An Investment That Provides Cash Flow - EnergyFunders
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An Investment That Provides Cash Flow

It’s a challenge to find an investment that gives a decent rate of return, and cash flow. Most stocks have been in a bull market since 2009 and are near all-time highs. Although no one has a crystal ball that can accurately predict the future, most stocks appear to have limited upside… and a lot of potential downside.

With the Fed keeping rates at all-time lows, high-grade corporate bonds don’t pay a lot more interest than a bank CD. Investors have to take big risks investing in junk bonds (companies or entities near bankruptcy) in order to get even 5 or 6%.

Even the Federal Reserve slowly raising rates, no one knows when the Fed will raise interest rates back to “normal” levels. With the tens of trillions of American debt at the government, corporate and personal levels, any rise in interest rates would increase interest expense and negatively affect cash flow for entities, businesses and negatively affect cash flow for entities, businesses and households.

History shows that you can’t rely on any government to improve the economy or get a better return on your money. That’s why wise investors seek out entrepreneurs who can find or create profitable investments. And that’s been our mission from the start at EnergyFunders.

We typically look for oil and gas projects with proven reserves, financially-sound operators with a proven track record, and wells in the best locations and geologic formations. This gives you, the investor, an opportunity to receive above-average returns and grow your wealth on a real (inflation-adjusted) basis.

However, there’s no such thing as a risk-free investment—especially in the oil and gas sector. While we can’t eliminate risk, we do our best to minimize and manage this risk.

Our engineers, geologists, and operators put in hours of hard work and due diligence to find projects with the best chance to provide consistent cash flow. We carefully vet dozens of potential projects but only a handful make the cut to the EnergyFunders platform.

A profitable well can be similar to owning your own annuity that provides reliable, consistent cash flow. With most financial annuities, you have to pay premiums for several years before you can receive a payment. Compare this to a profitable energy project, where you’re eligible to receive a payment in the month or quarter it hits the Pay Zone. You may only have to wait a few months to a year for that first payment… instead of five, 10, or 20 years.

However, even if the project doesn’t provide the cash flow you hoped for… you’re backed up with a “safety net” of IRS-approved deductions that can lower your federal and some state tax bills.

While deductions vary with each project and your home state, you can write off up to 80% of your investment as a tax credit in Year 1. And you can write off up to entire amount within five years. Plus—you’ll also receive a 15% depletion allowance against oil and gas revenue every year. Make sure you have a qualified and competent CPA or tax preparer who understands oil and gas laws to make sure you get every deduction possible.

None of us know how much time we have to accomplish our goals, build up wealth, and leave it to family and organizations that you truly care about. That’s why it’s important to only consider investments that are the highest and best use of your time and money.

To review our portfolio of carefully-vetted projects with the best chance of putting cash in your pocket sooner instead of later… simply click the button below.