#173 Mineral Rights: Predicting Returns, Due Diligence, and Choosing the Right Partners, ft. Troy Eckard - Passive Income MD
#173 Mineral Rights: Predicting Returns, Due Diligence, and Choosing the Right Partners, ft. Troy Eckard
Episode #173

#173 Mineral Rights: Predicting Returns, Due Diligence, and Choosing the Right Partners, ft. Troy Eckard

In this episode, Dr. Peter Kim sits with Troy Eckard, the CEO of Eckard Enterprises, about key factors to consider to make smart investment decisions in mineral rights. Tune in to learn more about ensuring solid investments in the mineral rights landscape.

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Eckard Enterprises brings this episode to you.

Eckard Enterprises, LLC, is a family-owned and operated alternative investment and asset management firm, specializing in mineral rights and the U.S. energy industry. Eckard believes that owning tangible assets is one of the safest, long-term investment strategies available in today’s investment climate.

31.26 Min • August 21

Episode Highlights

Now, let’s look at what we discussed in this episode:

  • Expected returns from mineral rights
  • Future outlook of mineral right investing
  • How to do your due diligence
  • What deals on mineral rights look like
  • Physician Real Estate & Entrepreneurship Conference (PIMDCON)

Here’s a breakdown of how this episode unfolds.

 

Episode Breakdown

[01:26]

Expected returns from mineral rights

Peter asks Troy to talk more in-depth about what returns to expect as an investor in mineral rights. They discuss the finances, rate of return, and the economy behind when you invest in mineral rights.

“We only want to buy minerals where we believe in our mind, there’s 100% chance of preservation capital, no loss income, so we’re not buying speculative, we’re not buying maybe they’ll develop, we buy only proved producing existing cash flowing minerals, we don’t wanna lose any money.”   — Troy Eckard

[12:28]

Future outlook of mineral right investing

Dr. Kim furthers on by asking Troy what the future looks like for mineral rights in the coming years. Together they discuss liquidity, demand, imbalances, and other several factors that drive opportunities in mineral investing for the next three years.

“The shrinking liquidity is killing the oil and gas sector, they’re not gonna be able to drill as many wells. If you don’t drill as many wells, you’re gonna have less supply. But yet, we’re now in record demand.”  — Troy Eckard

[16:25]

How to do your due diligence

Peter asks Troy his recommendations for potential investors to figure out how to do the proper due diligence when it comes to what they should invest in, who they should invest in, and what questions should they be asking.

“So it’s really a due diligence, where don’t buy the story, buy the facts, take all the smoke and mirrors and say, just tell me in fact, who you are, show me your track record. I don’t care about all the rhetoric, stay true to the course.”  — Troy Eckard

[25:21]

What deals on mineral rights look like

Dr. Peter Kim urges Troy to share what deals in mineral rights look like. They discuss upcoming big opportunities, related risks, and the time frame to grab those deals in the current market.

“Now for new investors and new listeners, they’re not going to believe that… But I can tell you this company, we’re probably putting in close to 20 plus million dollars of our own money in this deal. And we’re fully exposed at risk. It’s that good a deal that we took such a big position because it’s that rare, rare opportunity where you get that extraordinary asset base”   — Troy Eckard

[30:00]

Physician Real Estate & Entrepreneurship Conference (PIMDCON)

 Dr. Peter Kim closes by inviting everyone to join the Physician Real Estate & Entrepreneurship Conference (PIMDCON) this September 21 – 23, 2023 in Los Angeles, CA. The event is for those who want to learn more about real estate, investing, finances, passive income, entrepreneurship, and more. 

“By attending in person, you’re gonna get exclusive access to expert speakers, panel discussions, and the opportunity to connect with like minded high achieving professionals like yourself, this engaging event, it’s packed with amazing content, workshops and networking opportunities.” — Dr. Peter Kim

We talk in depth about all of this and more in our course–Passive Real Estate Academy. Want to learn everything about investing in real estate with confidence? You can grab your seat right here!   

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