What Passive Investing and the Energy Industry Have in Common: Brent Franklin’s Success Story
Investing in the oil and gas industry in particular was out of reach for the average passive investor.
Navigating contracts, vetting operators, and managing assets was the name of the game and could only be done by those with extensive experience… that is until Brent Franklin came along.
Brent got his start working in the oil and gas industry and eventually decided that it was time to start investing himself.
“I started realizing the opportunity to buy distressed assets, fix them up, and sell them.”
To that end, he worked to set up contracts and partner with operators and companies, but things didn’t go as he expected:
“I started partnering with people, and I didn’t realize that they were taking advantage of me without me knowing it. I got beat out on paperwork, I got beat out on contracts, I got lied to about the production.”
Knowing that the industry was worth investing in if he could just get past all the “potholes” in the road, he pushed forward. Eventually, he was able to get a good handle on the industry and found a number of reputable companies to partner with.
He realized that there was plenty of opportunity but not enough investors with the know-how to seize it. So, he started his wealth management company — Rise Capital — to solve this problem.
I really started this model because 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 business model brought passive investors to a landscape that was dominated by the few who knew the ins and outs of the energy industry.
As such, all the investor has to worry about is which companies they want to invest in.
“We’ve made it super easy. You don’t have to do the due diligence. You don’t have to worry about the fulfillment. You don’t have to try to worry about dry wells or something not working out.”
Even better, the oil and gas industry receives numerous tax benefits allowing for major tax savings.
For example, Rise Capital recently purchased drilling equipment to be used to ramp up production at different sites. Investors involved in the project were able to receive massive tax breaks as a result.
At the same time, investors can benefit from monthly dividends and equipment appreciation, making the oil and gas industry one of the best industries to invest in for short and long-term returns.
All in all, Brent Franklin introduced passive investing to the energy industry by creating a model similar to that of buying stocks. In the case of Rise Capital, would-be investors can buy “units” in companies and projects allowing them to participate in a number of investments without having to lift a finger.
