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#209 Mineral rights as Passive Real Estate ft. Troy Eckard of Eckard Enterprises
Episode #209

#209 Mineral Rights as Passive Real Estate ft. Troy Eckard

In this episode, Dr. Kim interviews the CEO and founder of Eckard Enterprises, Troy Eckard. He shares the ins and outs of mineral rights as a unique investment opportunity, discussing its financial advantages, the current market landscape, and much more. Tune in to gain valuable insights into the world of mineral rights investing!

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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.

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26.01 Min • April 29

Episode Highlights

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

  • Current Market for Mineral Rights
  • Regulation of Mineral Rights
  • Available Investments at Eckard
  • More About Troy and Eckard Enterprises

Here’s a breakdown of how this episode unfolds.

 

Episode Breakdown

[01:37]

Current Market for Mineral Rights

Troy shares that the mineral rights market currently presents favorable conditions for buyers due to reduced competition and discounted asset prices. 

Uncertainty in liquefied natural gas exports is affecting the natural gas market, creating supply concerns. Oil prices are expected to stabilize around $85 per barrel, indicating a healthy market for the US oil and gas industry. 

Troy Eckard stresses the importance of achieving double-digit returns in mineral rights investments over five years, leveraging conservative financial modeling. Advanced geological mapping now allows for wells with production lifespans of 25 to 75 years, enhancing the long-term potential of mineral rights investments. This shift highlights minerals as a valuable, low-risk asset class with steady income potential for decades, supported by technological advancements.

[15:02]

Regulation of Mineral Rights

Regulations in the fossil fuel industry, particularly concerning coal and oil and gas, are discussed by Troy in response to Peter asking about regulation concerns as an investor.

Troy shares that while regulations aim to improve environmental impact, they can also lead to increased product value due to higher production costs. Despite tighter regulations, the essential nature of oil and gas in various industries ensures their continued demand. The speaker suggests that regulations won’t eliminate oil and gas but will enhance their value creation.

[17:43]

Available Investments at Eckard

In regards to investing in mineral rights with Eckard, Troy shares some of what they have to offer.

He shares that the minimum investment for portfolios ranges from $25,000 to bigger portfolios of $250,000. Troy reasons that they focus on assisting investors in building mineral oil and gas portfolios gradually and respectfully, tailored to their pace and comfort level. The minimum investment serves as a threshold to enable the strategic development of the portfolio over time.

Troy continues by discussing the process of choosing investments in mineral oil and gas portfolios, mentioning that they typically have multiple open programs simultaneously. 

These programs include small portfolios in Anadarko, Oklahoma, a small Texas portfolio, and a large portfolio in Texas. Partners invest varying amounts in different portfolios to build their own diversified investment mix. By pre-purchasing minerals before offering them to investors, Eckard Enterprises aims to shorten the wait time for revenue generation once investments are made. Despite usually offering one package at a time, there are currently four open programs, leading to a busy period with high capital input compared to the previous year.

[22:54]

More About Troy and Eckard Enterprises

Troy Eckard shares that he is available to go hands-on when helping potential investors achieve their financial goals. He provides multiple ways to reach out for more information, including contacting him directly via phone, visiting the Eckard Enterprises website to access educational resources, or emailing for personalized guidance from a wealth manager. 

He mentions that Eckard stresses a low-pressure, relationship-focused approach to building long-term partnerships with investors and highlights the importance of understanding portfolio differentials in making investment decisions.

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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