Complete a 1031 Exchange using Producing Oil and Gas Investments as "like kind" Property.

For 1031 Exchange Buyers a substitute for Ownership of Real Estate is a fractional interest in an Oil and Gas Production that qualifies as "like kind" under Section 1031 of the IRS Code. Ownership is structured through a "fractional interest" similar to tenant-in-common ownership in real estate and is considered "like-kind" for a 1031 exchange. 

A Viable Alternative Investment for "like-kind" 1031 Exchange.

Section 1031 of the IRS Code classifies an investment in an Oil and Gas Production working interest and Royalty Interest as "like-kind" for 1031 exchanges. A working interest is a leasehold interest which allows the lessee the right to search for and produce Oil and Gas on a parcel of land and receive a portion of the proceeds of the Oil & Gas produced. Each fractional owner of an offering has the same rights as a single owner and can subdivide or offer for sale their ownership interest at any time on the open market.

The purchase of a "fractional interest" in a qualified working interest offers the 1031 exchange Buyer the stability of an immediate economical closing with a predictable cash flow stream with the ability to participate in the future production with payment based on commodity prices over the long term.

Portfolio Diversification: A 1031 Buyer now has a simple and economical vehicle to add diversification to a portfolio by acquiring highly liquid individual fractional ownership in one or several qualified Oil and Gas Production working interests in different markets with predictable Oil and Gas Production flow in place and no management responsibilities.

Liquidity:	There is an active secondary market for established Oil and Gas Production to sell directly to investors or by auctions specializing in Oil and Gas Production based on projected production and the commodity prices.
Life of production:	Long term projected production with proved reserves supported by qualified third party reports.
Annual Return:	Average payout of 15% to 18% per annum over the term. This payment must be considered as return of investment as well as return on investment as the future value of the investment will be zero when the production is completed.
Tax Treatment:	Income is eligible for tax free depletion allowance of approximately 15% which is not charged back upon the future sale or 1031 exchange of the investors "fractional interest".
Diversification:	Long term management free investment with secure cash flow with a wholly-owned interest with the investor controlling the timing and exit strategy.
Valuation:	There are no drilling risks but Oil and Gas Production. Investments are valued on the amount of potential production and the price of the commodity. Prices will increase and decrease and therefore payouts will vary. Over the long term growth should provide an ideal inflation hedge.
International:	Unlike real estate Oil & Gas is a Global commodity that is not solely dependant on the US economy and interest rates.
Leverage:	Investments are ideal for balancing equity and leverage to 50% of value is available through typical Bank loans to qualified borrowers.
Closing:	Quick and economic closing.
	Individual 1031 Investors should consult their tax advisor, CPA, QI, and legal and financial advisors as part of making any investment decision.
Offerings	Offerings available from $250,000 minimum in various TX producing fields.
	Considerations when Purchasing and Owning an Oil and Gas Producing Property.