1031 DST Sponsor Spotlight: Resource Royalty
Resource Royalty is the leading provider of mineral & royalty 1031 exchange solutions for sophisticated, accredited investors. They primarily focus on acquiring mineral and royalty properties in the STACK, Merge, and SCOOP plays in the Anadarko Basin in Oklahoma. The strategy utilizes well-established royalty properties in a proven 1031 tax-free exchange scenario. Clients enjoy the benefit of income-generating, subsurface real estate, which is located in the most active oil basins in the country. This results in a royalty income stream from some of the largest oil and gas companies in the U.S.
Focus Areas
Portfolio Diversification: Royalties & minerals provide an opportunity for investors to step away from traditional real estate and diversify into a different asset class with exposure to different economics.
Transaction Size Flexibility: Private Royalty Ownership is a 1031-Exchange alternative that allows you to customize your investment level. Whether you sell your property for $100,000 or $5,000,000, you can exchange the exact proceeds into oil and gas royalties.
Current Cash Flow: Low distributions based on compressed capitalization rates have left many traditional real estate investors hungry for higher rates of return. Minerals & Royalties have the potential to experience an acceleration in cash flow caused by the drilling of additional wells by oil & gas operators.
Investor Independence: Owners of undivided interests in royalty properties are not locked into an ownership structure that links them to other investors in the same property. Each owner is free to exercise control over the holding period and exit strategy to suit individual investment objectives.
Avoid 1031 Exchange Boot: The purchase of minerals & royalties can be used to consume any remaining exchange proceeds that an individual may have from the sale of their relinquished property or properties.
Tax Advantaged Income: Royalty income is allotted a 15% tax depletion allowance, meaning that 15% of the income received is tax sheltered.
Performance
AVERAGE NET ANNUAL RETURN (ARR)
12.24%
AVERAGE NET EQUITY MULTIPLE
1.62x
AVERAGE HOLDING PERIOD
5 Years
POSITIVE PERFORMANCE
1:0 (100%)
Track Record
| Offering | Annual Return* | Equity Multiple** | Holding Period |
|---|---|---|---|
| Fund I LLC | 12.24% | 1.62x | 5 years |
| TOTALS | 12.24% | 1.62x | 5 years |
