#268 Why Do Doctors End Up in Bad Investment Deals? ft. Troy Eckard of Eckard Enterprises

The Truth About Oil and Gas Investing

Peter Kim opens the conversation by introducing Troy Eckard, a longtime expert in oil and gas investing. Troy quickly addresses a big misconception: many people, especially doctors, think oil and gas is just a risky gamble. They assume it’s a hit-or-miss venture with no clear strategy behind it. But Troy explains that this isn’t the case at all.

Instead, oil and gas investing is a highly structured space, full of professionals like engineers, analysts, and geologists. The problem is that many doctors don’t treat it that way. They invest for the tax benefits or as a side play, but without understanding how it actually works. That lack of understanding often leads to mistakes or poor results.

Troy points out that physicians are incredibly smart and analytical in their work. But when it comes to investing, they often don’t apply the same diligence. If they treated oil and gas the same way they handle patient care — with diagnostics, research, and expert input — they would be much more successful.

Finding Investments That Fit a Doctor’s Lifestyle

Troy and Peter move into a key point: investments should match your lifestyle. Most doctors don’t want to deal with tenant problems, property maintenance, or anything that requires a lot of time. They want to focus on their careers while letting their money work for them in the background.

Troy says that energy investments — especially mineral rights — can meet those goals. They offer hands-off income, strong tax benefits, and long-term value. But the key is to know what you actually want. Doctors should be asking: What kind of returns am I looking for? Do I want monthly income? How much time can I realistically spend managing this?

He suggests laying out a list of investment priorities. That way, you can compare different opportunities side by side and pick what fits best. If cash flow and time freedom are high on your list, energy investing could be a strong fit.

Due Diligence 101: Vet the Person First

In this part of the conversation, Troy gives a crash course in how to evaluate a potential investment sponsor. He says it’s just like choosing a surgeon. You wouldn’t trust someone with your health if you didn’t know their track record. Why would you trust them with your money?

He recommends a basic but powerful checklist. Start with Google searches. Look up the sponsor’s name along with words like “lawsuit,” “fraud,” or “SEC violation.” If you can’t find anything about them, that’s a problem. Transparency is key. If they’ve been doing good work for years, there should be plenty of public information.

Then, ask for proof. A trustworthy sponsor should be able to share written records of past performance. If they can’t provide that, or if they refuse to send anything in writing, that’s a red flag. Troy stresses that real transparency is about action, not just words.

What Drives Doctors to Invest: Pain or Gain?

Troy shares that most people are driven by either pain or gain. Doctors might not need extra income right away, but they want relief from long hours, rising taxes, and burnout. At the same time, they’re hoping to build more freedom and flexibility.

He points out that doctors are often offered deals that promise big returns but don’t deliver real cash flow. If monthly or quarterly income is important to you, stay away from investments that only pay years down the road. Choose ones that align with what you actually want.

Doctors should take the time to write down their top investment goals. Maybe they want reliable cash flow, reduced tax burdens, and minimal effort. Then, they should use that list to judge every opportunity. If it doesn’t fit, don’t waste time.

Use a Scorecard and Keep It Emotion-Free

Troy introduces a simple and effective strategy: create a scorecard for every investment opportunity. List ten key criteria and give each one a score. If the total score is below 85 out of 100, don’t move forward. This helps you stay objective and avoid getting caught up in emotional decisions.

He explains that it’s easy to be swayed by flashy presentations or promises. But using a scorecard forces you to focus on facts. For example, if a sponsor doesn’t have a track record, that’s a zero. If they don’t offer regular communication, that’s another low score. Two or three weak spots, and the deal is out.

This method takes the guesswork out of investing. It also saves you from wasting time on deals that just don’t align with your goals or standards. Troy uses it himself to make business decisions without letting emotions cloud his judgment.

Community, Trust, and Long-Term Vetting

Peter shares a personal story here. Before investing with Troy, he spent over a year getting to know him. He asked questions, spoke with other investors, and watched how Troy operated over time. That cautious approach helped him feel confident when he eventually made the investment.

Troy agrees and says that consistency is what builds trust. A good sponsor should give the same answers and energy every time you speak with them. If their message changes from one conversation to the next, that’s a warning sign.

They both agree that referrals and community are powerful tools. Talk to other investors. Learn how the sponsor has handled tough times or shifting markets. Sometimes you’ll learn more from their clients than from the sponsor themselves.

The Real Cost of Skipping Due Diligence

To wrap up, Troy gives one last piece of advice: never cut corners on due diligence. Skipping this step often leads to costly mistakes. Many shady operators have big budgets and slick marketing, but they’re not delivering real value. Some are even running Ponzi schemes.

Troy shares that he often hires attorneys to do background checks on potential partners. It might cost a few hundred dollars, but it could save thousands in losses. Professional help can uncover things you won’t find on your own, like hidden lawsuits or regulatory issues.

He reminds listeners that bad actors are everywhere, especially in industries with big money involved. So it’s up to you to be the gatekeeper. Ask questions. Demand proof. And don’t move forward until you feel fully confident.

Troy ends with this message: “Once you find someone who does what they say, holds up under pressure, and stays consistent, that person is gold. Stick with them. Those people are rare, but they’re worth everything.”