Taking charge of your own finances means diversifying your portfolio and being willing to explore new options for you to make money. Did you know that one of the most exciting investments you can make right now is to buy an oil well? A lot of people think that all the oil wells in America are owned and operated by the major oil companies but that is not even remotely true. Anyone can own an oil well. When you own the well, you have access rights to the land and the oil it produces and are practically guaranteed to receive a return on your investment. You don’t have to know about geology or understand anything about the actual drilling process, although after becoming an investor you might actually become more interested in this fascinating entrepreneurial opportunity.
Generally when you own your own oil well, you have two options or two investment models. The first is crowd funded. Pretty much anyone with a relatively small amount of investment capital can participate in a crowd funded oil well project. When you invest in a crowd funded project, most of the hard work has already been done in terms of land surveying. The crowd funded wells can be considered “sure things” when it comes to their production potential. Of course, your rate of return will be lower because of the lower risk involved.
If, however, you have a larger amount of capital to invest and have higher risk tolerance, you might be interested in becoming what is known as a Phase I investor. That means you are assuming all the risk–and thus all the benefits–of purchasing “dry hole,” conducting all the exploration and actual drilling through your investment financing. One of the advantages of an investor owned oil well is that you can also access the oil and gas tax credits available to oil entrepreneurs.
