Investor Education

Knowledge Center

Browse our library of educational videos, articles, and resources covering 1031 exchanges, DSTs, oil & gas investments, and private placements.

Meet Alex
Alex is your guide through our education content, bringing curiosity, clarity, and a knack for making complex investment topics approachable. Look for Alex throughout the series.
Video Series

Education Series

Investor education to better understand 1031 exchanges, Delaware Statutory Trusts, Oil & Gas Mineral Rights, and alternative investment strategies.

Educational Articles

Deepen your investment knowledge

Read in-depth guides on advanced strategies, tax considerations, and best practices for alternative investments.

1031 Exchange · White Paper

How Do DSTs Move Debt Off My Balance Sheet?

Learn how debt is allocated within DST structures and the potential implications for your exchange.

Download PDF →
Oil & Gas · White Paper

Oil & Gas Drilling Funds Explainer

An overview of oil and gas drilling fund structures, potential benefits, risks, and how they differ from royalty investments.

Download PDF →
Private Placements · White Paper

Private Placements & Syndications Explainer

Understand how private placement syndications work, including fund structures, investor requirements, and key considerations.

Download PDF →
1031 Exchange · White Paper

How Can I Use Zero-Coupon DSTs in My Portfolio?

Understand how zero-coupon DSTs work and how they may fit into a diversified 1031 exchange portfolio strategy.

Download PDF →
Tax Strategy · Guide

What Does Depreciation Recapture Mean?

A clear explanation of depreciation recapture: what it is, how it's calculated, and strategies that may help defer or reduce the tax impact.

Download PDF →
Tax Strategy · White Paper

Fee Simple Donations Explainer

Learn about fee simple donation strategies and how they may provide tax benefits for property owners and investors.

Download PDF →
Tax Strategies · White Paper

Tax Strategies for Investors

An overview of tax planning tools and strategies, from 1031 exchanges and Opportunity Zones to bonus depreciation, IDC deductions, and charitable donation structures.

Download PDF →
Oil & Gas · White Paper

Oil & Gas Royalties & Mineral Rights

Explore the fundamentals of oil and gas royalty investments, including income potential, tax considerations, and how they compare to working interests.

Download PDF →

Explore our service pages for more detail: 1031 Exchange & DSTs · Oil & Gas Investments · Private Placements · All Solutions

Common Questions

Frequently Asked Questions

Find answers to common questions about 1031 exchanges, DSTs, oil & gas, and other investment strategies. Click a topic to expand.

An accredited investor generally has a net worth exceeding $1 million (excluding primary residence) or annual income over $200,000 individually ($300,000 with a spouse) in each of the past two years. Verification is required before accessing private placement offerings.
A 1031 exchange applies to investment and business-use real estate - not primary residences. The relinquished and replacement properties must both qualify as "like-kind" under IRS rules. Always consult your tax advisor.
DST hold periods vary by offering, but typical durations range from 5 to 10 years before the sponsor sells the underlying property. This varies by deal and is disclosed in the Private Placement Memorandum (PPM).
When the DST's underlying property is sold, investors receive their pro-rata share of sale proceeds. Investors may have the option to do another 1031 exchange at that time, subject to IRS rules and new offering availability.
No. DST distributions are not guaranteed and depend on the performance of the underlying property, occupancy rates, and operating expenses. Distributions may be reduced or suspended at any time.
"Boot" refers to any portion of a 1031 exchange that does not meet the like-kind exchange requirements - typically excess cash or debt not fully replaced. Boot is taxable in the year of the exchange. A Delaware Statutory Trust can be named as a backup or catch-all for any boot resulting from the purchase of a replacement property that doesn't fully spend all of the equity or debt from the relinquished property sale. This strategy may help investors avoid unintended taxable events.
In order to meet the requirements of IRS Code Section 1031, all funds and debt from the relinquished property must be replaced. However, some DST sponsors offer structures that allow for a cash-out refinance after an initial holding period - usually 45 to 90 days. In this advanced strategy, an investor places all cash proceeds into a highly leveraged DST, and after the holding period, may access liquidity through a refinance event. This is considered an advanced strategy and should be discussed in detail with your representative and tax advisor.
Landowners have been receiving a share of revenue from oil and gas wells drilled on their property since the 1850s. This share of revenue is called a royalty and is commonly referred to within the industry as 'mailbox money.' Royalty owners do NOT drill or operate wells nor do they share in any of the risks or expenses associated with that aspect of the industry.
Royalty owners receive direct deed and title to their asset the same way they would for a traditional real estate property. That title is recorded and held on a county level.
Royalty owners have the potential to receive 12 checks (or direct deposits) each year and 1099 tax documents directly from the operators.
Yes. Under IRS Revenue Ruling 68-331, oil and gas royalty interests qualify as like-kind real property. This means investors may exchange traditional real estate into royalty interests, or vice versa, while deferring capital gains taxes. Multiple court rulings and private letter rulings have reaffirmed this treatment.
Pricing and production variability are the biggest risks to owning oil and gas royalties. A royalty owner's monthly income, if any, moves up and down as commodity prices and production levels fluctuate.
A working interest is an ownership stake in an oil and gas drilling operation. Unlike royalty owners, working interest holders participate directly in the costs and revenues of exploration and production. This active involvement comes with greater risk but may also provide access to substantial tax deductions, particularly through Intangible Drilling Costs (IDCs).
IDCs are expenses related to drilling that have no salvage value, including labor, chemicals, mud, grease, and other materials consumed during the drilling process. IDCs typically represent 60–80% of total well costs and may be deductible in the year they are incurred, potentially providing significant year-one tax benefits.
The primary differences are in risk, tax treatment, and ongoing obligations. Royalty owners are passive: they receive income without operational costs or capital call risk. Working interest holders are active: they share in operational costs and may face capital calls, but they gain access to IDC deductions and potentially active income classification for tax purposes.
Generally, no. Working interests are typically structured as personal property interests rather than real property interests, which means they usually do not qualify for 1031 exchange treatment. Royalty interests, by contrast, do qualify. Investors should consult with their tax advisor for guidance specific to their situation.
Both royalties and working interests are generally illiquid investments. For royalties, there is often demand for cash-flowing energy properties and owners may be able to get liquid in 90–120 days. Working interests are typically tied to the program's life cycle. Regardless, investors should assume these are long-term, illiquid holdings.
Royalty income is taxed as portfolio (ordinary) income, with 15% potentially shielded by the depletion allowance. Working interest income may qualify as active income, which can be advantageous for offsetting other active income sources. IDC deductions may be taken in the year incurred. Both investment types may have state-level property tax implications. Always consult your tax advisor.
We've prepared a detailed Oil & Gas Drilling Funds Explainer covering program structures, tax implications, and risk considerations. Download the Drilling Funds Explainer (PDF) or schedule a consultation with one of our representatives.

Want to go deeper? Visit our dedicated pages: 1031 Exchange & DSTs · Oil & Gas Investments · Private Placements

Investment Terminology

Glossary of Terms


Key definitions across 1031 exchanges, DSTs, private placements, oil & gas royalties, and alternative investment strategies.

Ready to start investing?

Our team is here to help you understand your options and determine which strategies align with your financial goals.