Brent Franklin is the founder and president of a wealth management company called Rise Capital. The company aims to provide passive investors with opportunities that were previously unreachable.
Before jumping too far ahead, let’s start at the beginning. Brent started out as a laborer in the oil and gas industry. It wasn’t until later on in his career that he decided to get into investing. He comments: “I started realizing the opportunity to buy distressed assets, fix them up, and sell them.”
As with most things, it wasn’t as simple as he first thought: “I got beat out on paperwork, I got beat out on contracts, I got lied to about the production.”
But, he kept at it and was eventually able to overcome all the hurdles in his way. He partnered with reputable companies and operators to fix up and optimize underperforming wells to increase cash flow and make a nice ROI (return on investment).
Realizing all the potential in the industry and the hurdles that keep the average investor out, he decided to start Rise Capital with the goal of navigating all the hurdles himself so that the average investor can invest in the industry without having to undergo a steep learning curve. He explains:
…I wanted to create a way for investors to have options and to be able to diversify their portfolio based on their risk tolerance and their financial needs. I didn’t want them to have to go through the learning experience or the learning curve of trying oil and gas on their own. I wanted them to be able to skip the line and partner with professional companies across the oil and gas industry…
His model allows passive investors to pick and choose which projects they want to invest in as well as how much they want to invest. Rise Capital will then take care of the fulfillment and how the money is used.
As such, investing with Rise Capital is as easy as buying stocks in a company—as the investor doesn’t have to worry about the operation side.
The wealth management company has attracted doctors in particular who are looking for investment opportunities that will alleviate some of their tax burden.
The oil and gas industry benefits from a number of tax deductions including deductions on IDCs (intangible drilling costs). As such, doctors who often pay 35% to 37% of their income in taxes, are able to receive major tax breaks if they invest in the industry.
Rise Capital has seen many successes in its investments including one in March of this year where the company bought a property that was only producing four barrels a day.
After adding more rigs, the production increased to 60 barrels a day—dramatically increasing cash flow and providing a nice ROI in the form of monthly dividends to investors.
All in all, Brent Franklin brought passive investing opportunities to the average investor in an industry that traditionally had a large barrier to entry. As such, investors like doctors are able to invest in previously unreachable opportunities that help alleviate their tax burden and build wealth.
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This post brought to you by Haroon Bajwa.
Photo: iStock
