(PRWEB) April 6, 2005 -- Introduction: As real estate prices continue to increase and investors are seeking different replacement property options for 1031 like-kind exchanges, Oil & Gas alternatives are beginning to emerge as viable alternatives for 1031 investors, and should strongly be considered to complement a real estate dominated portfolio. Section 1031 of the Internal Revenue Code classifies an investment in an Oil & Gas working interest or royalty interest (Oil & Gas production) as “like-kind” real estate for 1031 exchanges. An investor can exchange raw land, an apartment complex, an office building and all other types of investment real estate for an interest in Oil & Gas production.
Portfolio Diversification: While real estate prices have continued to increase, it has become difficult to accurately predict a profitable exit strategy for many passive real estate investments saddled with balloon financing and interest only loans. However, Oil & Gas production can provide a long term investment with secure cash flow without the headaches of additional 1031 exchanges for the investor. Also, Oil & Gas production is not management intensive, and the investment is wholly-owned by the investor who will. . . full release here.
Recent Comments