factor in any capital gain I may get after the disposition of the said property in the future; in this down market I could sell each and every property I own for 2-3x what I paid for it. What risk I have that expands beyond my control is hedged with insurance, rock solid legal documentation and legal entities (note that insurance is the big hedge against unforseen risks). So what I engage in is almost a no-risk form of investing. But the returns are solid.
Footnote - Warren Buffet’s rules of investing are (1) Never lose money, and (2) Never forget rule number 1. My particular niche is working well for me now because the SFH market in the process of going through a once in a lifetime blue-light special, I have plenty of incoming cash from my small business, I still get great returns on my properties and I don’t violate Warren’s rules of investing whatsoever. =) In the future I will definitely not be opposed to utliizing leverage in my investing, albeit especially when I begin buying assets such as multi-million dollar residential or commercial investment properties.
Is your net worth anywhere near 40 or 50 billion dollars? Probably not. Warren is not perfect, no. No one is. But until your net worth exceeds his …he knows a lot more about how to be successful at business and investing than you.
And that applies to me, and probably everyone else here on this message board. =)
Warren is mildly disliked by many investors and business owners, especially the successful ones, because of his political views. But when it comes to business he is a pretty incredible guy.